Verizon Wireless is a wireless carrier that operates the largest 4G LTE network in the United States. The company provides cell phone and data services to its 98.2 million customers. Its success is largely attributed to its reliable network coverage and outstanding customer service. In addition to providing 24 hour telephone support, the company also operates retail stores throughout the U.S. This case study use a balanced scorecard to identify the critical success factors for the company’s organizational dimensions and evaluate its performance based on these factors. The study will also focus on significant costs and sustainability. A strategy map will provide an understanding of how critical success factors will influence the company’s four organizational dimensions.
Verizon Wireless is a cell phone carrier that provides wireless cell phone and data services to both consumers and businesses. The company sells brand name phones, tablets, wireless hotspots, and accessories. Its main focus is to provide a fast, secure, and reliable network its users can depend on to stay connected and safeguard against the threat of internet security. The company currently has 98.2 million subscribers and earned $75.9 billion in annual revenue in 2012 ("Verizon wireless," ).
Critical Success Factors
* Provides extended 4G LTE coverage on a network that is reliable and secure * Provides 24 hour customer service via internet and phone. * Operates over 1900 retail stores where customers may purchase new devices and receive service * Sells brand name products that are familiar to customers (ex: Apple, Samsung, Windows) * Offers wireless workshops to customers who are new to smartphones or tablets * Reduces environmental waste by offering paperless billing, receipts, and implementing a trade-in program to recycle devices * Stays innovative by offering new accessories that may be used on wireless devices
Organizational Dimensions| Critical Success Factors|
Financial 1. Sales 2. Profitability 3. Cost control| 1. Annual growth in sales and profits 2. Return on investment in 4G LTE network 3. Implement programs to reduce expenses| Customer 1. Service 2. Products 3. Rebates| 1. Provides service in over 1900 retail locations, 24 hours via telephone or internet chat, and wireless workshops 2. Offers name brand products that may be used on 4G LTE network 3. Offers money saving rebates on select products with a 2 year agreement| Internal business 1. New product introduction 2. New Product success 3. Employee expectations| 1. Effectively markets new products to appeal to wide customer base 2. New products are successful because brands are familiar to customers 3. Sales representatives are expected to sell a certain quantity of devices that are offered within a one month time period| Learning and growth 1. Training on new products 2. Industry leading benefits 3. Tuition assistance | 1. Employees are consistently trained in new products and policies 2. Employees start with industry leading benefits on their first day of employment 3. Employees are offered the opportunity of tuition assistance to further their educational goals|
Quality of service
It costs Verizon Wireless less money to operate a device on its 4G network than it does on the 3G network. The company lost millions of dollars in revenue by selling the 3G Iphone due to overwhelming customer demand. Since the Iphone is also the costliest device to subsidize, Verizon Wireless must offset the loss of revenue by selling more accessories and implementing a $30 upgrade fee for renewing phone contracts. These are considered preventive costs because they prevent the loss of revenue.
The company also experiences a loss of revenue based on the new device...