- April 19, 2020
Course details Verizon
VerizonCommunication Inc., headquartered in New York, U.S. Delaware wasformed on 30th June 2000, with $52 billion mergers of GTE Corp. and Bell AtlanticCorp. The merger that resulted in the formation of Verizon were oneof the largest in the history of U.S. business, climaxing in anultimate merger contract, dated 27th July, 1988, between GTE, whichwas in the final plan of shifting its center of operations fromStamford, Connecticut to Bell Atlantic, and Irving, Texas, based inNew York. Before the merger, Bell Atlantic and GTE had each evolvedas well as grown through years of acquisitions, mergers, anddivestitures (Hoovers,2016).The two companies had upheld records of accomplishment insuccessfully integrating business operations. Verizon CommunicationInc. is currently the second largest telecommunication company in theUnited States (Hoovers1).
Businessstrategies employed by Verizon include series analysis, which hasallowed the company to conjecture on the performance of certainmarket segments in various nations. This has helped thiscommunication firm to make important decisions including closingbusiness branches that generate poor returns or no returns and focusmainly on those that produce a good return. Another strategy that thefirm uses is market development in which includes creating newmarkets for prevailing IT services and products. Such fresh marketsmay be unlike geographically—newfangled market segments or devisingnovel purposes for the current IT products in virtually all marketsmarkets. Verizon has also revamped as well as reposition the ITsolutions products or continuous introduction of new products totheir existing markets that meets the needs and expectations of thecustomers. The company also used diversification strategy. Thecompany is involved in the exploration of new markets as well asmarketing its new and existing products. The communication firm hasalso adopted market penetration strategy by attempting to markettheir services and products to rival markets. The strategy hasenabled the company to invent new methods of increasing sales in itsexisting markets (Hoovers1).
SprintCommunication is the fourth largest communication company in theUnited States after T-Mobile, Verizon, and AT&T regardingsubscribers. The company offers various communication services andproducts to its customers. The company traces its origin to the BrownTelephone Company, formed in 1899 by Jacob Brown and Clevson Brown toprovide telephone service to remote areas of Abilene, Kansas. Thecompany installed its ever first long-distance circuit in 1900, andthe company was commissioned in 1902 (Irelandet al.45). In March 1903, the company merged with fourteen other Kansasindependents to form the Union Telephone and Telegraph Company, withan aim to offer long-distance services to the residents of KansasMetropolitan. In late 1911, there was a merger between BrownTelephone Company and three additional independents forming one ofthe largest telephone corporation in Kansas. The company was known asthe United Telephone Company (Corporation1).It controlled 7 major telephone exchanges. In 1983, GTE acquired theSPCC (Southern Pacific Communication Corporation and the company wererenamed GTE Sprint Communications. In 1984, United Telecom enteredlong-distance phone market. The US Telecom merged with GTE Sprint in1986 and 1992, the company reorganized and renamed itself SprintCorporation (Irelandet al.,45).
Facedwith stiff competition from T-Mobile, Verizon, AT&T, and numeroussmaller regional players, the company has collaborated with otherfirms to shed physical assets to reduce operational expenses as wellas increase liquidity. At the beginning of 2014, the company cut jobsas well as closed over 50 stores and several call centers as parts ofits current cost minimization efforts. The company has also employedthe technique of merging and acquisition to expand its market share. The company has also focused mainly on its core wireless ensuringthat it offers best and efficient services at affordable costs to itscustomers (Corporation1).
Thishistory of this largest telecommunication firm in the United Statescan be traced back to the invention of the telephone in 1879 whenAlexander Graham Bell established The Bell Telephone Company. In1984, A&T accepted to rid its local operations however retainedits long distance, R&D, as well as manufacturing arm. This led tothe birth of Southwestern Bell Corp. The 1996 Telecommunication Actdrove key changes in the competitive setting. Southwestern Bell Inc(Gaughan 2). Expanded its presence in the United States through aseries of acquisitions such as the 1997 Pacific Telesis Group, and1999 Ameritech Corp. In the year 2005, SBC acquired AT&T Corp.,forming a new AT & T, one of the top communication companies inthe world. The 2006 BellSouth acquisition consolidated the ownershipof the Cingular Wireless. AT&T led a major transformation incommunication since the telephone invention—the creation of themobile internet (Gaughan 2). In 2013, the company bought Cricket tooffer customers in the expanding prepaid market increased access tomobile internet services. In the year 2015, the company purchased twoMexican wireless firms, Nextel and Iusacell Mexico ("AT&TCorporation | American company").
Thecompany uses advanced technology methods to create new products thatare unique and meets the needs and expectations of the customers. Inaddition, the company has been consistently acquiring other firms tohelp it expand as well as dominate the global market. Anotherstrategy that the company employs is product and servicesdiversifications. The company has always created new, different typesof products that are unique and meets the expectations of thecustomers ("AT&TCorporation | American company").The invention has been at the center of the company. The world isever changing with the consumer demands shifting from simple needs toelaborate ones. To remain competitive, the company has been at theforefront in creating new communications tools that meet the demandof the market ("AT&TCorporation | American company").
"AT&TCorporation | American Company". EncyclopediaBritannica.N.p., 2016. Web. 16 Nov. 2016.
Corporation,Sprint. "History Of Sprint Corporation – Fundinguniverse".Fundinguniverse.com.N.p., 2016. Web. 16 Nov. 2016.
Gaughan,Patrick A. Mergers,Acquisitions, and Corporate Restructurings., 2015. Print
Ireland,R D, Robert E. Hoskisson, and Michael A. Hitt. UnderstandingBusiness Strategy: Concepts Plus.Mason, OH: Southwestern Cengage Learning, 2012. Print.
Hoovers."Verizon Communications Story – Profile, History, Founder, CEO |Telecom Companies | Successstory". Successstory.com.N.p., 2016. Web. 16 Nov. 2016.