Running Head: AT&T AND TIME WARNER 1 AT&T AND TIME WARNER 2 AT&T and Time Warner Institution Name Course Title Date 5 Porter’s Forces on AT&T and Time Warner Porter’s Forces are the most essential framework which is being applied in most industry analysis since its introduction in the 1970s. They are embraced most because of their ability to measure the capability of a business’ competitive attractiveness with regard to its market industry. Most of the creditors as well as investors make use of the conclusion that are drawn from the Porter’s 5 Forces in determining the business’s risk as per the current market competition. In this paper, Porter’s 5 Forces analysis of the Company in relation to its market competition will be discussed. Competitive Rivalry From the history of telecommunications in the United States, there are 10 main competitors of the firm. Although there are other companies approaching 70 in the telecommunications industry in the United States, these 10 are the one offering a direct competition to AT&T and Time Warner according to…?. These direct competitors include T Mobile, COX, Sprint, Google, Apple, EarthLink, NETFLIX, ADT, Vodafone, and DISH. Together, they have raised over $5.6 billion between there estimated 480,700 employees (Pouryeganeh, 2015).In terms of employees, AT&T and Time Warner have got 268,000 employees as per the 2018 analysis and it’s ranked at the top of all the competitors with the top 10 average number of employees being 68,531. Considering the revenues of the company and its competitors, the following analysis table can be generated. How have the companies competing in this industry changed over the past decade or two, how have their market shares changed and how have those changes impacted sales and profitability in those industries…. Company Name Average Annual Revenue AT&T and Time Warner $177.5 billion T Mobile $43.3 billion COX $39.0 billion Sprint $33.2 billion Google $110 billon Apple 90,2 billion EarthLink $0.206 billion NETFLIX $4.19 billion ADT $1.185 billion Vodafone $46.5 billion DISH $13.94 billion From the above financial information of the following regression graphical analysis can be done concerning the market competition in terms of revenue of AT&T and Time Warner. It’s clear from the above statistical analysis that, the top most competitors for the company are Google and Apple telecommunication companies, please explain how you reached this conclusion…, with EarthLink being the least competitors among the ten considered companies. Google as well as Apple companies have been presented as the major competitors due to their time to time innovations on issues to do with internet services connectivity as well as their relative competitive costs as far as their services are a concern. Although other close competitors who are becoming popular in the market of telecommunications like Vodafone as well as T Mobile without forgetting COX and Sprint companies s.

1. Running Head: AT&T AND TIME WARNER
1
AT&T AND TIME WARNER
2
AT&T and Time Warner
Institution
Name
Course Title
Date
5 Porter’s Forces on AT&T and Time Warner
Porter’s Forces are the most essential framework which is being
applied in most industry analysis since its introduction in the
1970s. They are embraced most because of their ability to
measure the capability of a business’ competitive attractiveness
with regard to its market industry. Most of the creditors as well
as investors make use of the conclusion that are drawn from the
Porter’s 5 Forces in determining the business’s risk as per the
current market competition. In this paper, Porter’s 5 Forces
analysis of the Company in relation to its market competition
will be discussed.
Competitive Rivalry

2. From the history of telecommunications in the United States,
there are 10 main competitors of the firm. Although there are
other companies approaching 70 in the telecommunications
industry in the United States, these 10 are the one offering a
direct competition to AT&T and Time Warner according to…?.
These direct competitors include T Mobile, COX, Sprint,
Google, Apple, EarthLink, NETFLIX, ADT, Vodafone, and
DISH. Together, they have raised over $5.6 billion between
there estimated 480,700 employees (Pouryeganeh, 2015).In
terms of employees, AT&T and Time Warner have got 268,000
employees as per the 2018 analysis and it’s ranked at the top of
all the competitors with the top 10 average number of
employees being 68,531.
Considering the revenues of the company and its competitors,
the following analysis table can be generated. How have the
companies competing in this industry changed over the past
decade or two, how have their market shares changed and how
have those changes impacted sales and profitability in those
industries….
Company Name
Average Annual Revenue
AT&T and Time Warner
$177.5 billion
T Mobile
$43.3 billion
COX
$39.0 billion
Sprint
$33.2 billion
Google
$110 billon
Apple
90,2 billion
EarthLink
$0.206 billion

