IV

STRENGTHS

• Verizon possesses an effective strategic vision with integrated communication solutions that provide services to the customers at their desired locations and time.

• The company occupies a good market position in the U.S market (second ranked among fifty best companies) which influences it to possess a good brand for effective operations.

• It has a good and effective Fiber DSL Plant.

• Verizon possesses wide coverage in American and European cities with the provision of an uninterrupted network with high speeds.

• The company possesses over $ 26.4 billion in revenues which makes it endowed to invest in its operations (Verizon, 2011).

• Verizon provides the market with diversified pools of services such as long distance connections, wireless and broadband connections, and local calls to its customers.

• Verizon takes the leading role in the establishment of publishing and printing the directory

• Good marketing campaigns and brand awareness influences growth and development in the Verizon’s operations.

• The company possesses a good organizational structure, well-defined objectives and goals, desired employees’ skills, and conducts research to build on its operations as compared to its competitors.

• The 45% ownership of Verizon’s stakes by Vodafone gives the company a strengthening factor to leverage its market position in case of a crisis. The above factor has influenced the company to acquire a revenue per share of approximately $ 37.66 in the past seven years.

• Verizon attracts its customers in the market through the different packages of the broad band it offers in the market..

WEAKNESSES

• The company has experienced financial challenges due to difficult in raising revenue.

• Verizon has high debt derived from loans from financial institutions and other stakeholders affiliated with its operations.

• The company has experienced low than 4% profits since the year 2000 which means that has low-profit margins.

• The limited target of the company to Europe and America makes it lack an international presence in other markets.

• Verizon has less customer care facilities and centers which reduce its linkages to the customers (Sutherland, 2014).

• The company also possesses assets that are geographically concentrated which makes it hard for the management to spread its operations to different parts of the world.

• The management of Verizon pays a premium price for companies that offer Data Cloud Services which shows that it ignores introducing such a service package, a factor that strengthens its competitors to acquire a huge market share.

• The company has failed to invest in more research and development approaches that influence growth and development. Research influences knowledge generation pertaining the changing market. The lack of enough research and development approaches in the company makes it hard for each to achieve its goals (Patricelli, Beakley, Carnevale, Tarabochia, & Von Lubitz, 2009).

• Lack of visionary leadership and focus on its strategic plan makes it hard for the company to expand and stay afloat in the changing market.

• Fixed line communication between the management/employees and the customers in the market limits the company from comprehending the needs of the customers in the market.

OPPORTUNITIES

• The growth of emerging telecommunication network with faster speeds in the United Kingdom, European nations, and America has attracted huge customers in the sector.

• The company also acquires advantages through the Euro and the Dollar currency because of the connections it has made between America and Europe.

• The company can create high-speed internet circle to beat the competition in its market.

• The international promotion of wireless network in the international market is a wakeup call for Verizon to take advantage of the market.

• The competition found in the international market is open for any company including the startups to consolidate.

• The conclusion of the Data Plan by Verizon tends to increase its future earnings.

• Verizon has also been participating in the acquisition of smaller and regional operators in Europe and America which serves as an opportunity for it to expand and reach new markets in the two continents.

• The popular usage of the Android platform and handsets makes it easy for the company to increase its presence in the international markets.

• The usage of data by iPhone, iPad, and other mobile handsets in the international market may increase fees to the telecom firms in the market which is a good opportunity for the company such as Verizon to acquire good revenues.

• Increasing status of 3G and 4G usage serves as an expansion opportunity for Verizon.

THREATS

• The telecommunication industry is highly regulated which acts as a threat to the growth and operations of Verizon.

• The Niche wireless tower constructors also serve as a major threat to the services provided by Verizon.

• Verizon also acquires several threats from its competitors who already have a huge share of the market and the smaller and upcoming companies.

• Technological advancements in the telecommunication industry act as a threat to the traditional equipment used to provide its services to the market.

• The booming nature of the wireless networking is a threat to Verizon and its operations.

• Insecurity rates created by advanced technologies and the increasing number of customers’ records is a threat to the industry and Verizon as a company with links to the telecommunication sector.

• The decreasing status of the landline networks continues to be a negating factor to the growth of Verizon in the market.

• The many players found in the market makes it hard for brand recognition belonging to a company such as Verizon to acquire the status it deserves in the market.

• Heavy cost invested in keeping the calling and customer service centers running serves as a threat to the revenues generated by Verizon Communications.

• Changing market trends create new perceptions on telecommunication products offered by Verizon and other companies (Thomson, 2010). The above situation serves as a threat for Verizon because it has to keep up with the new trends of the market to survive (Grégoire & Fisher, 2008).