Verizon was formed in 2000 through the merger of Bell Atlantic Corp and GTE Corp. It is currently the largest telecommunications company in the US. Verizon's mission is to use technology to solve problems in education, healthcare, and energy management. One of its strategic recommendations is to expand its wireless services into the Canadian market through acquiring carriers like Wind Mobile and Mobilicity. This would help increase profits and give Verizon an international presence, but would also increase its current debt.

1. Barrington McFarlane
Allison Schaefer
Maitrik Shah
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2. History
• Verizon formed in 2000 after merger Bell
Atlantic Corp and GTE Corp.
• Bell Atlantic is one of the “Baby Bells” from
1980s.
• GTE was one of largest telecommunications
companies.
• Verizon immediately was the largest
telephone company in the US.
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3. Vision Statement
• “We have work because our customers value our high-quality
communications services.”
• “We focus outward on the customer, not inward. We make it easy
for customers to do business with us, by listening, anticipating
and responding to their needs.”
• “We know teamwork enables us to serve our customers better
and faster. We embrace diversity and personal development not
only because it’s the right thing to do, but also because it’s smart
business.”
• “We believe integrity is at the core of who we are. It establishes
the trust that is critical to the relationships we have.”
• “We know that bigness is not our strength, best is our strength.”
• “Everything we do is built on the strong foundation of our
corporate values.”
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4. Mission Statement
• “To use our technology to solve some of the
world’s most pressing problems in
education, healthcare and energy
management.”
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5. Social Responsibility
• Education and literacy
– Training teachers
– VILS and ISTE partnership
• Safety and health
– Healthcare monitoring
– Partnership with CHM
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6. Financial Position
• #1 leader across most key performance measure
in Telecommunications Industry. Net Income,
Gross profit.
• Largest market cap size
• Strong Stock Performance
– High P/E ratio
– Very stable Industry beta value(.04)
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7. Stock Price Performance
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8. Competitor Financial Analysis
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9. Financial Measures (Current)
AT&TVerizon
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10. Q1 Q2 Q3 Q4
Revenue Y/Y Growth
2011
2012
2013
2014
Q1 Q2 Q3 Q4
Net Income Y/Y Growth
2011
2012
2013
-1.36%
-0.19%
3.52%
8.90%
Annual Net Income Growth
2010
2011
2012
2013
-1.15%
4.04%4.48% 4.06%
Annual Revenue Growth
2010
2011
2012
2013

11. Product and Services
•Wireless
–Voice and Data Services
–Device Sales
•Enterprise Solution
–IT, Security and Communication solutions
–Data centers and Cloud computing
•Wireline
–Voice
–Broadband video and data service
–Internet Access
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12. Strengths
• Strong market share supported by growth rates,
margins and lower churns
• Extensive wireless network across US
• Growing postpaid Average Revenue Per Account
• FiOS success
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13. Weaknesses
• International Presence
• Substantial debt
• Significant workforce represent labor unions
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14. Opportunities
• Expand Globally
• Infrastructure and cloud services.
• Growing demand of customers to forgo
landline for mobile devices
• Growing demand for broadband
• M2M (Machine to Machine) services
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15. Threats
• Extremely competitive market.
• Emergence of new technology delivering new
products and services
• Changes in Regulatory and Legal requirements.
• Cyber-attacks and breach in technology
• Supply chain problems
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16. Alternative Strategy #1
• Product Development
– Focus on tablet sales
– Readjust current plans
– Saturated cell phone market
• Challenges
– Customer acquisition and retention
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17. Alternative Strategy #2
• Unrelated Diversification
• Strong Financial position
– Acquire Device Equipment
Manufacturer – HP
– Device Convergence
– Industry Trends:
Opportunities in Healthcare,
Energy, Automotive,
Construction
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18. Alternative Strategy #2
• Challenges
– Raise capital to integrate
horizontally with HP.
– Brand awareness
challenges – associate new
products to Verizon's
name.
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19. Group Recommendation
• Market Development
• Expand Wireless Services in Canadian Market
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20. Group Recommendation
• Implementation
– Buy starters up carriers like Wind Mobile and
Mobilicity
– Favorable Canadian Government Policy
– Readily available infrastructure
– Technical leadership
• Challenges
– Raising Capital
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21. Group Recommendation
• Pros
– Increase profits
– International Presence in Wireless Services
– Financial Stability
• Cons
– Increase in current debt
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22. Questions?
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