The report provides a comprehensive outlook of Verizon Communications Inc. (VZ WI) in several developmental areas. The first area includes the company’s background information. The background information looks into its operational information, historical developments, products and services, operations, vision and mission statement, and corporate values and culture. The above segment will provide an in-depth analysis of its position in the market and how it has evolved to become a competitive and successful company in the international telecommunication industry. The second area includes an evaluation of its operations through SWOT analysis. This provides a clear picture of the operational risks and opportunities for the company to continue improving its operational development. The fourth segment is about competition and the management team in its operation. The segment creates an opportunity to understand its competitors and remain instrumental in beating them to remain profitable. The fifth segment looks into its financial outlook to identify its profitability, stock listing, and how it operates to ensure development. The report follows the above, focusing on the types of strategies that ensure competitiveness in the company.
The nature of the global markets plays a significant role in influencing companies to become more strategic in their operational development. Company executives understand the implications of primary competitive outcomes influenced by new and old entrants in their respective markets. The understanding revolves around the fact that competition dwindles revenues and affects profitability in the operations of activities. Therefore, it hinders innovation and activities such as research and development that ensure the constant elevation of companies to acquire larger market shares amidst competition (Verizon Official Website, 2021). In light of growing market demands from customers and consumers alike, a strategic plan plays a significant role for a company such as Verizon Communication Inc., symbolized as VZ WI in NASDAQ and the NYSE. A business plan in the company, among others, looks into understanding the company from its internal and external environments to outline a strategy for growth and success in the future by maximizing the use of existing resources.
Verizon Communications Inc. (VZ WI) Overview
Verizon Communications Inc. (VZ WI) refers to an American multinational conglomerate in the field of telecommunication. It operates as a Dow Jones Industrial Average corporate component with its headquarters in Midtown Manhattan, New York. The company has served as the only publicly traded telecommunication firm with two stock listings in the United States in the last three years. The company has its stock listings in NASDAQ and the NYSE. It only falls as the second-largest telecommunication firm behind AT & T in market capitalization and revenue generation. Verizon Communication Inc. (VZ WI) was established in June 2000. The establishment of the newly formed corporation resulted from GTE and Bell Atlantic’s merger.
Additionally, the company evolved through another merger of GTE, Bell Atlantic, Vodafone, and Airtouch. Verizon Communications Inc. works through a four-structured business segment. The first structure is Domestic Telecom comprising 16 telephone operating subsidiaries. It also includes internet access portfolios. Domestic Wireless forms the second segment with operations in wireless services. The third segment is International, focusing on partnerships with multinationals to provide communication services across the globe. The fourth segment is Domestic Services, which can give the market print and online directories. It also offers diverse ranges of content to customers and consumers in the market (Verizon Official Website, 2021). The company is currently celebrating over two decades as a leading provider of entertainment, information sharing, communication, and technological development. As of 2020, Verizon Communication generated close to $ 128.3 billion (Verizon Communications Financial Report, 2021).
The history of the company revolves around its formation. Verizon Communications Inc. (VZ WI) resulted from mergers that are considered the largest in the U.S business and financial history. As reiterated above, GTE (Irving, Texas) and Bell Atlantic (New York City) came into a definitive merger agreement on July 27, 1998, despite their differences in location. The two companies had become a major force over the years due to their constant evolutions from business processes such as acquisitions and divestitures. Both Bell Atlantic and GTE showed a proven record of ensuring successful business integration across the globe through their operations. GTE, before the merger, served as one of the largest telecommunication firms in the world, with over $ 25 billion in revenues (Verizon Communications, 2021). It had operations through subsidiaries in countries such as the United States, the Dominican Republic, Venezuela, Puerto Rico, and Canada. Bell Atlantic was twice bigger than GTE during the same period, with over $ 33 billion in revenues.
The company was almost everywhere in the international western markets, providing wireless and general communication services through its robust directory framework. Towards the conclusion of the first millennium, the transaction between the two companies, via their merger agreements, was estimated to be over $ 52 billion (Trautman & Ormerod, 2016). The merger was meant to create a company with the correct scale and scope to serve as a top-tier firm in the international telecommunication market. GTE and Bell Atlantic shareowners approved the merger through monitoring and evaluation frameworks drawn from the U.S Department of Justice, the Federal Communications Commission (FCC), and 27 state regulatory agencies (Chiarini, 2015). However, in 1999, the agreement between Vodafone AirTouch and Bell Atlantic’s merger brought in a new partnership in the name of the Verizon brand. Verizon Wireless was established on April 4, 2000. Verizon Communications started its operations in mid-2000 with the leadership of Bell Atlantic and GTE, sharing management roles and responsibility for the newly formed company. Due to its rapid expansion, the company became a part of the Dow Jones Industrial Average four years later. The situation has seen the company has international and national operations, with its foothold in the U.S serving over 100 million Americans.
