...purpose of the merger was to build a dynamic company that is capable of competing in the industry’s top-tier level. It took two years for the merger to close. In the meantime, Bell Atlantic and Vodafone Air Touch, now Vodafone Group, announced their agreement to create a new wireless business. The new “Verizon” brand was launched on April 3, 2000, after a six month wait for regulatory approval, and began operating as Verizon Wireless on April 4th. GTE’s wireless operations joined Verizon Wireless thereby creating the nation’s largest wireless company. “Verizon then became the majority owner (55 percent) of Verizon Wireless, with management control of the joint venture” (Varettoni, 2013, p. 3). Upon entering into an agreement to acquire Alltel, Verizon had to meet some conditions of the acquisition. Verizon had to divest overlapping wireless properties in...
Words: 3107 - Pages: 13
...respected brand in communications. 4. Internal Resource (1)Organizational Culture: • Employees Own Their Career • Employee Training - Tools & framework available to resolve any customer problems - Support - Passion & Training • Place to Grow • Get Degree Verizon Pay • Medical / Health Benefits compensation for tuition • Day care program/Mother’s Room (2) Technological Resource: * Reliable / Robust Wireless Network * advance Fiber Network (3) Financial Performance / Position (4) Physical Resource: Acquisition & Merger • January 2006 4- Verizon Communications closed its $8.44 billion acquisition of long-distance carrier MCI • January 2009 5- Verizon Wireless $28.1 billion acquisition of regional carrier Alltel Wireless is finally complete, making the combined company the largest wireless carrier in the United States. • April 20116 - Verizon Communications (VZ) has closed its $1.4 billion acquisition of Terremark Worldwide, clearing the way for Verizon to lead the rapidly evolving global managed IT infrastructure and cloud services market. • August 20118- Verizon Communications Inc. announced today that it has acquired CloudSwitch, an innovative provider of cloud software technology, in a deal that will simplify the move to the enterprise cloud and help to boost industry adoption • June 20127 - Verizon Acquires Hughes Telematics for $612M in Cash (5) Corporate Strategy – Joint...
Words: 264 - Pages: 2
...Although these acquisitions have somewhat changed the dynamics of the market, there are still many players. An oligopoly market is considered to have three to four players, and such markets are typically stable in terms of growth, technical innovation, and pricing policies. It seems that the wireless carrier market will require a few more years before it becomes an oligopoly. Also, the rate of innovation in wirelcss technologies is frantic. A pathbreaking technical innovation by one of the big players has the potential to change the industry dynamic. The major players and thc number of subscribcrs that they have are as follows: 3. Sprint Nextel (53.8 million subscribers). 4. T-Mobile (28 million subscribers). 5. AllTel Inc. (12 million subscribers). In 2007,Alltel completed its merger with an affiliate of TPG Capital and GS Capital Partners and ceased trading on the New York Stock Exchange. 6. US Cellular(6,1 million subscriben). 1. AT&T (70.1 million subscribers). In 2004, Cingular Wireless acquired AT&T Wireless. That acquisition gave Cingular nationwide coverage. Then the BellSouth acquisipercent ownershipof cingular. tion in 2006 gave AT&T 2 Verizon Wireless (65.7 million subscribers),formed by the . union of Bell Atlantic Mobile, AirTouch Cellular, PrimeCo, and GTE Wireless. European wireless giant Vodafone has a 45 percent stake in Verizon Wireless. The growth in the number of subscribers and in revenucs (which does not include...
Words: 1249 - Pages: 5
...The Forest Hill Paper Company is a thriving company, however, there are ways the company can improve its product cost allocation, and, thus, its profitability. After performing a thorough product cost analysis of the company, we, as the hired consultants of the company, have come up with a few recommendations on how to increase its efficiency and enhance the organization’s success. First, as already mentioned, the company is using the simple-costing method for its product allocation, and, therefore, inadvertently misallocates its product costs for specific grades. Instead of spreading the costs uniformly to all grades using the material costs as a cost driver, the company should use the activity-based costing system to allocate its product costs. That way, the cost of each of the grades will be allocated based on how much activity (grade changes, slitting) it actually used. Moreover, the company will be able to assess the profitability of each of its grades more accurately. Second, as seen in our product cost analysis, we calculated the profit margins of each of the four grades and determined their profitability. The company is overcosting product D and undercosting products A,B, and C. Moreover, product B has a negative profit margin, therefore, we suggest that the company drops this product. By dropping this product, the company will incur less in grade change costs, which will, consequently, increase its profitability. Also, as product D has the highest profit margin...
