Verizon Wireless Case Study

Verizon Communications Inc. Case Study:

Communications in the Future

Executive Summary

Verizon Communications Inc. is entering a new era for the telecommunications industry, the company needs to make risky capital expenditures in order to succeed in the changing completive environment. For Verizon Communications Inc. to succeed in the future, they will need to enter into new business, and find a competitive advantage over the cable companies that are cutting into Verizon’s revenues, but Verizon must maintain high revenues to cover its large debt obligations and labor costs.

Verizon will need to supplement its fiber-optic expansion with strategic maneuvers that build customer loyalty such as CPM software to differentiate them form the cable companies they are competing against. While creating this new customer-oriented culture, it is suggested that Verizon enter into labor union negotiations to lower their labor costs in order to remain competitive in the future against the cable giants. The following report suggests that Verizon allocate most of its resources to small company acquisitions and international market expansion in order to cover its large debt obligations and successfully enter into the new business of video services.

Problem Statement

The telecom industry is in need of upgrading and adding services as cable companies are taking away local and long distance revenues.

Introduction

Verizon Communications is facing new competition and diminishing revenues due to cable companies that are offering phone, internet, and cable services in bundle packages attracting many customers who like one easy payment a month for all of their communication needs. Due to a $75 billion infrastructure upgrade in the cable industry, Verizon and the telephone industry must invest in expensive infrastructure upgrades themselves if they want to remain competitive in the future and block the cable companies from dominating the market. Additionally, the company...