Swot Analysis Of Verizon
Verizon Wireless Market Analysis Verizon is a communication network company that involves domestic telecom, domestic wireless, information services and international communication. Since it was formed in 2000 Verizon Wireless has invested more than $70 billion, an average of more than $6 billion every year. These efforts has been conducted mainly to increase coverage and capacity of its premier nationwide network and to add new services, for instance in 2011, Verizon acquired CloudSwitch, which is an innovative provider of cloud software technology that enables enterprises to more easily and securely more workloads between company data center and the clouds, another example is that Terremark a Verizon company, is helping enterprise and government executives realize the power and promise of the cloud with its global network of data centers and a comprehensive portfolio of secure solutions. Furthermore, Verizon Wireless currently serves 93.0 million retail customers, including 88.0 million retail postpaid customers.
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Primarily Verizon Wireless target several types of consumers in the wireless phone service market.
Most cell-phone customers start their lives as basic users therefore the first type of consumer is the basic, price-sensitive, value-oriented customer. Such consumers mainly use their phone mostly for emergencies such as a broken down car, to locate a missing child, or just as a way of keeping in touch with relatives who live in other areas, clearly such customers do not show any interest in the technologically advanced features whatsoever, furthermore these types of consumers do not wish to pay any extra money for features that they probably never use. Several types of people could be basic consumers for instance parents with young school-age children and people with the age of 65 and
above.
I n such a big market it is important for Verizon Wireless to identify another type of consumer such group is the advanced user. These consumers value phones with additional features and capabilities besides just talking they want to experience text/picture messaging, also such consumers are likely to purchase phones in family plans that ultimately means that they are less price-sensitive than the basic user, but they are still interested in deals such as family plans or discounts on phones through contracts or upgrades. However, a trend that Verizon Wireless aims is advertising and marketing messages for services squarely at the specific age groups who use them. Also a big group that Verizon Wireless is focusing on is the rural area in America, for this reason Verizon Wireless through its “LTE in Rural America” initiative is expanding its service into rural communities outside our coverage area through spectrum-sharing alliances with rural communications carriers across the country. For this reason is important for Verizon Wireless to identify future potential groups and concentrate on the advance users since they are the future consumers of the company.
Immediate Future of Verizon Wireless
As Lowell McAdam chairman and Chief Executive Officer of Verizon Communications states on the 2011 Annual Report “ Our capabilities and technology have enormous potential to make the world a better place as we use these tools to find solutions to issues like health care, sustainability, smart grids and the like. We’re working hard to bring these efforts into the mainstream and leverage what we do best” for this reason it is extremely imperative for Verizon to develop different strategies and attract more of the advanced users, of course that before putting a strategy to work as a company Verizon needs to draw a plan and figure out which path to take. Therefore, Verizon needs to develop a 5-10 year plan predict how other competing firms, as well as customers, will react and evolve. For instance Verizon is helping address critical needs such as medical needs in a venture Verizon Wireless is working with health insurance provider Well Point, In., to change the model for delivering patient services. Due to the secure videoconferencing capabilities of its 4G LTE network, WellPoint subscribers will soon be able to consult via their smartphones and tablets with nurse managers who help them manage their chronic conditions. This effort will revolutionize the way doctors handle patients and especially will eliminate the need of traveling of patients in rural areas, consequently engaging consumers more actively in the management of their own health furthermore by having patients aware of their condition and treatment will definitely reduce the cost of service for insurance providers. While it is impossible to know for sure how the market will progress, examining the Japanese market and the present US market dynamics allows us to make a reasonable guess as to where the market is headed. Ten years from now we can expect the urban areas in the US to develop very much like Japan is presently with diverse features and integrated technology packed into the phones. For example, people will watch TV, download music, receive restaurant specials, buy movie tickets, and get directions on their phone. Rural areas, on the other hand, should react very differently. This is not to say rural areas will not see a need for these features; they will just have different wants and needs than the urban population. For example, the rural population may be more interested in GPS functionality and the broadband internet capabilities.
