Verizon Communication
Telecommunication industry is one of the fastest growing industries in the world, with advancement in internet technology, advancement in trade and commerce, social dynamics and an ever-expanding global market. Telecommunication has become one of the most essential mediums that facilitate communication, interaction and transaction in both social and economic platforms. To this end, many companies have invested billions of dollars worldwide in an attempt to rip some of the benefits the young but lucrative industry has to offer. Verizon Communication Inc. is one such industry that has grown to become an international player. Verizon is one of the largest telecommunication companies with a vast network in the U.S. And Europe and roaming capabilities that have enabled the company to have a world wide access.
Verizon Communication was formed in 2000 after a merger of Vodofone and Bell Atlantic to form Verizon wireless. The company later merged with GTE a long…...
mlaReferences
Buscemi, E. 2008. Battle of the Brands: Verizon vs. AT&T Mobility. Retrieved 10 Feb 2012 from http://www.bloggingstocks.com/2008/05/02/battle-of-the-brands-verizon-wireless-vs.-atandt-mobility/
Laurent, L. & Lamotta, L. 2008. Verizon buys Alltel; takes over wireless world. Forbes. Retrieved 10 Feb 2012 from cx_ll_lal_0605markets32.htmlhttp://www.forbes.com/2008/06/05/vodafone-verizon-update2-markets-equity -
Mockler, R. 2006. Verizon Communication Inc. Telecommunication Industry. Eastern Academy of Management 44TH Annual Meeting. New Brunswick, NJ.
Verizon Wireless. 2012. Corporate History. Retrieved 10 Feb 2012 from http://www22.verizon.com/investor/ corporatehistory.htm
Verizon Communications, Inc., Fiscal Year 2010
Verizon Communications, Inc. (NYSE -- "VZ") has two business segments Domestic Wireless (operated as Verizon Wireless) and Wireline. These business segments are operated and managed as strategic business units and organized by products and services. The company uses the so-called "Anglo-American model" or "the unitary system" (Mallin, 2011) which employs a single-tiered Board of Directors which is comprised of a mixture of executives from the company and non-executive directors, who are all elected by shareholders (Bowen, 2008). Verizon has fourteen board members, including the current CEO. Each business segment is operated separately, but the cash flow and dividend information that is described in the 2010 annual report is not split out by business unit. Thus the results presented below are for the Verizon Wireless and Wireline segments.
The cash and cash equivalents at December 31, 2010 totaled $6.7 bil-lion, a $4.7 billion increase compared to Cash…...
mlaReferences
Mallin, C.A. (2011). Handbook on International Corporate Governance: Country Analyses, 2nd Ed. Northampton: Edward Elgar Publishing.
Bowen, W.G. (2008). The Board Book: An Insider's Guide for Directors and Trustee. New York: W.W. Norton & Company.
Thune, K. (2010, July 15.) Ask the Advisor: Savings vs. Investing Money in the Stock Market . Retrieved February 22, 2012 from Savings.com website: (February 22, 2012).http://www.savings.com/blog/post/Ask-the-Advisor-Savings-vs.-Investing-Money-in-the-Stock-Market.html/ .
Verizon Communications. (2010). Verizon Communications, Inc. Annual Report 2010. Retrieved from: http://www22.verizon.com/idc/groups/public/documents/adacct/annual_2010.pdf
What makes the cloud computing initiatives in the company so transformational is the opportunity to unify the entire customer experience in the consumer, enterprise and mid-size and small business packaging and experiences on a common platform (Verizon Investor elations, 2012). Today Verizon customers are all running on multiple service platforms depending on their mix of services; with a cloud-based platform there will be consolidation of back-end services and a more cost-effective delivery of services (Verizon Investor elations, 2012). This has significant revenue and cost reduction opportunities for Verizon over the long-term and could significantly change the capital structure of the business.
Another significant opportunity for Verizon is the rapidly growing machine-to-machine (M2M) market that shows significant potential in several of the core vertical markets the company competes in (Verizon Investor elations, 2012). In June of this year Verizon reached an agreement to purchase Hughes Telematics for $612M which gives the company…...
mlaReferences
Brown, K.C. (2010). On corporate citizenship and sustainability. Vital Speeches of the Day, 76(9), 408.
