Barrington McFarlaneAllison Schaefer

Maitrik Shah

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History

• Verizon formed in 2000 after merger Bell Atlantic Corp and GTE Corp.

• Bell Atlantic is one of the “Baby Bells” from 1980s.

• GTE was one of largest telecommunications companies.

• Verizon immediately was the largest telephone company in the US.

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Vision Statement

• “We have work because our customers value our high-quality communications services.”

• “We focus outward on the customer, not inward. We make it easy for customers to do business with us, by listening, anticipating and responding to their needs.”

• “We know teamwork enables us to serve our customers better and faster. We embrace diversity and personal development not only because it’s the right thing to do, but also because it’s smart business.”

• “We believe integrity is at the core of who we are. It establishes the trust that is critical to the relationships we have.”

• “We know that bigness is not our strength, best is our strength.”• “Everything we do is built on the strong foundation of our corporate

values.”

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Mission Statement

• “To use our technology to solve some of the world’s most pressing problems in education, healthcare and energy management.”

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Social Responsibility

• Education and literacy– Training teachers– VILS and ISTE partnership

• Safety and health– Healthcare monitoring– Partnership with CHM

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Financial Position

• #1 leader across most key performance measure in Telecommunications Industry. Net Income, Gross profit.

• Largest market cap size

• Strong Stock Performance– High P/E ratio– Very stable Industry beta value(.04)

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Stock Price Performance

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Competitor Financial Analysis

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Financial Measures (Current)AT&TVerizon

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Q1 Q2 Q3 Q4

Revenue Y/Y Growth

2011

2012

2013

2014

Q1 Q2 Q3 Q4

Net Income Y/Y Growth

2011

2012

2013 -1.36%

-0.19%

3.52%

8.90%

Annual Net Income Growth

2010

2011

2012

2013

-1.15%

4.04% 4.48% 4.06%

Annual Revenue Growth

2010

2011

2012

2013

Product and Services

•Wireless –Voice and Data Services–Device Sales

•Enterprise Solution–IT, Security and Communication solutions–Data centers and Cloud computing

•Wireline–Voice–Broadband video and data service–Internet Access

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Strengths

• Strong market share supported by growth rates, margins and lower churns

• Extensive wireless network across US

• Growing postpaid Average Revenue Per Account

• FiOS success

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Weaknesses

• International Presence

• Substantial debt

• Significant workforce represent labor unions

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Opportunities

• Expand Globally

• Infrastructure and cloud services. • Growing demand of customers to forgo landline for

mobile devices

• Growing demand for broadband

• M2M (Machine to Machine) services7/31/14 14

Threats

• Extremely competitive market.

• Emergence of new technology delivering new products and services

• Changes in Regulatory and Legal requirements.

• Cyber-attacks and breach in technology

• Supply chain problems7/31/14 15

Alternative Strategy #1

• Product Development– Focus on tablet sales– Readjust current plans– Saturated cell phone market

• Challenges– Customer acquisition and retention

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Alternative Strategy #2

• Unrelated Diversification• Strong Financial position

– Acquire Device Equipment Manufacturer – HP

– Device Convergence

– Industry Trends: Opportunities in Healthcare, Energy, Automotive, Construction

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Alternative Strategy #2

• Challenges– Raise capital to integrate

horizontally with HP.

– Brand awareness challenges – associate new products to Verizon's name.

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Group Recommendation

• Market Development • Expand Wireless Services in Canadian Market

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Group Recommendation

• Implementation

– Buy starters up carriers like Wind Mobile and

Mobilicity

– Favorable Canadian Government Policy

– Readily available infrastructure

– Technical leadership

• Challenges

– Raising Capital

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Group Recommendation

• Pros– Increase profits– International Presence in Wireless Services– Financial Stability

• Cons– Increase in current debt

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Questions?

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