Verizon Industry Summary

Executive Summary:
Verizon Communications, Inc. (VZ)
Key Strategic Issues:
The Telecom Services industry provides wireless communications network services allowing direct communications via airwaves.   Competition and barriers to entry in this industry are high and is in the growth stage, which provides incentives for companies to innovate with the incentive to gain competitive advantage.   The top players in this industry account for 78% of industry revenue: Verizon Wireless, AT&T Inc., Sprint Nextel Corporation, and Deutsche Telekom AG.  

The expected future growth of this industry is driven by increased wireless subscribers, which will drive incremental gains.   Competition among companies stems from price pressures involving free minutes, caps and roll-over plans.   The investment in 3G and eventually 4G infrastructure will enable the most innovative companies the ability to leap the competition with superior technology.  

Key success factors for operating in this industry include the development of strategic alliances in related service industries such as computing, banking, multi-media, and retailing in line with trends, ready access to investment funding, and the ability to quickly adopt new technology.   Verizon has established itself as a major player because of its high profile in the market, links with supplies, establishment of brand names, and a wide and expanding product range.  
Findings and Recommendations:
In order to remain a market leader and continue growth, Verizon needs to develop strategic alliances with suppliers which will reduce the threats of new technologies.   It is important for Verizon to develop investment arms for acquisitions and be on an active search for emerging communication technologies as the industry is driven by product innovation.   One way to expand product range is to increase V-cast subscribers in the attempt to steal away market share from competitors and also to have a wider range of prices for the recent trend of...