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Strategy report
TO: Proximity mobile team FROM: Danielle Peterson DATE: October 26, 2009 SUBJECT: Verizon strategy analysis

This is my Verizon Wireless strategy report. Verizon is the most financially secure communication supplier for wireless providers in the United States (U.S.). Having a strong business strategy is the key element to a successful company, but having a high competitive landscape can be a vast concern. The question for Verizon is, can they attract enough Gen-Y users and also keep the lead?

 Verizon Wireless was created in 1995, and is headquartered in Bedminster, New Jersey. Before this company was named “Verizon”, which means “truth” in Latin, it was formerly known as Bell Atlantic Mobile. Verizon Wireless is the top wireless provider with 87.7 million U.S. subscribers and has the greatest revenue total which was reported at 58.6 billion in 2008. It operates the nation’s most dependable and largest wireless voice and data network, including the largest 3G broadband network.
 * Profile **

Verizon Wirelesses’ revenue comes from:

· //subscribers // who purchase cell phones and pay monthly service bills (roaming, long distance, and late fees costs are extra) · //data services // which include text messaging, video services, music downloads, applications etc. ·  //cancellation fees //, //technical issue// costs, and //surcharges// · //accessories //for cell phones/ smartphones


 * Competitive Landscape **<span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">

<span style="font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: 115%;">Verizon’s landscape is driven by two forces: supplier power and existing rivalry. There are many strong providers that supply diverse varieties of wireless cell phones to Verizon. Specific phones are PDA’s and smartphones. LG, Blackberry, Motorola, Samsung Nokia and Palm are major suppliers for Verizon. Since this company wants to offer the best phone, each phone has something special about them whether it’s the size, color or the innovative technology offered. There are so many selections of phones which makes the supplier power low.

Verizon’s biggest rival is AT&T. AT&T has been in the wireless industry longer then Verizon which is a huge pressure. AT&T also offers an advantage program called roll over minutes which permits customers who do not use their minutes in the first billing cycle, to carry on over to the next month for use. This program really has won some customers over and created competition. The Apple iPhone is also an existing competitor for Verizon Wireless. Since the competition is increasing between smartphones and iPhones, Verizon came out with a hopeful solution. The solution was: buy one Blackberry and get one free, in hopes to attract more long term customers. The Verizon Wireless Curve in fact outsold the iPhone in the first quarter of the year, but the iPhone seemingly took over after that. Hence is why Verizon came out with the “buy one, get one” sale.

<span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';"> The main goal of Verizon Wireless is to provide a high quality service that will satisfy and delight every customer to their fullest extent. Verizon believes that it is key to focus on global differentiation. This meaning, in order to beat rivalries with other companies they must be different with their service offerings. Listed are several objectives that are a main focus for their strategy:
 * <span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">Verizon’s strategy **

<span style="font-family: Symbol; font-size: 10pt; mso-bidi-font-family: Symbol; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msobidifontsize: 12.0pt; msofareastfontfamily: Symbol; msolist: Ignore;">· <span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">maintain to develop the wireless data, messaging, and multi-media offerings for both consumer and commerce segments <span style="font-family: Symbol; font-size: 10pt; mso-bidi-font-family: Symbol; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msobidifontsize: 12.0pt; msofareastfontfamily: Symbol; msolist: Ignore;">· <span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">focus on effectiveness and satisfaction rates in <span style="color: windowtext; font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman'; text-decoration: none; text-underline: none;">customer service <span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">, distribution and product improvement divisions <span style="font-family: Symbol; font-size: 10pt; mso-bidi-font-family: Symbol; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msobidifontsize: 12.0pt; msofareastfontfamily: Symbol; msolist: Ignore;">· <span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">advance data transmission rates through <span style="color: windowtext; font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman'; text-decoration: none; text-underline: none;">evolution data optimized <span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">technology <span style="font-family: Symbol; font-size: 10pt; mso-bidi-font-family: Symbol; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msobidifontsize: 12.0pt; msofareastfontfamily: Symbol; msolist: Ignore;">· <span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">offer the <span style="color: windowtext; font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman'; text-decoration: none; text-underline: none;">highest network quality <span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';"> through code division multiple access technology <span style="font-family: Symbol; font-size: 10pt; mso-bidi-font-family: Symbol; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msobidifontsize: 12.0pt; msofareastfontfamily: Symbol; msolist: Ignore;">· <span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">promoting product line and renewing contracts

Verizon Wireless also uses the Customer Relationship Management system. Customer Relationship Management simply means “the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction” (Kotler 13E, 2008).


