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Research Methods

M Hamza Wahid
Introduction of AT&T

AT&T is a part of the Telecommunication Industry, which offers a wide variety of services, such as
telephone, Internet services, Digital Services and wireless services.

AT&T is currently the largest telephone provider in the U.S. and the second largest company for wireless
mobile communications since 2009,

AT&T was ranked number one as the world's most admired company in Fortune Magazine’s list.

Mission Statement

AT&T’s mission statement is “to exploit technical innovations for the benefit of AT&T and its customers by
implementing next-generation technologies and network advancements in AT&T’s services and

Vision Statement

AT&T vision statement is “to enrich our customers’ personal lives and to make their businesses more
successful by bringing to market exciting and useful communications services, building shareowner value
in the process.”

SWOT Analysis – AT&T

1. Highly successful at Go to Market strategies for its products.

2. High level of customer satisfaction
Strength 3. Superb Performance in New Markets
4. Reliable suppliers
5. Highly skilled workforce through successful training and learning programs.
6. Strong dealer community

1. Not very good at product demand forecasting.

2. High attrition rate in work force
3. Not highly successful at integrating firms with different work culture. As
mentioned earlier even though AT&T is successful at integrating small
companies it has its share of failure to merge firms that have different work
4. The company has not being able to tackle the challenges present by the new
entrants in the segment and has lost small market share in the niche categories.
AT&T has to build internal feedback mechanism directly from sales team on
ground to counter these challenges.
Weakness 5. There are gaps in the product range sold by the company. This lack of choice
can give a new competitor a foothold in the market.
6. Investment in Research and Development is below the fastest growing players
in the industry. Even though AT&T is spending above the industry average on
Research and Development, it has not been able to compete with the leading
players in the industry in terms of innovation. It has come across as a mature
firm looking forward to bring out products based on tested features in the
1. Government green drive also opens an opportunity for procurement of AT&T
products by the state as well as federal government contractors.
2. Opening up of new markets because of government agreement – the adoption
of new technology standard and government free trade agreement has provided
AT&T an opportunity to enter a new emerging market.
3. Decreasing cost of transportation because of lower shipping prices can also
bring down the cost of AT&T’s products thus providing an opportunity to the
company - either to boost its profitability or pass on the benefits to the
customers to gain market share.
4. New environmental policies – The new opportunities will create a level playing
field for all the players in the industry. It represent a great opportunity for AT&T
to drive home its advantage in new technology and gain market share in the
new product category.
5. The new taxation policy can significantly impact the way of doing business and
Opportunities can open new opportunity for established players such as AT&T to increase its
6. The new technology provides an opportunity to AT&T to practices differentiated
pricing strategy in the new market. It will enable the firm to maintain its loyal
customers with great service and lure new customers through other value
oriented propositions.
7. The market development will lead to dilution of competitor’s advantage and
enable AT&T to increase its competitiveness compare to the other competitors.
8. Economic uptick and increase in customer spending, after years of recession
and slow growth rate in the industry, is an opportunity for AT&T to capture new
customers and increase its market share

1. Rising pay level especially movements such as $15 an hour and increasing
prices in the China can lead to serious pressure on profitability of AT&T
2. Intense competition – Stable profitability has increased the number of players in
the industry over last two years which has put downward pressure on not only
profitability but also on overall sales.
3. New environment regulations under Paris agreement (2016) could be a threat to
certain existing product categories.
4. Shortage of skilled workforce in certain global market represents a threat to
steady growth of profits for AT&T in those markets.
Threats 5. Rising raw material can pose a threat to the AT&T profitability.
6. The demand of the highly profitable products is seasonal in nature and any
unlikely event during the peak season may impact the profitability of the
company in short to medium term.
7. The company can face lawsuits in various markets given - different laws and
continuous fluctuations regarding product standards in those markets.
8. As the company is operating in numerous countries it is exposed to currency
fluctuations especially given the volatile political climate in number of markets
across the world.