Competition
Close competition as for example Sprint and AT&T are in a position similar to Verizon’s and thus will probably follow in targeting the advanced users. It is true that in there is no such thing as a small group of consumers in the market and due to the fact that Verizon is more concentrated in the average citizen, Verizon has a bit of an advantage with the teenage and family users in the market, and over the course of 10 years Verizon will have a permanent advantage over respective groups being on the opposite side of the advanced user spectrum and thus away from any competition and will not have to worry much about competition from the other firms since Sprint and AT&T are more focus towards the small business and young professionals.
Primarily Verizon Wireless target several types of consumers in the wireless phone service market.
Most cell-phone customers start their lives as basic users therefore the first type of consumer is the basic, price-sensitive, value-oriented customer. Such consumers mainly use their phone mostly for emergencies such as a broken down car, to locate a missing child, or just as a way of keeping in touch with relatives who live in other areas, clearly such customers do not show any interest in the technologically advanced features whatsoever, furthermore these types of consumers do not wish to pay any extra money for features that they probably never use. Several types of people could be basic consumers for instance parents with young school-age children and people with the age of 65 and
above.
I n such a big market it is important for Verizon Wireless to identify another type of consumer such group is the advanced user. These consumers value phones with additional features and capabilities besides just talking they want to experience text/picture messaging, also such consumers are likely to purchase phones in family plans that ultimately means that they are less price-sensitive than the basic user, but they are still interested in deals such as family plans or discounts on phones through contracts or upgrades. However, a trend that Verizon Wireless aims is advertising and marketing messages for services squarely at the specific age groups who use them. Also a big group that Verizon Wireless is focusing on is the rural area in America, for this reason Verizon Wireless through its “LTE in Rural America” initiative is expanding its service into rural communities outside our coverage area through spectrum-sharing alliances with rural communications carriers across the country. For this reason is important for Verizon Wireless to identify future potential groups and concentrate on the advance users since they are the future consumers of the company.
Immediate Future of Verizon Wireless
As Lowell McAdam chairman and Chief Executive Officer of Verizon Communications states on the 2011 Annual Report “ Our capabilities and technology have enormous potential to make the world a better place as we use these tools to find solutions to issues like health care, sustainability, smart grids and the like. We’re working hard to bring these efforts into the mainstream and leverage what we do best” for this reason it is extremely imperative for Verizon to develop different strategies and attract more of the advanced users, of course that before putting a strategy to work as a company Verizon needs to draw a plan and figure out which path to take. Therefore, Verizon needs to develop a 5-10 year plan predict how other competing firms, as well as customers, will react and evolve. For instance Verizon is helping address critical needs such as medical needs in a venture Verizon Wireless is working with health insurance provider Well Point, In., to change the model for delivering patient services. Due to the secure videoconferencing capabilities of its 4G LTE network, WellPoint subscribers will soon be able to consult via their smartphones and tablets with nurse managers who help them manage their chronic conditions. This effort will revolutionize the way doctors handle patients and especially will eliminate the need of traveling of patients in rural areas, consequently engaging consumers more actively in the management of their own health furthermore by having patients aware of their condition and treatment will definitely reduce the cost of service for insurance providers. While it is impossible to know for sure how the market will progress, examining the Japanese market and the present US market dynamics allows us to make a reasonable guess as to where the market is headed. Ten years from now we can expect the urban areas in the US to develop very much like Japan is presently with diverse features and integrated technology packed into the phones. For example, people will watch TV, download music, receive restaurant specials, buy movie tickets, and get directions on their phone. Rural areas, on the other hand, should react very differently. This is not to say rural areas will not see a need for these features; they will just have different wants and needs than the urban population. For example, the rural population may be more interested in GPS functionality and the broadband internet capabilities.
Competition
Close competition as for example Sprint and AT&T are in a position similar to Verizon’s and thus will probably follow in targeting the advanced users. It is true that in there is no such thing as a small group of consumers in the market and due to the fact that Verizon is more concentrated in the average citizen, Verizon has a bit of an advantage with the teenage and family users in the market, and over the course of 10 years Verizon will have a permanent advantage over respective groups being on the opposite side of the advanced user spectrum and thus away from any competition and will not have to worry much about competition from the other firms since Sprint and AT&T are more focus towards the small business and young professionals.