...Financial Advisors | A Financial Statement Analysis on AT&T | | Prepared by | Anita HovsepianQinyi DuOctober 21, 2012 | This report is designed to provide investors with investment recommendations for AT&T Inc. by using financial ratios, DuPont Analysis, and by benchmarking its performance with its closest competitor, Verizon. | I. Introduction AT&T Inc., together with its subsidiaries, provides telecommunications services to consumers, businesses, and other providers worldwide. The company’s Wireless segment offers wireless voice and data communication services. The segment also sells various handsets, wirelessly enabled computers, personal computer wireless data cards and accessories. It also offers voice services, such as local and long-distance, calling card, 1-800, conference calling. The company’s Advertising Solutions segment publishes yellow and white pages directories; and sells directory advertising and Internet-based advertising and local search. In addition, the company provides customer information services1. AT&T (ticker: T) is the largest telecommunication service provider in the US. Verizon Communications Inc. (ticker: VZ) ranks the second while BCE, Inc. (ticker: BCE) being the third. As the telecommunication services companies in the US continue to fight to remain relevant, the industry is in decline. However, telecommunication services almost act like a utility and therefore it is a low reward but also low risk industry...
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...for over 77 million customers and $69.8 billion dollars of revenue. Within AT&T the Wireless division represents the largest area of growth, compensating for customers abandoning traditional Wireline telephone service. AT&T landed a major coup in 2007 when it signed a deal with Apple to be the exclusive U.S. carrier for the iPhone. Not only did AT&T add new customers, it added more profitable customers. AT&T reports that an iPhone customer’s average revenue per user (ARPU) is $105 per month versus $60 for non-iPhone customers. AT&T’s corporate strategy for securing these profitable customers is to align itself with innovative technology, such as the iPhone, and pay a subsidy of $325 to Apple to make the iPhone more affordable for mainstream America, its target market. AT&T recoups the subsidy by locking iPhone customers into a two-year contract averaging $100 per month and maintaining this customer base through an exclusive contract with Apple. Problem Statement: Despite attracting and capturing high revenue subscribers, AT&T is experiencing high customer dissatisfaction due to congested wireless networks. The greatest threat to AT&T Wireless is that iPhone customers will defect in droves if and when AT&T loses its exclusivity contract with Apple. Our analysis will focus on the root of this issue and provide marketing, strategic, operational and...
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...Competitive Strategies with Mobile Phone Providers ECO/365 Competitive Strategies with Mobile Phone Providers The following report details cellphone analysis that will deal with cellphone services. In order for the different existing cellphone providers such as AT&T, Sprint, Verizon, T-Mobile, and Metro PCS to survive in the business market, they need to implement competitive strategies. It will establish stability and profitability in the long term. The key personnel and maintain for each service is the customer's loyalty. Mobile phone providers can have a challenge entering in today’s market. For a new company to be successful they would need to find a way to give the customers phones and service cheaper than the other companies or have a new innovative phone available. T-Mobile does not require their customers to have a contract making the upgrade at the contract renewal time obsolete. The purchase of the initial phone when signing up with T-Mobile is where they make most of their money. The monthly plans with T-Mobile are not exorbitantly priced giving them an edge on the other phone companies. T-Mobile was also the first to give customers access to international services for free. A new smaller provider can be merged with one of the larger companies easily. It would be a horizontal merger between these companies because they provide the same services. In 2004 AT&T merged with Cingular Wireless. This merger gave Cingular customers a wider network to use...
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...Research In Motion (RIM)/BlackBerry The case describes competition in the market for smart phones in North America, and the position of one player, Research In Motion (RIM), a Canadian multinational telecommunications company based in Waterloo, Ontario, Canada. Best known for its line of BlackBerry devices, the company designs, manufactures and markets wireless solutions for the mobile and telecommunications markets. The case allows students to understand the strategic dynamics in platform-based industries in general, and to explore more specifically how a firm that led the industry in 2007 could fall to earth so dramatically four years later. Research in Motion (RIM) began as an electronics and computer science consulting business started by Mike Lazaridis and Douglas Fregin in 1984. In 1999, RIM introduced its BlackBerry for corporate e-mail solutions. This Blackberry featured a push system for email delivery where e-mail messages were sent from the user’s personal computer to the Blackberry without dialing in. From 2000 upwards, its revenue skyrocketed and it continued to expand. Within 4 years of inception RIM became the first wireless data technology developer in North America. While RIM started out working with pagers its focus changed to two-way wireless communication around the same time that Jim Balsille joined the company in 1992. In 2003 RIM launched the Blackberry, giving users the first way to take the Internet with them everywhere on their cell phone...