Words: 352 - Pages: 2
...Telecommunication industries is rising and becoming more of a demand on a daily basis. One of the top telecommunication companies is Sprint, which has extensive operations in the United States and three United States territories (Virgin Island, Guam, and Puerto Rico). Sprint offers communication services (wireless, wireline) to businesses, government users and consumers. The company engineers, builds, and implement technologies, which includes the first 4G (fourth generation) wireless service in the United States from a national carrier. The company’s services also entail contract services and pre-paid services. In 1990 Sprint offered basic phone lines and branched out in 2000 to walkie talkie services using an analog network. On July 10, 2013, Sprint merged with Nextel, became Sprint Nextel, and being its directly owned subsidiary. Sprint Nextel was changed to Sprint Communications, Inc. Sprint is now a 4G LTE network and also one of the most fast network services. Sprint caters to consumers’ needs by providing and producing enhanced products to communicate, such as, surfing the internet, talking, listening to music, watching television and having a face to face conversation from your phone and that is just to name a few. Sprint not only offers services in the United States but also in some of the international countries. Sprint not only provide services for cell phones but have advanced to home phone services, tablets, I pads, MIFI hotspots, and laptops. As of...
Words: 1098 - Pages: 5
...Assignment 1: Competitive Strategies Maurice Haywood Professor Nikhil Nayak BUS508029VA016-1134-001: Contemporary Business 5/3/2013 In the ever changing world we live in, there will always be competition. Regardless of the category, someone or something needs to feel it is the dominant one. We see the competitiveness of humans all around us each and every day. Some competitors have a long standing duel with each other such as Pepsi and Coca-Cola, and some are just beginning their famous quest for the top such as Samsung and Apple. It should go without saying that the world actually thrives on this type of competition because it’s good for the economy and overall growth of all of our systems and branches of government. Sanders said it best in an excerpt from his book Equipped to Lead. Everything that happens inside an organization is tied to a process. If we were to take our time and closely examine the architecture of every discipline within an organization, we discover a series of complex systems, some formal and some ad hoc, that upon deconstruction reflect and orderly subsystem of processes-a subsystem compromising of inputs and outputs (Sanders, 2008). With that being said, every company is tied to its competitor in some way or another, one has to have a larger market share. The industry which will be used as a discussion for this paper will be the telecommunications industry, and the two companies I will discuss for competitive strategies are Sprint...
Words: 665 - Pages: 3
...Sprint Nextel Corporation SWOT Analysis Background Sprint Nextel Corporation (Sprint) is a communications company. The company provides a range of wireless and wireline communications products and services to individual consumers, businesses, government subscribers and resellers. It provides wireless services on a postpaid and prepaid basis to retail subscribers and also on a wholesale and affiliate basis. The company markets its postpaid services under the Sprint and Nextel brands, and prepaid services under the Boost Mobile, Virgin Mobile, and Assurance Wireless brands. The company offers its services through wireless networks, an all-digital global long distance network and a Tier 1 Internet backbone. (www.alacrastore.com, 2013) Mission Sprint’s mission is to be number one in providing a simple, instant, enriching and productive customer experience. (Sprint Nextel Corporation, 2013). Vision Sprint’s vision is to be a world class company, with standards by which others are measured, including a commitment to developing a world class supplier base that is reflective of the communities we serve. (Sprint Nextel Corporation, 2013). History Sprint's red diamond logo represented the combined achievements of many legendary predecessors, including United Telecommunications, US Sprint and Centel. Each embraced the same bold approach that Sprint's founder Cleyson Brown showed in 1899, when the Brown Telephone Company successfully went toe-to-toe with the Bell monopoly...
Words: 1602 - Pages: 7
...Strategic Management and Strategic Competitiveness Sherry Carmichael BUS499 Professor Shereen Turner July 13, 2013 The telecommunication industry is moving fast. Sprint Nextel is one of the top three telecommunication company in the US. Sprint Nextel has extensive operations throughout the United States and in three of the U.S. territories — U.S. Virgin Islands, Puerto Rico and Guam. Sprint Nextel provide products and services to individual consumers, business, government subscribers and resellers. Sprint Nextel service both post paid and pre paid services. Sprint Nextel has moved at a fast pace with technology. Sprint Nextel has moved from basic phone services in the 1990’s to direct connect walkie talkie services in the early 2000’s all on an analog network now in 2013 have moved passed even CDMA digital network . Sprint Nextel is advancing with technology sprint now offer service on one of the fasted network 4G LTE. If I was to describe how fast sprint is moving I would have to use perpetual innovation. Sprint Nextel now offer phones that you can talk on, listen to music, and watch TV, surf the internet and now have face to face time right from your phone and more. Sprint services are not just limited to the US Sprint offer service in some international countries. As the demand for new ways to communicate are needed Sprint Nextel are producing products to keep up with it consumers needs. Sprint Nextel have advanced passed cell phone they now offer other products...