Everett, B. (2012). The encryption conundrum. Network Security, 2012(4), 15-18.
Gorski, D. (2005). The future of the digital millennium copyright act (DMCA) subpoena power on the internet in light of the Verizon cases. The Review of Litigation, 24(1), 149-172.
Peaks, D., Arbogast, G.W., & O'Keefe, R. (2009). When a merger is not a merger. The Business Review, Cambridge, 12(1), 39-45.
Verizon is one of the major telecommunications in the United States. It operates both wireless and wireline services, which have an approximately 63.3% - 36.7% split of the revenues. In FY2011 the company recorded revenues of $110.8 billion dollars, from which it earned $2.4 billion in profit. The wireless industry, which is the key driver of growth in the United States, has oligopolistic conditions, with four companies holding nearly 95% of the market. Verizon has 108.7 million wireless subscribers, making it the market leader in wireless. Second-place AT&T had 100.7 million subscribers, with Sprint and T-Mobile trailing (Jordan, 2011). This report will outline the performance of Verizon over the past five years using both financial and strategic analysis. There will also be recommendations for Verizon to be more successful in the future.
Benchmark
An important aspect when evaluating a company's performance is to understand the industry conditions and attempt to gauge what…...
mlaWorks Cited:
Jordan, A. (2011). Verizon gained market share with iPhone while other carriers lost. iSource. Retrieved November 14, 2012 from http://isource.com/2011/05/09/verizon-gained-market-share-with-iPhone-as-other-carriers-lost/
MSN Moneycentral (2012)Verizon. Retrieved November 14, 2012 from http://investing.money.msn.com/investments/stock-price?symbol=VZ&ocid=qbes
Verizon 2011 Annual Report. Retrieved November 14, 2012 from http://www22.verizon.com/idc/groups/public/documents/adacct/vz_ar_final_2011.pdf
Verizon Strike
On August 7, 2011 45 thousand employees for Verizon went on strike. They were upset about the drastic reductions that were proposed in benefits from the management of the company. To include: changes in work rules, cuts to pensions and reductions in health care. The combination of these factors created a situation where the management and employees were at an impasse. To fully understand the situation there will be a focus on: prior work stoppages, events leading up to the strike, the position of the company, the views of the union, what lead to a breakdown in negotiations, the resolution of the conflict, any lingering issues and winners / losers. Together, these different elements will highlight crucial areas of contention and how they were addressed. (Kaiser, 2011)
Prior work stoppages (if any)
This strike was the first work stoppage affecting the company since the merger from NYNEX, Bell Atlantic and GTE.…...
mlaReferences
Bell Atlantic Pact. (1998). LA Times. Retrieved from: http://articles.latimes.com/1998/aug/12/business/fi-12304
CWA Reaches Tentative Agreement with Verizon. (2012). CWA. Retrieved from: http://www.cwa-union.org/news/entry/cwa_ibew_reach_tentative_agreements_with_verizon#.UGIX31E2iZQ
Verizon Strike of 2011. (2011). ABC News. Retrieved from: http://abcnews.go.com/Technology/verizon-strike-2011-landline-workers-asked-concessions-wireless/story?id=14257451#.UGIRnFE2iZQ
Verizon, Unions Reach Tenitive Contract. (2012). Google News. Retrieved from: http://www.google.com/hostednews/ap/article/ALeqM5gfEJkTPf246oAG0ibc79czmz1DXQ?docId=ad31509b1a604df39fd8348ca0ad96e9
Verizon Advertisements
Advertisements are designed to promote a product, but there are different ways that an advertisement can do that. Sometimes ads can try to introduce products to a new market by describing how those in that market can use the product, other times an advertisement can lay out the information that a company wants the public to know about it's product in an artistic way. Recently Verizon engaged in two separate advertisement campaigns which were very different in their approach. In one campaign, called the "Verizon Mom" campaign, Verizon sought to convey the ease by which even soccer-moms can use their product. This campaign was vague and non-specific about the features and applications their new "smart phone," and sought to generate popularity of the product through an "ease of use" campaign. On the other hand was the "Droid Does" marketing campaign which was filled with specific product informative in an…...
