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Ebrahim Alavi| Tina Sepehrifar| 2016
AT&T (American Telephone And Telegraph)
Strategy Analysis
01 02 03
Overview of the Company Analysis Strategy Implementation
History
Vision and Mission Statement
Services
Business M...
01
Overview of the Company
Your own footer Your Logo
History
 Vision
To design and create in this decade the new global network, processes, and service
platform that maximize automat...
Mobilizing Your World-2014
Your World. Delivered-2007
Raising The Bar-2004
What Do You Have To Say-2000
Rethink Possible-2...
 Mobilize your enterprise and change the way you
conduct business. Receive real-time information to help
accelerate almos...
 Products and services designed to help protect the
resources your business depends on most and provides
you with the too...
 Support your application at every phase of its lifecycle.
AT&T can help you get more value from your software
investment...
Business Model
32.1
36.5
15.4
10.7
5.3
AT&T Verizon Wireless Sprint Nextel T-mobile Others
Market Share (2015, USA)
Financial Report- Operating Revenue Worldwide
Financial Report- Selected Data
Financial Report- Selected Data
Financial Report- Selected Data
Financial Report- Segment Results
Financial Report- Segment Results
Financial Report- Segment Results
Financial Report- Segment Results
Financial Report- Segment Results
Financial Report- Stock Performance Graph
Financial Report- Stock Performance Data
Financial Report- One Year Stock Performance
1994 1998 2005 2013
purchased the
largest cellular
carrier, McCaw
Cellular
purchased
long-distance
provider
Alaska
Communi...
02
Analysis
1. PESTEL Analysis 2. Porter’s Five Forces Analysis
External Analysis
PESTEL Analysis
 Primarily, the company started their strategy by making the brand more profitable. This is to build a
strong financial f...
 The said situation in the political factors, are somewhat connected with the different economic factors
that might affec...
 The fact that more and more people are into sports is a big chance or advantage for the company,
because there will be a...
 In terms of the technological factors, it focuses on the series of R&D activities as well as applications of
automation ...
 Each telecommunication company should be committed to following the most stringent environmental
compliance laws applica...
 There are a number of agencies concerned with telecommunication policy:
– The National Telecommunications and Informatio...
Porter’s Five Forces
 The rivalry among AT&T and its competitors is easily some of the most cut throat of any industry. The
telecommunications...
 AT&T supplies its own data and builds out its own networks. It does require some cooperation from the
phone companies to...
 On one hand you have customers that do sign two year contracts and if they decide to break that
contract there are going...
 This threat is extremely low because: high capital requirements, government regulations, building up a
brand name, paten...
 For the most part all four competitors offer the same fundamental services, which are talking, texting
and web surfing. ...
Value Chain
Porter
7S
McKinsey
BCG
Matrix
Internal Analysis
General
administration
HR
management
Technology
development
Procurement
OperationsInbound logistics Marketing and salesOut...
7S Mckinsey Analysis- Structure
 Ed Whitacre, former chairman of the board and chief executive officer of AT&T , did a great job of
acquiring and assembl...
 AT&T expends a significant amount of resources to create several major programs versed in Leadership,
Management and Bus...
 AT&T University: AT&T University helps them accelerate growth, foster innovation, and develop
leadership capabilities at...
 AT&T integrated Global Enterprise Management System (iGEMS) is a sophisticated, end-to-end global
network management pla...
 AT&T Wireless has successfully executed it strategy growing its Operating revenue by 14%. Through the
integration and cl...
 AT&T is committed to acting responsibly in every way and to improving the quality of life in the
communities it serves.
...
Broadband services Wireless services
Smart Phones TV cable services
BCG Matrix
SWOT Analysis
 Largest provider of broadband in U.S.
 World's largest communications holding company by revenue.
 Broad portfolio of ...
 AT&T’s wireline voice business has been on a sharp decline in recent years. Total voice revenues have
decreased 2.28 bil...
 AT&T plans to pursue initiatives that will expand their wireless spectrum. By continuing to aggressively
expand their sp...
 There is fierce competition with other wireless providers. The U.S. phone market has become nearly
saturated. Over 97% o...
