Strategic mgt plan

AT & T

Name

Institution

AT & T

The mission of AT & T is exploiting technical innovations for the benefit of the company and that of the clients by ensuring that they are up to date with the current technology and advancing their network in the operations and services of the company. AT&T has a roadmap to success like any other company. The company has its objectives and the strategies laid out that will help them towards the growth of the company. The company has ensured that it grows through the implementation of cost cutting strategies and the improvement of their productivity. The two remain the primary objective of the company and they survive the recession periods. The IT strategies that are aimed to help in cutting of the costs do so by reducing their costs of operations and improving the different collaborations that they have with their partners and customers. They also ensure that they improve the performance of the employees and their productivity. It is rated a one of the most important aspect as more profits are made when the productivity of the employees are increased (Yenipazarli, 2015).

The company’s long term and short term strategies are almost similar as the strategies address the major goals of the company. The short term goals are well supported by the IT function of the company as they align the their strategies and the different approaches to suit the goals and objectives of the business, it helps to manage and eliminate the costs of the company, improvement of efficiency, making the data available to its users and helps in the management of data and information. The long term strategies include acquisition of updated systems to improve the efficiency of the businesses, ensure that the business operates economically, assist with the different analysis of the business and manage and eliminate the costs of the company (Yenipazarli, 2015).

The company ensures that they invest more on information technology as it helps them in reduction of risks, cost lowering and the improvement of efficiency and productivity. The company executives argue that the investment in the continuity of the business and security has a positive impact on the growth of the business as it is prepared for a turnaround in the economy (AT&T Inc, 2014). The advancement in the technology for many companies is moderated to ensure that they maintain their stability in the markets. Networking is among one of the greatest challenge towards the achievement of the goals and objectives of the company. Information sharing comes with challenges and the customers and partners need to integrate applications and systems to ensure that efficiency is achieved. The networks also need to be reliable and the available to all. The AT&T networking has evolved over time placing what was known as the backbone of networking.

Financial analysis

AT&T Income statement (USD in million)

Fiscal year ends in December.	Dec-10	Dec-11	Dec-12	Dec-13	Dec-14
Revenue	124280	126723	127434	128752	132447
Cost of revenue	52263	57374	55215	51464	60611
Gross profit	72017	69349	72219	77288	71836
Operating expenses
Sales, General and administrative	33065	38844	41079	28414	41817
Other operating expenses	19379	21287	18143	18395	18273
Total operating expenses	52444	60131	59222	46809	60090
Operating income	19573	9218	12997	30479	11746
Interest Expense	2994	3535	3444	3940	3613
Other income (expense)	1659	1033	886	1238	1827
Income before taxes	18238	6716	10439	27777	9960
Provision for income taxes	-1162	2532	2900	9224	3442
Net income from continuing operations	19400	4184	7539	18553	6518
Net income from discontinuing ops	779
Other	-315	-240	-275	-304	-294
Net income	19864	3944	7264	18249	6224

AT&T Balance Sheet (USD in million)

