1. AT&T – Management’s Impression
Revenue Trends
•Leader in the Industry.
-AT&T serves 95.5 million customers!
•Weak economic conditions continue and competition remains strong.
•Growth in wireless data and IP-related wire line data services
-Wireless primary driver of growth, especially in sales of and increases in
data usage and advanced handsets and emerging devices (tablets,
eReaders and mobile navigation devices).
Expense Trends
•Cost-control measures; “simplify product offerings.”
•Improve customers service and billing; “simplify customer experience.”
2. AT&T – Management’s Impression
Market Conditions
•Ongoing weakness in the general economy has affected their customer and
supplier bases.
-If the economy further deteriorates, AT&T will likely experience further
pressure on pricing and margins as they compete for customers who have
less discretionary income.
-Suppliers experience increased financial and operating costs.
•Lower demand from residential customers & business customers of all sizes.
•Negative economic trends offset by continued growth in our wireless data and
IP related services.
•Assets held by benefit plans for payment for future benefits could be affected.
3. AT&T
Expected Growth Areas
•Wireless services and data/broadband through existing and new services.
•Previous acquisitions will enable AT&T to:
- Strengthen the reach and sophistication of their network facilities.
- Increase large-business customer base and enhance the opportunity to
market wireless services to that customer base.
•Ability to offer innovative services that will encourage customers to upgrade
their services and move from other providers.
•Increase network coverage, improve their network quality, and offer a broad
array of products and services.
4. AT&T - Conclusion
We selected AT&T as our preferred firm for future employment. The following
points are key factors we researched that helped us make this determination.
Financial Comparison of the Industry Leaders:
•The results of the financial ratios the team analyzed; debt-ratio, net
income, and earnings per share indicated that AT&T was the leader.
Non-Financial Results:
•Leader in the Industry vs. Primary Competitors
•Strong corporate leadership
•Direction for growth
•Innovative
•U.S. presence
•Reputation for quality products
5. AT&T - Conclusion
Areas of concern to monitor
•Mergers
•Regulations (Federal & International)
•T-Mobile Merger. FEC allowed AT&T to disengage on 11/24/11.
-Penalties due by T-Mobile’s parent company, Deutsche Telekom, could
be a $6 billion break-up fee.
•Samsung & Verizon – biggest competitors
•No clear Mission or Vision Statement on AT&T’s website describing a plan
to accomplish their goals and objectives.
•How will AT&T support the medical industry’s increasing need for
technology?
Additional Research
•Talk to the following:
-Current employees of AT&T
-Current suppliers of the firm
-AT&T customers
-Competitors of AT&T