03
Strategy Implementation
Strategy Analysis
1 MASTER
STRATEGY
 Low Cost: AT&T is
adequate in this regard and
offer competetive pricing to
numerous ...
Strategy Themes
 Generate Growth Through Innovation.
 Enhance Customer Experience.
 Create Operational Excellence.
 Su...
AMERICAN TELEPHONE AND TELEGRAPH COMPANY'S BALANCED SCORECARD
Critical Success Factors Objective Measure Target Initiative...
Critical success factors (CSF)
CSF
Revenue
Growth
Costs
Reduction
Market
Share
Innovation
Employee
Retention
Critical Success Factors (CSF)
Revenue Growth is important to AT&T because it is indicative of how fast the company is gro...
Critical Success Factors (CSF)
Innovationis important to AT&T because the telecommunications industry is very competitive ...
Key Performance Indicators (KPI)
Key Performance Indicators (KPI)
Key Performance Indicators (KPI)
Key Performance Indicators (KPI)
Key Performance Indicators (KPI)
Key Performance Indicators (KPI)
Key Performance Indicators (KPI)
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AT&T Strategy Analysis

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AT&T Strategy Analysis

  1. 1. Ebrahim Alavi| Tina Sepehrifar| 2016 AT&T (American Telephone And Telegraph) Strategy Analysis
  2. 2. 01 02 03 Overview of the Company Analysis Strategy Implementation History Vision and Mission Statement Services Business Model Market Share Financial reports Partners, M&A External: • PESTEL • Porter’s Five Forces Internal: • Porter’s Value Chain • 7S Mckinsey • BCG Matrix SWOT Strategies Analysis Strategic themes Balanced Score Card Control and Monitoring (CSF and KPI) Table of Content
  3. 3. 01 Overview of the Company
  4. 4. Your own footer Your Logo History
  5. 5.  Vision To design and create in this decade the new global network, processes, and service platform that maximize automation, allowing for a reallocation of human resources to more complex and productive work.  Mission To exploit technical innovation for the benefit of AT&T and its customers by implementing next-generation technologies and network advancements in AT&T’s services and operations. Vision and Mission Statement
  6. 6. Mobilizing Your World-2014 Your World. Delivered-2007 Raising The Bar-2004 What Do You Have To Say-2000 Rethink Possible-2010 More Bars in More Places-2006 Fits You Best-2002 AT&T Slogans
  7. 7.  Mobilize your enterprise and change the way you conduct business. Receive real-time information to help accelerate almost any process: capture medical records, monitor inventory from the field, place orders on the go or allow machines to communicate. AT&T can help mobilize your business. Network Services  Keep your workers connected, in and out of the office. Build a reliable, scalable wired or wireless network solution for your enterprise. Learn about VPN, Ethernet, Wi-Fi, Internet Connectivity, Ring and Network Sourcing and Integration solutions from AT&T.  Create a path for growth for your enterprise. Our VoIP services help integrate technologies such as cloud computing and UC to make your business more efficient, enhance collaboration and improve scalability. Learn about VoIP, Hosted VoIP, UC VoIP, SIP Trunking and contact center solutions from AT&T. Internet of Things (IoT)  The Internet of Things (IoT) is transforming the way we live and work. With IoT solutions, you can connect and monitor devices and equipment from virtually anywhere. AT&T IoT solutions can help you reach the bottom line faster by creating new business models, automating processes, and improving operational efficiencies. Mobility Services Voice Services Services
  8. 8.  Products and services designed to help protect the resources your business depends on most and provides you with the tools to prevent, detect and respond to threats. Cloud Services  Efficiently scale your network to manage unexpected business activity. Improve productivity by moving storage, computing, applications and desktop environments into the AT&T cloud. Rely on the availability and security of AT&T Internet Data Centers to provide the performance capabilities your solutions need.  Collaborate in today's work anywhere world. Using a multi-vendor approach, AT&T helps bring together instant messaging, conferencing, email and voice calling for seamless communications. Extend functionality to mobile devices with our "any application to any device" approach. Learn about UC. Enterprise Mobility Management  Enterprise Mobility Management is a compilation of advanced mobility solutions, from network security and device control, to content distribution, workspace management, and through the entire lifecycle of application development. Network Security Unified Communications Services
  9. 9.  Support your application at every phase of its lifecycle. AT&T can help you get more value from your software investments and maximize the efficiency of your apps. For full operational support, host and manage mission critical applications in our global Internet Data Centers. Hosting Services  Get the platform you need to support your most demanding applications and processes. AT&T provides flexible, pay-as-you-go services backed by 38 enterprise- class data centers worldwide and enterprise-grade SLAs.  Empower commerce and interaction in an ever-changing digital landscape. Our ecosystem of API (Application Programming Interface) services opens up access to valuable data and core functions within the AT&T network—so you can build powerful features into applications, optimize processes and create quality experiences. Others  Digital TV  U-verse TV  DIRECTV  DISH  Home Phone  U-verse Voice Application Services APIs • Landline • Wireless Home Phone  Home Security  Digital Life Services