Products and or Services
The company provides the market with unique products and services that facilitate a competitive operational base. Verizon Communication provides wireless and wireline products. It segments its services and products on retail customers and resellers who sell the products and services to consumers and customers on a wholesale basis. The company’s focus is on Whole Sale, Global Enterprises, SME businesses, and the Public Sector. The various products and services vary depending on the region and the company’s market of operations. It enables customers to acquire wireless services and products either through prepaid or postpaid frameworks of payment (Gundersen, 2017). Retail takes the leading position in terms of promoting its services and products to reach the market. The United States alone has over one million people subscribing to Verizon’s services as retail customers. Hence, the company has ensured that it allows monthly wireless services’ subscriptions for several connected devices that can be shared across communities and individuals depending on the mode and amount of payment.
The wireless services via a postpaid mode of payment are billed a month in advance for individuals to have monthly access. The company also provides the market with wireless equipment. Several wireless equipment categories are sold through its wireless equipment portfolio. The equipment includes several smartphones from partnering companies across the United States and the Western hemisphere. It also provides internet devices such as tablets and smartwatches (Verizon Official Website, 2021). The broad ranges of equipment have become common and more competitive in the market as Verizon Communications offers to its different competitors. The company has ensured that there is a wide range of internet connections on the different devices that are provided for the market. In turn, the situation has seen many devices sold across the markets. Nevertheless, with Verizon Communications becoming the largest wireless network provider globally, it becomes easier for over 100 million customers to have an interconnected experience by using its wide range of networks across the market. This has been made possible through its 5G Nationwide, 5G Ultra-Wideband, and 3G broadband network frameworks.
Verizon Communications has ensured that it maintains a high productivity status through launching efficient operations. Operations management has been about maximizing profitability and ensuring business resilience. The company has been instrumental over the years in changing the market in terms of the robust and high-quality products and services it develops for its consumers and customers. For example, the management has tried its best in ensuring that it delivers the best promise of facilitating a digital world to its customers and consumers. The above is made possible by enhancing the ability of three stakeholders-humans, businesses, and societies, to improve their position in communication (Hernández et al., 2014). The company creates an integrated partnership with a collaborative framework to ensure that the market works in the best way possible.
According to its motto, the company is focused on the creation of a network for its people. The alignment of its efforts with resource maximization is always focused on connecting individuals to the possibility of developing their environments and improving their lives. It is about encouraging the right initiatives that can ensure significant development in their lives. Verizon’s pillar and purpose are to ensure that its employees find the best position to provide developmental opportunities for the market. The company has always ensured that it promotes the right products and services that are seen as the tools of facilitating a larger truth of what is needed to appreciate technology.
Another main example is that operations managers are trained to ensure that the market is comfortable and satisfied in using the products and services associated with the company’s operations. It ensures high quality through its operations, creating the best competition in the telecommunications industry (Stock & Stowasser, 2017). Over the years, the company has remained specific in ensuring that it launches simple but sophisticated products aligned with technological changes in the market. The outcome has included the possibility of the company becoming the go-to firm regarding issues revolving around technological development and advancements.
Verizon’s vision statement includes “to inspire future creators in the use of technology for building bright futures for themselves and those around them.” The company’s main focus through its vision statement is about driving the future through robust technological background. The emphasis revolves around creating a collaborative framework of innovators worldwide to improve the world and create the right opportunities for business development. Hence, Verizon focuses on creating a legacy that can lead to a positive outcome for every individual globally, with innovators of products and services being at the center of this development (Cady et al., 2011). The vision statement comprises several components that are instrumental in defining the right outcome. The first component includes the company becoming a source of inspiration.
The company wants to become the leader when it comes to the international telecommunication sector. Through this, the management has remained proudly and willingly committed to becoming the right creator in future technological advancement. The second component is that Verizon Communication wants to become the force behind making the world a better place. The component revolves around creating value among customers and other entities such as governments and businesses by allowing active interactions from different capacities through its extensive network base. It has done this to boost business and improve customer experiences through reliable and efficient business mechanisms.