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...VERIZON COMMUNICATION INC. Telecommunication industry is one of the fastest growing industries in the world, with advancement in internet technology, advancement in trade and commerce, social dynamics and an ever-expanding global market. Telecommunication has become one of the most essential mediums that facilitate communication, interaction and transaction in both social and economic platforms. To this end, many companies have invested billions of dollars world wide in an attempt to rip some of the benefits the young but lucrative industry has to offer. Verizon Communication Inc. is one such industry that has grown to become an international player. Verizon is one of the largest telecommunication company in the U.S. with a vast network in the U.S. and Europe and roaming capabilities that have enabled the company to have a world wide access. Verizon Communication was formed in 2000 after a merger of Vodofone and Bell Atlantic to form Verizon wireless. The company later merged with GTE a long distance fixed line provider to form Verizon communication and became the largest long distance coverage provider covering 29 states. The company later merged with MCI inc. to form the second largest wireless service providers in America. Verizon Communication has three major segments, namely fixed line communication, information and directory services and wireless services with numerous innovative and distinct products that it offers to consumers. Verizon Communication industry is the...
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...Apple Marketing Plan Anthony M Concilio December 1st, 2011 Table of Contents Executive Summary | Page 3 | Situational analysis | Page 3 | Product Offering | Page 4 | S.W.O.T. Analysis | Page 5 | Marketing Strategy | Page 6 | Mission Statement | Page 8 | Financial | Page 8 | Controls | Page 10 | Summary | Page 11 | References | Page 12 | Executive Summary The year 1976 marked epic moments in our history, such as, the Bicentennial of the United States, NASA releases the famous Face on Mars photo, the Pittsburgh Steelers win Super Bowl X, and the biggest name in electronics is born, Apple Inc. Since 1976, Apple has used innovation and creation to become one of the most profitable companies of all time. Apple was able to achieve this goal by developing products like, home/personal computers, silent printers, ultra thin laptops, and music/cell phone devices that do more than meets the eye. However, this company was not always at the top of its game, and continues to have some struggles. It is how Apple improves these weaknesses that make it such a power house. The shadows of its competitors like Microsoft and Google lurk nearby and are always trying to outdo; or, mimic Apple. Even though the master mind of Apple, Steve Jobs, has passed on, this company will continue to create new products that everyone from children to business professionals will want to get their hands on. Situational analysis Apple has grown from its early days being...
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...Case 2 – Research in Motion - RIM TM583 1. What were some of the challenges RIM faced to protect its Intellectual Property and how did RIM handle those challenges? There was a legal action between NTP and RIM over the intellectual property. RIM resolved the action. To protect its intellectual property, RIM agreed to pay $612.5 million to NTP Inc. to settle the fight. The dispute had threatened to end RIM's BlackBerry e-mail service to millions of users in the U.S. and has been the subject of an four-year patent battle between the two companies. Under the agreement, RIM received rights to NTP's patents going forward. RIM made a one-time payment to NTP. Even if the U.S. Patent and Trademark Office eventually overturned NTP's patents, NTP would not have to repay the $612.5 million. "There is no provision for the PTO re-exam. This is a full and final settlement," he said. RIM and NTP briefly agreed to settle the case for $450 million in March of 2005, but that deal later fell through. RIM thought the companies had come to a final agreement, but NTP believed the matter had never been finalized, and the litigation continued. 2. What were some of the industry factors that influenced RIM? 1. Help Organizations Reduce "Information Squandering" 2. Balance Technology with Information 3. Contribute to and Shape the Discussion of Information Worker Productivity 4. Support the Evolution of the Role of CIOs 5. Facilitate Development...
