As two of the nation’s biggest telecoms, AT&T and Verizon have long been entrenched in the industry. But as the pressures of managed decline start to take its toll, can the two telecom giants find ways to innovate and evade a dire future? In this article, we’ll take a look at what AT&T and Verizon can do to ensure their survival in the modern age.
1. Understanding Managed Decline: AT&T and Verizon
Managed decline is an intentional decision by a business to reduce their operations and activities. In recent years, two US telecommunications giants, AT&T and Verizon, have taken steps to do just that. The companies had grown to become so large, they believed it was necessary to shrink their operations to become more profitable.
This decision was made in order to focus on developing their existing services and communication technologies. Both AT&T and Verizon have seen a shift in their strategies, ultimately leading to a managed decline of their mobile businesses. This includes:
- Decreasing operating costs
- Closing down retail store locations
- Selling off unprofitable business units
- Reducing employee salaries
- Limiting capital investments in new projects
These measures have been put in place to help both AT&T and Verizon better manage their expenditures and focus more resources on their growing businesses such as fiber optics, media services, and wireless technology. Managed decline may seem like a drastic measure, but it’s been implemented by both companies with success.
2. Evaluating the Telcos’ Strategies to Thwart Decline
As telecom operators look for ways to combat declining revenues, it is important to evaluate their strategies to ensure they’re effective and sustainable. Negotiation with Customers
One strategy some operators are using is to negotiate better pricing for new customers and additional services for existing customers in order to remain competitive. This approach has two main benefits. Firstly, new customers will be attracted by the competitive pricing. Secondly, existing customers will receive incentives to stay with the same operator.
However, this strategy may only have limited success in increasing revenues in the long run as there’s a balance between the cost of offering the deals and actually bringing in new customers to take advantage of them. Focusing on Quality
Instead, firms should focus on providing a high quality experience for customers, thereby convincing them to remain loyal to the brand. This can include offering reliable service, easy-to-use technology, and helpful customer support. Additionally, operators can include incentives such as discounts on subscription fees for longer-term contracts.
By tailoring their services to meet customer demands and closing service gaps between them and their rivals, operators will be able to differentiate themselves from the competition and protect their market position.
3. Examining the Possibility of Averting Managed Decline
When a business is struggling to remain viable, managers can take certain steps to examine the possibility of averting managed decline. As we’ll discuss in the following two points, there are options that can help turn around a failing business, as well as some capabilities of the human imagination that can be utilized to maximize the aptitude of a business.
- Strategic Reassessment: As the first step to examining the possibility of averting decline, it is necessary for a business to reassess its long-term strategy. This deep, introspective look should consider the core objectives of the business and any changes that may be required, such as investments in new tools or repositioning of the business in the market. Changing consumer needs and preferences should also be taken into consideration.
- Unearthing Ideas: After strategic reassessment, managers should look to unearth ideas that can energize current strategies or create new ones. Imagination and creative thinking can discover innovative solutions, such as seeking out opportunities through new partnerships. Drawing from the entire team’s collective experience can help explore alternative points of view and encourage out-of-the-box thinking.
By taking a broader look at the current state of affairs in terms of strategic objectives and tapping into the imagination to bring forth new ideas, managers can assess and consider whether to avert managed decline. This multifaceted approach can provide a deeper appreciation of the available options and help build a better outcome.
4. How AT&T and Verizon Can Avoid Managed Decline
In the era of cut-throat competition, AT&T and Verizon need to take proactive steps to position themselves for exponential growth. Here are four main ways they could do this:
- Focus on customer experience: AT&T and Verizon should focus on customer experience in all aspects of their business. They should build a customer-centric culture and ensure that all employees are trained to provide outstanding customer service. This will help to build brand loyalty and attract more customers.
- Improve network coverage:For AT&T and Verizon to remain ahead of their competitors, they should make the necessary investments to improve their network coverage. Depending on the region, they could consider wireless or fiber optics networks. This will lead to improved network speeds and ultimately better customer service.
- Explore new nascent technologies: In the rapidly-evolving market of communications technology, AT&T and Verizon should take the opportunity to invest in new emerging technologies such as fifth-generation networks (5G). This will not only keep them at the forefront of the communications industry but it will also offer new opportunities for growth.
- Invest in employees: AT&T and Verizon should invest in their employees by offering training opportunities, competitive salaries, and other incentives. This will help to attract and retain skilled employees who are passionate about their work. This, in turn, will lead to higher employee morale and better customer service.
By following these steps, AT&T and Verizon can position themselves to be future leaders in the communications space. This will ensure that they remain competitive and profitable in the longer term.
The future profitability of AT&T and Verizon remains to be seen, though one thing is clear: these telecom giants will require agile strategic changes in order to insulate themselves from market decline and keep their hard-earned position at the top of the telecom industry.