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Verizon Competitive Advantage
Verizon is a company who has been in business for quite a long time. It is not only a larger company, but is known for its competitive advantage, as well as its industry attractiveness. Verizon has good overall performance compared to many of its rivals. Verizon is in the communications industry, offering wireless phone service, business products, internet, television, and home phone services. This industry is extremely competitive, as there are many big names out there who dominate the market. There are many relevant issues in the industry, which can be analyzed using Porters Five Forces framework. The first of the five forces is that of supplier power. The number of suppliers within …show more content…
Again, Verizon uses technology as a competitive advantage. When new technology comes out with another company, such as the new IPhone, Verizon immediately began offering the product in the company stores. Not only did they sell the phones, they strategically held specials involving these phones. Knowing that people will want the newest technology, Verizon often runs special promotions that offer free or discounted phones, if buyers will sign up for lengthy service contracts with the provider.
Another reason Verizon performs better than other carriers are their locations ( De Looper, Christian-2014). It seems as if regardless of living in a large city, or small town, there is a Verizon store nearby. Consumers often enjoy coming into the stores, browsing at phone upgrades, or even coming in to get a broken or malfunctioning phone fixed. Whatever the consumer needs, Verizon can handle in person. There are sales people on the floor in each Verizon store, who encourage customers to upgrade their phones, or purchase extended plans (Chen, Brian- …show more content…
While they have a large number of buyers, the prices for services tend to be a little higher than competitor’s. While many customers overcome this, some consumers will go to the lower priced carriers. The company also lacks a presence in the international market. While Verizon dominates the nationwide service, other larger carriers have expanded outside of the U.S.
Verizon has many opportunities to address. The company could easily expand into the international market, and be a competitor to the other big names in a new market. Verizon could also improve on its secondary services, such as television and internet access. Offering cheaper rates or all-inclusive packages will help Verizon expand as a company. Currently, the company dominates the wireless market, but pushing services in these other areas could be a huge opportunity for the company.
Last, the company faces some threats. Verizon started out offering landline communications. Today, wireless communications are much more popular in home and business settings. Even though Verizon offers wireless, they will likely lose revenue as the market for landlines dissolves. The competitiveness of the communications market is huge. New companies could easily come in and offer a more competitive rate, with the same or similar services as
Professor
Class
Date
Verizon Competitive Advantage
Verizon is a company who has been in business for quite a long time. It is not only a larger company, but is known for its competitive advantage, as well as its industry attractiveness. Verizon has good overall performance compared to many of its rivals. Verizon is in the communications industry, offering wireless phone service, business products, internet, television, and home phone services. This industry is extremely competitive, as there are many big names out there who dominate the market. There are many relevant issues in the industry, which can be analyzed using Porters Five Forces framework. The first of the five forces is that of supplier power. The number of suppliers within …show more content…
Again, Verizon uses technology as a competitive advantage. When new technology comes out with another company, such as the new IPhone, Verizon immediately began offering the product in the company stores. Not only did they sell the phones, they strategically held specials involving these phones. Knowing that people will want the newest technology, Verizon often runs special promotions that offer free or discounted phones, if buyers will sign up for lengthy service contracts with the provider.
Another reason Verizon performs better than other carriers are their locations ( De Looper, Christian-2014). It seems as if regardless of living in a large city, or small town, there is a Verizon store nearby. Consumers often enjoy coming into the stores, browsing at phone upgrades, or even coming in to get a broken or malfunctioning phone fixed. Whatever the consumer needs, Verizon can handle in person. There are sales people on the floor in each Verizon store, who encourage customers to upgrade their phones, or purchase extended plans (Chen, Brian- …show more content…
While they have a large number of buyers, the prices for services tend to be a little higher than competitor’s. While many customers overcome this, some consumers will go to the lower priced carriers. The company also lacks a presence in the international market. While Verizon dominates the nationwide service, other larger carriers have expanded outside of the U.S.
Verizon has many opportunities to address. The company could easily expand into the international market, and be a competitor to the other big names in a new market. Verizon could also improve on its secondary services, such as television and internet access. Offering cheaper rates or all-inclusive packages will help Verizon expand as a company. Currently, the company dominates the wireless market, but pushing services in these other areas could be a huge opportunity for the company.
Last, the company faces some threats. Verizon started out offering landline communications. Today, wireless communications are much more popular in home and business settings. Even though Verizon offers wireless, they will likely lose revenue as the market for landlines dissolves. The competitiveness of the communications market is huge. New companies could easily come in and offer a more competitive rate, with the same or similar services as