Case Study - Verizon Wireless PDF

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Verizon Company – Case Study Verizon Company Verizon has been one of the leading companies in telecom over the years. Their complete acquisition of Verizon Wireless enabled them to gain full control of its operations which will definitely help them design their service the way they desire. The acquisition was completed by purchasing the stakes of Vodafone, which is one of the largest companies as well, on Verizon Wireless. Verizon Wireless has performed significantly well and has been one of the leading wireless service provider and which is why the acquisition was a great deal for Verizon Communications because of its already established market base, even though there were concerns regarding the acquisition as the government of United States previously blocked such acquisition between AT&T and T-Mobile. However, the major goal of the acquisition was the service quality and complete control. The acquisition will be highly beneficial for the shareholders of Verizon Communications due to forecasted growth of 10%, whereas the Vodafone shareholders will receive their usual dividend payout for now, so there is no loss no gain. However, the acquisition led to increased exposure of the Verizon stock which will create demand for the stocks and increase the share value in the nearby future. Verizon thrives on its market leadership in terms of its products and services and its competitive advantage comes from its customer base who are highly loyal to the brand. This is one reason, any price change is not likely to affect Verizon significantly, thus making them inelastic to price. However, based on an analysis, Verizon does not yet possess the sustainability

Verizon Company – Case Study and risks the exposure of competitors catching up to them, but Verizon Wireless provides unique quality products and are unmatched due to its features, advantages, and benefits. The acquisition will also help Verizon Communications to retain all the cash flows from Verizon Wireless and invest in better technology and provide better service and keep themselves ahead of the competition. The company also believes that the technological advancement has opened up lots of ways to serve the customers because majority of the consumer household items now require internet service such as Smart TV, refrigerators, etc. Market expansion also includes providing navigation service in the cars. With the recent update, we can see that they have lost customers in the traditional phone service as a result of an overall economic decline as customers are now more oriented towards cell phones and internet. This indicates an opportunity for Verizon Wireless to focus their attention to this uprising group who are highly internet and smart phone concerned because technology has advanced to a stage where people rely on it in their daily activities and they desire some a good quality network service so that they can work efficiently and fast and at the lowest cost possible....