Competitive Analysis of AT&T - Case Study Example

Competitive analysis and response

AT&T is one of the main competitors that Verizon has to face in the US market. AT&T is a multinational telecommunication corporation with its headquarters at Whitacre Tower in Dallas. It is the second largest provider of wireless phone service in the US, coming second to Verizon, but comes first in telecom services provision ahead of their fierce competitor, Verizon. It is also known for the provision of broadbandsubscription television services. Given the fact that the competition between Verizon and AT&T has been fierce, the understanding of the internal and external environment in which AT&T operates might enable further understanding of the performance of AT&T in the market.AT&T has had various internal and external factors that influence the strategies that they use for survival and development. This paper will be aiming at analyzing the competitive position of AT&T as one of the biggest telecom service provider organizations in the United states of America.

An external factor that has been of influence to AT&T is technology. Over the years technology has gone through significant growth. The market demands that AT&T has to serve many people which different needs, including: cable, music , and internet. Competition has pushed AT&T to adopting technology that has enabled them to have the most advanced network, something that obviously came at a cost. The need to offer both local and international communication implies that AT&T has no option but invest in technologies that enable them to provide the same. This is a factor that leads to a scenario where AT&T has little influence on the technological advancements that take place and the technologies that their competitors use (Donthu, Hershberger & Osmonbekov, 2005). This is a factor that has made it necessary for the company to always be on their toes with the aim of researching on possible technological advancement and the manner in which they technological advancement can be of influence to their operation.

One of the internal factors that have been of contribution to the performance of is the access to financial resources. The US market is a highly competitive one. it is through the financial resources that AT&T has in abundance that they have always made sure that they remain competitive by being able to invest in innovation. They have also been able to invest in the best human resource and maintain them. This is something that they would not have been able to do if they were not properly positioned financially. This is backed by the fact that most of the development strategies that are used in this industry usually involve intensive research, something that they would not have been in a position to do if they were not having a strong market positionwhich results to stronger finances. Strong finance has also been a way through which the organization has been able to hire the best employees in the market and make sure that they are able to invest in their various aspects of satisfaction for the sake of retaining them. The number of AT&T stores in the US has also been able to significantly grow as a result of their financial capability.

Key drivers that AT&T uses to influence and build customer satisfaction and loyalty are technology; innovation; customer service; and customer centred operation.through technology AT&T has always been able to be ahead of their competitors by being able to model their services in a way that none of their competitors has been able to. This is a way through which the services that are offered have been able to satisfy the needs of their customers in a way that none of their competitors are able to. When it comes to wireless phone service it should be noted that the subscriber experience is always moreimportance and determines whether or not they with prefer the services of a given brand over those offered by the other brands. Technology has come a long way in the past decade, and companies such as AT&T are one of the companies known for the use of technologies thathave revolutionized the wireless telecommunication industry (Goto, 2010).One of the most notable thing about the use of technology by AT&T is that they have been ableto make sure that they have the best telecom services in terms of clarity and accessibility of the network from all parts of the US and various parts of the world.

Innovation is a way through which AT&T have been able to make the experience that their subscribers more than just satisfactory. Through innovation based on market researches, the company has been able to forecast some of the probable needs of their customer.This is has had an impact on the perception of the company has it bring the “surprise factor” on board. This a factor that can make consumers stuck a a certain brand, as it is in the case of AT&T (Christen, 2005).innovation is a way through which AT&T has been able to come up with voice and internet bundles that fit different types of lifestyles that are led by their customers. Innovation has made it possible for the customers to have different bundles that match their lifestyles and quantity of consumption. This is a way through which AT&T has been able to remain competitive without having to narrow down their target market to a specific segment of the market.

Customer service is also a common used method for enhancing customer satisfaction and loyalty. Customer service is a way through which AT&T has been able to get constant feedback about their services while at the same time engaging their customers in constant communication. As for the case of AT&T, it can be said that the main benefit is that customer service brought is the ability toknow the expectation of the customers, and trying to mould the services in accordance to the expectations of the customers (Fleisher & Bensoussan, 2015). The company’s customer centredoperations has also made everything about the customers. With such a strategy, the customers will find it easy to remain loyal to AT&T because of the fact that they will have the conviction that with AT&T they can always expect services that are in accordance to their expectations. This is also a way through which the company can be able to use their resources in coming up with innovative ways of satisfying the needs of their customers,now that they are able to know the expectation of their customers.

The management at AT&T has always made the experience of shoppers at the retail shop the priority. The customer service offered by AT&T at the store comes in various languages. A customer has the luxury of choosing from 160 languages. The company has also made sure that there are antennas within their stores so that the customers can remain connected to the internet while at the stores. Their National Center for Customers with Disabilities has also been effective in making sure that customers with disabilities have the correct support. The company has also been involved in multiple online conversations with their customers on att.com.Subsidiaries and affiliates of AT&T have also been able to avail the products and services produced by AT&T. This is important for AT&T as it has made sure those customers are able to easily access their products and services regardless of their geographical location.

The key positions of AT&T include taking advantage of their already existing market in order to be able to win more. This has been working well because of the fact that satisfied customers is always a very effective way of marketing. The company has been able to grow in competitiveness over the years. This id further supported by the fact that the company has always made the satisfaction of their employees one of their priorities. This has been of high contribution to the performance of the company in the market,as they are able to retain their employees and make sure that their productivity is always at the maximum. This has helped in retention, which reduces the need for there tobe huge expenditure on recruitment activities. However, the urge of remaining competitive at any cost has always led AT&T to making investment that end up failing.

The management at should consider doing some things in a different way so that they can be able to make sure that they are in a position to remain competitive. They should also go slow on their financia investment in technologies and innovation ideas, unless they are completely convicted of the viability of the idea and its potential impact on the performance of the company in the US and intenational markets. This is specifically due to the fact that there slowdown in the US market and economy,which might imply that the custoomers might loss their purchasing abilities. This shouol impy th shifting of the focus to seeking innovative ideas tat will enable them to model their serves in accordance to the expected changes in the US economy, and its subsequent influence on the US market.