 * <span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">Gen “Y” erless **<span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">

Generation Y is the real buying power for any cell phone industry. For example: smartphones first were mainly created for a business person, now-a-days a majority of users are from Gen Y. I personally use the Blackberry Curve from Verizon. There is something that really appeals to the Generation Y and makes these users a high target for Verizon’s revenue. Whether it may be the accessible internet to check anything via internet on the cell phone, or the available accessories these consumers can choose from. References **<span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';"> Wikipedia. Last edited: (2009, September). Verizon Wireless. Retrieved September 30, 2009 from [] Kotler, Philip and Armstrong, Gary. (2008) Principles of Marketing. [] []
 * <span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">

Blog proposal
<span style="font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: 115%;">TO: Proximity mobile team FROM: Danielle Peterson DATE: October 26, 2009 <span style="font-family: 'Times New Roman','serif'; font-size: 12pt;">SUBJECT: Blog post proposal

I propose that we do our proximity blog post on Verizon Wireless joining the “Don’t Text and Drive” campaign. This post can be used to inform clients of the dangers and consequences of texting while driving if they are unaware.


 * <span style="font-family: 'Times New Roman','serif'; font-size: 12pt;">Rationale **

<span style="font-family: 'Times New Roman',Times,serif; font-size: 12pt;">According to Verizon, no text message is worth risking a life – I’d have to agree with that! Daniel Mead (CEO of Verizon) states “More recently, as texting has become mainstream, we support bans on texting while driving and prohibit Verizon Wireless employees from texting while on the job or in a company vehicle.” This is a huge issue across the United States which needs to be put to a stop and should be put up for discussion.


 * <span style="font-family: 'Times New Roman','serif'; font-size: 12pt;">Sources **

<span style="font-family: 'Times New Roman','serif'; font-size: 12pt;">Here are two sources that enlighten the issue and would be very useful:

[] []

<span style="font-family: 'Times New Roman',Times,serif; font-size: 120%;">Report proposal
<span style="font-family: 'Times New Roman',Times,serif; font-size: 120%;">​TO: Proximity Mobile Team
 * FROM: ** Danielle Peterson
 * DATE: ** November 25, 2009
 * SUBJECT: ** iPhone proposal report

Ever since the iPhone 3G was launched, the Apple iPhone has taken over the cell phone industry. To attract new users Apple created the iPhone 3GS with new innovative features and applications. I propose to write this report on how the iPhone 3GS is placing itself in the marketplace to advance and focus on ways that is appealing to new or existing customers.


 * Need: **

Competition among cell phone providers is escalating; therefore companies are coming up with new cutting-edge ideas to maintain demand for their products.

<span style="font-family: 'Times New Roman',Times,serif; font-size: 110%;">iPhone 3GS is at the top of the line, this cell phone/ iPod/ internet device is the quickest dominant iPhone yet. Due to several tweaks with this merchandise, Apple has created the world’s most superior operating system. With all the features offered and the ability to do almost anything on the 3GS, this product satisfies and delights Apple’s customers.
 * <span style="font-family: 'Times New Roman',Times,serif;">New distinctive applications associated with the iPhone 3GS
 * <span style="font-family: 'Times New Roman',Times,serif;">More applications offered
 * <span style="font-family: 'Times New Roman',Times,serif;">Color Seledction
 * <span style="font-family: 'Times New Roman',Times,serif;">Higher gigabytes for memory space


 * Topics: **

The proposed report, “Apple iPhone advances” will cover the following topics:

<span style="font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: 115%; msobidifontfamily: Symbol; msofareastfontfamily: Symbol; msolist: Ignore;">
 * <span style="font-family: 'Times New Roman',Times,serif;">What are the abilities of an iPhone? (cell phone, iPod, internet)
 * <span style="font-family: 'Times New Roman',Times,serif;">Why it’s important to keep upgrading the iPhone
 * <span style="font-family: 'Times New Roman',Times,serif;">3G vs. 3GS (compare/ contrast the models)
 * <span style="font-family: 'Times New Roman',Times,serif;">New features and applications linked with iPhone 3GS
 * <span style="font-family: 'Times New Roman',Times,serif;">What’s next, possibly 4G?
 * <span style="font-family: 'Times New Roman',Times,serif;">iPhone rivalry with Blackberry

<span style="font-family: 'Times New Roman',Times,serif; font-size: 120%;">This report will also include attachments about 3G vs. 3GS and iPhone models.


 * Sources: **

Apple: Compare iPhones. (2009). Retrieved on November 17, 2009 from [] Apple compares and contrasts the differences between iPhone 3G and 3GS mobile device.

Carnoy, David. (2009). “364 days and Counting to iPhone 4G”. Cnet Reviwes. Retrieved on November 17, 2009 from [] Is 4G just a rumor for the Apple iPhone? This blog explains the possibility of the future outlook for the iPhone 4G and what to expect.

Wikipedia, The Free Encyclopedia. (2009). iPhone. Retrieved on November 19, 2009 from [] The website offered great information about iPhone’s and their ability.

Apple: Introducing iPhone 3GS. (2009). Retrieved on November 19, 2009 from [] Apple presented a very informative webpage on all the new features the iphone 3GS cell phone has.

Apple: Your iPhone gets better with every new app. (2009). Retrieved on November 19, 2009 from [] Any application that the apple store offers, you can purchase it on this site. It describes what the application is and the price – very cool. <span style="font-family: 'Times New Roman',Times,serif; font-size: 12pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin; msoansilanguage: EN-US; msobidifontfamily: Symbol; msobidilanguage: AR-SA; msofareastfontfamily: Symbol; msofareastlanguage: EN-US; msofareastthemefont: minor-latin; msolist: Ignore;">

Team conference presentation proposal
<span style="font-family: 'Times New Roman',Times,serif; font-size: 110%;">Will the Android operating system take over the mobile marketplace? Is Verizon Wireless ever going to take on the iPhone?

Sales letter and report prospectus[[image:prox.JPG width="758" height="321"]]
December 9, 2009 <span style="font-family: 'Times New Roman','serif'; font-size: 12pt;"> Mr. Blake Mitchell, Director of Sales and Marketing The Smartphone Solutions 555 E. Joppa Road Towson, MD 21286

Dear Blake:

I enjoyed speaking with you yesterday at Proximity’s Next Generation seminar regarding Smartphone Solutions need to promote its brand to Gen Y consumers and businesses. Enclosed you will find a prospectus for the report I mentioned describing the need for Gen Y users and businesses to use smartphones instead of standard cell phones.

As you noted yesterday, Smartphone Solutions feels that it must establish brand identity with Gen Y and businesses now in order to sell its products. I believe Proximity can work with you to devise a comprehensive campaign that uses mobile demand and marketing publicity.

We can provide you with customized survey and focus group to help shape Smartphone Solutions image a progressive, green company. Our faculty consultants can advice your sales forced on how to position new products, and our production teams can make multi-platform ads that appeal to Gen Y and businesses. In addition, we have trained student marketers who can promote Smartphone Solutions on social networks such as Facebook. Our research shows that using student representatives to friend social networkers is a far more effective strategy for reaching Gen Y and businesses than buying conventional banner ads.

I invite you and your staff to join us at Proximity’s Towson office for a special focus group session on Smartphone Solutions Gen Y brand image. After that session, you can meet with members of our group to discuss how Proximity can help you meet your marketing goals.

Sincerely, Danielle Peterson Associate Media Analyst

enclosure