overview
Verizon is leading the way with its pricing strategies, too. In March, the company became the first Bell to slice its broadband Internet service by 30%, to $35 a month
Ivan G.Seidenberg is executive of Verizon communications
Office in Midtown Manhattan
What's ehind Seidenberg's sudden series of audacious moves?
com etition from cable com anies and the CEO's vision of his industry's future The cable assault is most ressing because Comcast and its brethren are cutting into erizon's cash-co local-phone business and swiping most of the customers in broadband, the fastest-growing segment of telecom
Optics This will challenge cable players iin offering video, speedy net acces, and other service
Broadband In march verizon went on the attack, slashing the price
Wi-Fi Verizon is blanketing Manhattan with 1,000 Wi-fi hotspots, which let customers connect to the net wirelessky within a range of several hundred feet
Impact Phone rivals will follow suit Wireless Data In Sept, Verizon wireless will roll out third- generation (3G) technology in Washington and San Diego Impact Verizon will be first to market, pressing rivals lie cingular to keep pace
impact More customers will snap up broadband Research As others cut back, Verizon s scientists are focusing more on novel product Impact The company hopes to build consumer loyalty and add new revenue streams
Impact ustomers are the winner Long Distance In january, Verizon became the first bell to introduce unlimited local an long distance calling for a flat fee Impact All of other major local-phone companies have followed Verizon s lead in offering flat-rate phone service packages
In its place will emerge what he calls a "broadband industry" that will use the new, superfast Net links and high-capacity networks to deliver video and voice communications services with all the extras, like software for security other companies will follow Verizon's lead and the communications industry will be remade
broadband will transform broad swaths of the economy. High school students, for instance, could download the video of a biology lecture they missed Doctors could use crystal-clear videoconferencing to examine patients in hard-to-reach rural areas The cable industry focuses on entertainment and games. The broadband industry will focus on education, health care, financial services, and essential government services
The skepticism stems in part from history. Verizon was formed from the merger of Nynex and Bell Atlantic in 1997 and the melding of the combined companies and GTE in 2000. Now Verizon faces cable companies that are spoiling for a fight. The cable industry has spent more than $75 billion since 1995 to upgrade their networks for high-definition TV, fast Internet access, and telephone service
Main issue
Do the developed innovations that have Verizon exhausting the large costs can be applied successfully up to the expectations?
Problem
verizon is a problem faced : 1. the costs of innovation is too large, while Verizon's must still bear the debt of the company ? 2. labor costs in America are very high ?
Alternative Solutions
According Verizon Financial Report they cut debt from $64 to $54 billions dollar they should provide more cost efficiently through economics of scale and economics of scope since their product development are similar Creating More revenue by buzzing the sales local consumer through provide good quality of customer services in their home basis
Alternative Solutions
The Growth of cables industry is 30% they still have opportunity to gain more market in this industry Being the first mover in the communication industry through product development broad band it also provides cost leaderships to the consumer
Alternative Solutions
Related to labors: 1. Build good quality of communication and negotiation with the union improve their flexibility meanwhile keep accommodating suggestions from union about worker conditions. 2. Preparing their labor with more capabilities to match with their needs to achieve their future goals
Recomendation
Related to labors: Why don t Verizon try to create their own human resources Starting to create good quality human resources from internal capability matching with company s needs it will create more cost in the short term but may create more advantages in the future
Recommendation
There is question if the market is ready for their product or not: We can prepare the market through trial system or advertisement besides we believe USA people are kinds of people who are technology minded they tend to open to something new moreover if they can provide cost leaderships to their customer with good quality
Recommendation
Keep developing their new product 3G so it can be accessed from mobile phone or other devices fast partnerships it can bring advantages for their business.