AT&T’s Strategic Formulation

Strategic Formulation

AT&T is a globally reputable organization known for the provision of IP-solutions the communication sector. In order to widen its market presence, the company has a vision of having the aspiration that drives them to act in a way that they can be admired for offering valuable solutions to customers. The company also strives to enhance the lives of its customers thereby making the communication business a more exciting one.

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With its top CEO earning a salary of 6.58 million, the company boasts of making a whole whooping profit of $60 billion. Generally, the company is performing well as depicted by the net revenues ($124 billion) and net income (19 billion) in 2010 alone.

The success of AT&T is determined by its strengths, the weaknesses, challenges and opportunities in the communication market. Some of the strengths for AT&T include the fact that it has more than 30 percent of the entire market share in the communication industry. This gives it a competitive edge above the other players in the market. Additionally, the company is the largest in revenue ownership and when this is coupled with its fastest broadband network, it will then be able to perform well. Weaknesses however, exist within the company.

One serious weakness that the company suffers from as of 2010 is the enormous debt leverage compared to its competitors. This predisposes the company into serious financial problems whenever there is market instability. The other weakness is the fact that it no longer has the exclusivity of the iPhone, which could have allowed it to market the product alone. This reduces the profits earnings of the company. When compared to Verizon, this company has not covered the whole of the US market. This means that there are limited profit earnings.

The planned merger with T-Mobile presents an excellent opportunity for the company to perform better in business by netting 130 million subscribers. The expansion to 4G network also serves as an avenue for better performance of the company. It extension of market scope to the global arena is also an opportunity for better business for AT&T.

The threats that the company is current facing include the rapid growth of Verizon, and the subsequent phone plane pricing wars. This acts to destabilize the market and reduces revenue earning. The company is also facing the challenge of trying to close the gap created by the growing Verizon.

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