Subject: Management Information System Submitted to, Mr. Tasawar Javeed Submitted by, Sidra Saeed ROLL # 131 Assignment Title: Verizon wireless & competitive advantage MBA (G1) 4th semester Department of Management Sciences

The Islamia University Bahawalpur

Table of Contents
History……………………………………………………………………….4

Introduction…………………………………………………………………4

Marketing overview: Verizon wireless competition influence…………..5

Management information system…………………………………………..7

Porter’s Five Forces Analysis………………………………………………8

Verizon Wireless Value Chain…………………………………………….11

Verizon wireless Strategies for Competitive Advantage………………..12

Competitive advantage of Verizon wireless……………………………...14

Conclusion………………………………………………………………….14

Company History:
Verizon communication Inc. Verizon was formed on June 30, 2000 with $52 billion dollar merger is done b/w Bell Atlantic Corp & GTE Corp. That are world’s largest telecommunication companies Mergers & acquisitions were necessitating for prolonged growth, government participation and high infrastructure cost help the development of telecommunication industry. In the merger the Bell Atlantic and GTE London based Vodafone group declare for the creation of new wireless business which is called Verizon wireless (vw). The majority owner of Verizon is vw (55%) and other with management control of joint venture. In 2006 acquisition is done with MRI for 8.6 billion. Then Verizon became an escort provider of advanced communication and information technology, solution to large businesses, government and worldwide customers. In 2009 acquisition with Alltel corp. Than Verizon became the largest service provider in U.S. Verizon not only grow with acquisition with the investment that is made in technology and infrastructure. Within five years Verizon invested more than $74 billion that’s substantially more than any other telecom or Cable Company’s investment in America. From this vw network has $30 billion alone. Due the noteworthy, significant network investment vw wireless became the nation’s leading provider in innovation, cash flow generation, customer satisfaction, network reliability.
Company Introduction:
Verizon communication inc. has headquartered in New York. It is the second largest telecom service provider in overall U.S after the AT&T. But it holds the top place in providing the wireless services so ahead from its rival AT&T mobility. It is the world leaders by delivering innovative mobility; entertain mails, information and communication so Verizon provides more elevated broadband videos & other wire line & wireless services to businesses, government, wholesaler’s and customers across the world. They claim that they operates the fastest 4G wireless networks and provides services to all over the America with the help of more advanced fiber optic network , it delivers its integrated business solution & IT services in more than 150 countries including the fortune 500.The core business of vw is mobile which is (60%) of sales and serves 110 million customers whereas Verizon wire line units have 24 million landline account and providing the internet access, digital TV services long distance telephone connections to wholesalers & residential customers. They are creating value through paradoxical products that are helpful for peoples in order to improve their lives, creative strategies open the new markets and enhance the access of technology for peoples.” It’s no surprise to us that we earn the NO 1 ranking in our industry in fortune magazine’s 2012 that is the list of world most admired companies”. Segments of the company are:
1: Verizon Wireless
2: Verizon Wire line
Marketing overview: Verizon wireless competition influences all:
In telecommunication industry there is a violent competition b/w two largest providers in US are Verizon wireless and AT&T Company. This competition can influence the every aspect of the value chain, products pricing, promotion positioning and brand equity that are offered by Verizon wireless company.
Products:
A wireless telecommunication industry has a lot of commodities that create a unique value in supply chain in order to differentiate the vw in an industry it has three main products mobile devices, customer services and actual service is (networking) . Networks are the backbone of any telecommunication industry. That creates long term value for the customers. Networks require a lot of investment but are helpful in order to maintain competition between companies within an industry. Or prohibit new entrants in order to come into the industry. In the last three years vw put a lot of money and time in order to make their networks more efficient.
Wireless technology:
GSM and CDMA are two major families of wireless technology. CDMA is only used in US whereas GSM is dominant technology and used around the globe. Each family has different technology generations so 3G called 3rd generation, 4G called 4th generations. CDMA technology used 3G networks that are more expensive in US. vw networks shows super coverage, capacity and reliability. Because customer ranked its services at top. It has strong network connections that allow them to differentiate themselves in order to introduce 4G networks. Vw is using the GSM’s LTE technology for its 4G wireless network because they have a confidence that this technology has a potential and will be accepted by the customers. Vw is transitioning to GSM family for the up gradation of 4G networks for the fulfillment of increasing data requirement from the customers. Transition from CDMA to GSM is very beneficial but challenging for the Verizon Company.” Verizon cannot continue to influence standards and devices innovation if it does not begin operating with the most prevalent network technology. Decisions shown that it is a strong effort from management team because they want to lead with long term value in mind”.