Fiscal year ends in December.	Dec-10	Dec-11	Dec-12	Dec-13	Dec-14
Assets
Total cash	1437	3185	4868	3339	8603
Receivables	13610	13606	12657	12918	14527
Deferred income taxes	1170	1470	1036	1199	1142
Prepaid expenses	1458	1155		960	831
Other current assets	2276	3611	4145	4780	6925
Total current assets	19951	23027	22706	23196	32028
Gross property, plant and equipment	243833	260279	270907	274798	282295
Accumulated Depreciation	-140637	-153192	-161140	-163830	-169397
Net property, plant and equipment	103196	107087	109767	110968	112898
Equity and other investments	4515	3718	4581	3860	250
Goodwill	73601	70842	69773	69273	69692
Intangible assets	60520	59343	58775	62212	66963
Other long-term assets	6705	6327	6713	8278	10998
Total non-current assets	248537	247317	249609	254591	260801
Total assets	268488	270344	272315	277787	292829
Liabilities and stockholders' equity
Short-term debt	11282	3453	3486	5498	6056
Accounts payable		8593		11561	14984
Taxes payable	72	1003	1026	1774	1091
Accrued liabilities		10361		9546	8608
Deferred revenues		904		4212	4105
Other current liabilities	22597	6480	27275	2404	2438
Total current liabilities	33951	30794	31787	34995	37282
Long-term debt	58971	61300	66358	69290	76011
Deferred taxes liabilities	22070	25748	28491	36308	37544
Pensions and other benefits	28803	34011	41392	29946	37079
Minority interest	303	263	333	494	554
Other long-term liabilities	12743	12694	11592	15766	17989
Total non-current liabilities	122890	134016	148166	151804	169177
Total liabilities	156841	164810	179953	186799	206459
Stockholders' equity
Common stock	6495	6495	6495	6495	6495
Additional paid-in capital	91731	91156	91038	91091	91108
Retained earnings	31792	25453	22481	31141	27736
Treasury stock	-21083	-20750	-32888	-45619	-47029
Accumulated other comprehensive income	2712	3180	5236	7880	8060
Total stockholders' equity	111647	105534	92362	90988	86370
Total liabilities and stockholders' equity	268488	270344	272315	277787	292829

From income statement we can see that

Operating revenues:AT&T Inc.'s operating revenues increased 6.65% from 2010 to 2014,the company have a good selling system to gain the sustain revenue

Operating income:AT&T Inc.'s operating income increased from 2012 to 2013 but then declined significantly from 2013 to 2014.Operating income loss in 2014 includes of higher cost of revenue and selling process and administration.

Net income:AT&T Inc.'s worked goodin 2010,but decreased 80%of net income in 2011,then AT&T recovered from 2012 to 2013 but then declined significantly from 2013 to 2014.

From balance statement,we can see that

AT&T Inc.’s had a positive trend on generate the cash and own the property ,plant and equipment,the current assets and total assets all increased from 2010 to 2014,the company have potential to gain the future economic benefit and have a good control as a result of past transaction and events.The total liabilities of AT&T for 2014 is $206,459,000. Liabilities for a company like AT&T include bank loans, services which have been availed and for which a settlement in the form of cash/ asset transfer needs to be done in future.AT&T takes on such obligations to grow its business which in turn will generate future economic benefits for its business.

Key ratios:

Liquidity/Financial Health	2010-12	2011-12	2012-12	2013-12	2014-12	evaluation
Current Ratio	0.59	0.75	0.71	0.66	0.86	N to P
Quick Ratio	0.44	0.55	0.55	0.46	0.62	N to P
Debt/Assets	0.58	0.61	0.66	0.67	0.71	N
Debt/Equity	0.53	0.58	0.72	0.76	0.88	N
Profitability
Gross margin	57.95	54.72	56.67	60.03	54.24	P to N
Operating Profit Margin	15.75	7.27	10.20	23.67	8.87	P to N
Net Profit Margin	15.98	3.11	5.70	14.17	4.70	P to N
ROA	7.39	1.46	2.68	6.63	2.18	P to N
ROE	18.60	3.63	7.34	19.91	7.02	P to N
P/E	8.36	45.61	26.97	9.36	28.42	N to P
Activity
Fixed Assets Turnover	1.22	1.21	1.18	1.17	1.18	-
Assets Turnover	0.46	0.47	0.47	0.47	0.46	-
Receivables Turnover	8.69	9.31	9.70	10.07	9.65	-

AT&T Inc.'s current ratio and quick ratio deteriorated from 2012 to 2013 but then improved from 2013 to 2014 exceeding 2012 level.Most believe the current ratio between 1.2 to 2.0 is sufficient,so AT&T may indicate liquidity issues and have some problem to pay it bill without to sell inventory.

The two debt ratio of AT&T all had a negative trends and the total funds that provided by creditors or by owners stay a low level.So AT&T didn’t have so much debt put business at risk but it could better leverage on the investment to boost profits on the future.

