Verizon Communications Inc.

Created By:

Christina BoyerBrooks CornellJane KastningLawrence MaldonadoFabiola ParraWendy Wofford

History

June 1883: Chesapeake & Potomac (C&P) incorporated

January 1984: C&P changed name to Bell Atlantic

August 1997: Bell Atlantic merged with NYNEX

June 2000: Bell Atlantic and GTE merged to create Verizon Communication

Verizon Communications Inc.

DefinitionTelecom company

that focuses on network

Verizon Wireless Verizon

Business Verizon Telecom

Mission“Enable people and

businesses to communicate with each other.” Ivan Seidenberg

Management Style, Structure & Controls

Management Style Bureaucratic

Structure Multidivisional Tall & Centralized

Controls Internal Promotion Customer Service Total

Survey Net Promoter Score Training

CEO

Ivan S

eid

enberg

Hum

an R

esourc

es

Marc

C. R

eid

Chie

f Technolo

gy O

fficer

Ric

hard

P. L

ynch

Chie

f Info

rma

tion O

fficer

Shaygan K

hera

dip

ir

Stra

tegy

, Develo

pm

en

tand P

lannin

gJohn W

. Deirc

ksen

Genera

l Counsel

Willia

m P

. Barr

Chie

f Opera

ting O

fficer

Dennis

Stirg

l

Chie

f Mark

etin

g O

fficer

John S

tratto

n

Public

Affa

irs, P

olic

yand C

om

munic

atio

ns

Thom

as J

. Tauke

Chie

f Fin

ancia

l Offic

er

Dore

en T

oben

CEO

Veriz

on W

irele

ss

Low

ell M

cAda

m

CEO

Veriz

on T

ele

com

Virg

inia

P. R

ueste

nholz

CEO

Veriz

on B

usin

ess

John F

. Killia

n

Senio

r VP

Contro

ller

Sr V

PIn

vesto

r Rela

tions

Sr. V

P T

reasure

r

Sr. V

PIn

tern

al A

uditin

g

Deputy

Genera

l Counsel

Corp

ora

te S

ecurity

Verizon Communication Organization

Verizon BusinessVerizon Business

John F. KillianPresident

D. B

lair C

rum

pS

enio

r Vice

Pre

side

nt –

Prem

ier a

nd

In

terna

tiona

l Sale

s

Judith

Sp

itzS

enio

r Vice

Pre

side

nt a

nd

Ch

ief

Inform

atio

n O

fficer

Rob

ert T

ooh

ey

Sen

ior V

ice P

resid

en

t - Hum

an

R

esou

rces

Fran

cis J. Sha

mm

oS

enio

r Vice

Pre

side

nt a

nd

Ch

ief

Fin

ancia

l Office

r

Ran

da

l S. M

ilchS

enio

r Vice

Pre

side

nt - L

ega

l an

d

Exte

rna

l Affa

irs

Te

rri Dea

nS

enio

r Vice

Pre

side

nt -

Com

mu

nica

tion

s

Fred

M. B

riggs

Execu

tive V

ice P

resid

ent - N

etw

ork O

pera

tions a

nd T

ech

nolo

gy

Nan

cy Gofu

sS

enio

r Vice

Pre

side

nt a

nd

Ch

ief

Ma

rketing

Office

r

Step

he

n P

. You

ng

Sen

ior V

ice P

resid

en

t – C

orpo

rate

an

d Go

vernm

en

t Ma

rkets

Verizon Wireless

Lo

well M

cAd

amP

resident & C

EO

Marth

a Deleh

anty

Vice P

resident - H

uman R

esources

Jim G

eraceV

ice President

- Corp C

omm

unications

An

tho

ny M

elon

eS

enior Vice P

resident &

CT

O

Joh

n T

ow

nsen

dV

ice President &

CF

O

Steve Z

ipp

ersteinV

ice President –

Legal & E

xternal Affairs

Marg

aret Feld

man

Vice P

resident – B

usiness Developm

ent

Mike L

anm

anV

ice President &

CM

O

Rick C

on

radP

resident – N

ortheast Area

Ajay W

agh

rayC

hief Information O

fficer

Jack Platin

gE

xecutive Vice P

resident &

CO

O

Marn

i Wald

enP

resident – M

idwest A

rea

Ro

ger G

urn

ani

President –

West A

rea

Jim M

cGean

President –

South A

rea

Brian

Stacy

Vice P

resident - South A

reaC

ustomer S

ervice

An

tho

ny B

ow

man

Vice P

resident - West A

rea C

ustomer S

ervice

Ch

ristine B

erberich

Vice P

resident - Midw

est A

rea Custom

er Service

Eileen

M. C

reeden

Vice P

resident - Northeast

Area

Custom

er Service

Ch

arlie Falco

VP

- Custom

er Service

Operations

Patrick D

evlinV

ice President - D

istribution

Mich

ael Maio

rana

Vice P

resident - National

Governm

ent Sales and

Operations

Strategies Corporate Level

Uses mergers, acquisitions, joint ventures and partnerships

Joint venture between Verizon Communications Inc. and Vodaphone created Verizon Wireless

