The fact that every single thriving organization plans its further performance on a regular basis cannot be ignored. The planning usually includes analysis and evaluation of company’s current capacities because they will be mobilized in a particular way, in order to achieve a desired goal. Many successful companies become exceedingly confident regarding their excellent performance, so that they are not aware of numerous implications, which are the source of many unexpected disasters. Therefore, it is important to demonstrate these implications.
The Most Effective Segments of General Environment
Speaking about the most efficient segments of general environment within Verizon Communications, it is necessary to admit that they are size and large investments in the innovations. For starters, it is to be said that size affects the enterprise. Large corporations are hard to compete with, especially in terms of equal conditions within a particular market. In addition, Verizon Communications has a wide network, which is located overseas, as well. This advantage gives the company an opportunity to enter any market, as long as it has a meaningful experience regarding expansion on foreign markets. As a consequence, performance at the foreign markets attracts foreign investors, so that the corporation is supported from multiple sides. These advantages lead to the ability to control the trends within the industry. One should not confuse that with monopoly, as long as the firm keeps its shares at maximum level, but does not attempt to obtain all shares within any market. Still, it is worth mentioning that any large enterprise is hard to manage and control.
In regard to the meaningful investments in the innovations, it is becoming increasingly apparent that they actually provide Verizon Communications with the ability to deliver quality service to its customers. By the same token, any innovative projects are supported by the government, as it is particularly interested in the growing intelligence base. Taking these points into account, it is possible to admit that such advantages enable Verizon Communications to develop faster than the key competitors, attract more foreign investments, and trade patents for innovations in terms of benchmarking. On the contrary, innovations are supposed to be efficient and reasonable from the perspective of costs. Needless to say, they should also serve the demands of the customers. Eventually, these are two of the most powerful segments of global environment in Verizon Communications.
Forces of Competition
It is becoming increasingly apparent that large size, meaningful investments, innovations, wide network, and leading position within the industry are the key competitive forces of Verizon Communications. As it has been described in the previous section, size and investments are the most powerful ones. Concerning their effectiveness in the recent past, it should be admitted that large size and revenues enabled the company to purchase nearly the entire Vodaphone brand. As a result, Verizon Communications received the opportunity to obtain the markets of the Southern Europe and Germany. In case the company suffers from the proactive behavior of the key competitors at the native market, it will reinvest overseas capital back in the United States, so that the firm has a credible support for its key market performance. Again, it will enable the company to obtain more market shares. It is pivotal to note that such a scenario is possible only as a reaction to the strong pressure from the side of the competitors.
As for substantial investments, it is essential to mention that they increased the value of Verizon Communications at the beginning of the year. Namely, the corporation’s assets are purchased on the first days of the financial year at the lowest price because the same assets will cost more after the investments. That is why the opening price of a single asset is higher than the estimated one. In fact, as data from NYSE witnesses, the value of the company’s trades keeps growing on a day-to-day basis. What is more, such investments guarantee the growth of the firm’s maturity, so that its volumes are growing accordingly (NYSE, 2014). In contrast, it is important to note that frequent purchases can affect the interest rates in negative way, as long as it becomes commonly accessible.
Addressing Competitive Forces in The Future
Concerning the mobilization of the company’s competitive forces in the future, it is necessary to admit that investments should be carefully measured because of the following reason. In fact, Verizon Communications has to calculate NPV of its services, especially in case it is planning to use incoming investments in a certain long-termed project. NPV is supposed to be equal or more than zero, as it is a determinant of a guarantee that the investor will receive returns on investments. Then, numerous scenarios of the further actions emerge. Regarding the fact that Verizon Communications is a big enterprise and it performs mainly in long runs, it is crucial to note that it needs to choose the scenario of a so-called fast growing (Zaeh, 2013). This scenario presupposes a regular investment, which is conducted in a form of measured amounts, so that value of the company and related project are increasing by small and frequent steps.
At the same time, Verizon Communications can establish a stable start-up at any potential foreign market, so that it will obtain sufficient market shares at the initial stages of the market acquisition. In order to do that, the enterprise should consider numerous aspects. To be more exact, the company should start from the development of a successful innovation, which will be a value for the local customers. Then, it is crucial to implement an immediate adjusting to the market environment, including laws, social conditions, stability in economics, and etc. Further, the highest level of R&D activities is expected to be risen by 10% sales, and the most promising service should become a focus of Verizon Communications. As a result, the corporation may start proactive behavior within the market, as soon as the service becomes a relative trend. Needless to say, logistics, marketing components, and production have to address the demands of the market. Hence, the company should leave the market as soon as better opportunity emerges somewhere else (OECD, 2004).
Concerning the external threats for Verizon Communications, it is necessary to note that the most harmful one is a pressure of the key competitors. It is needless to say that the proactive behavior of the competitors will be particularly oriented at the destabilization of Verizon Communications. Therefore, the corporation will be supposed to react on that accordingly. To be more exact, the company should obtain more market shares. It is a possible strategy regarding the ability to reinvest capitals from the foreign markets. Reinvested capital should be spent on the development of innovations and powerful marketing strategy for the promotion of them within the native market. It will result in the creation of new trend within the segment of target audience, which can even widen. As long as the key competitors do not have the same capabilities, they will have to redesign their own strategies in order to hold their market shares. Otherwise, Verizon Communications will obtain their customer segment, as well.