Furthermore,The all profitability margins except P/E ratio above improved from 2011 to 2013 but then deteriorated significantly from 2013 to 2014.Basically AT&T have a capability and ability to cover their all cost,but the ROA ranked still lower than 57% of industrylevel and the ROE ranked lower than 54% of industry level,so AT&T have to find a better way to operate more efficiency in the high competitive market.On the other hand,we can found the P/E ratio kept a positive trends these years,then AT&T still have a good attractiveness on equity markets and less risky condition.

At last,the activity ratios of AT&T almost remain the same shows AT&T stay at the same productive trace for using resources to generate sales and try to keep a high level performance on the market.

		AT&T	T-MOIL	SPRINT	Eval
Liquidity Ratios
	Current Ratio	0.86	1.59	0.89	W
	Quick Ratio	0.62	1.18	0.70	W
Asset Utilization
	Inventory Turnover	-	-	-	-
	DSI	-	-	-	-
	AR Turnover	9.65	10.78	33.30	W
	DSO	37.82	33.85	10.96	S
Debt Management
	Debt/equity	0.88	1.56	1.50	S
	TIE	3.76	1.31	-0.91	S
Profitability Ratios %
	Gross Margin	54.24	47.88	45.07	S
	Operating Margin	8.87	4.79	-5.49	S
	Profit Margin	4.70	1.00	-10.00	S
	ROA	2.18	0.46	-4.03	S
	ROE	7.02	1.65	-15.41	S
Market Ratios
	P/E Ratio	28.42	126.57	-5.05	-

(W:weakness / S:Strength)

AT&T basically has a major competitive strengths compare to the two competitors,the gross margin and operating margin shows AT&T has a lead position to sell the product and service in the market anda more effective supply chain than this two company.On the other hand,the profit margin,ROA and ROE also indicatea big strengths factor for AT&T that it has a good operation system to running the business,so it can generate more profit for the stakeholders and have more advantage to re-invest on the future.On the contrast,based on the AR turnover and DSO shows AT&T has weakness side compare to others,which is having difficulty in getting customer to pay,so it also affect the company to get cash back for using to cover the current liability.

SWOT Analysis

Name

Institution

SWOT Analysis

Introduction

Stocks in AT&T have trudged during most times of the past year raising an alarming concern for the performance of the business. Its shares have not been stable for a while missing out on the stock market exchange top most in 2014 (Value Line, 2015). The company has had numerous positive performance when considering cost management, broadband traction, repurchasing of shares, video as well as telephone services. However, the company is facing numerous competitions from the wireless subscribers and other forms of telecommunication networks. Technological advancements have led to more competitive global pricing strategies with an aim of increasing their customer base. Mobile users can now upgrade their phones by making a small fee rather than making a down payment as they were used to before. Despite this, the profit margins have been lowered as the as the metrics of the average revenue of each user has declined. Profit margins have been also affected by increasing expenses on content, expensive legacy operations that are difficult to manage and maintain; heavy expenditures on infrastructures and their huge investments. One of the best ways to develop an analysis for any company is a SWOT analysis that looks at both the firm’s internal and external organization (Barney, 1995). In this regard, a SWOT analysis conducted on AT&T would be necessary for measuring the firm’s performance and the state of its position in the telecommunication industry.

Operations

AT&T, formerly known as SBC Communications, was founded in 1983 as a Unites States Public company dealing with telecommunication making it the third-largest company in Texas and as of May 2014, it became the 23rd largest company in the world and the 16th largest when ruling out oil companies. The company also managed to secure a position in the telecommunication network in the world being the 18th largest telecommunication network company with over 126.4 million customers worldwide (Value Line, 2015). It has 243,620 employees as of 2015 with the previous year’s revenue being a whooping US$ 132.447 billion and a net income of US$ 6.227 billion in 2014. 2014 saw the company becoming the world’s largest provider of pay – TV with the combination of AT&T U-verse and Direc TV. The company mentioned on 2015 that they would switch to Direc TV as it will stop using the U-verse system. As of today, the company remains to be one of the recognized to companies in the world and maintains its headquarters in Texas. The company’s products are satellite television, mobile telephone, fixed line telephone, broadband as well as the digital television.

