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