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Technology & Telecommunications

Introduction

Qwest Communications and Verizon communication Inc. are telecommunications companies that provides receiver services including wireless services in addition to wire-line ones. The company also offers other related services that include network services, data management services, global internet services protocol (IP) among others (in summary the company deals in broadband, television and wireless services).

The firms are based in the United States and provide a very big employment opportunity for very many people in the region.  The companies also offers communication solution like faxing and voicemail solutions, information and data management solutions, conference web meetings and integrated message and communication services.

The QWEST Communications

QWEST Communications is an upcoming telecommunications company that is currently operating in about 14 states of the United States of America. The company has majored in three areas of service provision; the wireless services which include internet, voice services, and video; the wireless services offers internet, and data services while the third areas namely others covers leasing services where property and office space can be rented (Sharon 2002).

Qwest has categorized its customers into threes groups and they are; Mass market – covers average clients and small scale enterprises; Businesses – covers ventures that are at national, local and international level as well as government organization and other institutions; the third category is Wholesale customers- these are other telecommunications firms that buy Qwest services to supply them to other people.

QWEST does not have a lot of diversification as compared to other established companies like AT&T or Verizon. To try and compensate for modest profit that could be lost, Qwest has made collaboration with sprint Nextel, who provide them with wireless services then they resell the services under Qwest brand name (Zeiger et al 1997).

Since they do not produce the services by themselves, the cost is pursed to other customers inform of higher rates and this has lead to loss of clients over the recent years as other companies reduce their rates. This lack of wireless services is a major concern for the Qwest’s endeavour to be a multi-billion company (Henry 2002). Experts have advised that if Qwest intents to remain in the market, then it could adopt bundling as a marketing strategy where several products are packaged together and sold as a combination as this would decrease the loss in customers.

Competition

Competition is a major threat to the survival and growth of Qwest as a telecommunication company. The industry is very competitive due to the ever improving technology propelled by creativity, and innovative ideas. It’s estimated that over the past 15 years, 90% of the founding companies in telecommunication industry have collapsed or merged with other new businesses (Sharon 2002).

The major competition comes from the giant companies like Verizon communications, Sprint Nextel and AT&T. Qwest is usually edged out of competition because of the lack of wireless services and the fact that others benefit from economies of scale since they are big, their market share is great and have more resources. AT&T Wireless-Cingular merger and Verizon acquirement of MCI has been a big blow to Qwest as there is more availability of MCI wire lines (Young 2006).

Another issue of concern is the development of voice over Internet Protocol –VoIP. This has affected Qwest’s provision of wire line services as it is replacing the wire line services at a faster rate and people may no longer need wire line phones. Though Qwest has also invested in provision of VoIP services, it does not do it with the efficiency that other companies can offer. 

Other Risks

Qwest being a small company in the telecommunications industry and the pressure to merge with other established firms is very high. The FCC and U.D department of Justice have allowed large scale acquisitions and mergers in the past years. Net neutrality is the perception that the clients control what they use on the internet (restriction free internet use); however there are laws that do not protect net neutrality (Henry 2002).

Verizon Inc: Threats

The major threat to Verizon inc include competition from the companies that deal in wireless services like T-Mobile, US Cellular and Spring Nextel among others; the broadband service providers like Comcast, Qwest, and Cox communications; and television companies like Comcast, Time Warner Cable, and Charter communications.

Verizon Inc has established measures to help it to keep up with the competition (Cauley 1995)

The firm has set up a diversity action plan that defines initiatives and assessment of the diverse services and products offered by the company. Training the employees in diverse field is very important to encourage innovation and creativity since the current competition in the world needs a lot of revolution to conform to globalization. By doing so, Verizon Inc would be able to develop their strongholds, eliminate or rectify their limitation, exploit new opportunities ahead of their competitors as well as protecting itself from external and internal susceptibility to pressure (Young 2006)

Verizon Inc: The Risks

Since the information and communication technology industry is the fastest growing in terms of technology creativity and innovations, workers in this sector need to be updated with the current changes and developments. Verizon is setting the trend in innovation in communications on the global market with help of its able staff. The company has over 238, 000 employees, 38% of them are in the management while 34 % are the junior staffs who are very active and trained in the new technologies (Cauley 1995).

Workshops and other development seminars are very critical and are always carried out regularly. Over 40% of the employees are represented in the union.

Training the employees in diverse field is very important to encourage innovation and creativity since the current competition in the world needs a lot of revolution to conform to globalization. By doing so, Verizon Inc would be able to develop their strongholds, eliminate or rectify their limitation, exploit new opportunities ahead of their competitors as well as protecting itself from external and internal susceptibility to stress

Verizon Inc: The Strategy

Some of the strategies used by Verizon Communications Inc include price reductions, improved productivity, diversity in brands, and less complex distribution channels involved. Qwest Communications cannot afford to do this because it with suffer economies of scale as it is still growing. Verizon Communications Inc has established a tradition of using indirect procurement activities in its marketing strategy that have varied height of development (Curwen & Whalley 2009).

