Verizon SWOT Analysis | SWOT Analysis of Verizon
In 2000, two corporations merged, Bell Atlantic Corporation and GTE Corporation, which results in the setup of Verizon Communications. By the time, Verizon has gained a lot of popularity due to its successful strategies like acquisitions and inventive offerings. These strategies allowed the corporation to lead in the US market with the biggest market share. It is really important to understand how Verizon achieved this position. You can understand all these factors by reading the SWOT analysis of Verizon.
Company: Verizon Communication
Formerly: Bell Atlantic Corporation and GTE Corporation
Founded: October 7, 1983, Delaware, United States
Verizon Established: June 30, 2000
CEO: Hans Vestberg (Aug 1, 2018–)
Head office: New York, USA
Type: Public
Area Served: USA
Industry: Mass Media, Telecom
Employees (July 2020): 1135,300
Annual Revenue (2019): US$ 131.86 billion
Net income | Profit (2019): US$19.79 billion
Products or Services: Cable TV | Landline | Broad Band | Mobile phone| Digital TV | IPTV |Internet| Digital media | Telematics
Verizon SWOT Analysis | SWOT Analysis of Verizon
Verizon’s Strengths:
Market Power:
Verizon is the biggest wireless carrier in the US with the largest market share and network. The leadership is also trying hard to make useful policies that can change the face of the communication industry.
International Operations:
Verizon has several offices in different regions of the world from Europe to North America, Asia-Pacific, and Latin America. It presents telecom, security, IT services, and network management over 150 locations. The IP network of Verizon is offered in 2770 cities across the globe.
Strong Economic Position:
The company is ranked as the 3rd most advantageous public company in the US. These strong financial capabilities are the biggest power because it permits the company to obtain all they want to battle more sufficiently.
Extremely Innovative:
It is very important to satisfy customers of the modern age by offering the 5G network, VoIP, and Fios. Verizon is highly active in the innovation sector and products.
Valuable Brand:
Verizon always focused on constructing a valuable brand and was ranked the 19th most effective brand in 2019. It was also listed 43rd strongest brand by Fortune.
Effective Marketing Policy:
In this competitive time, it is really tough for a stable company’s position. But through creative and intensive marketing campaigns, Verizon earned a lot of respect and followers.
Strategic Achievements:
With strategic achievements, Verizon acquired the largest market share by joining with Alltel. From Yahoo to Alltel, AOL, and BlueJeans, Verizon’s strategic achievements have donated hugely to its success.
Verizon SWOT Analysis | SWOT Analysis of Verizon
Verizon’s Weaknesses:
Overreliance on the US Market:
Overreliance on the US market reveals the company’s issues but it also helps the company to create a strong base in the US. As a result, the company lost 68k wireless subscribers and put its revenue at risk.
Unconstructive Promotion:
The trust of customers is based on the company that protects their data and private information. If the user’s data was leaked, it shows the faults and problems of the company. Verizon’s character was infected when information of millions of consumers revealed.
Additional Data Charge:
Consumers always want to give for what they have used or will utilize, but most of the telecom companies such as Verizon persist in charging more for additional data.
Violation of Trust:
The only connection between a company and a customer is trust. When the trust of a customer is breached, it is really tough to regain. Verizon broke this trust by giving user’s data or mobile location to law enforcement agencies or third parties.
Lack of Modification:
Depositing your eggs in various storage bins increases the danger and reduces profits if one storage bin is affected. If Verizon doesn’t introduce diversification in the telecom sector, it may lose its stability and revenues.
Verizon SWOT Analysis | SWOT Analysis of Verizon
Verizon’s Opportunities:
Exploit Videoconferencing:
Zoom has used video conferencing very effectively and allows its users to work from home. Verizon also focuses on this feature because the demand for this feature is very essential for businesses. Since its attainment with BlueJeans also helps to focus on this sector.
Global Expansion:
Verizon only presents its services such as network management, IT services, and security outside the US. It is really significant to offer wireless services to consumers internationally. In this way, Verizon can expand its global expansion and market share.
Develop Through Acquisitions:
By acquiring Alltel, Verizon expands its market place in 2008. It enables the company to overhaul AT&T. in order to protect its market share, Verizon should think about joining the Sprints and T-Mobile.
Diversify Portfolio:
Verizon can take the lead with the arrival of the 5G network. They should introduce new segments like augmented reality, smart cities, and autonomous vehicles. There are several opportunities for Verizon in which he can take lead from other competitors.
Verizon SWOT Analysis | SWOT Analysis of Verizon
Verizon’s Threats:
Intense Competition:
AT&T, T-Mobile, and Sprints are the biggest rival of Verizon. In order to improve its market share and profit, Verizon should focus on innovative ideas and strategies to compete with T-Mobile and AT&T.
Stringent Regulations:
In order to make a powerful impact on users, it is really vital to protect user’s data and information. If the government imposes new laws and regulations on telecom companies, Verizon’s operations and revenues can be affected.
Hacking and Data Leaks:
Hackers always target popular companies to hack their data. This thing can cost millions of losses in settlements and lawsuits. In 2017, a security setting leaked private data of 6 million consumers of Verizon.
Looming Recession:
With the ongoing pandemic, everyone is facing a global recession. As the recession is around the edge, Verizon’s prosperity is in danger.
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