Development and Growth of Verizon Wireles Essay
Development and Growth of Verizon Wireles
Verizon Wireless aspires for manageable development as a wide market leader in wireless services as well as for dominance in major wireless service markets. In both situations, the Verizon Wireless services will have to do critical roles. Verizon Wireless has the capability to establish its dominance in wireless service markets normally through acquisition of other powerful wireless service companies and their services, which are then integrated into a new, bigger organization. Giving training to its workers, enhancing the organizational functions, and the development of fresh innovations then establishes the positions of the different Verizon Wireless services. This logically leads in economies of scale that empowers the company to form a supply network for both the local and global wireless services. If a market is being managed by other grocery stores, Verizon Wireless dedicates its priorities regarding the establishment of a premium sector with its different wireless services.
The goal of Verizon Wireless is to sustain the profitability of the company in a manageable way, while at the same time consistently enhancing the organization’s operations. The tactics to attain this includes four aspects:1.Working hard in order to attain a dominant level in powerful wireless service markets2.Emphasizing on getting a great share of the wireless service market sectors.
3.Striving in order to enhance the organization’s efficacy and limit unnecessary expenses in their activities.
4.Consistent development through logical mergers for as long as they are able to establish great shareholder value.
In the year 2006, Verizon Wireless was able to experience tremendous improvement in various essential metrics. The inventory was limited from above $50 million down to below $30 million and inventory turns increased from below 15 to more than 25. The expenses of profits, not including the advantage from past miscellaneous expenses and the implemented part of the amortization of untouchable resources, went down from above 70% of earnings to below 70% of earnings. The integration of sales and marketing, research and technological changes, and general and operational costs was limited from almost $ 400 million down to almost $350 million, while at the same time enhancing on the speed of changes. Verizon Wireless’ total earnings are estimated to have grown from barely reaching $1 million in the late 20th century to almost $ 900 million last year.
B. SWOT Analysis of Verizon WirelessStrengths:•has wireless technologies and services that have a reputation for gaining a very strong retail. This involves an emphasis for the value of quality, comfort and various range of games and updated wireless technologies and services•has expanded tremendously over the past years, and has been in the procedure of growth all over the world.
•Primary capability relies on the use of information technology (IT) to significantly aid its wireless services and systems. In short, Verizon Wireless can monitor their individual wireless services and their status within the site, or even at other locations. IT also aids Verizon Wireless’ excellent procurement.
•is able to provide excellent client satisfaction, as the few levels of work would imply lots of time to dedicate to their clients.
•Its personnel have formulated a powerful legacy within the market.
•Has the capability to shift direction immediately if its management realizes that their marketing plan is not working properly.
•has no debts and financial losses. In short the organization can provide excellent wireless technologies and services to clients on a continuous basis.
Weaknesses:•is one of the biggest organizations in the wireless service industry but has a meager control of its organization, in spite of its advantages in updated wireless technologies. This could result to a decline in profitability in some locations where they have lesser managerial powers.
•Since Verizon Wireless sells its wireless services and technologies over different markets, the organization does not possess the versatility that some of its recognized rival companies have.
•Functions al over the world, but its existence can be found in only selected areas all over the world•Some of the organization’s less famous locations do not possess market legacy or reputation•Some of the organization’s employees do not possess the important wireless service knowledge base in many aspects.
•Verizon Wireless is still severely hampered to the temporary absences of its employees.
•The organization’s budget is unstable particularly in the early aspects of a new wireless service product innovation.
Opportunities:•Taking over, acquisitions, or establishing mergers with other wireless service organizations while prioritizing on powerful markets like North America or Europe.
•The establishment of new locations and branches provide Verizon Wireless the chances to explore market improvements. This could result to the diversification of the company’s branches.
•Chances are present for Verizon Wireless to go on with its existing tactic of founding huge extensions all over the globe.
•Verizon Wireless is continuously growing, with lots of future developments to explore for success.
•The local personnel of Verizon Wireless are in the process of persuading local wireless service business entities to join them if possible.