  10. 10. Business Model
  11. 11. 32.1 36.5 15.4 10.7 5.3 AT&T Verizon Wireless Sprint Nextel T-mobile Others Market Share (2015, USA)
  12. 12. Financial Report- Operating Revenue Worldwide
  13. 13. Financial Report- Selected Data
  14. 14. Financial Report- Selected Data
  15. 15. Financial Report- Selected Data
  16. 16. Financial Report- Segment Results
  17. 17. Financial Report- Segment Results
  18. 18. Financial Report- Segment Results
  19. 19. Financial Report- Segment Results
  20. 20. Financial Report- Segment Results
  21. 21. Financial Report- Stock Performance Graph
  22. 22. Financial Report- Stock Performance Data
  23. 23. Financial Report- One Year Stock Performance
  24. 24. 1994 1998 2005 2013 purchased the largest cellular carrier, McCaw Cellular purchased long-distance provider Alaska Communicati ons System announced a US$1 billion alliance with BT to offer global voice over IP (VoIP) services purchase IBM's Global Network business SBC purchased AT&T Corporation acquired Wayport, a major provider of Internet hotspots in the United States acquire Leap Wireless 1995 1999 2008 Partners, M&A
  25. 25. 02 Analysis
  26. 26. 1. PESTEL Analysis 2. Porter’s Five Forces Analysis External Analysis
  27. 27. PESTEL Analysis
  28. 28.  Primarily, the company started their strategy by making the brand more profitable. This is to build a strong financial foundation. The main changes that had happened are from the accounting practices of the company. During the said changes and process of restructure, there are different political factors that might be considered. One of this is the environmental issues. As of now, more and more individuals and organizations are focusing on different issues regarding the environment. The fact that the company will be outsourcing from other countries, there are different international as well as local laws that must be considered in order to maintain the continuous process of the development. The trade restriction and tariffs are also another of the most important political factors that must be considered. This is due to the fact that the company already followed the strategy of Adidas and Nike in outsourcing their production in Asia. The primary reason for outsourcing of production is because, most of Asian countries offer lower labor cost and other taxes compare to Europe and America. In terms of political stability, due to the fact that the company is a multinational company that produce as well as sell their products in different parts of the world, there different political issues and events in other local partners that can affect the overall performance of the company. PESTEL Analysis-Political Factors
  29. 29.  The said situation in the political factors, are somewhat connected with the different economic factors that might affect the development process of the company. Primarily is the situation of the home economy or the economic situation of Germany, in terms of monetary issues, stock exchange and the likes. The economy trends of happenings in the home economy are also important, so as the economic situations and trends of the partner countries. This is due to the fact that, this political factor has a great impact to the social mentality of the possible customers. The different employment laws in different countries must also be considered, this is due to the fact that different countries has their different cultures that might affect their beliefs as well as regulations regarding the human resource aspect of any company. PESTEL Analysis-Economical Factors
  30. 30.  The fact that more and more people are into sports is a big chance or advantage for the company, because there will be a huge market for them. Another important thing is that sport is considered as one of the most important sector in the tourism industry, which considered as the most successful industry nowadays. On the other hand, sports are also considered as a form of exercise, for those who wants to have fit and healthy body.  It is also important for the company to consider the change of customer behavior as of now. More and more customers are oriented towards different high-value and lifestyle-oriented products. It means that more and more people are availing luxury products.  strategy it is important to use fashion and role models that will help the brand to spread and rise brand awareness to the possible customers. The image of the models of the brand is also important; this is due to the fact that those artist or individual can be considered as part of the brand itself.  Ethical issues pertain to the corporate social responsibility or CRS of the company. It is the activity that helps the company to connect with the different ethical values, transparency, human resource relations, compliance with legal requirement as well as their respect for the communities in which they operates and works PESTEL Analysis-Social Factors
