What Is Verizon Competitive Strategy
B. Generic and specific strategies
After Verizon’s current position in the industry, they have taken many strategic approaches to compete in their environment.
Generic Strategies
Verizon Wireless has been successful in achieving cost leadership and product differentiation at the same time. Verizon has interpreted cost leadership by owning their own cell phone towers, causing them to set a market price and avoiding price wars. However, they have taken a differentiation approach with their network services to customers. Differentiation helps Verizon reduce the threat of rivalry by making its service network appear more attractive than others (Sprint, ATT, and T-Mobile). Through advertisement and other consumer marketing efforts, Verizon attempts to alter the perceptions of the current and potential consumers on how they have the largest and fastest 4G LTE network compared to its competitors. When customers were having to deal with inferior networks, Verizon stood by their network. They launched a multi-year campaign to emphasize their network coverage with advertisements of a man in random areas saying, “Can you hear me now?” and Verizon having him covered. …show more content…
This is a socially complex item and is very costly to imitate. Verizon has been consistently providing high quality network coverage and customers can be confident they will remain doing so when the rollout of the 5G network in 2020 comes out.
Specific Strategies Verizon is involved in market penetration and market development strategies to compete in the telecom industry. Verizon is in a realm where they are at a war for new wireless subscribers and they have heavily marketed their differentiation status by having the fastest network and covering the most areas in the United States as shown in the graph below.
National Wireless Coverage Comparison
After Verizon’s current position in the industry, they have taken many strategic approaches to compete in their environment.
Generic Strategies
Verizon Wireless has been successful in achieving cost leadership and product differentiation at the same time. Verizon has interpreted cost leadership by owning their own cell phone towers, causing them to set a market price and avoiding price wars. However, they have taken a differentiation approach with their network services to customers. Differentiation helps Verizon reduce the threat of rivalry by making its service network appear more attractive than others (Sprint, ATT, and T-Mobile). Through advertisement and other consumer marketing efforts, Verizon attempts to alter the perceptions of the current and potential consumers on how they have the largest and fastest 4G LTE network compared to its competitors. When customers were having to deal with inferior networks, Verizon stood by their network. They launched a multi-year campaign to emphasize their network coverage with advertisements of a man in random areas saying, “Can you hear me now?” and Verizon having him covered. …show more content…
This is a socially complex item and is very costly to imitate. Verizon has been consistently providing high quality network coverage and customers can be confident they will remain doing so when the rollout of the 5G network in 2020 comes out.
Specific Strategies Verizon is involved in market penetration and market development strategies to compete in the telecom industry. Verizon is in a realm where they are at a war for new wireless subscribers and they have heavily marketed their differentiation status by having the fastest network and covering the most areas in the United States as shown in the graph below.
National Wireless Coverage Comparison