This paper discusses Verizon Wireless in terms of its strategic marketing. It focusses on value creation for customers, the role that customers play in strategic plan of Verizon Communications Inc., the company’s SWOT analysis, and its competitive analysis. Being a product of Verizon Communications Inc., Verizon Wireless is the giant provider of wireless communication in the US. Verizon wireless provides different cell phone plans for its customers ranging from unlimited calls and texting, prepaid to business plans.
Creating Value for Customers
Verizon Wireless creates value for its customers though its flexible business plans. The subsidiary offers more value, predictability, and customization for customers. It increases customer experiences through ensuring that all lines have shared data, unlimited messaging, unlimited voice calls, unlimited mobile hotspots and international messaging on eligible devices (Annual Report, 2013). Through these flexible business plans, the company provides the customers with the capacity to add many lines for their business and enables customization of data for each line. The company, also, puts much emphasis on simplicity to enable customers select the devices they prefer with much ease.
Role of the Customer in the Company’s Strategic Plan
In most cases, the customer’s role in the strategic plan of the company is usually embedded in its mission statement. In the case of Verizon Communications Inc., the mission statement indicates that Verizon is committed to prioritizing the needs of its customers through provision of excellent communication services. Verizon believes that it can create meaningful work and produce great returns by focusing on the customer (Annual Report, 2013). Through this mission statement, it is evident that the customer has a huge role to play in Verizon’s strategic plan. The customer is the final market for the company’s products; therefore, the company has to adjust its strategic plan to make products that meet the needs of customers. The more the customers want and value the product of the company, the more its competitive position improves. This mission statement is perfect for Verizon Communication Inc.’s business.
In terms of strengths, Verizon Wireless enjoys a strong brand name under the umbrella of Verizon Communications Inc. This implies that the business is geographically diverse and obtains adequate revenues, which can protect the business from any instabilities (Verizon Communications Inc., 2015). In terms of weaknesses, Verizon Wireless does not have exposure to the emerging market. Emerging markets have a legacy of providing numerous opportunities for business growth. Therefore, a company’s lack of exposure to such markets limits the growth prospects of its business. In terms of opportunities, the company can embrace international expansion. A strong international presence is essential since expansion can lead to accelerated and increased profits. In terms of threats, Verizon Wireless faces the threat of regulated business (Verizon Communications Inc., 2015). Government regulation has tendencies of limiting business growth through reduction of future cash flows due to increase uncertainty.
A telecommunication is a highly competitive environment thus there are many other companies that offer the same services that Verizon Wireless provides. The main competitors of Verizon Wireless in the U.S telecommunication industry are AT&T Wireless and T-Mobile (Reardon, 2012). All these competitors offer individual and family plans at different rates. AT&T offers a two year plan where it charges customers a basic amount for data plus $40 for every phone. In this plan, sharable data is, also, provided. T-Mobile, on the other hand, has a plan where customers are charged a certain amount in order to obtain $4G data for each line whereby each plan provides unlimited 2G data, which is not sharable (Reardon, 2012). The new plan that that Verizon offers charges basic amount for data plus $20 for each smartphone line. This plan allows data to be sharable. For instance, the following table indicates different options for an individual plan as offered by the three companies:
Data plans with one smartphone line
From the table above, it is clear that plan options for an individual person are fairly cut especially for AT&T wireless. Verizon provides average prices whereas T-Mobile provides the best prices.
Verizon Wireless creates value for its customers though its flexible business plans. The subsidiary offers more value, predictability, and customization for customers. In the case of Verizon Communications Inc., the mission statement indicates that Verizon is committed to prioritizing the needs of its customers through provision of excellent communication services.