The latter is typically used for network equipment for local telephone operations. Depreciation policies include the recording of plant, property and equipment at cost. Local telephone operations again are subject to different depreciation methods, and use the straight line method and the group remaining life method, depending on the asset. The company also chooses to capitalize all software that has a useful life of over one year. The straight line method is used and the period will be between 2 and 7 years depending on the software.
The company has a significant amount of intangible assets of its balance sheet. These consist primarily of wireless licenses. These licenses are typically granted for a fixed period of time, but renewals occur routinely. Therefore, Verizon treats wireless licenses as indefinite intangible assets and therefore the licenses are subject to re-evaluation each reporting period.
Verizon also enters into derivative contracts in order to manage…...
mlaWorks Cited:
Verizon 2009 Annual Report. In possession of the author.
Secondly, it continues to implement that technology that increases the efficiency, organization and cost effectiveness of its business practices. Fios and MoCa are two reasons that erizon has successfully used technology implementation to affect the bottom line of the company. Over the past two years, erizon has increased its subscription of Fios services by 32% and continues to show exceptional growth in 2007. Despite the fact that their investment will not show a healthy return until years in the future, erizon has established the infrastructure with their technology to substantially out compete other telecommunication companies such as at&T with their fiber network. As a result, Fios services include not only telephony but also broadband, T and data transfer services that will substantially increase erizon profits in the future.
erizon telecommunications is not the only division that uses technology as its driver for success; erizon's wireless division has also maintained a…...
mlaVerizon Communications Inc. 14 Oct. 2006 http://www.hoovers.com/co/news
Verizon Wireless Reports Solid Third Quarter Customer Growth. 4 Oct. 2006. 10 Oct. 2006. http://investor.verizon.com/news/VZ/
Verizon Wireless Announces Roll Out of National 3G Network." VZN News. 27 Mar. 2007 http://news.vzw.com/lead_story/pr2004-01-08.html .
Strategic Marketing
Verizon operates under a marketing orientation. The product/service offering of Verizon does not differ all that much from that of its competitors. Thus, Verizon is in a position where it must use marketing to increase its sales. Close attention is paid to things like pricing and distribution -- for example what Verizon's service areas are and where they place their stores -- because those are things that attract customers. The Verizon brand is another focal point for this marketing orientation, and it is important that the company builds a stronger brand reputation and higher brand visibility than its competitors. It is difficult to differentiate between the major providers in telecom, so there is a high level of marketing emphasis in order to help Verizon do just this.
Verizon offers a number of different plans for its customers. The Verizon service is fairly generic, but the company does alter how it…...
mlaReferences
Trefis (2014). Verizon's top spot threatened as AT&T catches up. Forbes. Retrieved May 23, 2015 from http://www.forbes.com/sites/greatspeculations/2014/06/05/verizons-top-spot-threatened-as-att-catches-up/
Fox News (2015). Bad Verizon customer service caused woman's heart attack, suit claims. Fox News. Retrieved May 23, 2015 from http://www.foxnews.com/health/2015/05/12/bad-verizon-customer-service-caused-heart-attack-suit-claims/
Verizon must never stop investing on CM since it is one of the tools that can help it gain competitive advantage (Suresh,2002)
ecommendation
As noted by Iriana and Buttle (2006) organizational culture is a crucial factor in the enabling or disabling of the various desirable outcome of CM. It is therefore important that all the other related issues like the commitment of senior management as well as the willingness of the other employees in supporting the initiative come into play. Al organizations must have a customer focused behavior. VP Blue and VP Green being part of the senior management team must be tolerant of each other opinion. They must also let the customer response be the determining factor on te fate of every CM function. Further more, it has been noted that the factor that are important for the success of a given CM system are information sharing, supportive relationships, innovations…...
mlaReferences
Ghavami, A and Olyaei, A (2006).The impact of CRM on customer retention.
http://epubl.ltu.se/1653-0187/2006/02/LTU-PB-EX-0602-SE.pdf
Iriana, R. & Buttle F. (2006) "Customer Relationship Management (CRM) system implementations," International Journal of knowledge, Culture and Change Management, 6 (2), pp.137-147
Lawson-Body, A. And Limayem, M. (2004) "The Impact of Customer Relationship Management on Customer Loyalty: The Moderating Role of Web Site characteristics," Journal of Computer Mediated Communication, Vol.9, No.4, July 2004.