In the consideration of mobile devices:
Vw restrictions on other people in mobile devices. However their position is maintained by creating an open development program, publishing technology interface standards. But the need is to design the product that is compatible with their network, so that equipment does not sell to the public for work on their network. The vw also shows that they are willing to support their suppliers of products with a lot of marketing dollars. Increase demand and sales of products is mutually beneficial, but it holds up motivation for equipment manufacturers to create innovative design can be launched as the flagship products for the public. These features permit the vw to create enormous wireless product lines so that public is not tied up to a particular brand or equipment like AT&T and the iPhone.
Customer service: is another relationship that is proved to be helpful in value chain for differentiating the products offered by the company. Vw has highest rank in reports, mixed signal received by the company from JD powers for customer care and retail sales fulfillment ranked by customers. So they have lowest postpaid shake rate (the percentage of contractual customers who leave in a given time period) from the last three years. So vw should continue to struggle to further take apart from marked customer service level.
Price:
Competitiveness can be achieved by pricing in wireless industry. Wireless has a numerous and perplexing plan of pricing. Popular tiered pricing scheme, allowing different data and the use of the voice of the customer needs. In 2010, vw launched the streamlining plan with unlimited minutes group Messages to their customers with a simplified option pricing. To simplify these plans For example, the public how to increase their added value by means quality than the other networks .Therefore vw can take a premium pricing position to capture the value it brings the market. Place (distribution channels):
Mass product distribution mainly through direct channels. The core of the company operated stores is distribution of components that is done through distribution channels, with the highest customer retention rate. Indirect Retail stores such as Best Buy, Wal-Mart, Costco and Target also sell the products and services of the vw. In addition, vw enterprises drive business to business organization; to focus on business wireless communications needs for its enterprise Customers. Finally, providing the public with a fully automated end-to-end web-based sale for wireless phone, accessories and Services in all markets.
Promotion:
The vw value proposition has been successful, because the company has delivered consistent, credibility of the news. Even remember the name, Verizon, to create a word "VERITAS horizon" to convey the company Value, reliability, certainty, and the horizon, or forward-looking thinking. Since vw launch the campaign “test man” to convey the properties of reliability and certainty and campaign was launched in 2002. This movement is characterized by the desert people ask: "Can you hear me now?" The slogan, "We never stop working for you." Online advertising growth and vw investment ramped up (Verizon is currently in the country's second largest advertising spending, the annual behind P & G), the value of its network, its reliability is still a pillar of its differentiated factor of Competitive market place. At start in 2005, the movement of vw from services to the practical advantages of its network. This Single attribute movement dyed the power of the vw, a larger and more reliable network for Competition. Consumer insight has played a large role in the 2008 event, to play the old horror film which characters will be warning the vw customer is aware of the "dead zone". The typical scene shows that where the access of mobile phones and networks are dangerous: during the storm, tourism, or reliance on forms of entertainment, comfort, when washing clothes. vw customers confidently retorted, "I have got Verizon.” Until 2009, the vw was in direct competition. They did this in a number of Method; however these models adhere to the value of vw network. In response to AT &T Inc. And its exclusive ability to sell the iPhone, Vw launched “There’s map for that campaign” has stressed that only a telephone is a Good as its network. At this time, AT & T's customers, and more specifically iPhone users, flooding Poor quality of Internet service complaints, dropped calls, delay time. Vw invest close to Bill of $ 1,000,000, and launched the Droid for direct competition with iPhone for consumption gap.
Management information systems: Virtual Premise Helps Verizon Wireless Stay Connected to Critical Information.

