External Environment Analysis
Analyzing the external environment of Verizon, requires the use of PESTEL and Porter’s five forces model.
Threat of Entry:
Low threat. New entrants don’t present a problem to Verizon. Establishing a wireless company is expensive, it requires a substantial amount of capital, work and resources, and additionally it requires to comply with government regulations that could take a high number of years to comply with, something that dissuades new comers.
Power of suppliers:
Low threat. The number of suppliers available to Verizon is large and diverse hence this does not represent a threat to Verizon. Nevertheless, suppliers’ ability to find a company as huge and stable as Verizon is small consequently this places the …show more content…
The telecommunications industry is a highly regulated industry, Verizon should adhere to the pressures of government to comply with its regulations. Verizon is also pressured to comply with privacy and safety laws regarding their processes and phone equipment. At the same time Verizon will be required to provide assistance in government investigations as it relates to the use of their communication network.
Economic
Economic factors include inflation, interest rates and exchange rates. These have a direct impact on Verizon. The latest recession have affected every business in the US, even though those days ae long gone the economy is still recovering and competition between mobile providers remains fierce. Verizon might have been affected by interest rates which increased the price of capital hence leaving expansion opportunities on hold and or making them more expensive. In the same note, exchange rates have an effect on the way Verizon exports its services to other parts of the world. …show more content…
According to the company’s 2015 Annual Report, Verizon is actively reducing their carbon emissions with a goal to reduce it to 50% by 2020. In the same note, the company supports clean energy, reducing waste and minimizing environmental footprint. This presents a great opportunity to increase brand reputation through environmental efforts.
Legal:
The legal factors include legislation and laws. The telecommunications industry is highly regulated, Verizon have to abide and comply with laws that protect privacy as well as to ensure the safety of their products. With privacy being one of the most important aspects to safeguard Verizon have to ensure that their network remains free of security threats, this effort will consolidate the brand reputation and increase their customer loyalty.
Internal Environment Analysis
Providing an accurate analysis of the internal environment of Verizon, starts by identifying the core competencies of the company. In the same analysis, strengths and weaknesses will be identified utilizing the VRIO framework which answers the following questions: Is the resource valuable? Rare? Is it costly to imitate? And, is the company organized to capture the value of its resources?
Resouce or
Capacity Valuable? Rare? Inimitable? Organized to
Capture?
Telecommunication Services Yes No No Yes
VRIO
Analyzing the external environment of Verizon, requires the use of PESTEL and Porter’s five forces model.
Threat of Entry:
Low threat. New entrants don’t present a problem to Verizon. Establishing a wireless company is expensive, it requires a substantial amount of capital, work and resources, and additionally it requires to comply with government regulations that could take a high number of years to comply with, something that dissuades new comers.
Power of suppliers:
Low threat. The number of suppliers available to Verizon is large and diverse hence this does not represent a threat to Verizon. Nevertheless, suppliers’ ability to find a company as huge and stable as Verizon is small consequently this places the …show more content…
The telecommunications industry is a highly regulated industry, Verizon should adhere to the pressures of government to comply with its regulations. Verizon is also pressured to comply with privacy and safety laws regarding their processes and phone equipment. At the same time Verizon will be required to provide assistance in government investigations as it relates to the use of their communication network.
Economic
Economic factors include inflation, interest rates and exchange rates. These have a direct impact on Verizon. The latest recession have affected every business in the US, even though those days ae long gone the economy is still recovering and competition between mobile providers remains fierce. Verizon might have been affected by interest rates which increased the price of capital hence leaving expansion opportunities on hold and or making them more expensive. In the same note, exchange rates have an effect on the way Verizon exports its services to other parts of the world. …show more content…
According to the company’s 2015 Annual Report, Verizon is actively reducing their carbon emissions with a goal to reduce it to 50% by 2020. In the same note, the company supports clean energy, reducing waste and minimizing environmental footprint. This presents a great opportunity to increase brand reputation through environmental efforts.
Legal:
The legal factors include legislation and laws. The telecommunications industry is highly regulated, Verizon have to abide and comply with laws that protect privacy as well as to ensure the safety of their products. With privacy being one of the most important aspects to safeguard Verizon have to ensure that their network remains free of security threats, this effort will consolidate the brand reputation and increase their customer loyalty.
Internal Environment Analysis
Providing an accurate analysis of the internal environment of Verizon, starts by identifying the core competencies of the company. In the same analysis, strengths and weaknesses will be identified utilizing the VRIO framework which answers the following questions: Is the resource valuable? Rare? Is it costly to imitate? And, is the company organized to capture the value of its resources?
Resouce or
Capacity Valuable? Rare? Inimitable? Organized to
Capture?
Telecommunication Services Yes No No Yes
VRIO