|



 

S.R.THIVYA DHANA LAKSHMI
10MBA048
 i 
|
 
 1,2
ë 2000 ʹ Bell Atlantic and Vodafone combine U.S. wireless operations to form
Verizon Wireless

ë Jun 2000 ʹ Verizon Communications Inc. formed with merger of Bell Atlantic Corp.
and GTE Corp to become the number one communications provider.

ë 2004 ʹ Verizon embarks on next generation broadband services (EV-DO, FiOS)

ë Dec 2005 ʹ Acquired competitor MCI Inc.4

ë 2005 ʹ Verizon becomes first wireless provider to offer a nationwide broadband

service

ë 2005 ʹ Wins Frost & Sullivan͛s Product Innovation Award5

ë 2006 ʹ 2007 ʹ Invested $34.6 billion to maintain, upgrade, and expand its
technology infrastructure
 

, 
3

ë i  

 
 


ë 
     !"#$

ë %  
&"#''' 

ë (
 
 ) * 





ë 
 +
$   
Verizon Wireless
Wireline
Verizon Business
 A

 ,

-#*-.

ë Services
Voice and Data
Info./Dir. Publishing

ë Products
Handsets
Accessories
Calling Cards


( 
6

,  $
/Chairman and CEO7,8

Began career in communications in
1969 as a cable slicer assistant
Serving as sole CEO since April 1, 2002
Chairman of the Board since 2004
BS in Mathematics form City University
of New York
MBA in Business Administration and
Marketing Pace


( 
6
!  2,
/President and COO9,10
Former President and CEO of Bell Atlantic Mobile
Former group President and CEO of Bell Atlantic Global
Wireless
Over 30 years of experience in the communications industry
Serves on Board of Directors of Verizon Wireless
BA in Business Administration from Canisius College Buffalo,
NY
MBA from Fairleigh Dickinson University Rutherford, NJ
0A1

/EVP and General Counsel11,12
Began career in telecommunications in 1994 with GTE as EVP
of government and regulatory advocacy
Attorney general from 1991 to 1993
Held current EVP and General Counsel position since 2000
Helped steer negotiations that formed Verizon
BA in Government from Columbia University
MA in Government and Chinese Studies from Columbia
University
Juris Doctor Degree from George Washington University
 ë ,  34
 513

'

  
 





  



 



 


    

 

   






  

 ë ,  3A
 5

'

  
 

 


   




  
  
 

  


 



   



 | ,  34
 514

'  
 


   
! "





 


  



 | ,  3A
 5

'  
 


   
! "





 


  


   


  
 
#




 


 

6 ,
 

V |
 

V Bring Fiber into the Home
 V Customer Service for the Digital
Age



,
  V |
0

V Create an Open Network
V Expand Coverage Area
 %)
2

% 3%2%5
External Factor Evaluation (EFE)

˜
  
    

         ! "#

          $  

%  &    
# # ! !'

( 
   )    %     & 
*    &    )  & %   
 #  +

,    %   )    

! - *)) &  )&%   ./  0 # '

" 1   2    1)
  #  #

/ 

 3) 4 5 24  )  
 )  % ' #!

# /   %   
 ) 0 # '

 )    *  )    ' # +

! 3) 6(/7/4 ( 8 # !

" 39:(  
4     ) % ;:   
Total 1.00 2.48
 %)
2

% 3%2%5
External Factor Evaluation (EFE)

˜
  
    

        '  ! "#

          $  

%  &    0
# # ! !'

( 
   )    %     & 
*    &    )  & %   
 #  +

,    %   )    

! - *)) &  )&%   ./  0 # '

" 1   2    1)
  #  #

/ 

 3) 4 5 24  )  
 )  % ' #!

# /   %   
 ) 0 # '

 )    *  )    ' # +

! 3) 6(/7/4 ( # 8 # !

" 39:(  
4     ) % ;:   
Total 1.00 2.48
   A
 ë
)3Aë5
àompetitive Profiles Matrix (àPM)

Verizon 47 Qwest

àritical Success Factors Weight Rating Weighted Score Rating Weighted Score Rating Weighted Score

;    #  # # #!  #

:*  + ! +! !' #  #

3 ) <
 
! ! "+ !# # #'

 ,     ! ! # #

 % = 
+ ! +! !' #  #

3 )  % # ! !' # #! # #!

, 3) % 0 #8 #8 #8

: )     # ##

Total 1.00 3.34 2.86 1.97

   A
 ë
)3Aë5
àompetitive Profiles Matrix (àPM)

Verizon 47 Qwest

àritical Success Factors Weight Rating Weighted Score Rating Weighted Score Rating Weighted Score

;    #  # # #!  #

:*  + ! +! !' #  #

3 ) <
 
 # ! ! "+ !# # #'

 ,     ! ! # #

 % = 
## + ! +! !' #  #

3 )  % # ! !' # #! # #!