As a leader in the telecommunication industry Verizon wireless knows that information is the whole thing. So the challenge is that the right people must get the right information at the right time. Vw need to violently expand the retail store locations in such a efficient way that system can manage the business communication and leases in order to select the more better locations for retail stores. “Virtual Premise answered the call for the South Area with its web-based Real Estate Information Management solution.” With the help of virtual premise the staff can be able to get information about location of stores through web that includes facilities management, work order details transactions and lease information.
“The benefits of the integration were highlighted when the Virtual Premise dashboard was implemented to provide integrated views of”

Transaction Management: Acquirement, Outlook, critical dates.

Portfolio Management: Lease management, generalization, termination and grave dates.

Workflow Management: Plan, dangerous path substances (items), compliance and authorization of assets requirements.

Facilities Management:
Preservation and work orders from the third party Conveniences management system.

Once the information and the incorporation are in a place the accomplishment of the project administration element began. Project management put together as store accelerator, which will be helpful in the speedy selection and opening of retail stores of Verizon wireless at suitable location. Wireless Expense and Asset Management System (WEAMS) for Government Agencies * Allocate payment files to agency accounts payable system * A comprehensive, inter-carrier cellular expenses on one screen * Flexibility in the allocation of cost on the basis a single device * A simple way to track your mobile assets and the use of equipment * Automatic online configuration workflow tracking and authorization * The ability to quickly identify invoices differences and unused equipment * Pool minute equitable distribution of the access costs by the defined group of user * A simple and consistent record of the telephone charges cost by centers or managers * Capacity and human resources systems integration maintain and updated equipment ownership Porter’s Five Forces model

Competitive force | Magnitude of force | conclusion | Intensity of rivalry | Relatively strong | Reduces profit potential of the industry | Supplier power | Relatively weak | Increases profit potential of the industry | Buyer power | Relatively strong | Reduces profit potential of the industry | Threat of substitute | Moderately strong | Reduces profit potential of the industry | Threat of new entrants | Relatively weak | Increases profit potential of the industry | Overall conclusion | Most of the forces are moderately strong, which drive down the profit potential of the industry |

Buyer Power:
Due to high competition the bargaining power of buyers are high in Verizon wireless company. But it is attempting to reduce this power by creating competitive advantage that will create a center of attention for customers in order to say thanks for innovative services, quality, products and other features like GPS system offered in cell phones. It is also trying to improve customer service through the use of EV-DO technology for the improvement of data transmission rate and competitive advantage in this buyer powered industry.

Supplier Power:
It has a lot of suppliers that are providing lot dissimilar varieties of wireless telephone and other devices like PDA’s &smart phones. Main Suppliers are Samsung, LG, Blackberry, Motorola, Nokia and Palm. All of them are offering distinctive range of size, color and innovative technologies, which are considered as a geared for the extensive range of embattled customers. So the power of supplier is low because customers have many choices to go there.