The mission statement includes “delivering the promise of the digital world to customers. The focus is about making customers’ innovative lifestyle to become achievable through a reliable network and the latest technology.” The mission statement looks into the approaches that the company has launched to ensure that the telecommunications industry respects its operations. The use of technological networks remains the founding operational strength in the market about competition. The statement shows that the company has developed every product and service from a technological perspective focusing on improving lives. The products and services are structured to ensure that they meet customers’ needs while touching on their desired lifestyle.
The main issue is that the management has ensured that the company’s position in the market is to improve their experience to continue to use its products and services. The Verizon Smart Family remains a top priority in facilitating enjoyable and affordable approaches to ensuring that customers do not use much of their funds in using the company’s products and services. The latest technological products and networks have been instrumental in adding value to customers. This has been possible by ensuring communication becomes more reliable and swifter (Verizon Communications, 2021). The use of reliable and the most advanced technology sheds light on how the company could meet the desires of its customers. The networks are more reliable and reflect similar qualities to the company’s objectives in the telecommunication industry.
Corporate Values & Culture
Verizon Communications works through several core values and cultures. The culture and core values revolve around ensuring a greater customer experience. The management is tasked with the maintenance of growth and profitability through launching a human-enhanced service provision. Hence, it can focus on delivering digital communication and services/products for customers. The success of any given company is about how it promotes culture and practices that ensure a constant alignment with the market (Verizon Official Website, 2021). The management acknowledges the company’s culture as an important element associated with the enforced values that align decision-making and all organisation’s major activities. Verizon has ensured that it values everything that it provides to its customers. The company comprehends that its foundation to growth is about ensuring that it operates on a satisfying market. The core values and culture have become instrumental in stimulating a positive attitude among customers globally. The company has made this possible through communicating honestly with the operational markets.
Strength, Weaknesses, Opportunities, & Threats (SWOT) Analysis
Verizon’s SWOT analysis looks into its internal and external environments for strategic developmental outcomes. They represent the risks and opportunities associated with the company in terms of ensuring a competitive outcome. The SWOT analysis is discussed in the following manner:
Verizon shows the following strengths in its operations. It shows robust, innovative capabilities with unique and creative products and services. Also, the company possesses innovative technological initiatives such as the 5G network or 4G LTE. It has remained instrumental in owning a larger market share and network strength, facilitating a considerable edge. Verizon enjoys a large customer base ensuring high profitability levels. It enjoys many acquisitions such as AOL, Yahoo, and ALLTEL. Verizon has a strong financial muscle due to it ranked as the third US most profitable public company. It has a successful, valuable brand name through Fortune 500 and Forbes. Verizon ensures many innovative marketing campaigns that link customers to its products and services.
The weaknesses are underlined through several areas of development. The company has been accused of not maintaining a policy of safety and protection of customers’ privacy. Products lack security-relevant features, tainting their image in the market. Its 5G advertising has continued to receive continuous criticism (Ostbo et al., 2016). The company claims to have launched the network even before its availability. Overreliance on the U.S market affects its profitability and revenue generation. Verizon lacks diversification of products, preventing its innovation and profitability. Many existing liabilities may influence bankruptcy and increase operational problems.
The opportunities are diverse and are discussed to understand how the company can improve its image and brand in the market. Verizon has an exploring diversification in terms of services beyond telecommunications. It has an opportunity of acquiring new customers by expanding services. The company can move to new international markets to seek new business opportunities. Verizon has an opportunity of utilizing its wireless services and products for profitability maximization. It can also undertake mergers and acquisitions to support its expansions. According to Verizon Communication Official Website (2021), taking advantage of the COVID-19 pandemic makes it possible for the management to build a robust operational portfolio in the market.
Threats affecting the company are also several. Upcoming recession resulting from uncertainties of the pandemic is a threat to its operations. Crumbling economies across the globe reduce revenues and affect profitability. Market competition from companies such as AT&T and T-Mobile reduces its market share. Innovation from competitors reduces its possibilities to create a better operational outcome. Data leakage is a security concern and serves as a major danger in telecommunication companies.
