VERIZON CASE STUDY
1. What resources underlie Verizon’s strong competitive position in the U.S. wireless
telecommunications industry?
According to the text, Verizon has several resources that enable the company to have such a
strong competitive position. The primary is the extensive amount of...
1. What resources underlie Verizon’s strong competitive position in the U.S. wireless
telecommunications industry?
According to the text, Verizon has several resources that enable the company to have such a
strong competitive position. The primary is the extensive amount of coverage provided from
their reception towers, which “blanket over 95% of the nation.” To couple with this impressive
statistic, Verizon has invested substantial money into another beneficial resource: a wireless,
high-speed, fiber-optic network. Finally, Verizon has a customer care resource, which is an
automated software program that enables Verizon to analyze the call habits of individual
customers and make various recommendations with this data.
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From independent research, Verizon has added three other resources to the company in the past
few years. In 2015 and 2017, respectively, Verizon acquired AOL and Yahoo to diversify the
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company’s interests and to generate an uptick in profitability. Most recently, as of 2018, Verizon
announced the acquisition of Movildata Internacional, a Spain-based provider of commercial
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fleet management solutions. The CEO of Verizon Telematics, Andres Irlando, believes this
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strategic acquisition “strengthens Verizon Telematics’ market position, accelerates growth and
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allows the expansion of our market-leading solutions and services.”
2. Explain how these resources enable Verizon to improve one or more of the
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following: efficiency, quality, customer responsiveness, and innovation.
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Network Performance: This resource allows Verizon to improve on efficiency and quality.
Despite, an already exceptionally low churn rate, indicating that most customers are happy with
Verizon’s service, there is undoubtedly a way to improve. By refining the efficiency/quality
aspects, Verizon can limit the amount of dropped calls for users and dead zone space.
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Additionally, faster downloads and highspeed performance is a crucial factor for luring in and
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retaining customers.
Customer Care: This resource deals primarily with customer responsiveness and quality. Due to
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Verizon’s automated software the individual can have a more personalized experience, which
bolsters the overall quality of the product. Moreover, when a company goes out of its way in the
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customer care sector, the customers will be responsive, and a good image/brand can be built.
Recent Acquisitions: The recent acquisitions point to Verizon’s desire to innovate. With several
major purchases in the Internet of Things sector and the Telematics portion of the company,
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Verizon is not just a service provider. In fact, Verizon Telematics plans to add Fleetmatics’
REVEAL™ to the portfolio of software solutions available to Spanish fleet operators. Verizon
Telematics provides world-class vehicle tracking and business intelligence solutions designed to
help generate cost savings, improve productivity and help monitor driver safety for virtually any
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