3. NETFLIX
$4.19 billion
ADT
$1.185 billion
Vodafone
$46.5 billion
DISH
$13.94 billion
From the above financial information of the following
regression graphical analysis can be done concerning the market
competition in terms of revenue of AT&T and Time Warner.
It’s clear from the above statistical analysis that, the top most
competitors for the company are Google and Apple
telecommunication companies, please explain how you reached
this conclusion…, with EarthLink being the least competitors
among the ten considered companies. Google as well as Apple
companies have been presented as the major competitors due to
their time to time innovations on issues to do with internet
services connectivity as well as their relative competitive costs
as far as their services are a concern. Although other close
competitors who are becoming popular in the market of
telecommunications like Vodafone as well as T Mobile without
forgetting COX and Sprint companies simply because of their
unique products branding as well as well laid marketing
strategic measures, they have actually failed to reach the
success which AT&T and Time Warner and partially Google and
Apple have enjoyed in the telecommunication market so far
(Forge, & Blackman, 2017). How did this analysis help you
assess the attractiveness of the industry and influence the
decision for the firm to pursue the strategy of merging?
Supplier Power you need to be analyzing 2-3 indsustries in
which the firm competes and at least one industry that it could

4. possibly consider competing in…. based on those results you
will be able to explain why the firm chose the strategic
direction it did
This force also presents the relationship that exists between the
supplier in this case being AT&T and Time Warner and the
buyers being the potential customers of its products. This force
appreciates the fact that the more powerful the seller becomes
in relation to buyer, the more influence the seller has. Through
advantageous pricing, limitations in the products and services
quality as well as shifting some costs to the buyer more
especially those that are related to transportation, the influence
enjoyed by the seller in this case can be used to reduce the
buyers’ profits (Pouryeganeh, 2015).
From the market standings of AT&T and Time Warner
currently, it’s controlling over 65% of the telecommunication
market in the United States and other parts of the world. In
2017,
the firm had a supply of 72% of the entire United States Market.
This was attributed to the acquirement of the Time Warner
Company which made it to penetrate on the entire United States
telecommunication market and a well part of Mexico market.
Also, the company is enjoying the supply power because of the
excessive costs that will be involved in changing from its
systems to other companies’ systems more especially on the
entertainment and internet connectivity devises. Since the
design of the company’s products is not similar to its
competitor’s products, therefore compatibility also is totally
different (Curwen, & Whalley, 2017).
The incompatibility feature gives the company an advantage in
the market as far as its potential customer are a concern since,
if a customer has to change to another company products,
therefore it means that he or she must completely change the
system which is much costly. For instance, a customer would
rather use $2000 to service and maintain the products of the
company than spending $3 million in changing the system. The
following tabulation shows the selling power of the company as

5. compared to its four major competitors in the first quarter of
2019 telecommunication market.
Company Name
Selling Power
AT&T and Time Warner
$44.83 billion
Google
$16.45 billion
Apple
$11.36 billion
Vodafone
$10.98 billion
T Mobile
$4.56 billion
From the above statistical data analysis, the following
regression can be performed which can be a clear indication of
the selling power of the various telecommunication companies
where firm is also inclusive.
From the above statistical regression analysis, it indicates that
the firm had a higher selling power as compared to its top
competitors with a market share of 50.84 in the first quarter of
2019. This selling power of the company to some extend can be
attributed to its threatening to forward integrate to the
customers where the buyers are left with no option rather than
to accept the influence from AT&T and Time Warner (Forge, &
Blackman, 2017).
Buyer Power
This is also another Porter’s force which acknowledges the fact
that, if the buyer is more powerful in relation to the seller, and
then the buyer will tend to be more influential in the market.
And that this influence can reduce the profits of the seller via a
reduction in the prices of the seller products and services. The
profits can be reduced through increased favors to the buyers
while trying to entice them to buy the sellers’ products and

6. services, for instance, increased customer services as well as
increased order deliveries to the customers. However, the
company has never experienced the challenges of buyer power
because of its diversified number of customers all over the
United States, Mexico and the other parts of the world. This
allows it to be more leeway making it possible to ignore
customer requests which are impossible to be undertaken
(Evens, & Donders, 2018).
Also, due to diversification of the company’s customers, it
doesn’t depend on one customer to buy in bulky; this gives the
company the opportunity to refrain from giving favors to single
customer as a strategy of customer retention. The fragmented
customer base also allows more flexibility for the company to
ignore a difficult customer requests (Roos, & Von Krogh,
2016). The following statistical analysis shows the
diversification of the AT&T and Time Warner customers in the
United States, Mexico and the World which protects it from the
buyer power.
Region
Percentage Telecommunications AT&T and Time Warner
Customer Distribution
United States
72%
Mexico
63.2%
Globe
44.62%
The above information can be plotted in the statistical analysis
graph below. On an average, the United states is the leading in
terms of customer distribution of the company with 72%, the
Mexico which is followed by the world market.
Averagely, from the above graphical analysis, the AT&T and
Time Warner has got 64.3% of the telecommunications markets
a situation which exonerates it from the lowering profits a

