Verizon Communication International Marketing BU 611 Presented By Hani Khafajy April 23, 2009
Communication Industry Overview The telecommunications is the world's biggest machine. The world telecommunications market is expected to rise at an 11 percent compound annual growth rate at the end of year 2010. The total revenue earned from this industry is 3 percent of the gross world products .
Industry Overview continue the countries with the fastest-growing online populations in the world today are Brazil, Russia, India and China. In few years more than 40% of the Internet users in the world will reside in Asia.
U.S industry Overview In the US, about 11,000 companies provide telecommunication services. U.S. telecommunications market generated approximately $568 billion in revenues. Businesses in the wireless industry invested $24 billion in 2007 in infrastructure. employ 3.5 million Americans. The industry is highly concentrated
Formed in June 2000 with the merger of Bell Atlantic Corp. and GTE Corp. GTE was one of the largest telecom companies as it is serving 35 mill. Telephones in US, Canada, Latin America GTE also serves 6.7 mill. Wireless customers Verizon History
Bell Atlantic served 43 million Mobile customers. Bell Atlantic also provided directory assistance. Merger was valued at over 52 million. Merger created a company that could and would pioneer “bundling” services History Continue
Three network-based businesses: Verizon Wireless, Verizon Telecom, Verizon Business Headquarters in New York City; Operations Center in Basking Ridge, N.J. 238,000 employees $22 billion provided in annual compensation and benefits (2006) Verizon Overview
44.2 million U.S. wireline access lines Most reliable wireless network serving 60.7 million customers More than 100 million people touch Verizon networks daily Verizon Overview continue
International Strategy Vodafone owns 45% of Verizon Wireless. Verizon Communications owns 23.14% of Vodafone Italy. Verizon also had a presence in the Dominican Republic and Puerto Rico(sold off in 2006). Verizon had a share of a Venezuelan company called Cantv(Venezuelan President Hugo Chavez nationalized this company)
Strengths 1. Strategic Planning 2. Market Positioning 3. Operating Performance 4. Financial Position Opportunities 1. International Market 2. Verizon Business 3. Increased demand for wireless services Weaknesses 1. Weak international business 2. Domestic Telecom’s Net Sales dropped Threats 1. Regulatory pressures 2. Competitive pressures SOWT Analysis
Verizon’s Marketing Analysis Services: Verizon offers services in wireline, wireless and Internet communications services; information services, and HDTV satellite television options through Direct TV. Verizon is also the largest provider of voice communications in the United States.
Marketing Analysis Continue Pricing: Verizon’s leading position in the telecommunications market allows it to have services offered at various price points. Promotion: Verizon promotes its services through their television advertisements, corporate sales team, retail locations, website, customer service call centers, mass mailing, and many other forms. http://www.youtube.com/watch?v=cjRNPXmiJNk&feature=related Place: North America, Latin America, Europe, Asia
Verizon competitors are primarily in the Fixed-line Voice Services Providers industry. Verizon also competes in the Data Services, Wireless Communications Services, and Information Technology Services sectors. Verizon competitors include AT&T, Qwest and Sprint Nextel. Verizon Competitors