•The rivals of Verizon Wireless may be unable to cope up with the new wireless service innovations particularly the ones that the organization establishes.
Threats:•Being a top wireless service organization means that Verizon Wireless is the one to beat in both local and global markets.
•Being recognized worldwide implies that Verizon Wireless might be immersed to political chaos in the nations where the company has operations.
•The manufacturing expenses of most wireless services have the chance to decline because of the limited manufacturing costs. Production expenses go down due to the outsourcing to low-cost countries all over the world. This situation could result to fighting in prices, which in turn would lead in the fall of prices in different levels. Tremendous price rivalry must absolutely be classified as a threat.
•The current changes in wireless service technology which could probably alter the markets might test the organization’s capability to cope up to these developments•A slight change in the priority of a huge rival might destroy any market dominance that Verizon Wireless has attained over its existence. This could lead the organization to specialize in quick response but excellent quality wireless services to local companies. This would place intense pressure on the organization’s employees to be knowledgeable with the current developments in wireless services where possible.
C. External EnvironmentThe wireless service industry can be found at one of the biggest suburban areas and the most densely populated areas all over the globe. Therefore, this implies that with regards to the territorial elements, Verizon Wireless has been able to properly select an environment or site that may give tremendous potential for the wireless service industry to be come famous.
The market segments in America represent Verizon Wireless’ biggest sales and marketing networks which cover local and domestic stores and mass markets. Suppliers represent Verizon Wireless’ second biggest American network and normally sell to both custom and online markets. In Europe and North America, Verizon Wireless’ market share remains significantly high. It controls more than 50 global stores found all over the world.
The organization also utilizes Internet shops as a place to sell its products. This is done through the utilization of Internet advertisements and product discounts. The organization has the power to establish awareness of its products and other technologies through media announcements, international communication initiatives and Verizon Wireless based online services. The organization also makes sure to get opinions from its consumers through consumer studies. The organization then utilizes these opinions to polish its product enhancement initiatives and marketing programs.
D. SWOT Analysis EvaluationBased on the SWOT Analysis on Verizon Wireless, budget management is the largest concern for the company. The proper means of using the budget must be carefully analyzed by the company. The study of promoting endeavors has to be done due to the feedback that can inform the organization as to what promotional tools are the correct ones to use. These assessment outcomes can secure Verizon Wireless from wasting its financial resources for the incorrect promotional tools and procedures.
Monitoring or assessment involves the application of tools to evaluate promotional appropriateness. The plan can be assessed with regards to the development in sales that is attained at a quarterly and yearly basis. This would immediately connect to the goal of establishing demand and improving sales. Nevertheless, it is essential to put into emphasis that it can be hard to manage for other elements that are likely to bear effects in the market industry, which include the choices of rival companies to improve prices, a change in client likes, or a shift in the entire demand.
Luckily, other tools can be utilized to evaluate promotional appropriateness, which connects upon the variance of the marketing goals that have been mentioned earlier. For instance, surveys can be done, which ask regarding the wireless services, identify any development in behaviours regarding the wireless services, and identify whether or not there has been a development in client information or awareness of the wireless services.
E. Corporate Level Strategy AnalysisThe primary goal of the corporate level strategy of Verizon Wireless is to guarantee that the company will be recognized in the industry as a business entity that gives excellent wireless services for its target market. Aside from this, Verizon Wireless has the corporate mission to determine the most effective strategy to be utilized in order to transform the wireless service industry into becoming more recognized by the public consumers.
Verizon Wireless has four primary corporate strategies:A)Manage its position as one of the primary businesses regarding wireless services. Being the leader of the wireless service industry will propel Verizon Wireless to earn the respect and trust of its customers. Therefore, the organization will have the power to widen its functions through the acquisition of other wireless service organizations.
B)Become more financially stable than other wireless service organizations. The raw technologies that are being used in the production of wireless services have to be able to attain excellent standards. If this is achieved, Verizon Wireless will have the capability to become more financially stable as against other rival wireless service organizations.
