AT & T Industry Analysis Paper

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The five forces tool is applied to understand the areas of strength in the business environment. The assumption of the tool is that five vital forces determine competitive power (Ormanidhi & Stringa, 2008).
1. Competitive Rivalry
The telecommunications market in the United States is profoundly saturated with over forty-five thousand single and multi-location providers (Hausman, 2013). AT & T’s closest rival is undoubtedly Verizon Wireless, which as of 2015 reported an additional nine million subscribers compared to AT&T (Hausman, 2013). The telecommunications industry is driven largely by technology and changes in consumption trends. AT&T has a competitive edge in the form of economies of scale due to its scale in the market. The degree of …show more content…

AT&T then lost a significant share of the market. The number of competitors in the telecommunications industry has also increased. Developments in technology also mean that consumers have a wider range of choice. Customer bargaining power is, therefore, high. Indeed, this is the organization’s most prominent challenge. AT&T has managed to maintain relevance to the consumer through efficient marketing practices (Kauper, 2009). The company has also optimized the efficiency of operations. For example, by bundling services and offering long-term contracts. Most importantly, the organization has managed to respond to changes in the needs of the consumer by diversifying into internet …show more content…

As noted earlier, the telecommunications industry is highly competitive. The provision of high quality as compared to the competitors is a strong imperative for any organization in the telecommunications. Most importantly, competitiveness in the telecommunication industry is anchored in the ability to respond effectively to changes in technology (Hausman, 2013). The organization should ensure that it undertakes a proactive strategy by establishing a panel to oversee the company’s management of

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