Verizon: Strategic AnalysisIntroductionVerizon Communications Inc. is a leading telecommunications company operating in the United States. With a comprehensive portfolio of wireless and wireline communication services, Verizon caters to a wide range of customers, including consumers, businesses, governments, and educational institutions. This introduction will provide an overview of Verizon, followed by an analysis of the company\\\'s 10-K report. Additionally, a brief literature review will highlight key research and insights relevant to Verizon\\\'s industry and strategic position.Verizon\\\'s 10-K AnalysisVerizon\\\'s 10-K report provides a comprehensive overview of the company\\\'s operations, financial performance, and strategic initiatives. The report covers various aspects, including business segments, revenues, capital expenditures, investments, and future growth prospects. Key financial metrics such as operating revenues, net income, capital expenditures, and service revenues are disclosed, enabling a deeper understanding of the company\\\'s financial position.According to Verizon\\\'s 10-K report for the year ended December 31, 2022, the company experienced growth in its…...
mlaReferencesDortch, M. M. H. (2021). Re: Wireline Competition Bureau Seeks Comment on the State of the Lifeline Marketplace, WC Docket No. 11-42; Proposed Transfer of Control of Tracfone Wireless, Inc. to Verizon Communications Inc., GN Docket No. 21-112.Forbes. (2022). The World\\\\\\\\\\\\\\\'s Most Valuable Brands. Retrieved from The World\\\\\\\\\\\\\\\'s Most Valuable Brands List (forbes.com) Hanna, N. (2018). A role for the state in the digital age. Journal of Innovation and Entrepreneurship, 7(1), 5.Intven, H. (2000). Telecommunications regulation handbook. Washington, DC: World Bank.Muhammad, I., Shamsudin, M. F., & Hadi, N. U. (2016). How important is customer satisfaction? Quantitative evidence from mobile telecommunication market. International Journal of Business and Management, 11(6), 57.Hossain, E., & Hasan, M. (2015). 5G cellular: key enabling technologies and research challenges. IEEE Instrumentation & Measurement Magazine, 18(3), 11-21.Ramiro, R., Arahuetes, A., & Robinson, R. A. (2022). A tale of two international strategies: how telecom operators of the European Union and the USA dealt with the political-institutional environment after the global financial crisis. European Journal of International Management, 18(2-3), 351-378.Verhoef, P. C., Lemon, K. N., Parasuraman, A., Roggeveen, A., Tsiros, M., & Schlesinger, L. A. (2009). Customer experience creation: Determinants, dynamics and management strategies. Journal of retailing, 85(1), 31-41.Verizon. (2022). 2022 Annual Report. Retrieved from UNITED STATES SECURITIES AND EXCHANGE COMMISSION (verizon.com)Xia, J. (2012). Competition and regulation in China\\\\\\\\\\\\\\\'s 3G/4G mobile communications industry—Institutions, governance, and telecom SOEs. Telecommunications Policy, 36(7), 503-521.
Organizational Context
Verizon is a national telecommunications company, headquartered in New York City. The company was formed from the breakup of Bell and subsequent mergers and acquisitions. The company has divisions for media, network and technology and customer/product operations. The latter is by far the largest component of the company, encompassing Verizon Wireless, and a number of companies aimed at the enterprise market. Verizon competes against AT&T and Sprint, both of which are large companies in their own right, with similar businesses, in particular in wireless and telecommunications. These divisions reflect an organizational structure that is focused on product. The wireless business is nationwide, but the landline-oriented businesses are focused mainly in the northeast, which is the traditional geography for Verizon's predecessor business Bell Atlantic.
