5 Forces Model of Verizon

Topics: Sprint Nextel, Wireless networking, Verizon Communications Pages: 11 (1974 words) Published: November 6, 2008
1.Introduction & Main Products 2
2.Main Competitors 6
3.Five Forces Analysis 7
4.PEST Analysis 10
5.SWOT Analysis 12
6.Generic Strategy 14
7.Growth Strategy 14
8.Product Strategy 15
9.Partnership Strategy 15
10.Reference List 16

Introduction and Main Products

“Verizon Communications Inc. (Verizon) is one of the world’s leading providers of communications services. Verizon’s wireline business, which includes the operations of the former MCI, provides telephone services, including voice, broadband data and video services, network access, nationwide long-distance and other communications products and services, and also owns and operates one of the most expansive end-to-end global Internet Protocol (IP) networks. Verizon’s domestic wireless business, operating as Verizon Wireless, provides wireless voice and data products and services across the United States using one of the most extensive and reliable wireless networks. Stressing diversity and commitment to the communities in which we operate, Verizon has a highly diverse workforce of approximately 242,000 employees.” (Verizon Communications 2006 Interactive Annual Report)

Main Products include:
1.Residential Products
a.Internet service subscriptions
b.Digital TV service subscription
c.Phone service subscription
2.Small Business Products
a.Voice solutions
b.Internet solutions
c.Data and IP solutions
d.Wireless solutions
3.Medium Business Products
a.Data and IP solutions
b.Voice Solutions
c.Equipment Solutions
d.Managed services
4.Enterprise & Government
i.IP Flexible T1
ii.IP Integrated Access
iii.IP Trunking
iv.Hosted IP Centrex
v.Managed IP PBX
vi.Professional Services
b.Data and IP Services
i.Private IP Layer 3
ii.Private IP Layer 2
iv.Ethernet Services
v.IP VPN Dedicated
vi.Remote VPN
vii.Secure Gateway
viii.Frame Relay
x.Private Line
xi.Ring Services
xii.Transaction Services
xiii.Digital Media
c.Internet Access
i.DSL and Cable
ii.Dedicated Access
iii.Satellite Services
i.Professional Services
ii.Managed Services
iii.Compliance and Governance
iv.Government Programs
v.CPE Resale
e.IT Solutions and Hosting
i.IP Application Hosting
ii.Remote IP Application Management
iii.Data Center Services
iv.Remote Backup and Restore
v.IT Service Desk
vi.Akamai Services
vii.Hosted E-mail and Instant Messaging
f.Managed Networks
i.WAN Management
ii.LAN Management
iii.Managed Wireless LAN
iv.Managed IP PBX
v.Professional Services
vi.Custom Supply Chain Managed Services
vii.Invoice Automation Services
g.Premises Equipment (CPE)
i.CPE Portfolio
ii.CPE Maintenance
iii.Storage CPE
iv.Site Services
v.Ordering and Financing

Main competitors

“But it won't be long before Verizon's two main competitors, Sprint Nextel and Cingular, become a greater competitive force. Last month Sprint began offering its wireless broadband service. It will be in 14 markets by the end of the quarter and will be in 60 metropolitan areas by the end of 2005, said John Polivka, a spokesman for Sprint Nextel.” (Marguerite Reardon 2005)

Percentage of Market Share Held by Primary Competitors:
Verizon – 24.3 %
Cingular – 15.8 %
AT&T Wireless – 14.7%
Sprint – 10.4%
Nextel – 8.3%
T-Mobile – 8.2%
Other – 18.3%

Five Forces Analysis

Five Forces Analysis (Potter, Michael E)

1.Threat of new entrants – Low

The competition in an industry will depend on the ease of other companies’ ability to enter this industry. In such a situation, new entrants could change major determinants of the market environment (e.g. market shares, prices, customer loyalty).

a.EMBARQ (2006)
b.COVAD(Revamp new service(2007))
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