Public Domain Verizon Communications, Inc. The SWOT analysis model identifies the most significant internal strategic factors strengths and weaknesses and external strategic factors opportunities and threats relevant to the company. Verizon can support its decision-making and strategic development processes by using the results of the SWOT analysis of its business.
Public Domain Verizon Communications, Inc. In this case, such external factors influence various areas of Verizon, including its operations in the wireless telecommunications market through Verizon Wireless. For example, the company can grow its revenues by expanding the operations of Verizon Wireless to exploit opportunities based on the widespread development of information and communications networks around the world.
Managers can evaluate business performance and market conditions through this external analysis. For example, an analysis of the macro-environmental factors in the wireless telecommunications industry provides information for the evaluation of the performance of Verizon Wireless.
The external factors in the remote or macro-environment have varying degrees of significance to the company. Governmental policies and actions can impose limits or create opportunities for business growth in the remote or macro-environment.
In this case of Verizon Communications, Inc. Governmental move to open markets opportunity and threat Increasing governmental support for infrastructure development opportunity Increasing governmental support for free public Wi-Fi hotspots opportunity The move of governments to open markets to globalization is a political external factor that creates opportunity for business growth.
For example, based on this macro-environmental factor, the company can grow by expanding the operations of its subsidiary, Verizon Wireless, while taking advantage of the opening of developing markets to globalization.
The same external factor presents a weak threat in terms of the potential of other firms to globally compete against the company. On the other hand, this external analysis identifies business opportunity based on increasing governmental support for free public Wi-Fi hotspots.
Such support presents opportunity for Verizon Wireless to expand and promote its services by cooperating with governments for such public hotspots.
The conditions of the telecommunications industry environment depend on the situation of the economy. In this regard, Verizon Communications, Inc. Increasing disposable incomes in developing countries opportunity High economic growth rates of developing countries opportunity Decreasing information asymmetry threat The increasing disposable incomes in developing countries are a macro-environmental factor that leads to opportunities in the industry environment.
For example, Verizon Wireless can exploit this economic external factor by establishing operations in developing countries to target customers in the wireless telecommunications market. The high economic growth rates of developing countries also contribute to this opportunity for growth and expansion.
This external factor is a threat because it increases the bargaining power of customers against service providers like Verizon Wireless. Thus, this external analysis highlights the availability of online information as an enabling factor for customers to impose their demands on the company.
Sociocultural trends significantly impact the behaviors of customers and employees, thereby also influencing firms and the remote or macro-environment of the telecommunications industry.
Increasing adoption of mobile devices opportunity and threat Increasing use of online mobile services opportunity and threat Increasing demand for high quality in products opportunity The increasing adoption of mobile devices maintains opportunities for companies to grow their operations in the wireless telecommunications market.
This sociocultural external factor corresponds to increasing demand for wireless telecommunications services, such as those from Verizon Wireless. In relation, the increasing use of online mobile services is a macro-environmental trend that further contributes to the increasing demand for such wireless telecommunications services.
On the other hand, the company has growth opportunities based on the increasing demand for high quality in products. For example, Verizon Wireless can improve its market presence and customer loyalty by emphasizing high quality in promoting its services.
For instance, this external analysis considers how technologies determine the infrastructure and capabilities of Verizon Wireless in the wireless telecommunications industry environment. Technologies also affect the other areas of the business. Widespread development of information and communications networks around the world opportunity Security threats via network or information technologies threat Rapid advancement of information and communications technologies threat and opportunity There are opportunities for global business growth and expansion based on the technological external factor of the widespread development of information and communications networks around the world.
For example, Verizon Wireless can invest in operations in new markets to expand its business, based on the availability of new wireless telecommunications infrastructure in various areas in the United States and other countries.
However, security threats are a macro-environmental factor that present business challenges. For instance, these security threats have the potential to weaken the integrity and stability of the network and information technologies of Verizon Wireless.
On the other hand, the rapid advancement of information and communications technologies helps facilitate business growth in the industry environment by enabling firms to improve their technological performance. Nonetheless, the same trend is identified as a threat in this part of the external analysis.
For example, rapid technological advancement can disrupt the remote or macro-environment. This disruption can open the market to new players and substitutes. Ecological conditions and trends are determinants of the industry environment, especially with regard to the natural resources available to firms.
Natural disasters that could destroy or damage infrastructure threat Increasing availability of renewable energy opportunity Increasing emphasis on business sustainability opportunity This part of the external analysis identifies natural disasters as a significant threat to business, in terms of potential damage to infrastructure, such as the telecommunications infrastructure that supports the services of Verizon Wireless.
On the other hand, the remote or macro-environment presents opportunities based on the increasing availability of renewable energy. Such sustainability efforts and corporate citizenship programs also address the increasing emphasis on business sustainability in the industry environment.
Laws and regulations impose restrictions and requirements on companies, such as requirements on the operations of Verizon Wireless in the telecommunications industry. The legal external factors in the industry environment of Verizon Communications, Inc.
Competition law threat and opportunity Increasing regulation of telecommunications services threat Increasing consumer protection threat and opportunity Competition law, also known as anti-trust law or anti-monopoly law, is a legal external factor that imposes a threat and opens an opportunity in the industry environment.
This macro-environmental factor is a threat that hinders the growth and expansion of business.Verizon Communications, Inc.
has major strengths that support business growth and stability in the telecommunications market and the mass media market, although the business must address its weaknesses, as well as the opportunities and threats in its external environment, as evaluated in .
Verizon Wireless Market Analysis Verizon is a communication network company that involves domestic telecom, domestic wireless, information services and international communication. Since it was formed in Verizon Wireless has invested more than $70 billion, an average of more than $6 billion every year.
Throughout our operations, we have adopted strategies to minimize Verizon’s environmental impact and drive greater efficiency. Our success to date in reducing carbon intensity has been made possible by copper-to-fiber migrations, investments in green energy, building improvements and changes in our fleet operations.
Let us go through the SWOT analysis of Verizon Strengths in the SWOT analysis of Verizon. Largest wireless carrier in US – Verizon has the strongest market share of the US mobile and wireless connectivity market. Unique business model – Verizon Fios has a very unique business model. A SWOT Analysis of Verizon Telecom was another year of profits for Verizon.
It was another year that Verizon showed strong operational and financial performance. SWOT analysis of Verizon – Verizon SWOT January 13, By Hitesh Bhasin Tagged With: SWOT articles Verizon is a top of the line communications company in the US which has a majority market share and is known to give excellent service.