, 3) % 0 #8 #8 #8

: )     # ##

Total 1.00 3.34 2.86 1.97

 
2

% 32%5
˜ey Internal Factors Weight Rating Score

Strengths
  >  ? * # ! '
:* >@(  # ! !'
3  
$ A5  #  +

 , ) >,  ' #!
(% 
 ? * " "

Weaknesses
; 3  "  "
39:(/  
"  "
9  ( < " # 
/5 %  ) >   " # 

   
Total 1.00 2.56
 
2

% 32%5
˜ey Internal Factors Weight Rating Score

Strengths
  >  ? *# # ! '
:* >@(  #! # ! !'
3  
$ A5  #" #  +

 , ) >, # ' #!
(% 
 ? *#" " "

Weaknesses
; 3 # "  "
39:(/  
"  "
9  ( < #" " # 
/5 %  ) >   " # 

   
Total 1.00 2.56
 2
4 
Metric Verizon26 AT&T27 Qwest28 Industry29
   -//:$ 9   0+ 2.06 !0 +8B

, > -//:$  +> >#' 17.48 "0 #"# 8#"

@/9(-//:   " 42.58 !+ 00B

 , , ) -,#:  -14.9% $'+C $+#C $ CBB
 11.44  > #!

<     

B(%     ) -
)* 

 


BB 9A 1/ ) /

A

A


30
,0ë
)
 |
8 +
,
 
Recommended Strategies:

V Pursue 4G Technology
ʹ Transition from CDMA Õ GSM 31

V Be the first to bring FiOS into the home nationally

ʹ Increased Speed, Quality, & Flexibility 32
ʹ Opportunity for premier quad bundling
V Increase Investment in R&D
ʹ Long Term Evolution
ʹ Fiber Optic Service
  ,
 
Aë
) Pursue 4G Technology Bring FioS into Increase Investment in R&D

Based on GSM home to offer high service towards future technology

˜
 Weight AS TAS AS TAS AS TAS

OPPORTUNITIES from EFE (= weight x AS) (= weight x AS) (= weight x AS)

1. Increasing usage of wireless broadband applications 0.13 4.00 0.52 3.00 0.39 2.00 0.26

2. Increasing % of their capital expenditures toward

growth-oriented ventures, through reduced debt load. 0.12 4.00 0.48 3.00 0.36 2.00 0.24

3. Ability to bring cost structures more in line with

revenues through consolidations, as work forces are
reduced, businesses streamlined, and services further
bundled. 0.12 2.00 0.24 1.00 0.12 4.00 0.48
4. Price reductions for broadband service coupled with
demand for faster connections.
0.09 2.00 0.18 4.00 0.36 3.00 0.27
5. Using new size to reach further in the U.S. but mainly
to
expand into the foreign markets. 0.12 4.00 0.48 3.00 0.36 2.00 0.24

THREATS

1. Competitor's adaptation of Verizon's core

competency in customer service. 0.08 - 0.00 - 0.00 - 0.00

2. Technological advances and regulatory reforms. 0.09 4.00 0.36 2.00 0.18 3.00 0.27

3. Economic slowdown resulting in weaker consumer

spending. 0.08 4.00 0.32 3.00 0.24 2.00 0.16

4. Competition: AT&T's contract with Apple 0.07 4.00 0.28 1.00 0.07 3.00 0.21

5. CDMA technology's cost benefits coming to an end

with advances in GSM 0.10 4.00 0.40 1.00 0.10 3.00 0.30

1.00

AS= Attractiveness Score: TAS= Total Attractiveness Score

Attractiveness Score: 1= not attractive; 2= somewhat attractive; 3= reasonably attractive; 4= highly attractive
  ,
 
Aë
)
Pursue 4G Technology Bring FioS into Increase Investment in R&D

Based on GSM home to offer high service towards future technology

˜
 Weight AS TAS AS TAS AS TAS

Strengths from IFE

1. Reliable/ Robust Network 0.20 4.00 0.80 1.00 0.20 2.00 0.40

2. Corporate Strategy- Joint Venture 0.12 4.00 0.48 2.00 0.24 1.00 0.12

3. Marketing/ Brand Awareness 0.12 4.00 0.48 3.00 0.36 2.00 0.24

4. Financial Performance/ Position 0.08 4.00 0.32 3.00 0.24 2.00 0.16

5. Advanced Fiber Network 0.05 1.00 0.05 4.00 0.20 3.00 0.15

Weaknesses

1. CDMA Technology 0.15 4.00 0.60 1.00 0.15 3.00 0.45

2. Geographic Concentration 0.15 4.00 0.60 3.00 0.45 2.00 0.30

3. Declining Access Lines 0.05 1.00 0.05 4.00 0.20 3.00 0.15

4. TV services limited/ shared 0.05 1.00 0.05 4.00 0.20 3.00 0.15

5. Fee Structure 0.03 3.00 0.09 4.00 0.12 1.00 0.03

   
 1.00
6.78 4.54 4.58

AS= Attractiveness Score: TAS= Total Attractiveness Score

Attractiveness Score: 1= not attractive; 2= somewhat attractive; 3= reasonably attractive; 4= highly
attractive
 2
  ,
 

