It was the First wireless provider to connect to the internet in major metropolitans areas via a laptop or cell phone. It had automated software programs to analyze the call habits of individual customer, for which its goal was to anticipate customer needs and satisfaction. Affect on cost structure: Verizon has invested Heavily in it’s customer care function That affects the cost structure of the Verizon wireless. How would you characterized Verizon’s Business-level strategy? How do the company’s functional Strategies enable it to implement its business-level strategy?
Verizon’s business level strategy : Verizon’s has largest coverage area of any wireless provider that differentiate their products from its rivals. By offering nation wide broad band service, enjoy the large market share. Took unique Advertisement strategy. Using “TEST MAN” advertisement. The way Functional level strategies enable to Implement Business level Strategy: Firstly , the company invested heavily in building high quality nationwide wireless network. That helped it to position itself on differentiation base to its customer.
Verizon’s churn rate is lower than its rivals and this has increased their customer and achieves economies of scale by spreading fixed cost of building network over a large customer base. It installed CDMA technology instead of traditional GSM, which gave differential advantages over GSM to provide better service and lowering its cost. Do you think that Verizon has a sustainable competitive advantage in the wireless business? I think verizon has a sustainable competitive advantage. Because: Verizon has Nationwide wireless network.