Strengths

Largest Communications Company Holding by Revenue

The company’s estimated revenue was US$ 132.447 billion in 2014 with a total operating income of US$ 13.866 billion and a net income of US$ 6.224 billion (EBSCO HOST, 2014). Additionally, its total assets and equity amount to US$ 292.829 billion and US$ 86.924 billion by the end of 2014. This, therefore, suggests that the company has a large capital base that; one of the main reasons for its continued growth in investments. This also dictates the company’s ability to pay off its debtors as well expanding its operations at a global front. Through this, the company has gained a competitive front in the telecommunications industry in being the one of top most performing companies.

Largest Broadband/Data Provider in the US

Both wireless and traditional wiring continue to flock the communications network as the world is proceeding to an internet-based societal system of communications (Value Line, 2015). With their large financial front, the company aims at acquiring and using sophisticated technologies in their operations. It aims to expanding its high-speed videos and broadband while developing its network connectivity in homes particularly creating a system that connects wire line services to the wireless network they are providing. The company is in a position to take advantage of the increasing data flow across continents.

Wireless Capabilities

The company is also extremely capable of its network capacity when looking at both the wireless and physical connectivity such as the fiber optics. The company manages to shine in its broad scope in the United States will all major metropolitan areas receiving endless connectivity serving approximately 300 million people using its LTE technology. It relies on other GSMs for transmission of 3G and 2G networks, but most importantly, it provides a 4G network coverage using a wide range of sophisticated technology (Value Line, 2015). It still continues to grow to even remote areas by offering their network coverage. Again, it has a wireless exclusivity with the famous iPhone from Apple.

Broad Portfolio of Products and Services

The company has increased its reputation in providing a variety of high-quality products to its customers (EBSCO HOST, 2014). Products range from wireless communications, both local and long-distance services, data and internet services and video services. On top of that, it has managed to provide telecommunication equipment, publishing and advertising of the directories as well as wholesale services. Diversifying its operations creates more room for profit margins to rise as well as reducing the risks of the company’s failure in the event of one product failing or not meeting the required goals and standards.

Weaknesses

Price Competition

The already high competition in the market puts pressures on businesses as they struggle to survive in the market. Price, therefore, becomes an important factor when handling market issues and operations (Value Line, 2015). The lack of a jointly formed body has had adverse effects on product pricing leading to price wars among companies in the telecommunication industry. Companies are competing for a slice of the market share as seen by the low product pricing on Apple’s i6 phone as well as Sprint and T-Mobile. As a result, AT&T’s market share is dropping by a bigger percent. It becomes difficult for the company to lower its prices due to its already tight operations brought about by high costs.

Inflexibility

The larger a company becomes, the more rigidity it attains (Value Line, 2015). The company is operating in economies of scale making it difficult to adopt or sustain its already existing operations such the volatile wireless network system that is being adopted by a majority of the telecommunication companies. Smaller companies are, therefore, in a good position to bring in new products easily and operating with low costs as compared to AT&T. Changes in payments and service provision programs can be easily done without tampering with their customers or more so, their sales.

Unfavorable Balance Sheets

Although the company has a large portion of equity and assets, the company’s borrowing is higher than its competitors in the industry. Piling up more debts means a decline in the company’s overall net margins since obtained profits will first go to cover debts. Its operations would be under pressure as it still struggles to sustain itself in the low-priced product market.

Past Interference

Past obligations and liabilities taunt the business up to date. Focusing on its current operations becomes a problem. Old debts have to paid, reputation has to be repaired from past mistakes and past lawsuits and legal problems have to be settled.

Opportunities

Acquisitions

With the already registered large capital base, the company is in a position to smoothly acquire other businesses to quench its continuous desire for growth (Value Line, 2015). Acquisitions could either be made with the goal of integrating forward or backward depending on the company’s goals.

New Platforms

The company’s next acquisition of Leap wireless that is of a prepaid carrier is set at pushing away its competitors by attracting a large number of low-income customers through purchases and subscriptions (Value Line, 2015).

Emerging Markets

The telecommunication industry is intertwined with other sectors in the corporate world as well. It is, therefore, important for the business to be on the look-out for loopholes and gaps in the market that must to be filled.

