Essay on Bus 499
Business-Level and Corporate-Level Strategies
The company selected for this assignment is AT&T Mobility. AT&T was founded in 1875 by Alexander Graham Bell. He was funded by two financial institutions. In the following year, he invented telephone and patented it. Due to the uniqueness of the telephone invention, the company started an elaborate strategy of becoming monopoly. AT&T acquired Western Electric Company and this further entrenched its position in the market.
Following an antitrust lawsuit against the company by the United States government, AT&T divested in some areas and this loosened its stranglehold of the telephone and …show more content…
The biggest competitor is AT&T is Verizon, which also has more customers. Other competitors are Sprint, MetroPCS, Leap, ClearWire, and LightSquared.
Competitors are few due to barriers of entry into the industry. A new entrant is required to sink huge amount of resources to set-up infrastructure, such as national spectrum and network. Besides, a new entrant is likely to be a high cost operator and this further puts new entrants into disadvantage compared to established players (Crandall, 2005). All makes the industry unattractive to potential entrants.
Verizon is the most significant competitor of AT&T. Already, the company has more customers than the AT&T; however, in the long term, and AT&T will overtake Verizon. Verizon has a strategy of offering customer high speed broadband and charge them for that. AT&T, on the other hand, recognizes that customers will have to use the fast broadband to improve their lives and that is why it is developing services it will sell to customers with fast data speeds.
New communication standards emerge after every few years. 3G now appear slow in the face of LTE. AT&T is in fast cycle market. In a slow market cycle, Verizon would