Verizon Porter's Five Forces Analysis

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Porters Five Force 's Model The Porter’s five forces model is a respected framework that a myriad of businesses like Verizon uses in order to determine their corporate strategies. These stratagems can also be used to govern Verizon’s overall market profitability regarding their countless business segments. This award winning and respected process was developed by Michael E. Porter who believed that the attractiveness of each market segment would aide in the progression of the five competitive forces. These forces include threats of new entrants, bargaining power of buyers, threats of substitute products or services, bargaining power of suppliers, and the rivalry among existing competitors (Porters Five Forces, 2014). Threats of New Entrants:…show more content…
Consequently, this also increases customers cost and reduces Verizon’s profitability, which is extremely hard to recover in the end. However, with that being said, Verizon will typically never have an issue with this mainly due to their vast resources and number of available suppliers. In Fact, Verizon has the ability to choose from a large pool of suppliers regarding the needed supplies for their network infrastructure or the manufacturing components for their immense products. Verizon also believes that their diverse group of suppliers will provide the highest quality products and services that’s both affordable and dependable for their customers. This is accomplished by having a dedicated team who thrives on ensuring that every supplier follows a stringent guideline regarding quality, cost, and variety of…show more content…
This will be accomplished by conducting competitive price wars, creative advertisement mêlées, innovative product designs, enhanced customer service, increased warranties, robust guarantees, bolder promises, and ingenious sales pitches by celebrities. Verizon will use these tactics to increase their competitive advantage against their biggest rivalry, AT&T. This tactic will offer a measurable impact regarding their overall sales, subscribers, and profits, which forces AT&T to retaliate against Verizon in a never ending battle of creative commercials, innovative products and superior
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