  31. 31.  In terms of the technological factors, it focuses on the series of R&D activities as well as applications of automation and new technologies, most especially those that are connected to the Internet. Another important thing that might affect the development is the maturity of the technology; this is due to the fact that technology is considered as restless in terms of development. Furthermore, the global communication is also another important aspect, this is important because the company is operating in different part of the globe. It is also important to consider the different laws like the intellectual property issues.  New Inventions: Mexican market is the growing and well established market so many companies wants to enter in to the market and earning a lot. So they doing something different to the local company so they always give better and upgraded product compare to the local company so it's always effect to the company that how can they give the new technology to the customer and convince then to use this technology. Etc. Wi-Max and 3G PESTEL Analysis-Technological Factors
  32. 32.  Each telecommunication company should be committed to following the most stringent environmental compliance laws applicable to their operations. When conducting operations abroad, they should abide by U.S. environmental compliance laws if they are more rigorous than the laws in the country where they are conducting business. AT&T operating companies had one significant environmental compliance- related enforcement action (defined as those actions that resulted in sanctions equal to or exceeding $100,000) in 2014.  Telecommunication companies should adopt an Environment, Health and Safety (EHS) Management System based on the principles of International Standards Organization (ISO) 14001 and Occupational Health and Safety Assessment Series (OHSAS) 18001. PESTEL Analysis-Environmental Factors
  33. 33.  There are a number of agencies concerned with telecommunication policy: – The National Telecommunications and Information Administration (NTIA) – The Federal Communications Commission (FCC)  Broadband deployment policy objective: – Broaden the deployment of broadband technologies – Define broadband to include any platform capable of transmitting high-bandwidth intensive services – Ensure harmonized regulatory treatment of competing broadband services – Encourage and facilitate an environment that stimulates investment and innovation in broadband technologies and services PESTELAnalysis-Legal Factors
  34. 34. Porter’s Five Forces
  35. 35.  The rivalry among AT&T and its competitors is easily some of the most cut throat of any industry. The telecommunications industry is saturated, virtually every American has a cell phone all the way down to 6 and 7 year olds; the only customers these companies are attracting are customers who are with a different carrier. There have already been a few mergers and acquisitions of carriers, AT&T was once Cingular back in 2004, Sprint acquired Nextel in 2005, Verizon acquired Alltel in 2009 and AT&T's failed attempt to acquire T-Mobile in 2011. Rivalry between existing firms is extremely intense. Porter’s Five Forces- Degree of Rivalry
  36. 36.  AT&T supplies its own data and builds out its own networks. It does require some cooperation from the phone companies to sell its phones but AT&T has the upper hand in these business negotiations due to its extensive customer base. But to carry the iPhone, AT&T does pay Apple a generous percentage of its revenue from iPhone customers data plans. The bargaining power of suppliers for AT&T is extremely low. Porter’s Five Forces- The Bargaining Power of Suppliers
  37. 37.  On one hand you have customers that do sign two year contracts and if they decide to break that contract there are going to be exorbitant fees per phone for the cancellation. But on the other hand, when customers are out of contract they can demand free phones, lower and special rates, free minutes all for signing another two year contract with AT&T. As you can see it really depends what part of the spectrum the buyer is on at that moment in time to determine the bargaining power they have. The bargaining power of buyers for AT&T is moderate. Porter’s Five Forces- The Bargaining Power of Buyers
  38. 38.  This threat is extremely low because: high capital requirements, government regulations, building up a brand name, patents, geographical location, technology and building relationships with phone handset manufacturers and customers; this list can go on and on. AT&T does not need to worry about new firms entering this market. The threat of new entrants for AT&T is extremely low. Porter’s Five Forces- Threat of New Entrants
  39. 39.  For the most part all four competitors offer the same fundamental services, which are talking, texting and web surfing. What does help limit this force is the somewhat high switching cost of breaking a contract, activation fee, limited number of competitors, and that two of the three competitors have inferior service compared to AT&T and its network. This is one of the most important forces AT&T needs to keep a watchful eye on to maintain its competitive advantage. The threat of substitute products and services is fairly high for AT&T. Porter’s Five Forces- Threat of Substitutes
  40. 40. Value Chain Porter 7S McKinsey BCG Matrix Internal Analysis
