Business-Level and Corporate-Level Strategies - Essay Example

Running head: business-level and corporate-level strategies 5th August Introduction AT&T Incorporation is an American based firm that deals with telecommunication brands locally and in the international markets. Being headquartered in Whitacre Tower, Texas, the company is the largest provider of fixed telephone in US. Having originated from Bell Telephone Company that was founded by Alexander Bell, AT&T has invested in production of quality services that have made it to increase its revenue in the US and in the global market. Some of the key products that the company produces include fixed lines, mobile telephony, digital television, broadband and fixed line internet services. Additionally, the merger and acquisition strategies that the company has adopted has made it to effectively meet the needs of its customers as well diversify its operations. Some of the notable companies that AT&T has acquired include America Movil and Direc TV among others. The company competitors are T-Mobile, Verizon and Sprint. This paper seeks to discuss various levels and types of strategies adopted by AT&T as well as the comparison of its strategies with those of Verizon its main rival. Business-level strategies For any company to succeed in a short-term and in the long-term, it must come up with unique business-level strategies. As a leader in telecommunication sector, AT&T success has been achieved as the result of effective business level strategies. One of the notable strategies that the company has adopted is the master strategy. This implies that the company intends to be the only telecom provider that connects its small and large customers anywhere. Recently, the company management stated that AT&T plans to focus exhaustively on large customers. This will account for 75% of the company revenue an aspect that will save the $1 billion annually (Ausik, 2012). Another key strategy that AT&T embarks on is product differentiation. One of the major aspects that differentiate the company from its competitors is the exclusive agreement with Apple Corporation to sell iPhone. As a result, the company has benefited from strong customer loyalty based on the valuable products provided by Apple. The marketing strategies that AT&T adopts have a great impact on the profitability of the company. Geographically, the company is positioning itself as the leader in wireless coverage. Additionally, the company as noted earlier has embarked on diversification of its product line. Some of the wireless products that AT&T provides include PTT, video share, and voice-IP among others. In this way, the company is able to meet the needs of its large customer base. AT&T emulates modern technology that has been enhanced by the merger with Cingular Wireless. In addition to creating the largest footprint of ant wireless firm, the merger resulted to introduction of the largest spectrum holding for wireless carrier companies. Another major strategy that AT&T intends to pursue is building of its 4GLTE Network. In this way, it will effectively serve its smart phone customers. The business-level strategy that I think is the most important for long-term success of AT&T is improving internet services. Based on the increased level of competition in the telecommunication industry, competitors have embarked on improving their brands. In this regard, AT&T must use the modern technology such as the 4GLTE Network as a way of facing off its competitors. Corporate-level strategies AT&T aims at providing excellent services to its customers as well as creation of strong positive relationship with all the stakeholders. The company mission is to connect the world by providing excellent services as compared to its competitors. With the number of employees standing at more than 246,000, AT&T aims at improving the performance of its workforce through training programs. The company has established 11 employee resource groups that any of the employees can join. As far as work force diversity is concerned, AT&T is recognized as a leader in the management of diversity. In its effort to hire talented and dedicated employees, the company management looks for people from various backgrounds and then provides them with an opportunity to exercise their skills and grow. The company was ranked at position 4 in the Top 50 Companies for Diversity in 2012. For the last 10 years, AT&T has received a good score in the Human Rights Campaigns Corporate Equality Index due to its fair treatment of the workforce globally. AT&T Corporation aims at making positive impact globally as far as environment is concerned. For example, the company provides an icon on its website where the members of the public can use to join it in order to switch to paperless billing as well as recycling their phones (OSullivan, 2002). In addition, AT&T provides eco-rating system that helps its customers to make informed decision during their purchasing process. As a way of indicating its appreciation to the communities, the company established the AT&T Aspire. This is a program that aims at investing over $350 million in sponsoring education globally. For the long-term success of AT&T Company, I think improving employees performance through training as the most important corporate-level strategy. Based on the close contact between the employees and the customers, improved training will ensure that the company policies are followed. As result, all other strategies will effectively be implemented. Competitive environment In US, telecommunication industry is under the control of four notable players. These include AT&T, T-Mobile, Verizon and Sprint. AT&T and T-Mobile have total number of subscribers standing at 104 and 34 million respectively while Verizon and Sprint have 93 and 57 million users. This is an indication that Verizon provides stiff competition to the AT&T. While T-Mobile continues to lose its clients while Sprint is just using its revenue to survive in the telecommunication industry, AT&T and Verizon have an extensive market share that makes them to increase their revenue. One of the key issues that make Verizon a stronger competitor to AT&T is its high speed. However, the use of modern technology including the 4G LTE is a strategy that AT&T uses to face of Verizon. Through its diversification strategy, AT&T is able to face off the competitors. AT&T brands focuses at meeting the needs of small and large customers. AT&T does not aim to lowering its cost but its focus is to outdo it competitors through the use of cutting end technology, superior brands and reliable services (Kleinfield, 1981). The table below indicates the comparison between AT&T and Verizon strategies at each level. Strategy Reasons Advantages Disadvantages AT&T Cost leadership, Superior services, Differentiation, Fast services The company will receive extra money for providing superior services Higher revenue for the company Services are expensive making them not to be afforded by all people Verizon Differentiation close to that of AT&T, and superior services To attract best customers Fastest service Services are expensive making them not to be afforded by all people Based on the above table, it is clear that AT&T has a higher possibility of becoming the most successful company in the long term. Through the use of higher revenue that is generated by the expansive market segment, AT&T will expand its research budget thus coming up with more superior brands. This will make it to effectively face off the competitors. In the slow-cycle market, it is difficult to imitate the products due to the strong shielded resources by companies. This implies that competitors are not likely to enter the industry. AT&T is not in a position to strongly shield is resources an aspect that is portrayed by the Verizon ability to copy its strategies. AT&T may therefore lose its leading position to Verizon in the slow-cycle market. Additionally, the industry is open making its easier for the competitors to enter. On the other hand, in fast-cycle market, firms embark of employing small steps to counterattack their competitors. For example, Verizon may start by adjusting its prices, then improving the quality of its services, improving speed, innovation and improved marketing strategies in its effort to face off AT&T. This implies that Verizon may still overtake AT&T in a fast-cycle market if it expands its resources. Conclusion From the above discussion, it is clear that AT&T has to some extent controlled the US telecommunication industry although it is experiencing stiff competition from Verizon. The success of AT&T has significantly been based on the use of modern technology that has resulted into improving internet services. Additionally, the company employees training programs have made the company to improve its workforce. As a result, AT&T has effectively faced Verizon and other competitors as far as the quality of services and technological aspects are concerned. References Ausik, P. (2012). AT&T May Keep Rural Landline Business. 24/7 Wall St. Retrieved 4 August 2014. Kleinfield, S. (1981). The biggest company on earth: a profile of AT&T. New York: Holt, Rinehart, and Winston. OSullivan, D (2002). Framework for Managing Development in the Networked Organizations. Journal of Computers in Industry, 45 (1): 71–80. Read More