Analyze the company’s competition advantages, including the sellers frame work – and competitive analysis. This includes: Economics of scale, High customer switching costs, intangible assets and network economy/economies.
1. Analyze Verizon in comparison to AT&T and T-Mobile Show competitive analysis.
2. Provide recommendation to Verizon as to where the company is in the life cycle? Are they growing, mature?
3. What position is the company in comparison to their competitors?
4. What would you do that is different than what the company has done?
This material may consist of step-by-step explanations on how to solve a problem or examples of proper writing, including the use of citations, references, bibliographies, and formatting. This material is made available for the sole purpose of studying and learning - misuse is strictly forbidden.1. Competitive analysis of Verizon in comparison to AT&T and T-Mobile
Verizon’s extensive LTE network gives it a competitive edge over AT&T and T-Mobile both in terms of economics of scale and network economy. The network allows Verizon to scale up its nation-wide operations at a lower cost than both of its rivals. In comparison, AT&Ts decision to purchase Spectrum from Verizon enabled the company to bolster its network, but it still has lower economics of scale as compared to Verizon.
Out of the three companies, T-Mobile has the lowest economics of scale and network economy due to its smaller infrastructure. This means that the company requires a high investment outlay to scale up its operations which puts it at a competitive disadvantage in as far as economics of scale and network economy are concerned, Verizon has more intangible assets than both AT&T and T-Mobile. Verizon’s 2013 financial report reveals that the company’s intangible assets at the end of the financial year were valued at $81.5 billion (Verizon, 2015). In comparison, AT&T had $62.2 billion worth of intangible assets (AT&T, 2015) while T-Mobile had $19.3 billion (T-Mobile, 2015)....