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Company market report Group members: Chris Brunet, Courtney Lund, Brendan Hamilton, Bilha ndomo , and Brian Doherty

Company market report Group members: Chris Brunet, Courtney Lund, Brendan Hamilton, Bilha ndomo , and Brian Doherty. Company profile. -Telecommunications industry -Internet, satellite TV, home phone, cell phone -Founded in 1983 as Bell Atlantic -Headquarters in NYC -Lowell McAdam

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Company market report Group members: Chris Brunet, Courtney Lund, Brendan Hamilton, Bilha ndomo , and Brian Doherty

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  1. Company market report Group members: Chris Brunet, Courtney Lund, Brendan Hamilton, Bilhandomo, and Brian Doherty

  2. Company profile • -Telecommunications industry • -Internet, satellite TV, home phone, cell phone • -Founded in 1983 as Bell Atlantic • -Headquarters in NYC • -Lowell McAdam • -220 billion USD in assets • -Almost 200,000 employees

  3. Recent news • -Verizon has been attempting to gain entry into the market of providing cloud services to corporations. • -Verizon acquired Terremark Worldwide Inc. and Cloudswitch • -Verizon’s third quarter profits doubled this year. • -Share price in the third quarter jumped from 23 cents at the same time last year and 55 cents in the previous quarter of this year to 56 cents a share. • -45,000 Verizon workers went on strike in August after a proposition for a new labour pact failed and contracts expired. • -Verizon was ordered to cease unlawful use of technology belong to ActiveVideo Networks by the courts

  4. FUTURE PLANS • -Verizon is planning to make a move into the cloud service market • -Want to strategically use the new acquisitions of Cloudswichand Teremarkto become a leader in cloud computing • -Want to capitalize on a large amount of demand in FiOS • -Want to keep up to date on innovations in networks • -Verizon is pushing to expand its 4G network through LTE (long term evolution)

  5. Trefis Analysis: How Verizon’s products relate to the stock price • -Mobile plans and phones constitute 80.6% of the stock price. • -Broadband internet constitutes 7.6%. • -FiOSfibre optic TV service 5.4% • -Enterprise 4.2% • -Pay phones/other 1.3% • -Home and small business landlines 1.1%

  6. SWOT - Strengths • -Number one ranked customer service • -Robust network and Global coverage • -Leader in 3g and 4g coverage across the U.S. • -Strong financial performance with leading customer service • -Growth in its Verizon Business unit • -Carries all of the leading smartphones: Android, iPhones, and Blackberrys. • -4G Network allows simultaneous phone text and data usage • -Has a large market share of the mobile phone industry • -High barriers to entry for new entrants protect VZW position better

  7. Swot - Weaknesses • -Verizon has been criticized for unfair pricing policies • -Online account management seen as inferior to competitions • -Not as large as their main competitor AT&T, therefore are at a disadvantage due to economies of scale • -Verizon’s TV, landline, and internet businesses are small relative to mobile phones

  8. Swot - Opportunities • - Smaller providers should be bought up to increase market share • -The 4G market is rapidly growing and should be taken advantage of • -Their satellite TV and internet divisions are relatively small and should be more actively marketed • -Expanding wireless coverage into growing markets such as India, China, and Africa

  9. Swot - Threats • - Intense competition in the wireless space • -Federal Communications Commission (FCC) regulations • - Mobile Malware and security concerns • -Susceptible to cost competition • -Shifts in technology • -Competition selling plans with unlimited data • -Safety of cell phones

  10. recommendations • -Diversify and put more resources into less well peforming divisions such as internet and TV • -Invest in emerging markets overseas such as Africa and China • -Capitalize on burgeoning cloud computing industry • -Acquire smaller business to keep pace with competition

  11. The Demand • Subscribers for cell phones are predicted to top 5 billion by the end of 2011 • Chinas GDP has been the world's fastest-growing major economy, with consistent growth rates of around 10% over the past 30 years • Demand for cell phone plans has increased 46% over the past 5 years in the US • 11% increase in demand for cell phones over the next 2 years in the US

  12. The competition

  13. Broader environment - Economics • -Profits doubled last quarter • -Stock price increase from 1.5 years ago • -Operate in the richest country in the world

  14. Broader environment – Political • -Worker Strike • -Occupy Wallstreet • -Fines

  15. Broader Environment - demographics

  16. Broader environment - technology • -Rapidly changing • technology • -Trend towards data rather • than voice • -Cloud computing

  17. conclusion • -We recommend investing in Verizon

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