Verizon - 2011

Forest David

A.Case Abstract

Verizon is the #2 US telecom services provider behind AT&T, but Verizon holds the top spot in wireless services ahead of AT&T Mobility. Verizon's core mobile business is named Verizon Wireless (known legally as Cellco Partnership), which operates as a joint venture with Vodafone; it serves about 100 million customers. Meanwhile, with about 30 million landline accounts, Verizon Communications' wireline unit provides local telephone, long-distance, Internet access, and digital TV services to residential, corporate, and wholesale customers. The company's Verizon Business division provides a wide range of telecom, managed network, and IT services to commercial and government clients.

Verizon Wireless' 4G LTE wireless network is the fastest and most advanced 4G network in America and offers speeds up to 10 times faster than the current 3G network. All total, Verizon has invested more than $65 billion - $6 billion on average every year since its inception to increase the wireless voice and data coverage of its national network and to add new 3G services like Mobile Broadband and V CAST.

Verizon's Q3 2011 earnings benefited from higher-than-expected postpaid wireless subscriber additions. While rival AT&T added more new wireless customers in total (2.1 million versus Verizon's 1.3 million), Verizon landed almost triple the number of more lucrative postpaid customers. However, Verizon was only able to activate 2 million units versus 2.7 million for AT&T in Q3 2011.That's a narrower gap than the two rivals in Q2 of 2011, when AT&T outsold Verizon by 1.3 million iPhones.Thus, AT&T remains the most popular iPhone carrier in the United States, but Verizon is catching up.

The number of wireless subscriber connections (327.6 million) in the United States has recently surpassed the population (315.5 million) of America. Consequently, Verizon and other carriers are fighting it out for new subscribers, especially those that pay for lucrative data plans on smartphones.The iPhone 4S sold 4 million units in its very first weekend, and it will likely bring in more customers for Verizon in Q4 2011.

Verizon is negotiating with about 45,000 wireline union workers who recently walked off the job for two weeks to protest deep concessions the company is seeking in a new multi-year contract.

Verizon recently expanded its 3G wireless networks in Ohio."People across Ohio are increasingly relying on smartphones and 3G applications to manage their busy lives and stay connected at home or on-the-go," said Mark Frazier, president-Ohio/Pennsylvania/West Virginia Region, Verizon Wireless. "The nearly $2 billion we've invested into our Ohio network has kept us ahead of consumer trends, provided our customers a 3G advantage and underscored our belief that any mobile device is only as good as the network it runs on. Proactive and sustained investment has made Verizon Wireless the 3G leader in Ohio and nationwide."

Verizon Wireless' 3G network powers many leading mobile multimedia services, including.For example, notebook computer users can access e-mail, download files and browse the Internet at broadband speed, downloading a one megabyte e-mail attachment - the equivalent of a small PowerPoint presentation or a large PDF file - in about eight seconds and uploading it in less than 13 seconds.

In addition to recently enhancing its 3G network, Verizon Wireless has deployed its 4G LTE Network in 165 metropolitan areas across the country, covering more than 186 million Americans from coast to coast and surpassing the company's goal of 185 million Americans by year-end.

GW Reference: Strategic Management: A Competitive Advantage Approach, Concepts & Cases, 15th Edition. By Fred R. David, Forest R. David . Prentice Hall.

B.Vision Statement (proposed)

Our vision is to enrich the lives of our customers with the benefits of communication and creating the most respected brand name worldwide.

C.Mission Statement (proposed)

Our mission is to provide the best wireless and wireline products to the most customers in more places than our competitors. Verizon Communications strives to bring the latest innovative products to its customers. and strives to benefit the communities in which we are located.and provide safe and comfortable work environments. while continuing to increase profits. Verizon Communications believes in providing its customers with the best quality products to enable them to communicate with confidence in our network .

1.Expect FOUR key values Verizon is committed to. (2 marks, . 5 mark each)

1.Identify the components of the mission statement.(3marks,.5 mark each)

1.Identify how clear the vision statement is.(2mark)

1.Identify Verizon's competitive advantage and clarify how does Verizon can sustain this competitive advantage?