Buyers have power in the network aspects of the company because buyers have three major competitors of Verizon in which they can go to such as AT&T, Qwest, and Sprint Nextel.
Verizon has reduce their buyers’ power by offering loyalty programs to their customers. There loyalty programs are what they call bundles. Customers are able to create their own bundles and save money by obtaining a home phone, Verizon wireless, internet and TV all in one big savings bill.
Vodafone AirTouch is a Verizon supplier which is the world’s largest wireless communications firm. It is based in the United Kingdom but it has mobile operations in 26 countries on five continents. In the United States, Vodafone AirTouch provides wireless paging, data, and voice services through its ownership interest in Verizon Wireless. Vodafone AirTouch has low supplier power on Verizon Wireless because Verizon Wireless is the nation’s largest wireless communication provider.
The threat of substitute products or services is highest in the cell phone aspect of Verizon because there are many alternatives to the product and service. For example, the starting of free nights, unlimited texting and media, contract length, and overage minutes cost is where Verizon competitor may provide a threat of substitute service. Fortunately Verizon have various switching costs such as termination fees, free trial period, roaming fee, phone insurance, and they have great family plans.
Threat of new entrants is low because it is difficult to enter in the communication market and last because of all the global communicating giants there are. An entry barrier for a cell phone provider is phone signal. The main point of a cell phone is to be able to make and receive calls, and in order for that to happen the customer needs good signal. Verizon is known for their excellent phone signal.
The rivalry among existing competitors for Verizon is high because competition is fierce in both the network and cell phone aspect of the company. Rivals such as AT&T, Qwest, and Sprint Nextel compete in different ways but they all try to beat or match Verizon on price. In the Cell phone provider aspect AT&T, T-Mobile, Sprint, Alltell, and US Cellular try to beat or match Verizon. This is why the rivalry among existing competitors is high for Verizon. Luckily, Verizon is a huge brand name that has a magnificent reputation and has a several beneficial loyalty and versatile programs to offer.
Verizon’s goal from day one has been to pass as many businesses as possible. Verzion provides all the sources of communication and entertainment; Internet access, wireless service, and high-speed satellite television service, land lines. However, there is a lot of competition: Sprint, AT&T, T-Mobile, Bell South, and many more. With the help of Microsoft, the software will be used to provide an interactive program guide, high-definition television, digital video recording and video-on-demand for Verizon’s FiOS TV service.
Verizon Communications Inc. plans to continue using Microsoft Corporation technology for its level of television service over a new fiber-optic network, becoming the third major telephone company to help fulfill Microsoft’s mission into the TV business. Verizon is an example of Top line—increase revenues through IT. Verizon is not cutting cost to increase profit; however they are using the largest software company, Microsoft, to help increase revenue.
Verizon has a B2C e-commerce because it allows them to greatly vary there customers demographics, lifestyle, wants, and needs. For instances, Verizon offers phone plans for customers. Verizon offers local and long distance plans, international plans, and calling features. For efficiency, in order to view what plans Verizon is offering to the customers demographics the customer must put either his or her Verizon local number service, or put their zip code. Once this step is taken, the customer can see all the phone plans that are being offered.
The type of internet business model that is being used by Verizon is the CRM because Verizon already knows depending on the customer’s demographic what phone plans are being offered and appealing for that customer’s wants and needs. It is quite simple for customers to find the right plans for them because once they put down their zip code or Verizon local number service they list all the plans that are offered.
In order for Verizon to pursue its marketing objectives in reaching and attracting potential customers Verizon has registered with search engines and online ads for its marketing mix. Verizon has a successful marketing mix because there site appears at the top portion of the search list in Yahoo and Google.
The way Verizon payment system works is: you must first sign in to MyVerizon, then click MyProfile, On the left column under my MyProfile you click MyAccount, and there you payment areas are open. Verizon offers Electronic Check where customers can set up there banking account as a payment method. They also offer a credit, debit, and ATM card accounts.
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