7. situation that is forced by buyer power as well as the backward
integrate of buyers. Lastly, the telecommunications market
analysis carried out on the year 2018 indicated that 55% of the
AT&T and Time Warner customers are youths (Pearlson,
Saunders, & Galletta, 2016). This is also potential indicator
since the youths are the determinants of the technology market
where AT&T and Time Warner is inclusive.
Threat of Substitution
This is another force which acknowledges the fact that, in the
market, there are products which can be used on behave of
others. These products are referred to us substitutes. Usually,
the more substitutes a product has the more elastic its demand
becomes. This means that the products’ consumer price
sensitivity is increased which further indicated less certainty of
profits. In this case, the AT&T and Time Warner face a threat
from the new innovations which are being undertaken by its
competitors. As part of the strategies of market competition, the
competitors are coming up with similar products and services
like those of the company but with a new branding (Lerman,
2018).
They are also adding some technological features which are
meant to make the products new but they are just the same as
those of the company. Although the company can argue that
services from Google, Apple, as well as T Mobile aren’t the
best substitutes for AT&T and Time Warner services as the
companies offer less extensive coverage as well as inferior
customer services as per the consumer surveys but price leading
strategies from these other companies is an issue that is greatly
tempting the market of the company as far as the substitutes are
a concern (Shapiro, 2018). The following table shows the
statistics that was carried out by consumer surveys of the
telecommunication company’s inferiority in services delivered
to the customers.
Company Name
Inferiority Percentage of Services
AT&T and Time Warner

8. 6.21%
Google
16.32%
Apple
18.80%
Vodafone
23.45%
T Mobile
26.20%
The above statistical information can be interpreted in the
statistical regression graph below.
Although AT&T and Time Warner uses its minimal inferiority
of services delivery to counter the substitutes from its
competitors, the following are other measures being taken by
the company to maintain its stability in the market despite the
threat from the substitutes in the market.
· AT&T and Time Warner Company have always maintained
their efficient service delivery rather than just being product
oriented like its competitors.
· AT&T and Time Warner Company have always focused its
attention on understanding the core need of the customer rather
than what is being bought by the customer as well as increasing
the switching cost for all its potential customers (Curwen, &
Whalley, 2017).
Threat of New Entry
This is another force which takes into consideration the new
entrants into the market who are the potential competitors of an
existing business and in this case, AT&T and Time Warner. In
the last two decades, about 309 entrant companies have been
registered in the United States telecommunication market.
Although these companies have since remained negligible in
comparison to the AT&T and Time Warner’s average annual
revenues, selling power, as well as inferiority in the services
delivered, they must not be neglected such much. It’s with no

9. doubt that most profitable companies like AT&T and Time
Warner attract more new competition until the downstream
pressure on prices do squeeze a good part of the economic
profits from the profitable company. Some of the factors which
facilitate the entrants of these new firms into the industry
include, low consumer switching costs in the industry, product
differentiation, reduced government barriers into the industry,
favorable economies of scales, low capital requirements for new
firms to venture into the industry, as well as easy access to the
distribution channels in the industry (Evens, & Donders, 2018).
In 2018, AT&T and Time Warner carried out an analysis on the
impacts of the new entrants into its sales, number of customers
served as well as their general impact on the company’s overall
industry standings and the results were as shown in the table
below.
Period
Total Sales with the entrants in the market
10 years projection total Sales before entrants for the period
Impact on AT&T and Time Warner
AT&T and Time Warner
2000-2010
$1436
$1471
2.4% total sales Decrease
2010-2018
$1689
$1736
2.7% total sales Decrease.
The above information can be interpreted using the graphical
statistical analysis as shown below.

10. From the above graphical analysis, other factors kept constant,
the 1st period was 10 years and the second period was 8 years.
It’s clear that the percentage change of the total sales keeps on
increasing which generally has a negative impact on the sales of
AT&T and Time Warner Company (Barry, 2018). The company
under its counter tactics move is employing the following which
will help it retain its strong market share despite the new
entrants;
· The company is embracing at building economies of scale for
the purpose of lowering its fixed cost per unit
· The company is also innovating new products as well as new
ways of delivering its services.
References:
Barry, M. (2018). Verizon Wireless Communications: A
Financial Analysis.
Curwen, P., & Whalley, J. (2017). The evolution of US mobile
operators within a multi-play world. Digital Policy, Regulation
and Governance, 19(1), 40-57.
Curwen, P., & Whalley, J. (2017). The evolution of US mobile
operators within a multi-play world. Digital Policy, Regulation
and Governance, 19(1), 40-57.
Evens, T., & Donders, K. (2018). Policing the Platforms. In
Platform Power and Policy in Transforming Television Markets
(pp. 201-242). Palgrave Macmillan, Cham.
Forge, S., & Blackman, C. (2017). Europe’s 5G field of dreams:
if we build it, will they come?. Digital Policy, Regulation and
Governance, 19(5), 337-352.
Lerman, A. (2018). REMNANTS OF NET NEUTRALITY:
POLICING UNLAWFUL CONTENT THROUGH BROADBAND
PROVIDERS. Brooklyn Journal of Corporate, Financial &
Commercial Law, 12(2), 5.
Pearlson, K. E., Saunders, C. S., & Galletta, D. F. (2016).