In contrast, the opportunity of Verizon Communications is closely related to its eligibility to enter the market of the Southern Europe and Germany. Needless to say, it will attract more foreign investments and thus, revenues will grow accordingly. Therefore, the enterprise will obtain stability at this market and will be able to design innovations for the related countries, so that it will be supported by the European government, as well. In the same way, Verizon Communications is able to create certain trends at this market because European industry of telecommunications is not as developed as in the United States. In such a way, addressing the opportunity will mean the readiness to meet certain challenges, which are related to the external threats for Verizon Communications. As the opportunity and threat have been issued, it is necessary to discuss strength and weakness of the corporation.
As for strength of the company, substantial investments in innovations should be admitted. Thus, it is recommended to become a focus of the organization, as long as it is able to provide the company with the following benefits. As a result, the company, which is invested in order to design innovations for the entire industry on a regular basis, is likely to be in trend for a long time. Namely, Verizon Communications will become the initiator of the majority of trends within the industry of telecommunications. The implications on such benefits have been already described, so that it is worth adding that the company is recommended to keep its expansion worldwide, in order to intensify the development of its strength as strong as possible. Thus, meaningful investments remain to be the most powerful advantage of Verizon Communications.
Speaking about the weakness of the company, it is to be admitted that the corporation is obviously hard to manage because of its large size and multiple markets in terms of which it performs. As it has been already mentioned, it will possibly make the company vulnerable. To be more specific, the enterprise can be affected by the competitors at some particular market. In consequence, it is recommended to initiate localized and independent headquarters, so that the branches can perform as separate companies. This decision will solve the problem of logistics, production, and legal regulations for the foreign companies. Simultaneously, overseas branches should be registered as the local companies, so that it will obtain more rights from the legal perspective. It is a complicated process, but it will place organizations in the same conditions as its main competitors at the foreign market. All in all, it is the main points regarding SWOT analysis of Verizon Communications, so that the paper moves on the next section.
Resources, Capabilities, and Core Competences
For starters, it is to be said that the main resources of Verizon Communications are investing capital, technology, scientific base, and human resource. Investing capital is actually the most powerful resource, as it establishes the technology and scientific base of the company. This basis is known to work in a regime of constant search for the better solutions and innovations, which are actually the most evident sign of the company’s good reputation. Needless to say, such a large organization is performing successfully because of professional human resources, who not only demonstrates a high level of commitment but are able to initiate unique corporate ethics. With regard to the capabilities of the enterprise, it is worth admitting that they are the opportunity to enter foreign markets, high competitiveness, and ability to design innovations on a regular basis. Hence, performing at the foreign markets gives the company an advantage of attraction new investments and development of new innovations, which will address the demands of the local market. The ability to produce innovations with a high frequency is a suitable advantage in this case, so that the enterprise will be always in trend even at the foreign market. In addition, high competitiveness renders a relative stability for Verizon Communications, especially in terms of strong competition within the market. As a consequence, core competences of the company are innovative solutions and technologies, marketing strategy and quality management. It is becoming increasingly evident throughout the entire paper that Verizon Communications relies heavily on its innovative projects. It enables the company to cooperate with many partners and constantly widen its target audience as the involvement of high technologies is becoming commonplace. Besides that, it is essential to emphasize on the quality of the company’s services. Thus, it is possible to admit that quality management is a primary focus of the company’s services’ delivery. Eventually, Verizon Communications regards its marketing strategy management as a comprising component of its success as technologies and high quality are insufficient without smart consideration of the markets’ environments.
Having considered the points of the previous section, it is important to admit that Verizon Communications can mobilize its resources in order to establish a long-term trend. It is doubtless that a stable trend renders a considerable value to the company. Speaking about the human resource in a more specific way, it is worth mentioning that it is capable of creating unique corporate culture, which is also important, especially from the perspective of organizational behavior. Well-organized staff is usually considered to be the most prominent booster of the company’s performance because human resource remains to be the main executive force. In regard to addressing the capabilities of the enterprise in the nearest future, it is necessary to highlight the stability at the markets, so that the value of the firm’s assets keeps growing at stock exchange markets. In other words, the organization is recommended to keep performing in the same way. This strategy will increase interest rates. The management should still use this advantage wisely because the overestimation of the interest rates may result in the loss of the initial value. As for addressing the core competences, it is recommended to establish reliable partnership with some large enterprises, as it will result in the attraction of additional investments and starting new innovative projects. Besides that, the organization will ensure its competitiveness and remain eligible for the further and potentially larger investments. These benefits will also render a considerable value to Verizon Communications.
To sum up, it is necessary to admit that this paper has lingered upon the description and discussion of Verizon Communications in terms of its abilities to perform successfully in the nearest future. Namely, it has been a detailed analysis, which includes the most important aspects of the company’s performance. To be more exact, the paper has described two segments of general environment, which are regarded as the most powerful elements of the company’s capacities. Then, the study has given an account to the two most effective competitive forces out of five, so that these forces have been discussed in terms of their further utilizing for the achievement of long run goals of Verizon Communications. The paper has conducted SWOT analysis regarding the external perspectives of the enterprise. By the same token, the company’s resources, capabilities, and core competences have been described and discussed concerning their potential to create a value for the company.