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...The cell phone has become one of the most popular trends in modern day electronics. There are various carriers that offer cell phone service across the United States with a wide selection of different phones. Today smartphones seem to be the most widely used by the American population. The smartphones of today are like mini hand held computers, possessing the capability to perform many different functions. When it comes to cell phones there are two major networks available, 3G and 4G. The "G" stands for a generation of mobile technology, installed in phones and on cellular networks. Each "G" generally requires you to get a new phone, and for networks to make expensive upgrades. The first two were analog cell phones (1G) and digital phones (2G).(Segan, 2013) Third-generation mobile networks, or 3G, came to the U.S. in 2003. With minimum consistent Internet speeds of 144Kbps, 3G was supposed to bring "mobile broadband." There are now so many varieties of 3G that a 3G connection can get you Internet speeds anywhere from 400Kbps to more than ten times that. (Segan, 2013) While most of us are used to getting high speed Internet connections at home, the office or even the local coffee shop, once we are on the road those high speeds have to stay behind. With 4G the promise is that you can get real mobile broadband to go. (Vilches, 2010) There are two fundamental aspects of LTE. The first is that the technology finally leaves behind the circuit switched network of its GSM roots and...
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...photograph of the iPad 3 and not digitally manipulated, it hints that the tablet will not sport a physical home button, as have earlier iPads. Some bloggers argued that the photo also showed a higher-resolution, or so-called "Retina," display. Apple will host the launch event at the Yerba Buena Center for the Arts in San Francisco, a regular venue for the company's press-only announcements and where former CEO Steve Jobs introduced the iPad 2 on March 2, 2011. This will be the first time that Jobs, who died last October after a long battle with pancreatic cancer, will not host an iPad launch. The event will kick off at 10 a.m. PT, and wrap up an hour or so later. Most experts believe the iPad 3 will feature a higher-resolution screen, a faster processor -- perhaps Apple's first quad-core -- and more internal memory. They have been split on whether the new tablet will support the faster LTE data networks like those now being deployed in the U.S. by Verizon and AT&T. In an...
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...to date such as electronics, places to go, shoes, and clothing brands. In this paper I will be discussing my personal view on what marketing means to me, along with how two other out side source interpret marketing. Furthermore I will deliberate about the importance of marketing in organizational success. I will also be altercating three examples from different business worlds and how they incorporate marketing into their business. The definition of marketing reminds me of my workplace at Communication Test Design Inc. (CTDI). As a supervisor or manager, it is their responsibility to know exactly what the customer wants and needs. The feedback that they receive from our customers is what is important when refurbishing and selling the Verizon Fios set top boxes. This type of information goes in a weekly recap sent to the organization so that we can see what we need to improve to satisfy the customers needs. Knowing what makes the customer satisfied is what makes the company successful because we know that if our customer is happy our business profits will also be increasing as well. According to the textbook Basic Marketing, The authors discuss marketing as the performance of activities that seek to accomplish an organization’s objectives by anticipating customer or client needs and directing a flow of need satisfying goods and services from producer to customer or client (Perreault, Cannon, & McCarthy, 2009, p. 6). After researching on About.com, they say that marketing...
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...to date such as electronics, places to go, shoes, and clothing brands. In this paper I will be discussing my personal view on what marketing means to me, along with how two other out side source interpret marketing. Furthermore I will deliberate about the importance of marketing in organizational success. I will also be altercating three examples from different business worlds and how they incorporate marketing into their business. The definition of marketing reminds me of my workplace at Communication Test Design Inc. (CTDI). As a supervisor or manager, it is their responsibility to know exactly what the customer wants and needs. The feedback that they receive from our customers is what is important when refurbishing and selling the Verizon Fios set top boxes. This type of information goes in a weekly recap sent to the organization so that we can see what we need to improve to satisfy the customers needs. Knowing what makes the customer satisfied is what makes the company successful because we know that if our customer is happy our business profits will also be increasing as well. According to the textbook Basic Marketing, The authors discuss marketing as the performance of activities that seek to accomplish an organization’s objectives by anticipating customer or client needs and directing a flow of need satisfying goods and services from producer to customer or client (Perreault, Cannon, &...
