Key Strategies of Verizon Communications Inc.

Verizon Communications Inc.

Verizon is an American wireless network provider that once operated as Verizon Wireless, a separate part of Verizon Communications. In a 2019 reorganization, Verizon discontinued using the moniker Verizon Wireless and separated the wireless products and services into the divisions Verizon Consumer and Verizon Business. At the end of the fourth quarter of 2021, Verizon Communications Inc. had 142.8 million users, making it the largest wireless provider in the country.

Verizon Communications Inc.’s strategy for growth and competition

The general strategy and intensive growth strategies of Verizon Communications, Inc. dictate a large portion of the strategic choices and goals of the company, including the strategic development of the subsidiary, Verizon Wireless. According to Michael Porter’s approach, a company uses its general strategy to maintain a competitive edge. Based on the state of the competitive landscape, this competitive advantage is crucial for surviving the outside factors that have an impact on the firm. Verizon’s general competitive strategy exemplifies corporate efforts to distinguish themselves in the telecommunications sector. These initiatives boost brand value and competitiveness. For instance, Verizon Wireless is competitive due of its service quality, which is comparatively high and improves brand recognition. On the other side, the company’s aggressive growth strategies influence the general strategy for corporate expansion. For instance, the corporation employs aggressive techniques to increase revenue through market penetration. These tactics complement Verizon’s general competitive strategy and serve as the foundation for the company’s strategic goals for growth and expansion while tackling market issues for information and communications services.

Verizon Communications, Inc. employs quality as a selling factor in its general competitive strategy, which emphasizes distinctiveness in the market, to draw in and keep customers. Through the company’s efforts to ensure quality based on the general strategy, managers seek to gain a competitive edge. For instance, Verizon Wireless, a subsidiary, maintains relatively high connectivity standards to draw clients that consider quality to be the most important factor in determining how much to pay for telecommunications services. To enhance the advantages of the generic strategy, the intensive growth techniques are also used. Verizon, for instance, employs strategic goals that support or make use of such a competitive advantage to succeed in expanding the firm through aggressive techniques.

Generic strategy of Verizon Communications Inc.

Differentiation is Verizon’s general business approach. Differentiation creates a competitive edge based on the distinctiveness of the product. Uniqueness is created by a variety of potential factors. In this situation, quality is used as the most important differentiator by Verizon Communications, Inc. from the competition. Sales and marketing for the business place a strong emphasis on quality. For instance, Verizon Wireless’ advertising frequently showcase the quality of its wireless services, particularly the connectivity of its network. To capitalize on and support such product distinctiveness, intensive growth strategies and associated strategic objectives are devised. However, given the expenses of higher-quality infrastructure in the information and communications technology business, the corporation is unable to easily develop a competitive advantage on the basis of pricing as a result of this generic differentiation strategy. As a result, Verizon Wireless services are more expensive than those from rivals like Sprint.

Creating competitive advantage through increased infrastructure investment is a strategic goal based on the differentiation generic approach. For instance, Verizon Wireless needs to use cutting-edge information and communications technology to upgrade its current infrastructure in order to retain high-quality service. Additionally, the general competitive strategy results in the strategic goal of improving human resource training programs to maintain excellent customer service. The importance of customer service cannot be overstated, particularly in light of the numerous complaints and customer service problems that plague the telecommunications sector. Additionally, Verizon Communications, Inc. is able to use market penetration as its primary intensive approach for business growth because to the differentiated generic competitive strategy.

Intensive growth strategy of Verizon Communications Inc.

Market Inclusion (Primary): The most important intensive growth strategy for Verizon’s business development is market penetration. This aggressive strategy aims to expand the business by boosting revenues by gaining a larger market share. For instance, by luring more customers to the United States, Verizon Wireless was able to expand and become a major player in the telecommunications industry. Offering high-quality wireless connectivity services, a competitive advantage realized through the differentiation generic strategy, is what makes this company performance possible. Utilizing aggressive marketing campaigns to highlight high-quality services that draw quality-conscious customers to Verizon Communications, Inc. is one strategic goal based on market penetration.

Market Growth (Secondary): Verizon’s business expansion is primarily aided by this intensive strategy. The goal of the strategy is to grow by entering new markets or market segments. When a product is rebranded for a different purpose, there may be opportunities to enter a new market. Growth opportunities can also be found when entering or expanding into a completely new market. Verizon must implement strategic objectives that take advantage of these opportunities in order to put this intensive growth strategy into action. For instance, expanding operations outside of the company’s current markets is a strategic objective. This expansion involves Verizon Wireless providing wireless telecommunications services outside of the United States. Through high-quality services that attract customers in new markets or market segments, the generic competitive strategy of differentiation can support the company’s market development.

Product development [supporting]: Product Design and Development is one way Verizon Communications, Inc. supports its intensive growth strategy. Using this intensive strategy, the goal is to grow the business by developing new products or product variants and selling them in the company’s existing markets. For instance, achieving growth by providing new telecommunications services to meet the requirements of businesses for intra-organizational communications is a suitable strategic objective. For customers of the same organization who are located in the same area or region, Verizon Wireless may provide unlimited group messaging services. To guarantee the competitive advantage of new products, the company’s differentiation generic strategy mandates that product development involve high quality. Verizon’s marketing mix, or 4Ps, are impacted by any new product developed as a result of this extensive strategy.

Diversification: Verizon’s expansion in the market for information and communications technology and services is also helped along by diversification. Offering new products to new markets is an important part of this intensive strategy. Implementing this intensive growth strategy typically involves new business development, acquisition, and joint ventures. For instance, by acquiring Social Radar and AOL, the company expanded its product portfolio to include Verizon Wireless’s services and entered the web mapping market. In this regard, continuing a tradition of acquisition as a means of expanding the business, strengthening the company’s market presence, and entering new markets is a strategic objective based on diversification. When operating acquired businesses, the company’s differentiation generic competitive strategy necessitates high quality standards. According to Verizon Communications, Inc.’s SWOT analysis, the term “diversification” refers to the opportunity to broaden the company’s offerings.

Core competence of Verizon Communications Inc.

Value chain

It is essential to consider the reason Verizon developed the service: a customer need. The need for a trustworthy, scalable, and dependable solution at a reasonable price that ties the customer’s needs is the customer need that drives the entire value chain. Throughout the value chain, Verizon has focused on these essential customer requirements and has not tolerated any deviations in this direction. This has strained their strengths in the Wi-Fi service industry sector that Verizon focuses on. Its global operational model enables well-trained staff and country-specific adaptability to tailor service offerings to meet customer requirements. They were the first to introduce 5G in the United States, which enables customers to access the internet at a significantly higher speed, as a result of operational requirements. Verizon’s reputation for dependability and consistency can be attributed to the grouping of the Company level strategy and the Operational Strategy. These strategies have ensured that Verizon continues to meet the requirements of its customers.

Conclusion

At the moment, Verizon is introducing significant changes to its customers and technologies. The telecom sector is going through a significant transformation. The convergence of content, media, and communications is unprecedented, and Verizon is only one of several competitors vying for market share. Verizon continues to seem like a solid income investment, one that is likely to keep up its streak of uninterrupted dividend payments for more than 30 years. The corporation continues to have a significant competitive advantage thanks to its wide-ranging reputation, difficult-to-replicate network assets, mission-critical services, brand credit, and large subscriber base.