  41. 41. General administration HR management Technology development Procurement OperationsInbound logistics Marketing and salesOutbound logistics Service AT&T has quite a good management that has continually increased earning for the company. AT&T human resources has a never ending job on hand. AT&T has a great R&D department, helping create one of the fastest networks in USA. AT&T has great relationships with wireless equipment makers. AT&T does not have inbound logistics for transporting raw goods. They ship phones to stores to be sold via UPS. AT&T helps design the fast 4G network out today. Placing Cell towers around cities and states to deliverthe most wide spread and fastest network possible. AT&T spends a lot of money on advertisement AT&T provides service updates for customers phones, as well as physically services customers phones in the stores. Value Chain Analysis
  42. 42. 7S Mckinsey Analysis- Structure
  43. 43.  Ed Whitacre, former chairman of the board and chief executive officer of AT&T , did a great job of acquiring and assembling a terrific set of operational assets, and each of the companies had its own culture, its own personality and ways of doing things. for those assets to perform at their optimal level, they needed to blend into a single identity and culture – a consistent way of thinking about things, a consistent style of execution. They intend to be ‘One AT&T.’”  They have a close-knit senior executive team. They know each other, spend time together, work together and, as a result, they have confidence in one another. There’s trust that the next person will do the right thing, and there’s trust in each other’s ability to execute and play their position. That kind of trust helps you move quickly; it increases your speed. When it’s absent, you can see it – more checks, controls and processes. That’s bureaucracy. Building a team where there’s a high level of trust is really important. 7S Mckinsey Analysis- Style
  44. 44.  AT&T expends a significant amount of resources to create several major programs versed in Leadership, Management and Business Learning:  Leadership Development Program (LDP) is a two year rotational program for recent bachelor and MBA graduates with outstanding leadership potential. Established in 1988 LDP is AT&T’s flagship leadership development program. The goal of the program is to develop competitive leaders with the skills and experience to perform well in various positions and organizations across the company. Rewards include career development, exposure to key areas within AT&T, frequent developmental feedback and accelerated career growth for successful participants  IT MATREX (Management Transition Exchange) is the Information Technology hiring program for high motivated individuals. The group consists of recent college graduates in the areas on client/server mainframe and Web development.  The Financial Leadership Program (FLP) is designed to give individuals the breadth and depth of business experience necessary for a successful career. FLP participants are rotated through high profile decision- making positions in which they work directly with key members of the senior management team of AT&T Finance. This program is centered on entrepreneurial thinking. 7S Mckinsey Analysis- Staff
  45. 45.  AT&T University: AT&T University helps them accelerate growth, foster innovation, and develop leadership capabilities at every management level. Since the opening of AT&T University, more than 100,000 managers have participated in a robust blend of onsite and virtual classroom sessions.  AT&T Connect to Success: This mentoring program is designed to connect selected managers in fruitful mentoring relationships and foster leadership training opportunities for all, including women and people of color. AT&T Connect to Success provides a broad range of managers with the ability to deepen their networks, develop and strengthen a variety of areas, and broaden their collaboration skills.  AT&T Self-Development Resource Center: This virtual resource center supports all employees in developing strategies to remain competitive in their work environment.  Career Movement: Management and occupational employees can nominate themselves for job openings throughout the company. Hiring managers are provided with a diversified pool of qualified job candidates. 7S Mckinsey Analysis- Skills
  46. 46.  AT&T integrated Global Enterprise Management System (iGEMS) is a sophisticated, end-to-end global network management platform that enables AT&T to monitor and manage the performance of your networks, servers and applications in a proactive, predictive and preventative manner.  Providing the management infrastructure of an AT&T Enterprise Hosting solution, whether in an AT&T Internet Data Center or on a customer’s premises, iGEMS allows highly qualified operations teams to quickly and efficiently diagnose issues or predict potential problems and take corrective actions.  Not only does iGEMS provide valuable data for AT&T support teams, but iGEMS also feeds data to AT&T’s award winning BusinessDirect® Portal for customer access to crucial data about their environment. Customers can view near real-time and historical performance reports on their servers, operating systems and applications. 7S Mckinsey Analysis- System
