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Assessment Of Core Competencies For Verizon Corp.

1632 words - 7 pages

Executive SummaryIn order to identify Verizon's core competencies, a SWOT and Five Forces analysis was performed. The SWOT analysis showed internal strengths in technology diversification, a large and talented employee resource pool, and an expansive network footprint. Internal weaknesses were revealed that centered on post merger issues such as corporate culture issues, impending workforce retirements, and a lack of systems or process consolidation. External opportunities include the potential to further capitalize on incumbent status, diverse markets, long distance, and brand identity. Finally, external threats include government regulation, substitution, and a weak economy.The Five Forces analysis revealed that entry barriers have been reduced by deregulation, which as increased rivalry intensity. It also revealed that supplier power is minimal and buyer power is significant in the current economic situation, but may not be once the economy recovers.Together, the SWOT and Five Forces analysis revealed the following core competencies: personnel, marketing, operations, and leadership. These core competencies are comprise Verizon's foundation and are vital to the success of any strategic initiative.SWOT AnalysisSWOT analysis is a strategic management technique that provides an overview of an organization's internal strengths and weaknesses as well as external opportunities, and threats. The following application of a SWOT analysis for Verizon is intended to help ensure a strategic fit that, "... maximizes a firm's strengths and opportunities and minimizes it weaknesses and threats" (Pearce & Robinson, 2002).StrengthsA strength is a competitive advantage that arises "... from the resources and competencies available to the firm"(Pearce & Robinson, 2002). Verizon's strengths include:§ Technology diversification - Verizon offers a large variety of wireline and wireless services. This diversification allows Verizon to increase customer value through an expanded range of product and service offerings and through a price-saving bundling strategy.§ Employee resource pool - Verizon was formed though the merger of three large telecommunications companies: Bell Atlantic, Nynex, and GTE. Combined, Verizon employs about 236,000 people. By virtue of size alone, Verizon has a vast pool of resources to call upon.§ Employee's intellectual capital - Verizon employees have a diverse background filled with years of invaluable training and experience in telecommunications industry.§ Network footprint - Verizon's network has the largest national footprint of any telecommunications company operating in the United States. This has enabled Verizon to become the largest provider of wireline and wireless communications in the United States, with 135.0 million access line equivalents and 31.5 million wireless customers. Also, Verizon's global presence extends to more than 35 countries in the Americas, Europe, Asia and the Pacific.WeaknessesA...

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