Previously we did a case study on the SWOT Analysis of AT&T, a leading telecommunications company. In this article, we’ll take a close look at the SWOT Analysis of Verizon, its competitor.
Verizon Communications Inc. is an American multinational telecommunications company that gives voice, data, and video services around the globe. It’s one of the leading companies in its industries providing its network services to worldwide customers.
A corporation like Verizon may be recognised in the industry by having a profitable and strong market presence. Over time, marketing develops to keep up with current trends. If you’re interested in learning more about today’s effective marketing methods, check out our Free MasterClass on Digital Marketing 101 taught by Karan Shah, CEO and Founder of IIDE.
We will learn about Verizon’s SWOT Analysis in this case study, which will provide us with insight into its effective company operations. Let’s take a look at Verizon’s history, products, financial situation, and competitors before we get started.
Verizon is one of the market leaders in the line communication industry which has a majority of market shares and is known for its excellent services. Verizon communication is an American multinational telecommunication conglomerate founded in 1984, headquartered in New York and their current standing CEO is Hans Vestberg.
The Verizon company witnessed a historic moment because of one of the largest mergers between Bell Atlantic and GTE in 2000. Since then the MNC has acquired AOL and Yahoo! And also came up with many subsidiaries like Verizon Wireless. Delivering the promise of the digital world staying truthful to its statement. today Verizon telecommunication is the second largest telecommunication company in the world. catering its quality services and excellent coverage with a strong LTE network to millions of customers every day.
In 2019 Verizon launched its first 5G ultra-wideband network and 5G home in Los Angeles, Indianapolis, Huston. The Verizon company not only provides wireless connection but also offers telecom related products and solutions such as fibre networks, data, digital television IPTV.
|Founder||Vodafone Bell Atlantic|
|Origin||Bedminster, New Jersey, United States|
|No. of Employees||132,200|
|Market Cap||$214.17 billion (2021)|
|Annual Revenue||$128.29 billion (2020)|
|Net Profit||$18.35 billion (2020)|
Products of Verizon
Verizon has held their position in the market by selling the following –
- Verizon Smart Family
- VZ Navigator
- Safe Wi-Fi
- Total Mobile Protection
- Hum by Verizon
- Verizon Support & Protection Security and Privacy Roadside Assistance
Competitors of Verizon
Verizon is in constant competition with the following companies –
Let us analyse the SWOT Analysis of Verizon
SWOT Analysis of Verizon
The swot analysis helps the decision-maker to understand the company’s competitive position and devise a strategic plan accordingly. It helps Verizon companies to know the real facts based on data about the internal factors and external factors of the organisation.
1. Strengths of Verizon
- Innovative Capabilities – In today’s digital world, companies constantly need to develop something unique and innovative that keeps them ahead of everyone else in the market. Verizon takes a superb lead during this process because they’re always taking technological initiatives like 5G Network or 4G LTE. A company that is continuously improving its operations and offering new services sits better with a broader range of consumers.
- Domination in the Market – Verizon is the largest wireless carrier in the US concerning both network strength and market share. Domination over the market share provides the company with a big avenue to innovate and stabilise its strong presence in the market. Verizon gets to have a high number of patrons hence which offer them a substantial influence on policies concerning the communications market. The company’s services are offered through 150 locations worldwide, from Europe to North America to Asia-Pacific then on.
- Strong Financial Position – Having immense financial capabilities is a significant strength because it has money to maintain its superiority over other market suppliers and allows businesses to possess all they need to compete more effectively. In terms of profitability, Verizon’s is ranked 3rdmost profitable public company in the US.
- Successful Marketing – Companies may differentiate themselves in a competitive market with little distinction between rivals by using intensive and imaginative marketing. Verizon is known for its innovative marketing strategies and customer-focused incentives.
- Acquisitions – Verizon’s acquisitions which range from AOL to Alltel, Yahoo, and BlueJeans for $500 million, have greatly aided the company’s growth. For example, Verizon’s acquisition of Alltel allowed it to become the market leader with the largest market share.
