In 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 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).
A strength is a competitive advantage that arises "... from the resources and competencies available to the firm"(Pearce & Robinson, 2002). Verizon's strengths include:
ÃÂ§ 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.
ÃÂ§ Employee resource pool -...