Words: 1480 - Pages: 6
...EDUCATION Vol. 19, No. 4 November 2004 pp. 555–565 The ALLTEL Pavilion Case: Strategy and CVP Analysis Edward Blocher and Kung H. Chen ABSTRACT: The ALLTEL Pavilion case is intended for the undergraduate management accounting or cost accounting course and the M.B.A. management accounting course. It provides an excellent context in which to examine strategic issues in using cost volume profit (CVP) in a service business. Based on an actual entertainment pavilion, the case develops many factors unique to a service business and illustrates how pavilion management can use CVP analysis to determine which artists to attract and what kinds of contracts to have with these performers. The Pavilion has two types of customers (paying ticket holders and free ticket holders) and earns profits from three types of revenues (ticket revenues, concession revenues, and parking fees). The case requires you to identify the best strategy for different types of artists, conduct cost-volume-profit analyses, consider the strategic issues related to operating leverage and how this affects the choice of performer and contract, and assess pricing strategies. O ne day in early November, Pam Berg, Manager of the ALLTEL Pavilion, was reviewing the operating results for the year just completed in preparation for the executive board meeting the following Friday. While the year ended in the black, she was disappointed that the ALLTEL Pavilion failed to earn the budgeted profit goal. This was...
Words: 4897 - Pages: 20
...TO: Pam Berg, Manager of the ALLTEL Pavilion FROM: Valentina Golman, Cost Accountant DATE: October 29, 2011 SUBJECT: ALLTEL’s Strategy and CVP Analysis As requested, CVP analysis of the ALLTEL Pavilion has been investigated. The focus of the investigation was on firm’s competitive strategy, operating results, negotiating contract fees with artists, earning budgeted profit goals. Findings: 1. In response to the competitive strategy of the ALLTEL Pavilion * it is noted to be differentiation. The firm positions and distinguishes itself from its competitors by providing high end experience to its customers. The unique value of the product would be: advanced technology, no bad seat in the house, beautiful settings, wonderful atmosphere, outstanding parking and food concession services. * The critical success factors for the Pavilion are being the only outdoor venue in the area, educate parking, excellent up keep, clean facilities, well maintained grounds, customer’s opportunity for reserving VIP (A) seats for the year, advanced technology, following current trends and hiring local, regional and national artists. 2. Below are completed cost-volume-profit analyses. In order to get correct number of tickets that The ALLTEL Pavilion must sell to break even we have to consider two types of customers, in this case paying customers and comp ticket customers, where the second group brings in revenue only for ancillary services. For revenue brake down refer to...
Words: 827 - Pages: 4
...After doing some research, I have come to the conclusion that Sprint is the best place to work. In this paper I will compare Sprint’s benefits, turnover rate, and financials to that of AT&T and Verizon Wireless. Once I have completed this paper, I am sure you will agree with me. I will begin with AT&T. AT&T has some wonderful benefits. It provides its employees with medical, dental, and vision plans. It gives employees a 401k savings plan/pension plan. Employees get paid time off. Students can get tuition reimbursement. And they also provide life/accident insurance. Employees are offered discounts on AT&T products and services. They are given adoption assistance, leave of absence, and ongoing employee training. They also have the option to purchase veterinary insurance for their pets, as well as auto and home insurance. Because of the Union, they provide excellent benefits. They give you a set schedule. They give you good pay with a chance to earn more through commission. According to AT&T Inc Company’s Financial information, their earnings are currently $1.25 million. The only downside that I have found is according to glassdoor.com, they have a 90% turnover rate. After the employee has made a sale, they are encouraged to give poor customer service. In March of 2011, Verizon was using some sought-after benefits to recruit new employees. They had 900 positions to fill. They were offering health, dental and vision insurance...