2. Weaknesses of Verizon
- Safety concerns – Telecommunication companies have been under investigation several times for concerns regarding safety and breach of consumers’ privacy. There has been an incident where Verizon was found guilty of selling location data to third parties. Electronic Frontier Foundation has given Verizon a one-star rating for privacy. The company has also been prosecuted for not focusing enough on security-relevant features and using simplistic methodologies for these issues. Once a company’s reputation for security is spoiled, it can profoundly breach the customer’s trust in the company and then it becomes difficult to regain the customer’s loyalty
- Reliance on the US Market – If a company relies heavily on just one market as its primary revenue source, which is exposed to all of its vulnerabilities and increases the impact on the bottom line. For instance, Verizon lost 68,000 wireless subscribers and was forced to pull its 2020 revenue forecast. To solve this problem, a corporation must diversify to foreign markets and work to extend its customer base.
- Extra data charges – Customers only want to buy for what they need or will use, which is fair. But, phone companies like Verizon enforce charging more for extra data.
3. Opportunities for Verizon
- Exploring Diversification – Verizon can use this as an opportunity to explore other services beyond just telecommunications that relate to Verizon’s 5G network, such as augmented reality, smart cities, autonomous vehicles, and so on. The world of technology is vast enough to offer limitless expansion opportunities. By doing so, Verizon can take the lead and enhance sustainability into the future. For instance, developing better broadband packages that offer more coverage of a wider area. By expanding services, the company receives not only new customers but also has a chance to gain back the ones it lost to competition.
- Global Markets – Globalization has opened up many opportunities for businesses to expand their sales and growth. Verizon currently is not offering all of its services globally but it has the potential to do so. The company can generate many more avenues for itself by tapping into international markets. The Asian markets are rapidly growing and Verizon must focus on this market like Vodafone if it wants to grow faster. Its IoT platform Thing Space supports quite 13000 developers that are embedding mobility into a broad range of products that will attach to its 4G LTE network. Verizon can also use this opportunity to develop a more substantial presence in rural areas, a sector it currently lacks in and one that is an enormous opportunity waiting to be looked into.
- Expansion of Acquisitions – When Verizon acquired Alltel, this particular acquisition increased the company’s market share in 2008 which enabled the company to overtake AT&T. With other T- mobiles having a merge with sprint being now, Verizon needs to look towards acquiring more of the smaller wireless carriers to compete and strengthen its position even further.
4. Threats to Verizon
- Market Competition – Verizon has a lot of fiercest rivals in the US market, such as AT&T and T-Mobile. They need to keep up with industry trends so that they don’t lag from anywhere in their company’s service and management. To protect itself from its competitors, a corporation must constantly develop innovative ideas to prove that it is better than other suppliers and offers something that other companies don’t offer. The market struggle is additionally a continuing fight that the companies can never entirely escape from, and hence it always remains a sustainable threat.
- Data Leakages – Data leakage is one of the major concerns of any telecommunication company. Verizon has been found guilty of its user data leakage of just about 6 million users, which doesn’t prove excellent for its image. Such an incident can cause many millions of dollars in losses due to lawsuits and other legal procedures. Such incidents cause the company to put in massive efforts to gain back the trust of people that it lost which can be a very challenging task. The company should come up with better security software because another incident of data leakage will prove to be highly threatening if not fatal for Verizon.
- Expenditure for expansion – If Verizon plans on expansion to foreign countries now, then it will face competition from already existing competitors .which means they have to put more effort to create their strong presence globally or else it will make its bottom line thin. And this will be a dangerous position for any company.
Verizon is one of the leading names in the telecommunications industry, known all over the world. Their dominance in the market is achieved by innovation, successful marketing strategies and acquisitions. Their downfalls lay with the overdependence on the US and safety concerns. Verizon has a scope of reaching global markets, but first they need to introduce themselves in those foreign markets with effective marketing strategies.
With the help of a cost-effective and advanced modern marketing technique – digital marketing, Verizon can reach globally multiple channels like SEO, emailing, content marketing, and social media marketing.
Learning the fundamentals of digital marketing and completing Certified Courses may lead to opportunities to work for huge corporations such as Verizon. IIDE’s short-term certification courses may get you up to speed on a variety of digital skills and knowledge in as little as five days. IIDE offers social media marketing, media strategy, and search engine optimization short-term certification courses.
See our IIDE Knowledge portal for more in-depth corporate research. Thank you for taking the time to read this, and please leave your thoughts on the case study in the comments section below.