The company has several competitors in the national and international markets. To begin with, the first competitor includes Airtel, with operations across the world. The second one is Vodafone, operating in Europe, New Zealand, Africa, and Australia. AT&T is also a major global competitor for the company (Ostbo et al., 2016). Others include Tigo, Tellus Mobility, Rogers Wireless, and Telcel. These competitors continue to work hard to create innovative and efficient products and services for the market.
An evaluation of the company’s management team and leadership originates from its organizational structure. The management team and leadership in the organization is mainly associated with Domestic Telecom under Verizon Communications. The Chairman and CEO have responsibilities in the provision of overall direction to the company. Vice-Chairman and President have the responsibility to ensure efficient service delivery and quality to all companies operating under the domestic portfolio. Senior Vice President Human Resources ensures that all policies and procedures are followed about labor relations. Executive Vice President and Chief Financial Officer are tasked with capital and expense budgeting. Senior Vice President of Strategy, Development, and Planning heads the company’s strategic development to ensure efficiency and operational development (Verizon Communications, 2021). The company ensures that all major stakeholders are involved in initiating the right changes in its operations.
The financial outlook of any given company comprises several vital areas that have to be evaluated to understand its stability in terms of financial development and operations. To begin with the stock price listing, the financial forecasts possess a median target of about 60.00 with a high and low estimate of 71.00 and 52.00, respectively. The median estimate is about +11.90%, an increase from the last price, about 53.62. Based on the above increase, it means that individuals should be able to hold the stock in the company (Cable News Network, 2021). The nature of the stock contributes significantly to the development of the finances in the company. An assessment of its 2020-2021 financial report suggests a significant improvement in its financial operations.
In the 2021 second quarter, Verizon Communications has had a revenue capacity of approximately $ 33.6 billion. In the last eight years, the company has had an exceeding operating revenue of $ 120 billion yearly despite the COVID-19 pandemic hitting the markets (Cable News Network, 2021). The situation means that the company is at its best in launching the best products and services for the markets around it. It means that the management has remained instrumental in creating the best strategies for the market that support the desired development to support its operations. Last year, the company became one of the most profitable firms in the United States. It made about $ 31.0 in its revenues only to improve in the second quarter of 2021. The above situation shows a better financial outlook that encourages positive change while allowing room for financial and logistical improvements in its dire need to remain competitive in the international and national markets.
Several strategies in the company’s decision areas have remained instrumental in ensuring a successful operational development. The strategies have continued to yield valuable information that assists investors in determining important operations such as stability and a healthy business outcome. An example includes productivity measures used by senior officers in the company to categorize operations in different priority areas and ensure that the company meets its objectives in the market. The first strategy revolves around the design of goods and services. The mission and vision statement creates strategic decisions to maintain consistency in providing high-quality services and products via technological specifications (Ceko, 2014). Technological upgrades have made it possible for the company to continue serving the markets in the best way possible. The company has ensured compatibility among components, systems, and networks to reduce operational inefficiencies. Therefore, it maximizes its product and service design to facilitate consistency in cost and quality.
The second strategy is ensuring process and capacity design. Strategic decision making revolves around ensuring that technologies and major resources ensure higher productivity in the market. An example includes the company using process and capacity design requirements to facilitate effective wireless networking services for customers in the market. The management can eliminate operational bottlenecks to remain competitive and provide the best solutions to telecommunication problems across the markets (Verizon Official Website, 2021). The third strategy is about maximizing its approaches on location. The marketing mix requirements for the location of its offices is important in the application of different strategies. The company has ensured that it finds the favorable location of cell towers and offices to better reception the networks it handles and service provision through its markets.
The strategic location strategy also ensures efficiency in the movement of goods and promotes better sales transaction outcomes. The fourth strategy revolves around supply chain management. Reliable, cost-effective, and streamlined services are important in its operations management. Verizon works with sustaining suppliers’ needs and aligning them with its operations to improve productivity. The company has always ensured that it motivates the supply chain to continue growing with it amidst challenges.
The report has provided the right capacity for the consumers and customers to believe in the company’s position within national and international markets. Since its founding in 2000 via mergers between GTE and Bells Atlantic about other partnerships, the company has grown to have a strong financial outlook. The SWOT analysis has shown a better performing indicator than its competitors, such as AT&T, Vodafone, and Airtel. The organizational structure also initiates better strategic direction in its operational development, creating a need only to eliminate some operational issues such as privacy problems in technological features, a higher-competitive basis, and other threats that may somehow dwindle its operational development.
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