  47. 47.  AT&T Wireless has successfully executed it strategy growing its Operating revenue by 14%. Through the integration and cleanup of legacy AT&T wireless and Cingular Wireless, churn has been reduced to 1.7%. This is a direct indication of improved value and service to its customers. Contrary to Sprint-Nextel the merger of networks was the best solutions due to the similarities in the GSM technology. The strategy to enter into a two year exclusive deal with APPLE to market and sell the iPhone has proven successful. Even with the EDGE network the satisfaction of the iPhone has differentiated AT&T from its competitors. The stakes here have been raised and AT&T will look to see even more competition from Verizon, Sprint-Nextel and T-mobile. 7S Mckinsey Analysis- Strategy
  48. 48.  AT&T is committed to acting responsibly in every way and to improving the quality of life in the communities it serves.  Guided by a rich heritage and time-honored values of honesty, integrity, openness and respect, they are driven to deliver on their promise to always do the right thing.  AT&T’s philosophy toward corporate social responsibility reinforces a commitment to serving their customers, stock- holders, employees, suppliers and communities with attention to quality, care and value. A central component of their philosophy is AT&T’s insistence on behavior that is consistent with good citizenship on a global scale.  AT&T’s global citizenship commitment encompasses good corporate governance; innovation; community engagement; volunteerism and philanthropy; diversity and inclusion; and environment, health and safety. 7S Mckinsey Analysis- Shared Value
  49. 49. Broadband services Wireless services Smart Phones TV cable services BCG Matrix
  50. 50. SWOT Analysis
  51. 51.  Largest provider of broadband in U.S.  World's largest communications holding company by revenue.  Broad portfolio of complementary products and services (wireless communications, local exchange services, long-distance services, data/broadband and Internet services, video services, telecommunications equipment, managed networking, wholesale services, and directory advertising and publishing).  Extremely capable network capacity, both physical (fiber optics) and wireless (including a growing 3G network).  AT&T Wireless exclusivity with Apple's iPhone. S.W.O.T. Analysis-Strengths
  52. 52.  AT&T’s wireline voice business has been on a sharp decline in recent years. Total voice revenues have decreased 2.28 billion since 2012.  Increasingly more price-competitive market in both retail and wholesale markets.  Company obligations and liabilities from old business unit spin-offs.  Balance sheet -- company more leveraged than competitors within the industry. S.W.O.T. Analysis-Weaknesses
  53. 53.  AT&T plans to pursue initiatives that will expand their wireless spectrum. By continuing to aggressively expand their spectrum they will be able to reach more people and therefore grow their customer base.  AT&T has the opportunity to invest in growing and enhancing their wireless and wireline IP broadband networks. This would allow them to keep up with customer demand for high-speed Internet access and new mobile, applications and cloud services.  By increasing their cloud offerings they can expand their market share in the growing cloud computing market. This is a market that is expected to generate 420 billion by 2017.  Further industry consolidation (acquisitions).  Wireless growth, particularly through its partnership with Apple/iPhone.  Emerging markets/global expansion.  Further industry growth with 4G technology. S.W.O.T. Analysis-Opportunities
  54. 54.  There is fierce competition with other wireless providers. The U.S. phone market has become nearly saturated. Over 97% of the U.S. population lives in an area with at least three mobile telephone operators.  Increasingly ferocious competition in the wireless arena.  Emerging technologies -- falling behind smaller, more nimble companies and operators.  Price competition within industry pressuring margins.  Weather damage to antennas and transmission lines.  Reliance on iPhone gives Apple an upper hand in brand visibility. S.W.O.T. Analysis-Threats
  55. 55. 03 Strategy Implementation
  56. 56. Strategy Analysis 1 MASTER STRATEGY  Low Cost: AT&T is adequate in this regard and offer competetive pricing to numerous services it offers.  Differentiation: AT&T‘s exclusive agreementto market and sell iPhone utilizationof its vast spectrumto offer video conferencing service 5 PEOPLE STRATEGY  AT&T expends a significant amount of resources to create several major programs versed in Leadership, Management and Business Learning:  Leadership Development Program (LDP)  IT MATREX (Management Transition Exchange)  The Financial Leadership Program (FLP) 3 OPERATIONAL STRATEGY  AT&T has developed an MSOC (Management System Operational Control) process to ensure efficient reaction times to customer care and the demands of the system performance. 2 MARKETING STRATEGY  Geographic Coverage  Mix Intensity  Channel Exposure  Switching Costs  Branding/Promotion 4 TECHNOLOGY STRATEGY  AT&T can leverage a significant amount towards is data services in Enhanced GPRS (EDGE) and its High- Speed Downlink Packet Access (HSDPA) The Master Strategy for AT&T wireless is to be the only telecom provider their customer would ever need by connecting its customers anywhere – anyway.