11. Managing and using information systems, binder ready version:
a strategic approach. John Wiley & Sons.
Pouryeganeh, P. (2015). Broadband Race: A Case Study on the
Status of Connectivity in the United States.
Roos, J., & Von Krogh, G. (2016). Managing strategy processes
in emergent industries: The case of media firms. Springer.
Shapiro, C. (2018). Antitrust in a Time of Populism.
International Journal of Industrial Organization, 61, 714-748.
Decision making using system modeling. An open source
software tool, EMA Workbench, that can perform EMA and
ESDMA modeling. Find EMA Workbench online and go to their
main website (not the GitHub download site). Then do the
following:
1) Under documentation, go to the Tutorials page.
2) Read through the Simple Model (in your chosen
environment), and the Mexican Flu example.
3) Decide how you could use this EMA Workbench software to
create a model to help in developing a policy for a Smart City.
Explain what policy you are trying to create (i.e. traffic light
placement, surveillance camera coverage, taxi licenses issued,
etc.), and what key features you would use in your model. Then,
explain how EMA Workbench would help you. NOTE: keep
your models and features simple. You don't really need more
than 3 features to make your point here.
Running Head: AT&T MERGER ACQUISITION OF TIME
WARNER 1
AT&T MERGER ACQUISITION OF TIME WARNER
3
Individual Feedback

12. Hello dear AT&T team,
First of all allow me to commend you on your work for this first
assignment. I can tell that you did put forth significant time and
effort however, please allow me to make the following
suggestions in order for you to improve your work in the future:
1) you are too verbose; please do not use an entire paragraph to
state something that can be said in one sentence; 2) replace
vague words such as 'good', 'strong', 'well' etc with statistics.
For example, why state that there are 'many' competitors when
you could state that there are 100? ; 3) as I suggested during the
live session, you should be trying to use quantitative analysis
throughout the entire paper....this should not be limited to just a
variable or two in the economic section; how about you perform
a correlation analysis (table) with 10 variables and then perform
regressions with those variables that have the greatest
correlation? ; and 4) during the live session I offered to provide
feedback on one draft prior to submitting the final....those
groups that did send me a draft inevitably obtained higher
grades because they strengthened their work based on that
feedback.
Please keep in mind that the objective is to really understand
the impact of environmental and industry variables on the firm
of your analysis. So, in order to be very clear and precise with
your analyses, use visual tools and try to quantify more your
trends. For example, while it is useful to know that increasing
commodity prices (or costs of prime material) and hard
economic times are squeezing profit margins, it is more useful
to state something along the lines of: "the cost of prime
materials has been increasing at a steady 5% annually over the
past 3 years (citation) while in-store prices have either remained
the same or experienced a x% decrease (citation) therefore
reducing profit margins from x% in 2005 to x% in 2010. This
decrease has impacted overall corporate profitability and should
be an important issue when formulating a strategic plan. Our
plan XYZ suggests incorporating more products with higher
profit margins in order to counterbalance these effects...." Do

13. you understand my point? And, if you would include a line
graph depicting costs and prices (in-store) and profit margins--
all in the same graph, you will clearly make your point. This is
the type of work I assume would be expected of you in your
existing firms.
Also, the rubric in the syllabus states:
Broad environmental analysis (50%): 1) identify approximately
3-7 variables (a variable is a construct that can be measured)
that help you uncover opportunities and threats in the market; 2)
explain how you identified the variables that help you uncover
the opportunities and threats in the market; 3) perform
statistical analyses for at least 50% of the variables in order to
measure/quantify the opportunities and threats in the market; 4)
explain how you analyzed the variables; 5) present the results of
the quantitative and qualitative analyses; 6) interpret the results
in terms of HOW your results suggest that an opportunity or
threat exists in the market. Please make sure that you present a
solid argument based on facts and the results of your
analyses…you should present this argument in the same way
you would if you would be asked to justify a major strategic
move within your organization.
The strong grade I am giving you is more of a reflection of the
appreciation of the hard work that I think was dedicated to this
paper….but next time please include some analysis between
variables….that is the only way you will be able to make
projections and then devise your strategies appropriately OK?
Anyway, this is a learning process....keep pushing hard and
make sure to incorporate my suggestions in your future work
OK? Once again, if you have any questions please do not
hesitate to ask!