MGT 526 Week 3 Business Strategies Proposal

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Apr 3, 2024

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1 Week 3 Summative Assessment: Business Strategies Proposal Darrell Ramsey University of Phoenix MGT/526 Leon Daniel Jr. March 9, 2023
2 AT&T Business Strategies Proposal AT&T is the biggest telecommunications company and is also the largest mobile provider of all time as well. AT&T has made it the goal to be on top of the telecommunications world since the start of BellSouth back in 1876 when Alexander Graham Bell invented the telephone. One of AT&T’s biggest strengths is the infrastructure as it was the first of its kind and where Mr. Bell developed and invented the telephone AT&T had the competitive edge going for them because of this. Even with this going for the company there are other companies out there that do compete with AT&T due to their rates and even with the built revenue the pricing of AT&T can hurt them if their rates for service(s) are too high. (Momin, 2024) Porter Five Force Analysis The Porter’s Five Forces model for AT&T covers the landscape of the company in addition to any factors in the sector. This analysis focuses on the position of the company that is based on a few threats they may incur such as new entrants and substitutes, buyer power as well as the bargaining power of suppliers and rivalries with other telecom companies. The Five Forces for AT&T would be Threat of New entrants Substitute threats. Customer bargaining power Supplier bargaining power Competitive Rivalry
3 AT&T is the largest telecom company in the world but even so there are competitors that tend to take the top spot from them and even though AT&T has been around for a long time, companies such as Verizon T Mobile straight Talk etc. are also around to give AT&T the competitive edge. The second threat would be substitutes. The main substitute here would be producing a unique selling proposition that differs from what countries are a custom to. When it comes to switching the cost happens to be low, which here and with other mobile companies the main costs or fees would be an activation fee and a contract termination fee for breaking a contract. With substitutes out there like radios, newspapers, TV etc. the use of these devices has decreased and continue to decline due to the use of the internet increasing daily. The third threat here would be the customer bargaining power. Customers want to be able to have the best service with the lowest prices possible with all the services that AT&T has to offer. The big way to help customers save here would be if AT&T bundles all services into one competitive and low rate. The fourth force would be the supplier bargaining power. With AT&T they have thousands of suppliers that are available to meet the demands of AT&T supplies not just for mobile devices but for all telecom products and services especially with their partnership with Apple. The fifth and final force would be the competitive rivalry. With companies like Verizon T Mobile Xfinity and others out there that offer their products and services at competitive prices the rivalry tends to be a bit high in this industry. AT&T has to come up with new strategies to not only retain the customer base they have now but to also bring in new customers as well and one way to do this would be to devise a product or service that none of the others have out yet and keep it at an affordable rate which can attract new customers and help retain originals as well. In conclusion the above Porter Five Forces
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4 analysis highlights the various elements which impact the competitive environment of AT&T (MBA Skool, 2024) The leadership strategy AT&T I feel uses would be the transformational strategy as AT&T has grown over the years with the products and services they have to offer. One thing I feel that they could do is develop a cost saving strategy for customers as some of their services tend to be a bit on the costly side and with some customers that are on a fixed income I feel that developing plans and services that can help customers save money but still provide the best service whether its mobility television internet etc. AT&T is the dominant telecom company and as long as they develop a strategy to help cut costs then chances are they will obtain a bigger customer base in addition to retaining who they have at the moment. (Samrhitha A, 2023) When it comes to cultural competence AT&T has sites not just in the United States but all across the world from Mexico City to countries in Asia and AT&T is a company that feels that regardless of age race etc. everyone has a belonging with their company. Not every location operates in the same way another might. For example, one site in the United States might operate differently than one perhaps in the Mexico City location even though they have the same set goals in mind. Also not all sites do the same job title as one might deal with technical support while another one does collections and another assists with customer orders or service in general and then also there is a dept. for internet and
5 also an acquired company which is DirecTV thus being why AT&T has centers all around the world. With as big of a structure that AT&T has if they can assist with getting cost(s) cut down to where services can be a bit more affordable I feel AT&T could be bigger than before. (ATT Newsroom, 2024)
6 References MBA Skool Team (2011, revised 2024) AT&T Porter’s Five Forces Model Samrhitha, A (July 26. 2023) AT&T initiates new $2 billion cost-cutting program as free cash flow beats estimates. Reuters.com About.att.com (2024) AT&T Diversity Equity and Inclusion
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