The company has managed to ensure countrywide consistency in service despite set backs it receives from parent companies. Verizon Communications Inc continues to integrate and implement the common best organizational strategy where it incorporates policies and sets up processes that allow single instance procurement system within its Enterprise Resource Planning (ERP). ERP is an organization’s wide information system that is designed to harmonize all information on resources and business activities that are require to finish the processes like order execution or realization  (Chan-Olmsted 2006)

Verizon Inc is involved in some processes of acquiring other companies so that it expands and edge out competition. Mergers and acquisitions are a major tactic used by many companies and it is very effective. Currently Verizon is in the process of acquiring Alltel communications (Newser 2008). Above all diversity is a major strength utilized. The diverse services include voice messaging services, landline services, wireless services, video and especially DirectTV is very marketable in the US, and DSL- Digital Subscriber Lines (Chan-Olmsted 2006).

The Social Issues

Verizon Inc has taken its corporate social responsibility very seriously and it’s the only company telecommunications that ranks among the top 100 companies on best corporate citizens list. Verizon raked 9th as being very philanthropic and had awarded a lot of money to support non profitable organization. Some of the social issues that are included in the operations of a company are human rights protection, employee relations, protection of the environment, and climate change issues (Chan-Olmsted 2006). The company has provided the employees with a better working place giving them opportunities for personal ambition development.

Qwest Communications will lose a lot if it attempt to get involved is such large expenses.  The company provides training, education and seminars. Verizon also stewards environment conservation and its recycling strategy reduced greenhouse emissions by 332,295 tons over the past five years. Verizon Inc has emphasized on integrity, accountability, performance excellence and respect. Its products for instance the ultra fast broadband can effectively lessen the consumption of energy and cut down health risk hence cutting down the expense on medication. On the other hand Qwest has to purchase wireless services from Sprint (Zeiger et al 1997).

Project and Design Failure

Over the past years, Verizon has suffered several set backs because of failure to provide services to its customers for instance in Ohio, it failed to meet district requirements and customers went for days without service completely (out of service). Another branch that was extended to Latin America had to be divested because of the increased political and economic problems in the region, Dodd 2002). The company had to take a conservative move by retracting its presence in the area and withdrew its capital from the Argentine CTI Movil.

Verizon Communications Inc suffers few design and user centred failures in its operation as a company as in there are no protection of its excusive rights of operation, and its reputation is being tarnished as promoting computer crimes such as theft, harking and pornography. There are some cases when the company completely goes out of service making the clients to suffer as they rely on the services for a lot of operations. Otherwise these are just desperate sideshows since the choice of crime is individually determined

New Technology

Verizon has been leading in creativity and innovation especially in designing their products.  The latest technology that Verizon Inc has invested in is the Alcatel-Lucent; this is expected to improve the ability of Verizon 16 state fibre delivery to their homes, Dodd (2002). The other new invention is the Gigabit passive optical network that will heighten the aggregate broadband speed on Verizon’s systems by a forth fold and this is the first chief telecommunications firm to offer such services in the United States of America. Qwest lags behind in technology because it does not have enough capital to invest in technology as it’s expensive, furthermore there is a lot of competitions as large companies are acquiring smaller one or merge with others (Curwen & Whalley 2009).

E-Commerce

Verizon Inc operates e-commerce services and also owns physical chain stores where its products can be purchased from. This is called automation of the supply chains and helps the clients to save cash plus conserving environment. Verizon style of supply chain management includes custom supply chain management and invoice automated services (Naik 1995). This has actually helped the company to manage its transaction with other businesses; it has allowed global collaborations with other partners, improve efficiency and to promote ecosystem friendly business practices. Qwest also does its business on line (Staff 2007).

Conclusion

Verizon Inc has its headquarters in New York and it’s currently the second best telecommunication company after AT & T. the company leads in delivery of broadband services, wire line communications, and wireless communication services to individuals, organizations, government and businesses. The firm operates Verizon business which provides innovative and flawless business solutions to client all over the world. Verizon Telecom provides communication solutions, entertainment and information services.

References

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Cauley L. (1995), Technology & Telecommunications. Baby Bells Square Off Against AT&T On Calling Cards, U.S. West Agreement. Wall Street Journal

Chan-Olmsted S.M (2006). Competitive Strategy for Media Firms. Strategic And Brand Management In Changing Media Markets. Routledge

Curwen P & Whalley J. (2009). The Internationalization of Mobile Telecommunications. Strategic Challenges in a Global Market. Edward Elgar Publishing

Dodd A.Z (2002). The Essential Guide to Telecommunications. Prentice Hall PTR

Henry S. (2002). “SEC Deals Blow to Telecom by Rejecting Capacity Swaps,” The Wall Street Journal

Newser (2008). Verizon Seeks Alltel Deal, Challenge to Top Dog AT&T. Wall Street Journal

Naik G. (1995). Technology & Telecommunications. Bells Venture Likely To Place Cellular Order. Wall Street Journal

Sharon Y. (2002). “Qwest Says It Plans To Restate Financial Results for 2000, 2001,” The Wall Street Journal

Staff (2007). Qwest And Verizon Rate High In Customer Satisfaction Survey. New Mexico Business Weekly.

Young S. (2006) Verizon Closes Its MCI Purchase. Wall Street Journal

Zeiger, Dinah, & Henry D. (1997). Qwest’s Game Plan Unveiled, Denver Business

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