Wireless Industry and At & T - Case Study Example

Wireless Industry And At & T Introduction Technology has evolved a consummate a deal over the years. This is evident as a number of milestones achieved in the modern world dully credit these technological advancements. In the communication industry for instance, the utmost attainment revolves around wireless technology. Wireless communication is the transfer of information from one point to another in the absence of an electronic conductor connection. The common mode of wireless communication adopts the use of electromagnetic wireless communication for instance in the radio technology. Radio waves differ when it comes to distance. This implies that the distance could be a few meters as that of the television remote case or millions of miles deep into the space. The wireless communication encompasses a variety of fixed, mobile or portable applications, personal digital assistants, cellular phones and two way radios (Bussey, 2000). There exist various examples to depict the radio wireless technology in the modern societal setting. For instance, wireless computer peripherals; mouse, keyboard, headphones, garage doors openers, radio receivers, cordless phones, satellite television and also the broadcast television. In the recent past, sound, light, electronic and magnetic fields are applicable to achieve the wireless communication. Every industry has a number of key players. The organization is a subsidiary of the (ABT) American bell Telephone. AT & T’s formation was in the Yester years with it is headquarters in Dallas Texas. Currently, the company is the largest fixed and mobile telephony provider and also provides subscription television services in the United States. As of 2012, various world rankings had AT & T suited at the top helm according to value and performance. For instance, the company ranked 20th worldwide in terms of mobile telephony operations and overall as the 7th largest company in the Unites States of America. The intention of this discussion is to delineate the over performance of AT & T as a key player in the booming wireless industry. In the wireless industry, competition emanates from various fields. For instance, the other fixed telephony providers, cable providers, pagers, and other internet companies articulate stiff competition against AT & T. This is a result of an upcoming trend geared towards convergence of services in the telecommunications industry. This implies that there is intense competition in the prevailing market, and future trends depict a more trivial situation with the expected new entrants (Webb, 2007). The aligning segment in the wireless industry illustrates that there is a consolidation trend as companies respond to cost reduction and additional spectrum strategies. The ultimate result is that the companies will have a well backed financial background, technical and well vast with other resources. AT & T seeks to lure and maintain clientele by providing free airtime among other lucrative packages, faster expansion in their network connectivity, develop and innovate the wireless technology. This implies that, in the general market, competition plays a significant role in the operations of AT & T Inc. For instance, the upgrade in promotional as well as advertising spending results from the urge to attract clients from other market players. The second aspect that plays a significant role in the operations of AT & T in the general market environment is governmental regulations. The government as always has in place new regulations that seek to provide a fair platform to all players in the wireless industry. For instance, the rules governing number portability conveyed by the Federal Telecommunications Commission profoundly affect company’s performance. Given these regulations, the companies now realize smaller operated margins, more alternatives for customers hence making it difficult to retain clients. These two segments alienated in the wireless industry materially affect the overall performance of AT & T. However, these segments play a vital role in ensuring that sanity prevails in the wireless industry as well as protecting all rights of the stakeholders and key players. In every industry, competition is inevitable. According to some economic laws, any industry providing above normal returns will attract new players. These players substantially contribute to the levels of competition prevailing in the market. The wireless industry is no exception. Competition is eminent and stiff which results to smaller profit margins in the long run. Competition means that one company has a larger market share than the rivals. In essence, the wireless industry is a service industry. In the service industry, customer service is an essential marketing tool. AT & T Inc. Has to offer reliable and better customer service, to be able to fight off the upcoming competitors. Customer service also implies that AT & T Inc. Has interactive session with clients. These sessions ensure that the company will be aware of any changes in the consumer preference and implement any recommendations in the company operations. In addition, the wireless industry has other factors affecting the overall performance of AT & T Inc. The other forces of competition apart from customer service include; new services in the market through innovation, demographic trends, prevailing economic conditions and rivals discounting strategies. It is hence vital for AT & T to respond on a timely basis to the competition leveled against the company. Failure to this would imply a loss in market share as well as a decline in the level of returns. The two essential forces of competition facing AT & T are customer service and innovation. In the past, AT & T addressed these two issues on a timely basis hence the performance and relevance of the organization still exists. AT & T Inc. Sought to ensure that the levels of competition were consistent. This is achievable by offering reliable customer service and engaging in innovation that would lead to cost reduction hence widening the profit margins. It is not possible to entirely eradicate competition. This is because; each industry has to have a number of players. Bearing this in mind, AT & T Inc. Has no option, but to adopt strategies to counter competition in the foreseeable future. The forces of competition in the wireless industry leveled against AT & T Inc. Include the following, consumer service, innovation, prevailing economic conditions, demographics and infrastructure. The foremost competition forces facing AT & T are innovation and consumer service. It is eminent that consumer service is of utmost importance in the wireless industry. Consumer service implies that the company relays intentions to the potential clients. Consumer service also entails engaging the clients in interactive sessions. This interaction assists the company to get feedback from the prevailing market. Basing on this feedback, the company will make future projections on how to advance consumer service. On the other hand, consumer’s preference changes with time. It is vital that the organization synchronize the new consumer preferences. With the adoption of the