Potential Growth in Wireless Connectivity

The company plans to have a joint venture with Apple in wireless exclusivity with Apple’s iPhone.

Threats

There is an increasing competition especially in the wireless network connectivity (Value Line, 2015). The current network-based growth is towards the wireless connectivity era.

Emerging technologies also seem to pose a threat to the company since it gives smaller business more flexible approaches in the competitive market.

Price competition may prompt the company to lower its product prices as well reducing their profit margins.

Adverse weather conditions damage antennas and lines of network transmissions proving more expensive in the future as company’s costs will increase. This is an external factor that cannot be easily controlled (EBSCO HOST, 2014).

SWOT Analysis

Name

Institution

SWOT Analysis

Introduction

Stocks in AT&T have trudged during most times of the past year raising an alarming concern for the performance of the business. Its shares have not been stable for a while missing out on the stock market exchange top most in 2014 (Value Line, 2015). The company has had numerous positive performance when considering cost management, broadband traction, repurchasing of shares, video as well as telephone services. However, the company is facing numerous competitions from the wireless subscribers and other forms of telecommunication networks. Technological advancements have led to more competitive global pricing strategies with an aim of increasing their customer base. Mobile users can now upgrade their phones by making a small fee rather than making a down payment as they were used to before. Despite this, the profit margins have been lowered as the as the metrics of the average revenue of each user has declined. Profit margins have been also affected by increasing expenses on content, expensive legacy operations that are difficult to manage and maintain; heavy expenditures on infrastructures and their huge investments. One of the best ways to develop an analysis for any company is a SWOT analysis that looks at both the firm’s internal and external organization (Barney, 1995). In this regard, a SWOT analysis conducted on AT&T would be necessary for measuring the firm’s performance and the state of its position in the telecommunication industry.

Operations

AT&T, formerly known as SBC Communications, was founded in 1983 as a Unites States Public company dealing with telecommunication making it the third-largest company in Texas and as of May 2014, it became the 23rd largest company in the world and the 16th largest when ruling out oil companies. The company also managed to secure a position in the telecommunication network in the world being the 18th largest telecommunication network company with over 126.4 million customers worldwide (Value Line, 2015). It has 243,620 employees as of 2015 with the previous year’s revenue being a whooping US$ 132.447 billion and a net income of US$ 6.227 billion in 2014. 2014 saw the company becoming the world’s largest provider of pay – TV with the combination of AT&T U-verse and Direc TV. The company mentioned on 2015 that they would switch to Direc TV as it will stop using the U-verse system. As of today, the company remains to be one of the recognized to companies in the world and maintains its headquarters in Texas. The company’s products are satellite television, mobile telephone, fixed line telephone, broadband as well as the digital television.

Strengths

Largest Communications Company Holding by Revenue

The company’s estimated revenue was US$ 132.447 billion in 2014 with a total operating income of US$ 13.866 billion and a net income of US$ 6.224 billion (EBSCO HOST, 2014). Additionally, its total assets and equity amount to US$ 292.829 billion and US$ 86.924 billion by the end of 2014. This, therefore, suggests that the company has a large capital base that; one of the main reasons for its continued growth in investments. This also dictates the company’s ability to pay off its debtors as well expanding its operations at a global front. Through this, the company has gained a competitive front in the telecommunications industry in being the one of top most performing companies.

Largest Broadband/Data Provider in the US

Both wireless and traditional wiring continue to flock the communications network as the world is proceeding to an internet-based societal system of communications (Value Line, 2015). With their large financial front, the company aims at acquiring and using sophisticated technologies in their operations. It aims to expanding its high-speed videos and broadband while developing its network connectivity in homes particularly creating a system that connects wire line services to the wireless network they are providing. The company is in a position to take advantage of the increasing data flow across continents.

