Verizon Porter's 5 Forces

Verizon Communications, Inc. is the largest wireless telecommunications service provider in the United States. The company dominates the industry with a market share of 33%, (cite) and achieves this through an expansive network coverage as well as a strong reputation for outstanding customer service. There are many external factors that influence Verizon’s opportunities for growth and expansion that can be identified through frameworks such as Porter’s Five Forces and the PESTEL Analysis. The most relevant factors for Verizon’s current problem include the competitive rivalry within the industry, the bargaining power of buyers, and technological and sociocultural factors.
The competitive landscape of the wireless telecommunications industry is likely to intensify and leaders in the industry are competing to retain and gain customers in new and innovative ways. One of the biggest forces driving this competition is the drive to beat competitors to the punch in terms of expanding network coverage, increasing network speed, and the development of new technologies. It is extremely important for Verizon to anticipate and act before their competitors to keep their position as the nation's leading wireless service provider. Verizon’s main competitors have invested large amounts of capital into catching up with their network coverage, and

Verizon will need to find new ways to broaden their competitive advantage.
The bargaining power of buyers in the wireless communications industry poses a significant threat to Verizon.

There are a large number of service providers available for consumers to choose from depending on their wants and needs regarding network coverage and data plans. The cost of switching carriers is now lower than ever before, and many of Verizon’s competitors will cover these costs in return for new business. Additionally, many consumers are becoming more price-sensitive and may decide to switch carriers if they believe the opportunity cost of a lower price outweighs a minute decrease in network

coverage.
Technologies play a huge role in the capabilities and infrastructure of Verizon in the wireless telecommunications industry. Rapid innovation of technologies poses both an opportunity and threat for Verizon. While new technologies facilitate business growth and development, the advancements may be disruptive and have the opportunity to create an area for new players as well as substitutes to enter the market. Additionally, security threats via network or information technologies have the ability to tarnish the integrity of Verizon’s brand image. It is essential for Verizon to implement the highest of security measures for their network to avoid these types of business challenges.
Social conditions and trends significantly impact the behavior of both customers and firms in the wireless telecommunications industry. The increasing use of online mobile services increases the demand for wireless devices and the opportunities for Verizon to acquire new customers. There is also an increase in the demand for high quality products, which can be capitalized on by Verizon through marketing their network and products as such, and furthermore, delivering on those claims.
While the analysis of Verizon’s external environment displays threats due to competition and buyer power, it also demonstrates many opportunities for growth and expansion through technological developments and increased security measures.