ë Pursue 4G technology (Long Term Evolution) with the transition

from CDMA Õ GSM
V Initial Target: Europe/ Asia
V Any apps, Any device͟ 33
V Free and wide open network

V Expand coverage network

V Expand customer base 34

V Opportunity to dominate
 
+
3

5 6
9,  $

+

+ %)
 

Dennis F. Strigl
President and àhief Operating
Officer
William P. Barr John W. Diercksen Marc à. Reed
Executive Vice President & Executive Vice President ± Executive Vice President
General àounsel Strategy, Development & Planning - Human Resources
Shaygan ˜heradpir
Richard J. Lynch Thomas J. Tauke
Executive Vice President &
Executive Vice President & Executive Vice President
àhief Information Officer
àhief Technology Officer ± Public Affairs, Policy & àommunications
John G. Stratton
Doreen A. Toben
Executive Vice President &
Executive Vice President and àhief
àhief Marketing Officer
Financial Officer

John F. ˜illian Daniel S. Mead Virginia P. Ruesterholz

President ± Verizon President ± Verizon Services President ± Verizon
Business Operations Telecom

Thomas A. Bartlett Marianne Drost

Senior Vice President and Senior Vice President
àontroller - Deputy General àounsel & àorporate Secretary
Ronald H. Lataille ˜athleen H. Leidheiser àatherine T. Webster
Senior Vice President - Investor Senior Vice President - Internal Senior Vice President and
Relations Auditing Treasurer

( ë
4
President & CEO
 Ivan G. Seidenberg 
+
3A
 5
àhairman and
àhief Executive Officer
6

Richard J. Lynch
Executive Vice President and
àhief Technology Officer

( ë
4
President & CEO

,  <
  :9

ë
+!  + :
A 4+4(  :+ 
Vice President ʹ Vice President ʹ Vice President ʹ Executive Vice President ʹ Vice President
Legal & External Affairs Corporate Communications Open Development
Human Resources Vice President & COO & CFO

+
 2

 ë6
 ë
+ ë
 4+ë 
Vice President ʹ 4;0+
 ë ( ë

2 
Vice President ʹ Vice President ʹ Senior
Customer Service Chief Information Vice President Vice President ʹ
National Enterprise National Government Vice President
Business Development
Operations Sales & Distribution Sales & Operations Officer & CMO & CTO

President ʹ President ʹ President ʹ President ʹ

Latin America North America Asia Europe
 
 
3


5
ë % + 



-  
  
7


-  


+ 


; ;$
- = 
 



7 >* ë  3



 
 
5
- 
 $   
 i   
++
7+    7

 

+ 

ë % 


-  7
 
$ 
 


$ 
- , 

- A 7


ë A
9


ë 9 ! 
|
A

ë ë 
?i +1   
  
 

ë !




 
 
3  5

ë ë2


*  
+ 
;$ 



*   
+ 
  
 


* 4 

+
  + 
   

* i   
* i 


+ 
 
* = 
  



>
* 
   $  * 
 +     


 
+  
A

A ë

A


@ 
A

A ë3  5

A


@ 
 
 ë
 !



ë 9 
+
: Mostly U.S.; more prevalent in the North Eastern
region of the U.S.
ë 4 : Male and female, young teens (12-17), college students
(18-24), recent college grads (25-30), and families1.
ë %+
: Caucasian, Hispanic, African-American, and other non-
Hispanic.
ë %
/High school diploma and college grads.
ë 

: Students, blue collar and white collar, young and

older professionals, executives, business owners.
ë ^
  : Regular user
ë ^  
 : Medium and Heavy users
ë (  : Strong
ë 4  
 

: Positive
 
 ë
 

ë 

ë
 A 
Heavily saturated market with a massive user base of over
67.2 million users
They differentiate themselves from others through network
quality and customer service as shown in ads and also
slogans: We never stop working for you͟ and Can you hear
me now?͟2

ë   ë
 A (the above plus)

Integrate marketing divisions in different regional areas to
better focus on the target market in the area.
   8 2



,
 /
 
   A9
+






àonsistency ± Yes àonsonance ± Yes

ë Innovate products moving towards 4G ë Transition
technology $ 3 )39:(;:
$    
!;%   $
      
ë Implement Strategy ë Merging International & àurrent àustomer
$ ,/ $ 5      )
$ ;  5 24 

Feasibility ± Yes Advantage ± Yes

ë   /%   ;:-:
5 2    ) )    % 
    
ë 
  ) )* 
New Innovated Products
$
  &, 3,1  )
 ë   ? *
 
 ,
 %  
/1
,



-"
Area of Objective Measure or Target Time Primary
Expectation Responsibility

àustomers
  3) 
5 2 DC = #0
9 % ,9 % ) 
#  ?) 3)  DC91  = #0
;:9 % 

Managers/Employees
)% ,˜          = #0 : ) 
% 
E#C

Operations Processes
9   * E#C = #0
% 

#)%  
 DC = #0

Financial 0 !+0 #'"0D-C = #0

   %  D#C = #0
 
#   ) = #0
NEW VERIZON PHONES
i46^