upcoming consumer preferences, companies attain competitive advantage. This aspect of competitive advantage is valuable in various aspects to the organizations performance. AT & t Inc will seek to improve on the level of innovation. This is achievable considering the high level of technocrats in the organization. Innovation aims at reducing the operation cost incurred in the organization. This will ensure that the profit margins expand in the short run. In the long run, the rival companies probably will adopt the technology and hence the profit margins will decline. Innovation also seeks to ensure that the company is efficient and effective. Through enforcement of both consumer service and innovation, AT & T will be a highly regarded company in the foreseeable future endowed with the ability to attract and retain clients in the long haul. According to the world ranking, AT & T is a remarkable performer in the wireless industry. However, there are eminent threats as well as opportunities at the disposal of the organization. For the organization continue performing, operations need to be in line with the dynamics in the business world. These dynamics emanate from the fact that, economic conditions, as well as consumer taste and preference, keep on changing. The threats facing the organization relate to the convergence of service providers in the foreseeable future. This implies that, the mobile telephony industry has been encroached by other players in the industry hence destabilizing the ability AT & T. The internet service providers nowadays offer services linked to mobile telephony but at cheaper rates. This fact threatens the well being of AT & T and might lead to a fall if not well evaluated. This is because, with the onset of cheaper services in the market it goes without say that the revenues allied to AT & T Inc. will decline. This is because; among the leading factors that convince clients to make business decisions, price is tremendously vital. AT & T Inc. Needs to rejuvenate and re engineer the earlier framework of operations to meet the upcoming consumer needs at the relative market prices. However, the opportunity allied to AT & T revolves around the fact that, the company is a key player in the industry since time immemorial. This in itself accords an upper hand to the organization. Consumer confidence is a fundamental aspect that needs to be cultivated for it to yield fruits. Even thought the upcoming organizations have compelling products, it is essential to note that human beings are conservative and rely on tested products. Since AT & T Inc. Has stood the test of time the organization has an opportunity to refurbish products and rethink on the current pricing strategy (Danielian, 2004). AT & T Inc. Has high standards pertaining service delivery. This in itself depicts that the organization harnesses strength and tackles weaknesses appropriately in the past. According to reports from various independent analysts, AT & T Inc has been on the spotlight since 2010. Various controversial views have been on air since 3 years ago claiming that the company has poor service delivery. The (Consumer reports 2010) opines that AT & T Inc. was among the worst service providers in the wireless industry. This was the second year in a row that the allegations of poor service came to light. With such a piece of information, the market share allied to AT & T Inc. Clearly declined. However, the company has measures in place to rejuvenate itself thus throbbing itself back to the top. This ability to redesign is one of the fundamental strengths that assist AT & T’s survival amidst controversy. For instance, after the report came to the lime light, the company unveiled the unlimited data plan. This plan was lucrative to both the corporate and individual players in the industry. The other strength bestowed to AT & T emanates from the fact the company has a global presence. This implies that even when controversy brews in the United States, other prevailing markets for instance in the Asia Pacific bear little blunt. For instance, when the company was compelled to undergo intellectual property filtering in June of 2008, the global community came to the company’s rescue. The projected impact of the requirement was that it would result to a major exodus from the organization. Finally, late last year, AT & T announced future alliances. These alliances include power masters alliance, Google and Starbucks to join the company’s board. The impact of these alliances would result in the creation of a real world ecosystem using wireless power. This would in turn ensure that mobile devices do not run out of power in the near future. There exists a wide array of resources exposed to the AT & T Inc coupled with competencies and capabilities. Resources include the manpower, financial capabilities, and an appropriate corporate structure. Corporate structure thrusts the performance of an organization to meet the desired objectives. This ensures that the organization performs appropriately to meet the set objectives. On the other hand, the organization has vast financial resources. This ability facilitates easier expansion implementation thus a wider market. The financial strength emanates from the recent alliances and will boost the entire organization to a whole new level. AT & T Inc has a remarkable human resource. Employees are a fundamental part of any organization. This is primarily because; the employees assist the organization realized the set goals and objectives. The resources allied to AT & T Inc. will ensure that the company performs well in the future. AT & T has a number of competencies that propel success. For instance, the company’s level of innovation is overwhelming. It is noteworthy that the organization exploits this competency to the fullest. Finally, AT & T has additional capabilities that the rival in the same industry lack. For instance, the company has a global presence thus a wider market. This capability if cultivated appropriately would yield desirable results (United States, 2003). In conclusion, it is apparent that the wireless industry has thrived with considerate future prospects. AT & T is among the key players in this industry, with an international presence and a service delivery record. The company faces competition from new entrants, which call for prompt redesign of the existing operations. Compared to the rivals, AT & T has a number of strongholds that need proper articulation to enhance continuous dominance in the wireless industry. In the foreseeable future, the organization will prevail given the competencies, capabilities and resources allied to it. References Bussey, G. (2000). Wireless: The crucial decade ; history of the British wireless industry 1924-34. London: Peregrinus. Danielian, N. R. (2004). A.T. & T.: the story of industrial conquest. New York: Arno Press. United States. (2003). A.T. & T. proposed settlement: Hearings before the Committee on Commerce, Science, and Transportation, United States Senate, Ninety-seventh Congress, second session, on A.T. & T. proposed settlement. Washington: U.S. G.P.O. Webb, W. (2007). Wireless Communications - The Future. Chichester: John Wiley & Sons. Read More