Verizon Case Study
Verizon Wireless is the nation’s second largest wireless provider. With 67 million subscribers, Verizon trails the largest wireless provider, AT&T, by only 4 million subscribers. The business is a joint venture of Verizon Communications and Vodafone PLC, officially named Cellco Partnership, and operates as Verizon Wireless. Verizon Communications is the majority shareholder with a 55% share.
“I think the point of it for us is that we are who the customers look too to provide them the services they want. We are going to let them define what they want around advertising. Do they want location-based things sent to them? Do they want local promotion? If so, we'll do that. Having the customer in control of it as opposed to having the carrier ram things down their throat is an important distinction.”
- Lowell McAdams, Verizon CEO
With an emphasis on the individual customer, Verizon Wireless recently passed on the Apple iPhone because they would not be able to service it themselves, but rather have to send it to Apple for work. With a strategy of quality and product differentiation within a landscape of vicious competition, Verizon felt it necessary to differentiate based on the service they offered their customers. Verizon is well positioned in the wireless market due to their strong market presence and consumer base. Further, their impending acquisition of Alltel can potentially position them to be the largest US wireless carrier, by adding 13 million additional subscribers. So where exactly should such a corporate giant look to go in order to further strengthen its brand?
History
In 1982, the US government ended a 13 year long anti-trust suit against what was at the time the world’s largest corporation, AT&T, forcing it to divest itself into 7 regional Bell companies. Bell Atlantic was created as a result of these proceedings and serviced the northern Atlantic states. In 1996, Bell Atlantic announced that it would merge with NYNEX to become the country’s
“I think the point of it for us is that we are who the customers look too to provide them the services they want. We are going to let them define what they want around advertising. Do they want location-based things sent to them? Do they want local promotion? If so, we'll do that. Having the customer in control of it as opposed to having the carrier ram things down their throat is an important distinction.”
- Lowell McAdams, Verizon CEO
With an emphasis on the individual customer, Verizon Wireless recently passed on the Apple iPhone because they would not be able to service it themselves, but rather have to send it to Apple for work. With a strategy of quality and product differentiation within a landscape of vicious competition, Verizon felt it necessary to differentiate based on the service they offered their customers. Verizon is well positioned in the wireless market due to their strong market presence and consumer base. Further, their impending acquisition of Alltel can potentially position them to be the largest US wireless carrier, by adding 13 million additional subscribers. So where exactly should such a corporate giant look to go in order to further strengthen its brand?
History
In 1982, the US government ended a 13 year long anti-trust suit against what was at the time the world’s largest corporation, AT&T, forcing it to divest itself into 7 regional Bell companies. Bell Atlantic was created as a result of these proceedings and serviced the northern Atlantic states. In 1996, Bell Atlantic announced that it would merge with NYNEX to become the country’s