AT&T Strategic Analysis

Transformation Consulting, Inc.Arianna Hortsman, Amy Cabanas, Ryan Hoff and Dwight Davis

Introduction• 1877 AT&T, standing for American

Telephone & Telegraph began.• Developed to build and operate the

first long-distance telephone network.

• Operated as a monopoly until 1984. • Civil antitrust suit with the Justice

Department split Bell into seven ‘baby bell’ companies.

• A restructuring would amount to the largest voluntary break-up in the history of American business.

• AT&T remained a communications services company.

• The other fragments moved into different areas of business.

Mission Statement“To exploit technical innovations for the benefit of AT&T and its customers by implementing next-generation technologies and network advancements”

Analysis and EvaluationAssessment of External Environment

• Technological segments• Political segments• Economic segments• Social segments• Environmental segments• Legal segments• Buyer Power• Supplier Power

Assessment of Current Strategy• AT&T’s current strategy will be to

focus around five different areas: • Openness• Security• Smartness• Efficiency• Reliability

• These five components are utilized as lenses for AT&T to analyze their products, from new software and technologies to their cable/Internet and phone services.

Business Strategy• AT&T also breaks up their business strategy into

different components:

• Master Strategy• Marketing Strategy • Technology Strategy

Keys to Success• Innovation

• New frontier of connected-car • Connected-home technologies

• Also exploring better-fitted Internet/cable and data plans for customers.

• Currently they are leaders in wireless products and services.

SWOT ANALYSISExternal Environment Internal Environment

Opportunitieso New technologieso Connected car/houseo Acquisitionso International expansiono Wireless growth

Strengthso Wireless capabilitieso Data/Broadband offeringso Brandingo Mergerso iPhone exclusivityo Acquisition of DirecTV and Cingular

Threatso Continued price warso Government regulationso Intensified competitiono Industry consolidationo Emerging technologies

Weaknesseso Tighter marginso Lack of flexibilityo Poor customer serviceo Poor reputationo Limited market shareo Censorship issueso Network security problemso Company size

Recommendations• Pursue the most

disenchanted legacy Nextel customers by marking to PTT technology.

• Continue marketing relationship with Apple’s iPhone

• Better accentuate the breadth of services in advertisement; customers are unaware of the speeds AT&T has to offer.

• Advertise partnership with HBO mobile

• Continue to improve customer service, relations, and support in order to repair damaged image.

• Pursue into newfound and highly-anticipated technologies such as connected car/home technology.

Questions?