Verizon SWOT Verizon Wireless: A Multi-Department Thesis

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verizon SWOT

Verizon Wireless: A Multi-Department SWOT Analysis

Verizon Wireless was formed from a massive merger which brought Bell Atlantic Mobile together with a number of other major wireless service providers in 1995 to establish what would become the largest wireless carrier in the United States. As present day, though Verizon has many competitors, there are none who are largely or have a wider reach within the United States. The SWOT provided here for each area of Verizon's business outlook assesses the current realities that face a company on this scale in an economy which is nonetheless challenging to decision-makers and business leaders in all industries.


With respect to its operations, Verizon Wireless is unparalleled. Indeed, it "is one of the strongest competitors due to the foundation of its large nationwide service area and strong customer base. With two quarters of 1.9 million net additions, it has set the bar for competitors to reach." (BW, 1) This is based on a convergence of extremely visible advertising tactics via television, radio, billboard and sponsorship with a service quality that is unmatched. Boasting and demonstrating a wireless network which shows limited gaps in service reliability if any, Verizon is shown to be particularly competent in the area of wireless service quality. This is its most distinctive competency, with the fewest dropped calls recorded by its customer base and the most expansive calling area in the business.Buy full Download Microsoft Word File paper
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Thesis on Verizon SWOT Verizon Wireless: A Multi-Department SWOT Assignment

Among its weakness, Verizon as a company has shown to great a reliance in the past on the clearly obsolescent landline. Its continued interest in serving as a provider of such has prevented it from taking the necessary steps to cushion the company from inevitable losses in this area. In a shrinking aspect of the market, Verizon's leadership has viewed this as a core competitive weakness. According to an article by Carew (2008), "Verizon reported an 8.1% total phone line loss, including business and residential customers. Residential access line losses were 10.6% compared with 10% a year ago. Chief Operating Officer Denny Strigl said the losses were due to competition and described them as unacceptable." (Carew, 1) it is not entirely clear that competition is the reason for the loss in this area. Instead, it would seem more appropriate to deduce that these losses have been due to a shift in the marketplace. Verizon demonstrates a clear weakness in this area by failing to engage the shift, choosing instead to play a middle ground with a dying technology.

Where competition with other providers is concerned, a number of issues emerge separate from this area of loss. Specifically, Verizon has also sustained damage due to its failure to reach agreement with Apple on its iPhone. While Cingular and at&T continue to take on new customers interested in what has generally been demonstrated as the most innovative device popularly available, Verizon continues to miss out on new subscribers based on its device provider preferences. Another area of competition -- one which presents a more positive outlook for Verizon -- is FIOS, which is designed to bring cable television competition to local markets. This presents a likelihood of growth in a new sector for Verizon as it targets competitors in the television market. Most markets demonstrate the need for consumer-based competitive pricing such as FIOS promises to provide.

2. MIS (Management Information Systems):

Verizon is particularly strong in the area of Management Information Systems. Indeed, it has espoused and demonstrated a policy of it which incorporates the human needs of an organization with fluidity. Verizon's own press release on the subject contents that it is "important for company leaders to define a realistic roadmap for critical it infrastructure and plan for additional load on the workforce during the transition, and to communicate this information to employees effectively." (PR Newswire, 1) This presents Verizon as having a particular competence in designing systems which managed by human operators. Indeed, in recent years, Verizon has dedicated considerable effort to enhancing its customer service operations by producing more effectively universal customer information systems and more reliably situated personnel.

One weakness in this area that Verizon has struggled with has been the pressure induced by globalization. Here, Verizon had spent a number of years utilizing an it orientation which appeared to be an innovative one. The combined forces of globalization and technological improvement created a scenario in which customer service issues could be handled by the combination of automated dialing systems and support technicians operating from call-centers in nations such as India and the Philippines. Though these measures drastically reduced the expenses dedicated to consumer demands and customer service representation, they also drastically reduced the effectiveness of the department. The orientation of Information Technologies to create a less personalized customer service approach would prove a faulty approach from which Verizon is now withdrawing. This primary weakness is increasingly a thing of the past, but the alteration of systems has particularly incorporated a return to domestic hiring practices, meaning that the adjustment period continues even today.

Issues such as globalization and the decreased cost in customer service labor which many competitors have chosen to enjoy are recognized by Verizon's leadership. However, it is ultimately more important for Verizon to create an information system which is channeled through personal and flexible service representatives. Verizon is today moving back toward an emphasis on customer service as a way to retain its already massive customer base.

3. Human Resource Management:

The Human Resource Management realities at Verizon present something of a mixed outlook. Among Verizon's strengths in the area of human resources, it has succeeded in designed a staff which is well-educated, effectively trained and oriented toward new priorities of stronger customer service. As Verizon moves back to a staff that is geographically local and more culturally acclimated to the demands of American consumers, it demonstrates increased effectiveness in meeting the ambitions of its lofty rhetoric on the subject. Indeed, even as it has gone through mergers, acquisitions and economic drawback, Verizon has espoused an approach of openness and honesty with its staff. So is this shown in its press release, which denotes that in such contexts, "there may be significant turmoil and uncertainty among employees of an acquired organization. It executives should communicate information to their employees in a timely, easy-to-understand manner to stave off productivity loss and malintent due to speculation and fear." (PR Newswire, 1) This presents Verizon as a company in tune with its many appendages.

However, there is also considerable evidence that its model of franchising has led to some level of disconnect from the central corporate structure. Many small outlets which are independently owned and operated tend to take on the characteristics of their own internal management. This results in pricing inconsistencies with respect to devices, policy inconsistencies with respect to product replacements and a distinctive inconsistency with respect to the demeanor and training of employees. The result is that Verizon has something of a Human Resources problem on its hands, with so many of its outlets failing to represent it consistently or positively.

This, this points us to an area where Verizon must face genuine issues. In the current economic climate, it is imperative that Verizon maintain these independent outlets. Certainly, it is not a reality to consider that Verizon might take on the personnel and outlets to do this itself. Indeed, the company is already facing cutbacks that will impact Human Resources considerably. From the report of its own leadership, "if an economic slowdown did start to affect demand, Verizon could avoid a financial impact with spending cutbacks, such as workforce reductions. Verizon in the fourth quarter made 4,000 of a planned 9,000 job cuts." (Carew, 1) This demonstrates the severity of the economic crisis even for companies such as Verizon which possess a far reach and a wealth… [END OF PREVIEW] . . . READ MORE

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