I need a response to my classmate below:
The company I will be doing my project on is AT&T the division of the company I will focus on is its mobility side which provides cellphone service to millions of people in the US Canada and Mexico. A brief history on AT&T “In 1876, Alexander Graham Bell invented the telephone. That was the foundation of the company that would become AT&T – a brand that is now synonymous with innovation in communications. In 1984, the former AT&T agreed to divest its local telephone operations but retain its long-distance, R&D, and manufacturing arms. From this, SBC Communications Inc. (first known as Southwestern Bell Corp.) was born. Twelve years later, the Telecommunications Act of 1996 drove major changes in the competitive landscape. SBC expanded its U.S. presence through a series of acquisitions, including Pacific Telesis Group (1997) and Ameritech Corp. (1999). In 2005, SBC acquired AT&T Corp, creating the new AT&T, a leader in global communications for businesses. The acquisition of BellSouth in 2006 consolidated ownership of Cingular Wireless. And AT&T led one of the most significant transformations in communications since the invention of the telephone … the birth of the mobile Internet. And we haven’t stopped. In 2013, we bought Cricket to give customers in the growing prepaid market more access to mobile Internet services. In 2015, we completed our purchase of 2 Mexican wireless companies, lusacell, and Nextel Mexico. Today, we’re spurring smartphone adoption and on our way to becoming a leading wireless provider in that country, too. And our 2015 acquisition of DIRECTV makes us the world’s largest pay-TV provider. This rich history supports our ongoing mission: Connect people with their world, everywhere they live, work, and play … and do it better than anyone else. Today, we’re mobilizing video the way we mobilized the Internet … securing business communications from the smartphone to the cloud … and making cars, homes, machines, even cities smarter. And we’re looking forward with anticipation to the future.”(History of AT&T Brands: AT&T Intellectual Property 2016)
The playing field I would define as even AT&T operating in every market that Verizon and T-Mobile and the price point is almost identical down to the penny. The segment I plan to compete in is service pricing. Basically, what we charge for our mobile network for people to be able to make calls and get on the internet and send text messages I think we are missing a ton of customers with incorrect pricing.
The prediction I have for this playing field is for it to be profitable in the first three years because the customer ” The bargaining power of customers
This force examines the power of the consumer, and their effect on pricing and quality. Consumers have power when they are fewer in number but there are plentiful sellers and it’s easy for consumers to switch. Conversely, buying power is low when consumers purchase products in small amounts and the seller’s product is very different from that of its competitors.” (Analyzing the competition with Porter’s five forces). This forces will make sure we are doing well because the customer makes the price point work and they will pay happily because they can not beat the price point and service level. The competitive rivalry will ensure that we are reinvesting into our network to be able to compete with our rivalry in every possible way. The bargaining power of my suppliers has been accounted for because we have brought all the suppliers besides our phones suppliers and those costs have been capped from the marketplace. The threats of entrants have been considered but accounted for because we have purchase a lot of lower-level companies to make sure they are unable to compete. The threat of products being substitutes has been thought of and accounted for by ensuring the partnerships we have with the phone makers, are solid with keeping our pricing and access to devices top of mind.
History of AT&T Brands: AT&T Intellectual Property. History of AT&T Brands | AT&T. (2016, October 5). Retrieved January 12, 2022, from https://about.att.com/innovation/ip/brands/history
Analyzing the competition with Porter’s five forces. Business News Daily. (n.d.). Retrieved January 12, 2022, from https://www.businessnewsdaily.com/5446-porters-five-forces.html
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