Wireless Capabilities

The company is also extremely capable of its network capacity when looking at both the wireless and physical connectivity such as the fiber optics. The company manages to shine in its broad scope in the United States will all major metropolitan areas receiving endless connectivity serving approximately 300 million people using its LTE technology. It relies on other GSMs for transmission of 3G and 2G networks, but most importantly, it provides a 4G network coverage using a wide range of sophisticated technology (Value Line, 2015). It still continues to grow to even remote areas by offering their network coverage. Again, it has a wireless exclusivity with the famous iPhone from Apple.

Broad Portfolio of Products and Services

The company has increased its reputation in providing a variety of high-quality products to its customers (EBSCO HOST, 2014). Products range from wireless communications, both local and long-distance services, data and internet services and video services. On top of that, it has managed to provide telecommunication equipment, publishing and advertising of the directories as well as wholesale services. Diversifying its operations creates more room for profit margins to rise as well as reducing the risks of the company’s failure in the event of one product failing or not meeting the required goals and standards.

Weaknesses

Price Competition

The already high competition in the market puts pressures on businesses as they struggle to survive in the market. Price, therefore, becomes an important factor when handling market issues and operations (Value Line, 2015). The lack of a jointly formed body has had adverse effects on product pricing leading to price wars among companies in the telecommunication industry. Companies are competing for a slice of the market share as seen by the low product pricing on Apple’s i6 phone as well as Sprint and T-Mobile. As a result, AT&T’s market share is dropping by a bigger percent. It becomes difficult for the company to lower its prices due to its already tight operations brought about by high costs.

Inflexibility

The larger a company becomes, the more rigidity it attains (Value Line, 2015). The company is operating in economies of scale making it difficult to adopt or sustain its already existing operations such the volatile wireless network system that is being adopted by a majority of the telecommunication companies. Smaller companies are, therefore, in a good position to bring in new products easily and operating with low costs as compared to AT&T. Changes in payments and service provision programs can be easily done without tampering with their customers or more so, their sales.

Unfavorable Balance Sheets

Although the company has a large portion of equity and assets, the company’s borrowing is higher than its competitors in the industry. Piling up more debts means a decline in the company’s overall net margins since obtained profits will first go to cover debts. Its operations would be under pressure as it still struggles to sustain itself in the low-priced product market.

Past Interference

Past obligations and liabilities taunt the business up to date. Focusing on its current operations becomes a problem. Old debts have to paid, reputation has to be repaired from past mistakes and past lawsuits and legal problems have to be settled.

Opportunities

Acquisitions

With the already registered large capital base, the company is in a position to smoothly acquire other businesses to quench its continuous desire for growth (Value Line, 2015). Acquisitions could either be made with the goal of integrating forward or backward depending on the company’s goals.

New Platforms

The company’s next acquisition of Leap wireless that is of a prepaid carrier is set at pushing away its competitors by attracting a large number of low-income customers through purchases and subscriptions (Value Line, 2015).

Emerging Markets

The telecommunication industry is intertwined with other sectors in the corporate world as well. It is, therefore, important for the business to be on the look-out for loopholes and gaps in the market that must to be filled.

Potential Growth in Wireless Connectivity

The company plans to have a joint venture with Apple in wireless exclusivity with Apple’s iPhone.

Threats

There is an increasing competition especially in the wireless network connectivity (Value Line, 2015). The current network-based growth is towards the wireless connectivity era.

Emerging technologies also seem to pose a threat to the company since it gives smaller business more flexible approaches in the competitive market.

Price competition may prompt the company to lower its product prices as well reducing their profit margins.

Adverse weather conditions damage antennas and lines of network transmissions proving more expensive in the future as company’s costs will increase. This is an external factor that cannot be easily controlled (EBSCO HOST, 2014).

