AT&T Inc. is a multinational telecommunication company located in the United States of America. Notably, its headquarters are located at the Whitacre Tower in downtown Dallas in the Texas. It is important to note that AT&T has been cited as the second largest mobile phones provider. In addition, the company has emerged as the largest provider of fixed telephone services in the United States. Apart from the telephone services, the company is a major provider of broadband television subscription services. AT&T is the third-biggest organization in Texas, that is, the biggest non-oil organization, behind just ExxonMobil and ConocoPhillips. Furthermore, it is the largest organization in Dallas (Mootee, 2015). As of May 2014, AT&T was the 23rd-biggest
…show more content…
In addition, the barriers of entry to this market are very high and there exists a large pool of customers who mostly rely on the two companies to provide the services. The high cost of the infrastructure needed to provide reliable telecommunication services and the high cost of advertisement forms the basis of the entry barrier (Stackelberg, Bazin, Urch & Hill, 2011). As opposed to the number of the dominant players in the market, the landscape appears large. The oligopoly market structure provides several benefits to the AT&T Inc. among the benefits is the fact that the structure enables the company to work closely with its major competitor, the Verizon Communications and Sprint. As such, the company is able to provide price leadership to the …show more content…
Notably, AT&T Inc. faces stiff competition from Verizon Communications. As such, the company aims at maintaining the competitive edge through producing differentiated products. Innovation is one such strategy that leads to product differentiation. The aim of AT&T Inc. is to sell great products and provide exceptional user experiences. On the other hand, it is vital to consider various ethical issues when choosing the appropriate strategy to adopt rather than focusing the organization’s interests only. A strategies such as customer retention and price discounts for new customers need to be accompanied by products of equal quality. In addition, the technology industry is faced with numerous patent issues. As such, as much as the organization desires to be the market in terms of innovation and price, it important to ensure that the company does not infringe the patent rights of the
In addition, the barriers of entry to this market are very high and there exists a large pool of customers who mostly rely on the two companies to provide the services. The high cost of the infrastructure needed to provide reliable telecommunication services and the high cost of advertisement forms the basis of the entry barrier (Stackelberg, Bazin, Urch & Hill, 2011). As opposed to the number of the dominant players in the market, the landscape appears large. The oligopoly market structure provides several benefits to the AT&T Inc. among the benefits is the fact that the structure enables the company to work closely with its major competitor, the Verizon Communications and Sprint. As such, the company is able to provide price leadership to the …show more content…
Notably, AT&T Inc. faces stiff competition from Verizon Communications. As such, the company aims at maintaining the competitive edge through producing differentiated products. Innovation is one such strategy that leads to product differentiation. The aim of AT&T Inc. is to sell great products and provide exceptional user experiences. On the other hand, it is vital to consider various ethical issues when choosing the appropriate strategy to adopt rather than focusing the organization’s interests only. A strategies such as customer retention and price discounts for new customers need to be accompanied by products of equal quality. In addition, the technology industry is faced with numerous patent issues. As such, as much as the organization desires to be the market in terms of innovation and price, it important to ensure that the company does not infringe the patent rights of the