Recent Financial Performance
Verizon's business has fluctuated over the past three years. In FY 2016, it recorded $125 billion in revenue, down from $131 billion the year previous,…...
market case analysis for Verizon FiOS TV offered by Verizon Communications. The analysis consists of product, pricing, promotional, and distribution strategies which Verizon Communications should follow in order to operate in the industry in the most competitive and profitable way. The analysis of industry and competition is also given as a part of marketing research strategy.
Verizon Communications is one of the leading communication services providers in the World. Its major products and services include Verizon FiOS TV, FiOS Internet, FiOS Digital Voice, set-top box, and receiver sets. This paper presents a marketing analysis for Verizon FiOS TV -- one of the most successful communication services offered by Verizon Communications in the United States and some other countries. Verizon FiOS TV is a high quality fiber optic cable network for home television entertainment. Verizon Communications offers its Verizon FiOS TV in all the major cities and towns of the United…...
mlaReferences
Kotler, P., Brown, L., Burton, S., Deans, K., & Armstrong, G. (2010). Marketing, (8th ed.). U.S.: Prentice-Hall
Kurtz, D.L., MacKenzie, H.F., & Snow, K. (2010). Contemporary Marketing, (2nd ed.). Toronto: Nelson Education
Lamb, C., Hair, J., & McDaniel, C. (2012). Essentials of Marketing, (7th ed.). Ohio: South-Western Cengage Learning.
Lancaster, G., & Withey, F. (2007). Marketing Fundamentals, (2nd ed.). U.K: Butterworth-Heinemann
A cheap product will not be able to survive in this rapidly changing business environment. Organization is another extremely important aspect of the necessary managerial skills for any manager desiring guaranteed success at their individual Verizon location. Organization can be as simple as instituting training at work in a pattern that overlooks no single employee. A good manager cannot expect employees to train themselves or improve their work manners without additional help. A strong organized training program is sure to enhance even the most successful company.
A strong leadership team is another necessary important aspect for businesses engaged in the phone industry. Verizon's leadership team must be instituted and adopted without fear at the workplace, because employees who fear their supervisors simply cannot evolve into successful employees interested in the growth of the company. A strong leadership team will effectively manage the business with the overall objective of accomplishing the…...
mlaBibliography
Bass, B.M. (1996). A new paradigm of leadership: An inquiry into transformational leadership. Alexandria: U.S. Army Research Institute for the Behavioral and Social Sciences.
Oak, C. & Schoeffler, B. (2002). Management for the 21st Century. Retrieved March 13, 2007, from Insurance Journal Web site: http://www.insurancejournal.com/magzines/southcentral/2002/03/11/mindyourbiz/18984 .
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More importantly, because the system needs to be perceived as fair, employee's opinions must be taken into account. e are not putting this system into place to be punitive, but rather to protect the interests of all of the employees.
It is believed that the system of inquiry will have a strongly positive effect on the organization. Verizon has long had some form of ethical code, but with the new code coming into effect in 2008 and the introduction of a system of inquiry, the firm is demonstrating strong ethical values. These are the values shared by most of the employees already. hat the code and system do within the company is to formalize the values that most employees already have. It improves the perception of fairness and presents a unified view of ethical issues throughout the firm.
This also will have strong impacts outside the organization. In an era when…...
mlaWorks Cited
No author & Seidenberg, Ivan. (2008). Your Code of Conduct. Verizon. Retrieved October 25, 2008 from https://www22.verizon.com/about/careers/pdfs/CodeOfConduct.pdf
Liptak, Adam. (2007). Verizon Reverses Itself on Abortion Messages. New York Times. Retrieved October 25, 2008 at http://www.nytimes.com/2007/09/27/business/27cnd-verizon.html?adxnnl=1&adxnnlx=1224961253-V6iLKJ6NbEBQ/tn2vsTygQ
Dallas, Lynne. (2003). A Preliminary Inquiry into the Responsibility of Corporations and their Directors and Officers for Corporate Climate: The Psychology of Enron's Demise. Rutgers Law Journal. Retrieved October 25, 2008 at http://papers.ssrn.com/sol3/papers.cfm?abstract_id=350341
Liptak, Adam. (2007). Verizon Reverses Itself on Abortion Messages. New York Times.
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