Word Environment Analysis
Word Environment Analysis
ENVIRONMENT ANALYSIS
A. GENERAL ENVIRONMENT
A.1 OPPORTUNITIES
A.1.1. SOCIO- CULTURAL-DEMOGRAPHIC FORCES
The Growing demand for surfing the Internet, downloading content,
streaming music and videos, and sending and receiving email as well
as online video & phone calls
The increase in the number of subscribers
A.1.2. TECHNOLOGICAL FORCES
Technological innovations and improvements
Strengthen technological capabilities through partnerships and
acquisitions
A.1.3. ECONOMIC FORCES
The increasing internet usage as a subscriber-based demands
A.1.4. ENVIRONMENTAL FORCES
Investments in building environmentally sustainable operation
A.1.5. POLITICO-LEGAL FORCES
A.2 THREATS
A.2.1. SOCIO-CULTURAL-DEMOGRAPHIC FORCES
Geopolitical instability
A.2.2. TECHNOLOGICAL FORCES
Cybersecurity Threats
Disruption by New Technologies
B. OPERATING ENVIRONMENT
B.1 OPPORTUNITIES
B.1.1. RIVALRY AMONG COMPETING FIRMS
Acquisition of small to medium competitors to reduce the competition
Level
B.1.2. POTENTIAL ENTRANTS
B.1.3. SUBSTITUTE PRODUCTS
B.1.4. BARGAINING POWER OF SUPPLIERS
B.1.5. BARGAINING POWER OF BUYERS
The building and maintenance of a large number of consumers.
B.1.6. INDUSTRY GROWTH
One of the largest players in the telecommunication industry
B.1.7. SHAREHOLDERS’ ACTIONS
B.1.8. CREDITORS’ ACTIONS
B.1.9. COMMUNITY PERCEPTIONS
B.2 THREATS
B.2.1. RIVALRY AMONG COMPETING FIRMS
B.2.2. POTENTIAL ENTRANTS
Compliances for the data privacy regulation and standards
B.2.3. SUBSTITUTE PRODUCTS
Multiway of communication through the internet, and direct substitutes
for wireless products
B.2.4. BARGAINING POWER OF SUPPLIERS
B.2.5. BARGAINING POWER OF BUYERS
B.2.6. INDUSTRY GROWTH
Intense competition with major competitors like Verizon leading to
price wars
B.2.7. SHAREHOLDERS’ ACTIONS
B.2.8. CREDITORS’ ACTIONS
B.2.9. COMMUNITY PERCEPTIONS
C. INTERNAL ENVIRONMENT
C.1 STRENGTHS
C.1.1. MARKETING
Rapid increase in Sales from (2007-2011)
The strong brand image recognition
Increase in Market Shares (2007-2011)
Strategic Alliance to Apple at 10% per iPhone Sales
C.1.2. PRODUCTION/OPERATIONS
C.1.3. FINANCE
The continuous increase in Net Operating Income from 2007-2011
C.1.4. ORGANIZATION & MANAGEMENT
Strategic Alliance to Apple for year 2007-2010
Strategic business acquisitions from 1996 to 2006( Ameritech, Bell
Atlantic, BellSouth, NYNEX, Pacific Telesis, Southwestern Bell, and US)
West.)
C.1.5. HUMAN RESOURCES
C.1.6. RESEARCH & DEVELOPMENT
Adherence in the wireless industry through product development and
network infrastractures
C.1.7. INFORMATION SYSTEMS
Establishment of cybersecurity and date privacy
C.2 WEAKNESSES
C.2.1. MARKETING
Selling/G.A & Cost of Services increases for year 2007-2011
C.2.2. PRODUCTION/OPERATIONS
Increases demand spending for 115 billion dollars by acquiring
additional spectrum and building networks to meet customer demands
C.2.3. FINANCE
No sourcing of funds to support the operation
C.2.4. ORGANIZATION & MANAGEMENT
C.2.5. HUMAN RESOURCES
C.2.6. RESEARCH & DEVELOPMENT
C.2.7. INFORMATION SYSTEMS
E. INTERNAL FACTOR EVALUATION MATRIX (Note: Use the slide for this
matrix.)
Conclusion: The Average total weighted score is above average 2.8
which means AT&T is focused on maximizing internal Strengths and
minimizing internal weakness
F. COMPETITIVE PROFILE MATRIX (Note: Use the slide for this matrix
and submit the file as an attachment with your answer to this part.)
Conclusion: The Average total weighted score of AT&T is 3 which is
relatively higher than Sprint and lower than Verizon
G. ASSUMPTIONS
G.1. GENERAL ENVIRONMENT STABILITY
Based on the EFE Result AT&T is focused on capitalizing more on its
Strengths and minimizing the threats which are Wireless Network
growth through partnership,Further Acquisition for International
Growth, etc,