Threat of Substitute Products or Services:
A lot of plans are offered by the Verizon wireless in order to fulfill the individual’s needs. That ranges from simple phones to sophisticated touch screen devices .threat for the company is the incoming is walkie-talkie(two way radio)that are popular in commercial companies and construction workers are mostly used them. Moreover software’s of internet may be intimidated the revenues of wireless company. Due to the advancement in technology it can be very easy to get the access to internet & laptops that are substitute of cell phones and paid wireless devices. E.g. Skype program are used in the whole world with the additional attribute of image of person in addition to voice. It is very common in Verizon wireless industry the companies want to take contracts in order to create & control switching cost, so that people think before switching. Threat of new entrants: New entrant’s threat is low in wireless industry because it is very difficult to become a new and better service provider than that already existing. But now a day’s companies are considering the importance of joint venture because in this they can get the advantage from both of the companies at the same time. The threat is here if they are new entrants then they must set their strategies in such a way that they can compete in the competitive environment. Rivalry among Existing Competitors: AT &T is the big rival of Verizon Company because they spend more time in wireless phone in industry than that ha Verizon wireless company. The advantage of roll over minutes are also possessed by the AT & T that give the facility to customers that who do not use their minutes in one billing cycle are shifted in the next one. Both companies said that they are 1st in the industry because AT&T are first in terms of customers and Verizon in terms of revenue. But now Verizon announce that they get the agreement with Alltel Company and convert the Verizon in the largest wireless service provider in the country.
Verizon Wireless Value Chain: Firm Infrastructure | -Recruiting-Training | | -Recruiting | | HRM | | | | | | - 4G Network- Energy Mgmt.- Open Development- Collaboration | | -Wireless Devices-Supplier Innovation-Market Research | | TechnologyDevelopment | | | | | -Supplier Relationships-Wireless devices-Transportation | -Energy-Network Equipment-Network parts | -Transportation to Indirect Retail Store-Transportation for online Transactions | -Device Subsidies-Supplier Promotion | -Suppliers Warranty-vw Warranty Claims | procurement | | | | | Vw Owned stores-Receiving ProductsQA Check point | Wireless Network-Maintaining Equip.-Building Out-Quality InspectionVw Owned storesAnd online retail-Inventory Mgmt. | Distribution Channels-Coordinating Shipments to Indirect Retail Stores-Shipments for Online Retails | Marketing Management-High quality position-Largest coverage-Advanced Network-Advanced Devices-Higher Price Advertising/Promotion -Big Spend-Multiple Media-Support Suppliers w/vw Flagship Models Sales Force-Company Stores-Business Needs | -Service Reps-Network Support and Repairs | | | | | | INBOUND OUTBOUND LOGISTICS OPERATIONS LOGISTICS MARKETING & SALES SERVICE

Verizon wireless Strategies for Competitive Advantage:
Business strategy of Verizon wireless is based on operating income. It is the most gainful provider of wireless communication in US. So they want to put into operations the basic elements that are that are very necessary for their business strategy in order to get differentiation throughout the globe. The center of attention for the company is to provide the high quality service in response to the growing demand of customers. The company strategy bring about the global elements because it is the joint venture b/w Verizon communication in the US and covers population that is 260 million & Vodafone group which is the larger one mobile telecommunication company throughout the world. It headquarter is in England-UK. Verizon want to fulfill all of the promises done by the company and be proud with their growing size. Within the industry of wireless. Verizon wireless trying to achieve the competitive advantage in order to be able to discriminate their services from their competitors.

It has following strategies:

1: Highest network technology
2: EV- DO (evolution data optimized)
3: Wireless data, messages and offerings of multimedia
4: Customer service

They are providing highest network technology with the help of CDMA (code division multiple access) technology.

Improving transmission rate of data by using the EV-DO (evolution data optimized) Technology. Persisting to spread out the wireless data, messages and offerings of multimedia for the customers of both household and business agents of different segments.

Focusing on competency and contentment rates in customer service, delivery and product improvement, development divisions.

Competitive advantage of Verizon wireless:
The company has a top spot in the provision of wireless services in terms of quality, improved transmission rate of data with the help of CDMA, GSM, and EV-DO technologies.
It serves as most trustworthy wireless network and extensively available wireless broadband network in the country by introducing the GSM’s LTE technology in its 4G networks with greater potential and acceptance from its customers.
It is restricted in term of innovation for others by investing a lot of dollars in order to support their supplier’s products so that they create the innovative products that are launched as flagship products of vw.
They create innovative promotional campaign in order to show the reliability, strength of company & customer cares in terms of warning them from the use of cell phones and networks in the critical situations.

Conclusion:
From all of this information it is concluded that the competitive advantage in terms of best quality, service provider, and innovative producer of products for the survival of company in this age of competition. Technology plays an important role in order to get competitive advantage in any industry. Moreover information system plays an important role to gain a competitive advantage in the relevant industry.