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...IPhone in Japan The IPhone is now known as the most successful smartphone in the entire world. Millions of people all over use their IPhone for worldwide communication and for various recreational activities. The growth of the smartphone has reduced the need for planners, calendars and contact lists, as the millions of applications these devices can do is limitless. Information can easily be accessed by the push of a button, and the ease of use is a great selling point when trying to infiltrate the Japanese smartphone market. Japan is portrayed in two different views; traditional, such as Geishas, kimonos, and old time samurai; and modern, with their digital billboards littering the streets and high speed monorail system. Traditional culture is still alive in the remote regions of the country, but given that Japans’ major cities are home to millions of people in tight, confined spaces, the modern digital culture and entertainment business are instrumental in the selling of technology to the Japanese people. “Japan's strengths are in interactive digital gaming, the use of animation in digital entertainment, and the adaptation of the lowly cell phone into a ubiquitous multimedia apparatus of ever-broadening applications (Evans)”. IPhones are capable of doing all the above, and although there will be some barriers to selling the phone to the people, the technology and features given will be more than enough to guarantee success in Japan. The First Generation IPhone debuted...
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...Google TV could be a telco’s best friend in the battle for the multiscreen market, says Rob Gallagher 04 February 2011 Rob Gallagher Telecoms operators once thought they would rule the world. They foresaw a future where people would communicate, access the Internet and watch TV via their mobile phones, PCs and a number of as-yet-unimagined screens. And thanks to their brands, customer relationships and control of the wired- and wireless-broadband networks that would carry the new services, telecoms operators would be best-positioned to profit. It didn’t quite work out like that. But not for the operators’ lack of trying. Throughout the course of the last decade, many sought to expand the control they have over their networks to almost every element of the new-media industry, from content and delivery platforms to devices and embedded software. Unfortunately, the operators overestimated their ability to control these other parts of the value chain, most strikingly in the mobile phone market. Consumers shunned the operators’ mobile portals when they found they could access their favorite PC-based Internet services “over the top” (OTT) of their mobile networks. Pouring salt into the wound, the content, devices and software companies have proved much more effective at entering each other’s markets than the operators have. Search engine Google’s Android mobile operating system (OS), for example, has effectively achieved take-up operator efforts could only ever dream of. Apple’s iTunes...
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...garage on April 1, 1976, Apple created the personal computer revolution with powerful yet easy-to-use machines for the desktop. The company designed, manufactured, and marketed a range of personal computers, mobile communication and media devices, and portable digital music players, and sold a variety of related software, services, peripherals, networking solutions, and third-party digital content and applications. The company’s products and services included Mac computers, iPhone, iPad, iPod, Apple TV, Xserve, a portfolio of consumer and professional software applications, the Mac OS X and iOS operating systems, third-party digital content and applications through the iTunes Store, and a variety of accessory, service, and support offerings. The company sold its products worldwide through its retail stores, online stores, and direct sales force, as well as third-party cellular network carriers, wholesalers, retailers, and value-added resellers. In addition, the company sold a variety of third-party Mac, iPhone, iPad, and iPod compatible products, including application software, printers, storage devices, speakers, headphones, and various other accessories and peripherals through its online and retail stores. The company sold to SMB, education, enterprise, government, and creative markets. The early success of Apple was attributed largely to marketing and technological innovation. In the high-growth industry of personal computers in the early 1980s, Apple grew quickly, staying ahead...
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...Introduction AT&T Inc. is an American multinational telecommunications corporation headquartered in Whitacre Tower, downtown Dallas, Texas. AT&T Inc. (AT&T) is a provider of telecommunication services to its customers, predominantly in the US. The company offers both wireline and wireless-based telecommunication services. The company’s service offerings include local exchange services, data/broadband and Internet services, and long-distance services. Besides, it also offers video, telecommunications equipment, managed networking, wholesale services and directory advertising and publishing services. AT&T provides voice coverage in over 225 countries, data roaming in over 205 countries, and 3G in over 145 countries. AT & T, the nation's fastest, most reliable 4G LTE network for a widespread, ultra-fast and consistent experience. AT&T's mobile Internet service footprint covers more than 80 percent of the U.S. population, including the top 100 U.S. markets. This company expanding 4G LTE across their network footprint and AT&T customers will continue to have access to fast 4G speeds even when they are outside of an LTE area. They are constantly working to deliver new capabilities and applications via their access network. For example, their U-verse service deployment is enhancing our wired access capabilities to deliver advanced IPTV services to residential customers. AT&T is bringing it all together for our customers, from revolutionary smartphones to next-generation TV services...
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