  57. 57. Strategy Themes  Generate Growth Through Innovation.  Enhance Customer Experience.  Create Operational Excellence.  Sustainability
  58. 58. AMERICAN TELEPHONE AND TELEGRAPH COMPANY'S BALANCED SCORECARD Critical Success Factors Objective Measure Target Initiative Financial Revenue growth Annual growth in sales + 15% fiscal year end 2015 New products/services Reduce Costs Market share by region New customers Markets and customers - 15% fiscal year end 2015 Pricing strategy Cost of production Improve product mix Annual expenses Increase revenue productivity Reduce operating expenses Customer Market share Customer retention Reduce agent turnover by 20% end of fiscal 2015 Retain current sales agents New customers Maintain relationships with customers, suppliers, and distributors Product/service offerings Brand image and reputation Internal Process Innovation Customer needs 2 new products fiscal year end 2016 Cross-departmental sharing of informationNew products Learning and Growth Employee Employee turnover - 30% fiscal year end 2015 Access to training materials retention Access to sufficient information Build relationships with employees Balanced Score Card
  59. 59. Critical success factors (CSF) CSF Revenue Growth Costs Reduction Market Share Innovation Employee Retention
  60. 60. Critical Success Factors (CSF) Revenue Growth is important to AT&T because it is indicative of how fast the company is growing or expanding. It shows the annual increase or decrease in sales growth. Revenue growth is also a performance measure that investors use to value the company. A continually growth in revenue means that AT&T’s net income will also grow proportionately to revenue growth. Cost Reductionfor AT& T will help stabilize or increase cash flow. Cash flow is a very important asset because it shows resources and uses of the company’s cash. It is also a measure to identify cash deficits and opportunities. And it is useful in decision making as it relates to the profitability of the company, the company’s financial condition, and how well the company is using its resources. AT&T’s reduction of costs directly impacts cash flow and will help the company determine its working capital requirements. Market share is important to AT&T because it shows the percentage of the market that it holds, and it shows how well its products are being received in different regions. Market share also helps in determining consumer demand. By determining consumer demand, new consumer needs are identified which enables AT&T discover opportunities to fill new needs of consumers, and acquire more market share.
  61. 61. Critical Success Factors (CSF) Innovationis important to AT&T because the telecommunications industry is very competitive with opportunities for global expansion. Because of advanced technology, consumers are demanding new features, better services, and lower prices. Revenue growth is dependent on sales; therefore AT&T must create value for customers by creating new products and increasing or amending product lines and services. Employee retention is vital to AT&T because it lowers expenses, helps attract quality new hires, and it enhances productivity and employee morale. High employee turnover increases recruitment and training expenses of the company. Employee retention also boosts the image and brand of the company
  62. 62. Key Performance Indicators (KPI)
  63. 63. Key Performance Indicators (KPI)
  64. 64. Key Performance Indicators (KPI)
  65. 65. Key Performance Indicators (KPI)
  66. 66. Key Performance Indicators (KPI)
  67. 67. Key Performance Indicators (KPI)
  68. 68. Key Performance Indicators (KPI)
  69. 69. Thank You!

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