Words: 742 - Pages: 3
...Could Softbank play Sprint’s savior Recently, one big new shocks the U.S cellular telecommunications industry and some people even thinks that will cause a new worldwide tycoon in this industry. The new is that “Softbank Corp. has reached a deal to buy 70 percent of U.S. mobile carrier Sprint Nextel Corp. for $20.1 billion in the largest ever foreign acquisition by a Japanese company (Walker).” This is a mergence between the Japanese third biggest mobile carriers and U.S third biggest mobile carriers. Some investors believe this action will disrupt U.S Market and make Sprint competitive with two traditional communications giants AT&T Inc and Verizon Wireless. As we all know, Sprint is suffering a hard time now with huge debts. One article points out that Sprint has struggled in recent years to compete with Verizon and AT&T. The company has $21 billion in long-term debt, and has launched a costly network restructuring and signed a long-term contract to buy $15.5 billion worth of iPhones from Apple Inc. over four years (Walker). On the other side, Softbank are also not financially healthy. Softbank spends $20 billion buying Vodafon Japan subsidiary on 2006 and takes 5 years to pay off the debt. Besides, Softbank just announces a 2.2 billion emerge plan with eAccess this month. So Softbank’s statement of assets and liabilities may disappoint investor for a long time. So most people may question that whether Softbank can save Sprint and stop Sprint’s declining tendency...
Words: 2160 - Pages: 9
...Cellular Warfare: Competing for the Highest Bid & Technology (Investigating Stock Quotes & Financial Positing) By: Odettia A. Newsome FIN 534 Financial Management Quarter: Summer 2007 Instructor: Dr. Brian Cornforth Cellular Warfare: Competing for the Highest Bid and Technology Cellular companies are constantly competing for the high number in sales and the latest advances in technology. In order to do this they must find their target market and offer them new and inventive ways to accommodate their lives in order to make it easier for the average consumer. Once this is defined, they must then again fine inventive ways to persuade their audience that what they have to offer is better then their competitors. How this is accomplished is by offering features such as text message and rate plans, data plans and equipment insurance for their devices or phones. Upon mastering this marketing advertisement, the sales for these companies reflect how well they are doing with in that particular market. Thus giving the investor an over all view of how their company is performing on a finical standpoint nationwide for companies such as AT&T, Verizon, Sprint, & SunCom. In order to have a clear understanding, we will look at four companies and where they stand on the finical standpoint. AT&T is one of the largest cellular companies advertising the “The Largest digital and data network” reassuring their market that they are getting the...
Words: 1660 - Pages: 7
...Competitors Analyis 1. Major Competitors As a major communication service provider that covers 280 million people in the United States, T-Mobile still has major competitors that the company has to continuously compete with. T-Mobile’s major competitors are At&t Inc., Sprint Nextel Corporation, and Verizon Communications Inc. (Annual, 2014). 3. Competitors Comparative Advantage T-Mobile’s competitors have a comparative advantage that makes competition fierce. At&t Inc. has a strong competitive advantage over T-Mobile by having a strong position in the business services market. Among their business strong position At&t Inc. also has the world’s most advanced Internet Protocol (IP) backbones in the industry (AT&T Inc., 2014). At&t Inc. is also one of the largest telecommunications service providers as they serve to 110.4 Million wireless subscribers, 24.6 million line subscribers, and 16.4 million broadband subscribers by the end of fiscal year of 2013. The company shares a 58% market share with Verizon, AT&T holds a 27% market share (AT&T Inc., 2014). Another fierce competitor that T-Mobile has to strategically compete with is Sprint Nextel corporation. Sprint Nextel Corporation has a competitive advantage over T-Mobile as they are the third largest telecom provider in the United States. Sprint as also partnered up with SoftBank, an internet company, that has invested $22.2 billion for an 80% stake in Sprint (Sprint Nextel Corporation...
Words: 709 - Pages: 3
...SoftBank of Japan is making its biggest gamble yet: entering the American cellphone market. SoftBank’s complex $20.1 billion deal to buy majority control of Sprint Nextel will unite Japan’s fastest-growing cellphone service provider with one of the United States’ most troubled. The idea is to provide Sprint with a stronger, deeper-pocketed partner that can help finance its network overhaul and, eventually, pursue additional mergers. But SoftBank, an Internet and communications company, is making a risky wager that it can break the dominance of Verizon and AT&T in the United States the way it did a similar duopoly that long reigned over the Japanese market. “SoftBank brings so much more to Sprint than money,” Daniel R. Hesse, Sprint’s chief executive, said on an analyst call. “This investment provides the opportunity to benefit from the knowledge and expertise of a leader in mobile Internet technology with a proven track record of challenging larger incumbent carriers.” Together, the two companies would have $80 billion in revenue and $18 billion in earnings before interest and taxes. And they would nearly double Sprint’s customer base to 96 million, giving the company greater purchasing power. SoftBank’s founder and chief executive, Masayoshi Son, was blunt in his goal: creating the biggest and fastest wireless network in the United States. It is the strategy his own company is pursuing in Japan, aimed at drawing in users of the latest smartphones. Sprint is only beginning...
Words: 905 - Pages: 4