Verizon Using Porter 's Five Forces Model Essay

1190 Words Sep 16th, 2016 5 Pages
I will analyze Verizon using Porter’s Five Forces Model. Verizon faces a strong threat of existing competition. This force deals with the effects of competing firms which influence Verizon as an organization. There are many external factors which guide me to my position regarding existing competition. Besides Verizon, there are other companies that provide similar services as Verizon. Verizon offers diversified services to its consumers. These services range from providing television access to offering internet, landline, and wireless communication services. Verizon faces tough challenges from other firms in the industry on all business fronts. For example, Verizon faces AT&T, T-Mobile, Sprint, and a few other organizations in wireless communication category. On the other hand, Comcast, Cox, DirecTV, and DISH Network challenge Verizon on the residential and commercial internet, landline telephone, and television service provider market. The cost of plans offered through the competition are quite similar to Verizon’s plans. The better value that Verizon promises their consumers give them precedence over its rivals. Moreover, moderate switching costs also work in Verizon’s favor because their existing customers have to pay a contract termination fee to discontinue their contracts. Verizon has to monitor the competition consistently and strive to evolve their own services to maintain a lead over its competitors. These competitors pose the most important challenge to Verizon.…

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