C)Establish an excellent wireless service technology profile, with Verizon Wireless as the global label of flagship; andD)Establishing its freedom. Being a free organization will enable Verizon Wireless to go on with its reputation of excellence in both its wireless services and products by establishing fresh innovations and measures.
F. Business Level Strategy AnalysisIn the situation of Verizon Wireless, its business level strategy that it utilizes to propel itself in the wireless service industry involves the utilization of advertisements. To be able to inform the target of the organization regarding the presence of the wireless service industry, Verizon Wireless utilizes media advertising, online and other media and news advertisements. These marketing procedures are supportive to propel Verizon Wireless at the top of the wireless service industry.
Business Level Strategies – PriorityThe primary emphasis of the business level strategy is to enable Verizon Wireless to be recognized in the market. In order to attain this, the utilization of an excellent business plan through an effective business interaction plan is always put into emphasis. In addition, interaction is an essential element of the company. Through excellent communication, Verizon Wireless is able to transfer knowledge and learn from each other’s capabilities and knowledge.
In this specific business level strategy of Verizon Wireless, the essential aspect that is given priority is the advertisement and interactive campaign of the company. Normally, advertisement or interactive campaigns of Verizon Wireless are well known as an open sponsorship of given goods, products and any concepts through the utilization of any channels of interaction. In this respect, there are various types of channels that are utilized for advertisements and interactive campaign objectives of Verizon Wireless. Generally, in this IMC perspective, the emphasis is put on advertisement and wireless services promotion.
Business Level Strategy – By SegmentThe excellent business level strategy of Verizon Wireless reflects a continuous process and style to all its activities. The business level strategies of the company arrive to signify the new emphasis of its marketing field in incorporating the interactive elements to connect to all of the company’s clients and not just its basic consumers (Levinson, 1998). Aside from this the business level strategy proceeds with the objective of determining and improving the mutual connection of the organization to its clients by giving means to establish relationship with clients through advertisements.
The usual consumer market of Verizon Wireless involves international clients and local clients as well. In this way, in order to guarantee that the target market is able to know the presence of Verizon Wireless, the business level strategy utilized by the company is putting priority to each of the target market in both local and global scenes.
Quarterly Business Level Strategy- SalesIn this business level strategy, Verizon Wireless implements the marketing procedure in attaining interactions and promotion of the organization and the wireless services that it gives. This business level strategy is implemented quarterly. In performing this, the following interactive media is used:•TV, print, and communication mediaSome of the marketing channels that are normally utilized by Verizon Wireless in order to make their wireless services well known are the TV, print, and communication media. In connection with the company, it also utilizes these media channels in order to be recognized by various clients anytime and in any place.
AdvertisingA very famous process of promotion used by Verizon Wireless is through advertisements. Advertisements of the company are very expensive but like all marketing plans, it is not classified as a cost but an asset by the company. The expenses for excellent advertisements may be significantly high but the good outcomes are all worth it for Verizon Wireless (Silk, 2006). Advertisement is the right approach for Verizon Wireless for the similar reason of improving awareness and making an impact towards client perceptions. Also, advertisement through media can be felt by larger groups of people all over the world, therefore the information is transferred to a larger part of the target market of Verizon Wireless.
Quarterly Business Level Strategy- Public RelationsPublic relations and publicity are different plans established by Verizon Wireless to inform or secure the organization’s reputation or its wireless services. The benefit of this mechanism is that it improves the organization’s reputation and it allows Verizon Wireless to be recognized due to the excellent image than its rivals. In this way, Verizon Wireless often does a publicly connected endeavor every quarter to guarantee that the organization follows its social roles in the site. One of the excellent means to implement this is through sponsorship. The company often sponsors a well-known organization every quarter.
G. Structure and Control Systems AnalysisA matrix framework overlays two company forms in order to exhibit the advantages of both. Some world companies implement a matrix framework that mixes territorial with product teams. The product-based framework enables Verizon Wireless to explore world economies of scale, whereas the territorial framework manages information close to the necessities of each and every nation.
