SWOT ANALYSIS ON AT&T INC.

SWOT ANALYSIS ON AT&T INC.[/b]

AT&T Inc. is the largest provider of fixed telephony in the United States, and also provides broadband and subscription television services. AT&T is the second largest provider of mobile telephony service in the United States, with over 92.8 million wireless customers, just behind Verizon Wireless' 93.2 million, and more than 210 million total customers.

As of 2010, AT&T is the 7th largest company in the United States by total revenue, as well as the 3rd largest non-oil company in the US (Behind Walmart and Bank of America). It is the 3rd largest company in Texas by total revenue (Behind ExxonMobil and ConocoPhillips) and the largest non-oil company in Texas. It is also the largest company headquartered in Dallas. In 2010, Forbes listed AT&T as the 13th largest company in the world and the 8th largest non-oil company in the world, the largest company in the world not associated with banking or oil, as well as the world's largest provider of telecommunication.

Southwestern Bell Corporation was founded in 1983 as a Regional Bell Operating Company following the break-up of the original AT&T as a result of the United States v. AT&T antitrust suit. The company changed its name in 1995 to SBC Communications Inc. and again in 2005 to AT&T Inc. after it purchased its former parent company, AT&T Corporation. The newly merged company took on the iconic AT&T logo and T stock-trading symbol (for "telephone").

The current AT&T reconstitutes much of the former Bell System and includes ten of the original 22 Bell Operating Companies along with one it partially owned (Southern New England Telephone), and the original long distance division. The company is headquartered in downtown Dallas, Texas.

SWOT ANALYSIS ON AT&T INC.[/b]

Strengths [/b]

• Broad portfolio of wireless devises
  
• Extremely capable network capacity - both physical (fiber optics) and wireless (including a growing 3G network)
  
• AT&T Wireless exclusivity with Apple's iPhone
  
• Being a boss.
  

Weaknesses [/b]

• Network that at times is not able to handle the growing number of customers
  
• Customer service [/b]
  
• Balance sheet -- company more leveraged than competitors within the industry.
  
• 45% of cellular business directly related to the iphone.
  
• High percentage of dropped calls
  
• Reputation
  

Opportunities [/b]

• Potential purchases of other smaller wireless networks
  
• Development of four G network
  
• Development of more exclusive products such as iPhone
  
• Further industry consolidation (acquisitions).
  
• Wireless growth, particularly through its partnership with Apple/iPhone.
  
• Emerging markets/global expansion.
  
• Further industry growth with 4G technology.
  

Threats [/b]

• Increasing ferocious competition in the wireless arena
  
• Too much emphasis on iPhone
  
• Potential disasters or technical problems that can lead to system outages
  
• Emerging technologies -- falling behind smaller, more nimble companies and operators.
  
• Price competition within industry pressuring margins.
  
• Weather damage to antennas and transmission lines.
  

 

[Dhruv Bindhani]

This text provides a SWOT analysis of AT&T Inc., with a clear focus on the company's standing and challenges around the year 2010. It effectively highlights AT&T's dominant market position at that time while also candidly outlining its operational vulnerabilities and the external forces shaping its future.

The introductory paragraphs effectively establish AT&T's immense scale and influence in the telecommunications sector. As the largest fixed telephony provider and the second-largest mobile telephony service in the U.S., with over 210 million total customers, its market footprint is undeniable. The statistics from 2010, positioning it as the 7th largest U.S. company by revenue and the world's largest telecom provider, further underscore its "boss" status, as humorously noted in the strengths section. The brief historical context of its re-establishment from the original Bell System's breakup adds depth to understanding its extensive network and legacy.

The Strengths section accurately pinpoints AT&T's competitive advantages in that era. The "broad portfolio of wireless devices" and "extremely capable network capacity" (both fiber optics and 3G wireless) were fundamental to its service delivery. However, the most emphasized strength, and a key strategic asset at the time, was the "AT&T Wireless exclusivity with Apple's iPhone." This partnership was a significant market differentiator that drove customer acquisition and revenue.

The Weaknesses are candid and well-identified, reflecting the growing pains of a rapidly expanding network. The core issues of the "network that at times is not able to handle the growing number of customers" and the resulting "high percentage of dropped calls" directly fed into issues with "customer service" and ultimately, reputation. The analysis also wisely flags the balance sheet's leverage compared to competitors and, critically, the over-reliance on a single product, noting that "45% of cellular business [was] directly related to the iPhone." This singular focus, while a strength, also presented a significant concentration risk.

The Opportunities section outlines logical growth avenues for AT&T. These include strategic plays like the "potential purchases of other smaller wireless networks" and "further industry consolidation (acquisitions)." Technologically, the "Development of four G network" was a crucial next step, alongside further "development of more exclusive products such as iPhone" to capitalize on its successful partnership. The mention of "emerging markets/global expansion" indicates potential avenues for diversification beyond the saturated U.S. market.

Finally, the Threats are pertinent to the competitive and technological landscape of the early 2010s. "Increasing ferocious competition in the wireless arena" was a constant pressure, exacerbated by the risk of "too much emphasis on iPhone" if the market shifted or exclusivity agreements changed. Operational vulnerabilities like "potential disasters or technical problems that can lead to system outages" and "weather damage to antennas and transmission lines" highlight the inherent risks in managing vast infrastructure. The threat of "emerging technologies" causing AT&T to "fall behind smaller, more nimble companies and operators" and "price competition within industry pressuring margins" accurately captured the dynamic challenges facing a large, established player.

In conclusion, this SWOT analysis provides a robust snapshot of AT&T's strategic position around 2010. It effectively leverages the provided company background to inform each section, presenting a balanced view of its competitive advantages and significant operational and market challenges.