MCI merger led to Verizon’s Business

Business Level Verizon Wireless focuses on

differentiation Customer Service

Functional Level Innovation Quality Efficiency

Figure K:

Value ChainAdministrative Coordination & Support Services

CEO and other administrative personnel

Technology Development

Research and development, Innovation

Human Resources Management

Recruitment, Training Development, Motivation and Compensation

Procurement

Purchase of supplies, equipment at low prices

Inbound

Logistics

- Customer Orders

- Inventory tracking

Operations

- Subcontractors

-Supplier

-Line Installation

Outbound

Logistics

-Order tracking

-Tracking/Reporting Customer Billing

M & A

- Billing Programs

-Largest Network

-Pricing Plans

Service

- Online Comments & Surveys

-Customer care

Follow-up and Re-Evaluate your Value Chain

Introduction Growth Maturity Decline

VZ Wireless

VZ Business

VZ TelecomSALES$

LG Voyager VZW

Sub-Oceanic Cables VZB

Fiber Optices VZT

Product and Business Unit Life CycleProduct and Business Unit Life Cycle

Five Forces Analysis

Intensity of Rivalry Threat of Substitutes Bargaining Power of

Suppliers Barriers to Entry Bargaining Power of

Buyers

Intensity of Rivalry

Exit barriers Industry concentration Fixed cost/value

added

Threat of Substitutes

Switching cost Price performance

trade off of substitutes Buyer inclination to

substitute

Bargaining Power of Supplier

Supplier concentration Switching cost Threat of forward integration Impact of inputs on cost differentiation

Barriers to Entry

Economies of scale Capital requirements Brand identity Switching cost Expected retaliation

Bargaining Power of Buyer

Brand identity Price sensitivity Buyer information Buyer volume

SWOT Analysis

Strengths

-Size and quality of network

-Leader in innovation

-Training and service Opportunities

-Broadband services

-International markets

SWOT Analysis

Weaknesses

-Quality of Broadband & DSL network

-Customer service Threats

-Competitor mergers

-Technology

Verizon Communication vs. Market Verizon Communication vs. Market Rate of ReturnRate of Return

DIRECT COMPETITOR COMPARISON

VZ T Q S IndustryMarket Cap: 124.49B 236.10B 11.64B 45.18B 614.35M

Employees: 237,900 302,000 37,026 64,600 986

Qtrly Rev Growth (yoy): 5.80% 92.70% -1.50% -4.30% 2.70%

Revenue (ttm): 92.20B 104.47B 13.83B 40.76B 360.50M

Gross Margin (ttm): 60.36% 61.72% 60.44% 58.10% 58.05%

EBITDA (ttm): 30.28B 36.69B 4.57B 11.47B 126.09M

Oper Margins (ttm): 17.25% 17.08% 14.64% 5.55% 20.45%

Net Income (ttm): 5.83B 10.75B 2.75B 133.00M 28.58M

EPS (ttm): 1.884 1.913 1.403 0.046 0.78

P/E (ttm): 22.86 20.35 4.6 345 18.98

PEG (5 yr expected): 2.65 1.81 1.71 2 0.3

P/S (ttm): 1.34 2.28 0.83 1.14 1.8

T = AT&T Inc.Q = Qwest Communications International Inc.S = Sprint Nextel Corp.Industry = Telecom Services – Domestic

Intra-Industry Analysis

Cost Strategy GroupQwest

Differentiation GroupVerizon, Sprint, AT&T

Critical Issues

Broadband and DSL quality -High number of customer complaints Customer service

-Lack of solutions to problems Increased competition

-AT&T – Cingular merger Innovation

-Customer switching because of iPhone

Recommendations

Short Term Recommendations-Improve quality of broadband and DSL network-Credit limits on customer accounts-Improve customer service

Long Term Recommendations-Expand wireless offerings-Create a universal network-Consolidate research & development

Short Term Recommendations

Focus on improvement of DSL and Broadband networks

-Match advertised speed

-Eliminate some customer service problems Implementation

-Consolidate R&D department

-Concentrate focus on network improvement

Long Term Recommendations

Expand Wireless Offerings-Shift from wired connections to wireless -Expand wireless offerings to more areas of the country with higher quality

Implementation-Purchase rights to 698 MHz-Broadband connection card

Work Cited

Calderon, Benjamin. Wireless Data Technical Support Coordinator. Interview, Nov. 6 & 9, 2007.

http://www.verizon.com