The company also possesses degrees of matrix framework, implying that every divisional team of Verizon Wireless has particular roles, but some topics must be decided in unison across all of these teams. Rather than mixing two separate frameworks, some matrix frameworks overlap an operational framework with project groups. Workers at Verizon Wireless are tasked to a cross-operational project group, yet they also belong to an established operational group to which they come back when a project is finished (Cameron, 2004).
The matrix framework of Verizon Wireless is implemented through the hiring and recruitment of new workers whose knowledge and work ethics jive with the culture. Verizon Wireless was going into a new market that will recruit a number of highly qualified people from other organizations to support the new initiatives. The matrix framework of Verizon Wireless’ organizational structure may need for getting new workers aboard. This procedure usually happens immediately after the workers are recruited, and may be a means to slowly teach the different functional teams with a new culture.
A matrix framework is implemented systematically or informally, probably through training of new workers or through a sequence of interactions to current workers at Verizon Wireless. A matrix framework is helpful in the company and management of shared value mechanisms (Hiatt, 2003). Therefore, culture at Verizon Wireless is shared through obvious or invisible ways and studies indicate that invisible means of interaction seem to be more efficient in altering culture than visible means of interaction and the visible and invisible interaction is depended on to give outside justification for the matrix framework and encourage company workers at Verizon Wireless to adjust to the new company practices and ethics.
Nelson (2005) mentions that there are three fundamental procedures of decision-making: the top-down method, the democratic method, and the subculture method. Top-down or implemented decision-making does not normally happen in the company structure of Verizon Wireless, because their management knows that it normally leads in developments that are hard to manage, even though they may be effortless to tell to the employees. In short, they know that top-down methods may lead in forced compliance from the employees of Verizon Wireless, but in reality they do not totally agree to it. Therefore, Verizon Wireless implements the democratic methods to decision-making which are hard and eat up a lot of time, but the dedication and trust to the development is more effective than an altered work setting which enhances outputs and results of Verizon Wireless.
Procedures of assessment of the decision-making structure of Verizon Wireless involves monitoring, evaluating the efficiency, or comparison of basic elements with original aspects identified during the inner company investigation. A development in the major frequency mixed with a dormancy of company efficiency at Verizon Wireless could imply that the major factors were not identified properly. The culture, in short, has developed with low or negative effects on company efficiency. It is clear, nevertheless, that culture can either support or significantly delay a selected tactic and further comprehension of cultural inspirations may be tantamount to entire comprehension of efficient strategic development.
H. RecommendationsMajority of the triumphant activities of Verizon Wireless rely tremendously on excellent interpersonal interaction and relationship among the individuals and the entire company. Bounded with a unified objective, the control of developments at Verizon Wireless must be always coordinated with the individuals that will benefit or workers that will immediately feel the impacts. Discussing the objective of development at Verizon Wireless must be always important. Interaction is the highly recommended way that the managers at Verizon Wireless must use.
Obtaining the trust of the employees at Verizon Wireless and managing a smooth professional relationship must always be emphasized, because it is always a critical factor to an excellent flow of company functions. But all these will be put to naught if topics and dilemmas brought about by improper governance and added with the misunderstandings between managers and workers of Verizon Wireless will emerge along the way.
Handling the interaction and knowledge that Verizon Wireless utilizes in its everyday functions must be prioritized in the company. Knowledge is the blood stream of the organization on which every worker; employee and manager strive on. It must be utilized in order to attain the needs of the customers of Verizon Wireless. This is the reason why there must be always an appropriate interaction and knowledge management flow within the company.
Also, the impact of a development affects workers of Verizon Wireless as well as the company for a long period of time. The necessities and traits must be always taken into consideration in interacting planning and making choices within Verizon Wireless (Rickards, 1999). Direct communication between the management and the workers must be effective enough to provide solutions to problems and potential threats to the employees of Verizon Wireless particularly on the issues and results of the desired development. Interaction between and among the employees and managers of the Verizon Wireless must be always emphasized in order to give a well-operating company function within and outside its limits.
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