SWOT analysis from Verizon analyzes the brand based on its strengths weak points, weaknesses, opportunities, and threats. With Verizon SWOT Analysis it is clear that the advantages and disadvantages are internal factors , while threats and opportunities are external elements.
Did You Know? Verizon’s origins trace back AT&T which was a mighty dominance in the late 1970s. The power of AT&T led to the US government to split it into pieces , referred to as ‘Baby Bells that led to the establishment of Verizon’s founding company Bell Atlantic Corp.
SWOT Analysis is a tried and tested management tool that allows companies such as Verizon to evaluate its performance and business when compared with its competitors. Verizon is among the most renowned companies of the telecom service provider sector.
The table below outlines what is the Verizon SWOT (Strengths and weaknesses, Opportunities threats) and the top Verizon competitors, and also the market it is targeting segmentation, positioning and the Unique Proposition to Sell Proposition (USP).
Verizon At A Glance – Verizon SWOT Analysis
Company: Verizon Communications Inc.
CEO: Hans Erik Vestberg
Year of foundation: October 7 and 1983.
Headquarters: Hans Erik Vestberg
Employees (Dec 2019): 135,400
Ticker Symbol: VZ
Annual Revenue (Dec 2019): US$131.87 Billion
Profit net income (Dec 2019, 2019): US$19.78 Billion
Products & Services: Verizon Smart Family | Safe Wi-Fi | VZ Navigator |Total Mobile Protection | Verizon Support & Protection | Security and Privacy | Roadside Assistance | Hum by Verizon
Competitors: AT&T | T-Mobile | Sprint Nextel | Vodafone | Cox Communications | Cricket Wireless | RCN Telecom | Comcast | Spectrum | Deutsche Telekom
Verizon SWOT Analysis
In 2000 Bell Atlantic Corp. and GTE Corp. merged, which marked the beginning of Verizon Communications, Inc.
In the past, Verizon has employed effective strategies, including strategic acquisitions as well as innovative products. These strategies helped the company to emerge as the top player on the US market, and has the biggest market share.
To comprehend the process by which Verizon reached the top leadership position and what its future holds one must assess its strengths potential, weaknesses, opportunities and threats. Here is the Verizon SWOT Analysis.
- Market dominance Verizon has the distinction of being the most powerful and largest wireless provider within the US in terms of strength of its network and market shares. As the dominant company, Verizon has immense influence over the policies that affect the communications industry, and it is able to leverage its position to further its goals.
- Global Operation: From North America to Europe, Latin America, and Asia-Pacific, Verizon has offices in 150 cities that provide telecom and network management, security and IT-related services. Verizon’s internet service is accessible in 2770 cities across the globe.
- A Strong Financial Situation The ability to finance a large amount is an important advantage because it lets businesses attain all the tools they require to be competitive. In terms of profit, Verizon is placed as the 3 3rdmost profitable public firm across the US.
- Highly Innovative: Satisfying technologically-spoilt consumers of the digital age goes beyond offering bare minimum functionalities. For everything from 4G LTE, to 5G network VoIP and Fios, Verizon is a pioneer in the field of innovation and provides many of the latest services and products in the field of telecom.
- Valued Brand From the beginning, Verizon has focused on creating a strong brand. In 2019, the company was ranked as 19 the most valuable brand globally according to Forbes as well as 43 4th the most popular brand globally in the world by Fortune 500.
- An Effective Strategy for Marketing: In a competitive market with a minor distinction between rivals, businesses are able to differentiate themselves with their an intensive and innovative marketing. Verizon is well-known for innovative marketing strategies and promotions that are centered around customers.
- Strategic acquisitions Starting with AOL up to Alltel, Yahoo, and BlueJeans for $500 million the strategic purchases of Verizon have been instrumental greatly to its growth. For example, the acquisition of Alltel made it possible for Verizon to establish itself as the leading company with the highest market share.
- Overdependence on the US Market: Overdependence on the US market exposes the company problems in the market, which has an negative impact for the company’s bottom line. For example, Verizon lost 68,000 wireless customers in the US market and had to drop its revenue forecast for 2020.
- Negative Publicity Customers are expecting companies to secure their personal data and information. When their data is stolen or released by cybercriminals, their reputation and the trust of customers diminish. Verizon’s reputation suffered when the information from millions of customers was leaked.
- Extra Data Fees: Customers want to pay for the data they’ve had or plan to make use of, which is reasonable. However, companies such as Verizon will insist on charging extra data.
- Breach of Trust Unspoken contracts exist between a business and its clients. If trust is violated or broken, it can be impossible to rebuild it. Verizon broke the silence contract by selling location data of phone numbers of customers to third partyand law agencies for law enforcement.
- Insufficient Diversification placing your eggs into multiple baskets spreads the risk out and minimizes the risk in the event that thing happens to just one basket. Verizon is primarily involved in the telecommunications sector. If there is an decrease in the industry it could be liable for massive losses.
- Make Videoconferencing more accessible: The demand technologies that allow remote and work-from-home work have increased dramatically with companies such as Zoom making use of the opportunities. Verizon is also operating in this area following the latest deal with BlueJeans as well. It is recommended that they concentrate on maximizing the opportunities in this field.
- Global Expansion No matter what nature of the business or industry worldwide, there are greater potential to grow. Verizon provides only security, network management, along with IT solutions to companies as well as governments outside of the US. The company should extend its wireless offerings to clients around the world.
- Expand through Acquisition Verizon has increased its share of the market in 2008 through buying Alltel which allowed the company to take over AT&T. After T-Mobile having completed their merger Sprint, Verizon needs to purchase a smaller wireless provider to be able to compete and secure their market shares from bigger merger.
- Diversify Portfolio There are many possibilities beyond telecoms and related with Verizon’s network for 5G like Augmented Reality autonomous vehicles, smart cities and more. With the advent in 5G, Verizon should take the lead and increase sustainability in the coming years.
- Intense Competition Within the US telecom industry, Verizon, AT&T, and T-Mobile are the leading players and most fierce rivals. Verizon has always been focused on fighting AT&T but has to do more to safeguard its market share against a more formidable T-Mobile.
- strict regulations: From business deals to confidential affairs The sensitive nature of information shared by telecoms demands strict regulations to safeguard users. If stricter laws and regulations are placed on communications by government Verizon’s operations as well as profits may be affected.
- hacking, as well as data Leaks: Telecommunication companies are vulnerable to hacking and leaks of data, which could cause millions of losses through settlements and lawsuits. In 2017 a security issue that was not properly configured setting exposed personal information of six million customers at Verizon.
- The looming recession is on the horizon: The economic destruction that has come from the pandemic has pushed everyone in the globe into an economic recession that is global. With the recession just around edge, Verizon’s financial viability is at risk.
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