SWOT Analysis

Name

Institution

SWOT Analysis

Introduction

Stocks in AT&T have trudged during most times of the past year raising an alarming concern for the performance of the business. Its shares have not been stable for a while missing out on the stock market exchange top most in 2014 (Value Line, 2015). The company has had numerous positive performance when considering cost management, broadband traction, repurchasing of shares, video as well as telephone services. However, the company is facing numerous competitions from the wireless subscribers and other forms of telecommunication networks. Technological advancements have led to more competitive global pricing strategies with an aim of increasing their customer base. Mobile users can now upgrade their phones by making a small fee rather than making a down payment as they were used to before. Despite this, the profit margins have been lowered as the as the metrics of the average revenue of each user has declined. Profit margins have been also affected by increasing expenses on content, expensive legacy operations that are difficult to manage and maintain; heavy expenditures on infrastructures and their huge investments. One of the best ways to develop an analysis for any company is a SWOT analysis that looks at both the firm’s internal and external organization (Barney, 1995). In this regard, a SWOT analysis conducted on AT&T would be necessary for measuring the firm’s performance and the state of its position in the telecommunication industry.

Operations

AT&T, formerly known as SBC Communications, was founded in 1983 as a Unites States Public company dealing with telecommunication making it the third-largest company in Texas and as of May 2014, it became the 23rd largest company in the world and the 16th largest when ruling out oil companies. The company also managed to secure a position in the telecommunication network in the world being the 18th largest telecommunication network company with over 126.4 million customers worldwide (Value Line, 2015). It has 243,620 employees as of 2015 with the previous year’s revenue being a whooping US$ 132.447 billion and a net income of US$ 6.227 billion in 2014. 2014 saw the company becoming the world’s largest provider of pay – TV with the combination of AT&T U-verse and Direc TV. The company mentioned on 2015 that they would switch to Direc TV as it will stop using the U-verse system. As of today, the company remains to be one of the recognized to companies in the world and maintains its headquarters in Texas. The company’s products are satellite television, mobile telephone, fixed line telephone, broadband as well as the digital television.

Strengths

Largest Communications Company Holding by Revenue

The company’s estimated revenue was US$ 132.447 billion in 2014 with a total operating income of US$ 13.866 billion and a net income of US$ 6.224 billion (EBSCO HOST, 2014). Additionally, its total assets and equity amount to US$ 292.829 billion and US$ 86.924 billion by the end of 2014. This, therefore, suggests that the company has a large capital base that; one of the main reasons for its continued growth in investments. This also dictates the company’s ability to pay off its debtors as well expanding its operations at a global front. Through this, the company has gained a competitive front in the telecommunications industry in being the one of top most performing companies.

Largest Broadband/Data Provider in the US

Both wireless and traditional wiring continue to flock the communications network as the world is proceeding to an internet-based societal system of communications (Value Line, 2015). With their large financial front, the company aims at acquiring and using sophisticated technologies in their operations. It aims to expanding its high-speed videos and broadband while developing its network connectivity in homes particularly creating a system that connects wire line services to the wireless network they are providing. The company is in a position to take advantage of the increasing data flow across continents.

Wireless Capabilities

The company is also extremely capable of its network capacity when looking at both the wireless and physical connectivity such as the fiber optics. The company manages to shine in its broad scope in the United States will all major metropolitan areas receiving endless connectivity serving approximately 300 million people using its LTE technology. It relies on other GSMs for transmission of 3G and 2G networks, but most importantly, it provides a 4G network coverage using a wide range of sophisticated technology (Value Line, 2015). It still continues to grow to even remote areas by offering their network coverage. Again, it has a wireless exclusivity with the famous iPhone from Apple.

Broad Portfolio of Products and Services

The company has increased its reputation in providing a variety of high-quality products to its customers (EBSCO HOST, 2014). Products range from wireless communications, both local and long-distance services, data and internet services and video services. On top of that, it has managed to provide telecommunication equipment, publishing and advertising of the directories as well as wholesale services. Diversifying its operations creates more room for profit margins to rise as well as reducing the risks of the company’s failure in the event of one product failing or not meeting the required goals and standards.

Weaknesses

Price Competition

The already high competition in the market puts pressures on businesses as they struggle to survive in the market. Price, therefore, becomes an important factor when handling market issues and operations (Value Line, 2015). The lack of a jointly formed body has had adverse effects on product pricing leading to price wars among companies in the telecommunication industry. Companies are competing for a slice of the market share as seen by the low product pricing on Apple’s i6 phone as well as Sprint and T-Mobile. As a result, AT&T’s market share is dropping by a bigger percent. It becomes difficult for the company to lower its prices due to its already tight operations brought about by high costs.

