Consequently, having existing competitors who are just as large and possesses as many technological advances will require Company X to become more attentive via monitoring product rating amid non-Company X. Therefore, Company X must sustain the consumer’s loyalty along with procuring new customers while balancing products that will bring in new business. Along with products and technology, Company X will need to seek ways to offer these services for the best prices while remaining profitable. Cellular services have become more challenging because consumers are always seeking to save money. New companies are always willing to offer cellular plans that appear to be in direct competition.
Also, direct competition can be found in what is commonly referred to as “over the top” providers, this list included Hulu, Apple TV and Amazon Prime’s TV streaming services. Having so much competition drives Comcast to be an innovation and customer service leader in the industry. Today, to my knowledge, Comcast boasts an impressive customer count of roughly 23 million subscribers. These subscribers have a wide range of service levels and loyalty to the company.
services such as Verizon FiOS can compete effectively with cable, but the two companies that could have an effect in this field, AT&T and Verizon, have not made this competition a reality AT&T never pursued FTTH, and Verizon has stopped expanding its FiOS network. Instead, AT&T and Verizon have focused on wireless broadband, which lacks the bandwidth to compete effectively with cable” (yoo, Christopher S. "Captive Audience: The Telecom Industry and Monopoly Power in the New Gilded Age." Harvard Law)So these two companies have cable, cable needs certain things. With this, these companies stopped or doesn’t provide the things needed for cable, therefore, they created an entirely new thing. So, with the companies, buyers will need these new things and need them, while the companies are getting paid while buyers are
Eventually new companies can join into the industry and begin to take a market share if they offer benefits to the previous company’s customers. In the case of AT&T however, this was halted by the regulations that were put in place to keep in a supposed natural monopoly. Once the government realized the centralization of business they acted swiftly and appropriately in splitting apart the nations largest monopoly at the time,
This is because they look to interact directly with the final customers. The book states that a firm should vertically integrate business activities where they possess valuable, rare, and costly-to-imitate resources and capabilities. With competition consistently playing a factor, Verizon had to find a way to gain a competitive advantage. In this case, network reliability, products and services, customer service, and familiarity are the different paths Verizon has chosen to differentiate products and secure a competitive advantage. The forward integration strategy stands to benefit the larger cellular providers more.
T-Mobile And MetroPCS Complete a Multibillion-Dollar Merger Company and Situation T-Mobile and MetroPCS have agreed to combine their struggling cellphone businesses in a deal aimed at letting them compete better with their three larger rivals. The combined company will use the T-Mobile brand and have 42.5 million subscribers. Although T-Mobile will stay No. wireless companies, it will get access to more space on the airwaves, a critical factor as cellphone carriers try to expand their capacity for wireless broadband.
ACKNOWLEDGMENTS I would like to express my deepest appreciation OBU MBA faculty members: Dr. Richard Martinez, Dr. Rhonda Richards and Breanne Gifford who assisted me in every situation to complete my MBA program. I would not have been able to accomplish my goal without their support. I am sincerely thankful to Dr. Rich Rudebock for setting up high expectation from OBU MBA program as he was my first professor at OBU. His guidance, feedback, cooperation and influence has been impeccable. I would also like to thank Dr. Keith Kaelber, Dr. Patrick Fitzgerald and Dr. Nathan Mellor for imparting very practical knowledge which will be very helpful in every step of my life.
Question 1 Several factors have been proposed as providing a rationale for mergers. Among the more prominent ones are (I) tax considerations, (2) diversification, (3) control, (4) purchase of assets below replacement cost, and (5) synergy. From the standpoint of society, which of these reasons are justifiable? Which are not?
Key Elements & Generic Strategy • The merger of Sirius and XM Radio helped diminish the cost of attempting to one-up each other, limited obligations and enabled the organization to center around acquiring new endorser. • Copy programing was wiped out between the autonomous organizations. • Enabled the combined organization to grow their advances by putting more cash in the quantity of circling satellites. Likewise, before the organizations chose to consolidate, they needed to meet up to make a multi-mark working framework for autos. • Solid associations with auto makers and merchants to give Sirius XM in their autos Sirius XM is currently looking at two or three new approaches for advance.
With this merge, these two companies would be able to provide better products to its customers and hopefully gain its market share in the industry. Many service providers have announced that they will be providing unlimited 4G data in its plans; this has sparked a small price war among competitors. Verizon Wireless has said that the unlimited data to its customers in no longer sustainable and it will not fall under its competitors pressure to keep providing it as part of its mobile plans. Verizon will keep providing unlimited data to its older customers that have had de service before the announcement was made but will no longer provide it to its new
1. EXECUTIVE SUMMARY In the current economic client mergers and acquisitions have been suitable implementation strategies to bring together organisations with unique and different competitive advantages to create synergy and form new organisations levering the skills and resources of both organisations to create value for customers and shareholders. 2. INTRODUCTION
These bold moves not only changed the company’s fortunes but also changed the US wireless industry. How are they attempting to increase revenue?
In order to do this companies will pay a certain price to allow their content to reach consumers faster and consumers will pay more
Comcast and Time Warner Cable have recently struck a deal. The two cable companies are waiting for their merger application to be approved by the Federal Communications Commission, the government agency that regulates communications through the media. Both Comcast and Time Warner claim that this merger is more to the benefit of their consumers, increasing services provided by the companies. However, this “merger” is nothing more than a takeover by Comcast, the company trying to increase the monopoly it is becoming.
Many mergers tend to fail and many others succeed. A merger is the combining of assets and operations, usually between two similar sized companies, in an agreement to join together. Mergers can cause bankruptcy, job losses, less choices, and even a breakup. On the other hand, they have many advantages such as, increased market share, lower cost of production, and higher competitiveness. Most mergers can be highly risky but with the presence of knowledge and intuition they can be successful.
