AT&T SWOT Analysis

History of American Telephone and Telegraph Company

Created by Alexander Bell, creator of the Telephone, in 1885 and aquired Bell's original company Bell Telephone Company

AT&T maintained a monopoly until regulations split parts of the company in 1982

Company Overview

Company Overview

in 1994, AT&T purchased the largest Cell Phone Carrier, McCaw Cellular for $11.5 billion.

Venues:

-AT&T Park

-AT&T Stadium

-AT&T Center

Personal Services:

-Cell Phone

-Cable

-Internet

In 2005, AT&T was bought out by Southwestern Bell company (SBC) after failing previously and kept the better known name, AT&T, Inc.

Business Services:

-Website Creation

-Marketing Solutions

-Remote IT Services

-Security and Backup

Since the acquistion, AT&T has acquired and partnered with many cellular and cable providers such as Cingular and DIRECTV

-leader in it's market with 120.6 million wireless users

-Many stadiums and venues with the AT&T name

-Great sponorships (Jordan Speith, NCAA) and events (AT&T Pro Am at Pebble Beach).

AT&T's Strengths

Business Services:

-Website Creation

-Marketing Solutions

-Remote IT Services and IT Security

Strengths

1) Brand Value and recognition

2) AT&T provides a number of diverse services that seperates them from competitors

3) AT&T targets a variety of consumers with services for personal and business uses

4) AT&T's general family plan considered best "bang for your buck" for 4 line plan along with many other prestigious ranks

Personal Services:

-Cellular

-Internet

-Cable (AT&T U-Verse)

-Great bundle packages

Diversity Inc. ranks:

#6 Company for Vetrans to work for

#7 Company in recruitment

#8 Company in Diversity

#8 Company in mentoring/growth

Weaknesses

Investment in Television business could be risky. Television loses its popularity by newer genrations using stream services

1)Risky Investments

2) Eroding customer base

rivals are taking its customers away. Any competitor offering lower prices gets the upper hand in the industry. AT&T has continued to lose its customers to T-mobile and others.

Weaknesses

3)Decline Voice Calls

The voice calls keep going down. Voice calls of AT&T declined from approximately 18.6 million in 2012 to 14 million in 2014. This decline cuts into the profits of the company.

Opportunities

AT&T should try to diverse into new and profitable areas. Television is an outgoing trend. People now love Netflix and Youtube. AT&T should rather invest in rising businesses.

1) Diversification

Opportunities

2) New acquisitions

It acquired DIRECTV for pay television services. this would add more than 30 million customers. Nextel Mexico was acquired for $1.9 billion by them for spectrum licences, network assets, retail stores and subscribers.

3) Wireless growth,

IPhone & iPad deals & ever increasing sales of Apple products can lead to a good partnership

Threats

Sprint has offered to slash a customer's bill in half if they switch

Damages causes interference with transmission

Threats

1) Competition from other networks

• Many carriers in one location
• Verizon, T-Mobile, Sprint
• Price wars

2) Network Connectivity

• Natural Disasters
• Proximity to cell sites

3) Government Regulations

• ahering to the policies of the country in which it operates

4)Substitution for TV providers

• Streaming services
• Netflix, Hulu

US regulated by FCC whereas in Europe it is decentralized

More people are changing media habits to streaming services for its convenience