Inflexibility

The larger a company becomes, the more rigidity it attains (Value Line, 2015). The company is operating in economies of scale making it difficult to adopt or sustain its already existing operations such the volatile wireless network system that is being adopted by a majority of the telecommunication companies. Smaller companies are, therefore, in a good position to bring in new products easily and operating with low costs as compared to AT&T. Changes in payments and service provision programs can be easily done without tampering with their customers or more so, their sales.

Unfavorable Balance Sheets

Although the company has a large portion of equity and assets, the company’s borrowing is higher than its competitors in the industry. Piling up more debts means a decline in the company’s overall net margins since obtained profits will first go to cover debts. Its operations would be under pressure as it still struggles to sustain itself in the low-priced product market.

Past Interference

Past obligations and liabilities taunt the business up to date. Focusing on its current operations becomes a problem. Old debts have to paid, reputation has to be repaired from past mistakes and past lawsuits and legal problems have to be settled.

Opportunities

Acquisitions

With the already registered large capital base, the company is in a position to smoothly acquire other businesses to quench its continuous desire for growth (Value Line, 2015). Acquisitions could either be made with the goal of integrating forward or backward depending on the company’s goals.

New Platforms

The company’s next acquisition of Leap wireless that is of a prepaid carrier is set at pushing away its competitors by attracting a large number of low-income customers through purchases and subscriptions (Value Line, 2015).

Emerging Markets

The telecommunication industry is intertwined with other sectors in the corporate world as well. It is, therefore, important for the business to be on the look-out for loopholes and gaps in the market that must to be filled.

Potential Growth in Wireless Connectivity

The company plans to have a joint venture with Apple in wireless exclusivity with Apple’s iPhone.

Threats

There is an increasing competition especially in the wireless network connectivity (Value Line, 2015). The current network-based growth is towards the wireless connectivity era.

Emerging technologies also seem to pose a threat to the company since it gives smaller business more flexible approaches in the competitive market.

Price competition may prompt the company to lower its product prices as well reducing their profit margins.

Adverse weather conditions damage antennas and lines of network transmissions proving more expensive in the future as company’s costs will increase. This is an external factor that cannot be easily controlled (EBSCO HOST, 2014).

References

Barney, J. B. (1995). Looking inside for competitive advantage. The Academy of Management

Executive, 9(4), 49-61.

EBSCO HOST, (2014). AT&T Inc. SWOT Analysis. Retrieved from

http://connection.ebscohost.com/c/articles/95947591/at-t-inc-swot-analysis

Value Line, (2015). AT&T: A Short SWOT Analysis. Retrieved from

http://www.valueline.com/Stocks/Highlight.aspx?id=16855#.VkCXBL_7_IV

References

Barney, J. B. (1995). Looking inside for competitive advantage. The Academy of Management

Executive, 9(4), 49-61.

EBSCO HOST, (2014). AT&T Inc. SWOT Analysis. Retrieved from

http://connection.ebscohost.com/c/articles/95947591/at-t-inc-swot-analysis

Value Line, (2015). AT&T: A Short SWOT Analysis. Retrieved from

http://www.valueline.com/Stocks/Highlight.aspx?id=16855#.VkCXBL_7_IV

References

Barney, J. B. (1995). Looking inside for competitive advantage. The Academy of Management

Executive, 9(4), 49-61.

EBSCO HOST, (2014). AT&T Inc. SWOT Analysis. Retrieved from

http://connection.ebscohost.com/c/articles/95947591/at-t-inc-swot-analysis

Value Line, (2015). AT&T: A Short SWOT Analysis. Retrieved from

http://www.valueline.com/Stocks/Highlight.aspx?id=16855#.VkCXBL_7_IV

References

AT&T Inc. SWOT Analysis. (2014). SBC Communications, Inc. SWOT Analysis, 1-10.

Yenipazarli, A. (2015). A road map to new product success: warranty, advertisement and price. Annals Of Operations Research, 226(1), 669-694. doi:10.1007/s10479- 014-1650-2