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Verizon Communications

To create the networks that move the world forward by becoming the most trusted technology company in the world



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Align the strategy

Verizon Communications SWOT Analysis

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To create the networks that move the world forward by becoming the most trusted technology company in the world

Strengths

  • INFRASTRUCTURE: Extensive nationwide wireless network assets
  • BRAND: Strong brand recognition with reliability positioning
  • SCALE: Large customer base providing recurring revenue streams
  • ENTERPRISE: Strong B2B relationships and solution capabilities
  • SPECTRUM: Valuable mid-band and mmWave spectrum holdings

Weaknesses

  • DEBT: High debt levels limiting financial flexibility options
  • COMPETITION: Intense price competition in wireless segment
  • GROWTH: Slower subscriber growth than key competitors T-Mobile
  • DIVERSIFICATION: Heavy reliance on wireless services revenue
  • PRICING: Higher-priced services compared to major competitors

Opportunities

  • 5G: Monetization of 5G network investments through new services
  • FWA: Expanding fixed wireless access to underserved markets
  • ENTERPRISE: Growth in enterprise IoT and private network solutions
  • PARTNERSHIPS: Strategic technology & content partnerships
  • CONVERGENCE: Bundle mobile, home internet and digital services

Threats

  • COMPETITION: Aggressive pricing from T-Mobile and cable MVNOs
  • SATURATION: Mature US wireless market with limited growth
  • REGULATION: Potential regulatory changes affecting operations
  • TECHNOLOGY: Emerging alternative connectivity technologies
  • INVESTMENT: High capital requirements for network maintenance

Key Priorities

  • 5G MONETIZATION: Accelerate revenue growth from 5G investments
  • FWA EXPANSION: Rapidly scale fixed wireless access offerings
  • CUSTOMER RETENTION: Improve loyalty through enhanced value
  • DEBT REDUCTION: Strengthen balance sheet for future investment
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Align the plan

Verizon Communications OKR Plan

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To create the networks that move the world forward by becoming the most trusted technology company in the world

5G DOMINANCE

Lead the industry in 5G monetization and innovation

  • COVERAGE: Expand 5G Ultra Wideband to reach 85% of US population by Q4, increasing from current 70% coverage
  • ADOPTION: Drive 5G Ultra adoption to 65% of postpaid base, with 40% using premium unlimited plans by end of quarter
  • ENTERPRISE: Deploy 150 private 5G networks for enterprise customers, focusing on manufacturing and healthcare sectors
  • REVENUE: Achieve 6% YoY wireless service revenue growth through new 5G services and premium plan adoption
HOME BREAKTHROUGH

Transform Verizon into a home connectivity leader

  • FWA: Add 500,000 net new Fixed Wireless Access customers, prioritizing rural and underserved suburban markets
  • FIBER: Complete fiber deployment to 700,000 additional homes passed, focusing on high-density urban markets
  • BUNDLING: Increase wireless+home bundle attachment rate to 35%, reducing churn by 25 basis points year-over-year
  • EXPERIENCE: Launch next-gen home gateway with Wi-Fi 7 support in 80% of new installations by quarter end
CUSTOMER OBSESSION

Deliver industry-leading customer loyalty & advocacy

  • RETENTION: Reduce postpaid phone churn to 0.80% through targeted retention programs and enhanced value propositions
  • DIGITAL: Increase digital customer interactions to 85% of total, reducing cost-to-serve by 12% year-over-year
  • SATISFACTION: Achieve Net Promoter Score of 40 across all consumer touchpoints, a 5-point improvement
  • PERSONALIZATION: Deploy AI-driven personalization engine for 90% of customer interactions across all channels
FINANCIAL STRENGTH

Optimize balance sheet & drive operational efficiency

  • EFFICIENCY: Reduce operational expenses by $2.5B through network automation and digital transformation initiatives
  • DEBT: Decrease net unsecured debt by $5B while maintaining dividend commitments and investment grade rating
  • CAPEX: Optimize capital allocation to achieve 19% return on invested capital for new network investments
  • DIVERSIFICATION: Grow non-connectivity revenue streams to 15% of total revenue through IoT and security services
METRICS
  • Wireless service revenue growth: 6% YoY
  • Postpaid phone churn: 0.80%
  • Net broadband additions: 800,000
VALUES
  • Customer-first
  • Integrity
  • Respect
  • Performance Excellence
  • Innovation
  • Social Responsibility
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Align the learnings

Verizon Communications Retrospective

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To create the networks that move the world forward by becoming the most trusted technology company in the world

What Went Well

  • WIRELESS: Consumer wireless service revenue growth of 3.2%
  • BROADBAND: Net addition of 389,000 broadband subscribers
  • FWA: Fixed Wireless Access net additions of 203,000 subs
  • EFFICIENCY: Successful cost reduction initiatives on target
  • ENTERPRISE: Business wireless service revenue growth of 4.1%

Not So Well

  • CHURN: Slight increase in postpaid phone churn to 0.92%
  • ARPU: Pressure on average revenue per account metrics
  • FIBER: Slower than anticipated fiber deployment timeline
  • PREPAID: Continuing decline in prepaid wireless subscribers
  • MEDIA: Underperforming digital media business segment

Learnings

  • BUNDLING: Combined wireless/home internet drives retention
  • SEGMENTATION: Targeted promotions outperform broad offers
  • DIGITAL: Self-service adoption reduces support costs by 12%
  • VALUE: Network quality messaging resonates more than price
  • ENTERPRISE: 5G private networks show strong demand signals

Action Items

  • RETENTION: Implement enhanced loyalty program by Q3 2025
  • DEPLOYMENT: Accelerate 5G Ultra Wideband coverage by 15%
  • CONVERGENCE: Launch new home/mobile bundle offerings
  • AUTOMATION: Scale network automation to reduce opex by 8%
  • PARTNERSHIPS: Expand strategic technology alliances
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Overview

Verizon Communications Market

  • Founded: 1983 as Bell Atlantic, renamed Verizon in 2000
  • Market Share: 29% of US wireless market
  • Customer Base: 143.3 million wireless retail connections
  • Category:
    Telecommunications
  • Location: New York, NY
  • Zip Code: 10007
  • Employees: 117,100
Competitors
AT&T logo
AT&T
T-Mobile logo
T-Mobile
Comcast logo
Comcast
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Charter Communications
DISH Network logo
DISH Network
Products & Services
No products or services data available
Distribution Channels
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Align the business model

Verizon Communications Business Model Canvas

Problem

  • Unreliable connectivity hampering productivity
  • Inadequate bandwidth for modern applications
  • Complex telecommunications environment to manage
  • Security vulnerabilities in connected systems
  • Lack of integrated communication solutions

Solution

  • Reliable high-performance wireless networks
  • Fiber and fixed wireless broadband connectivity
  • Integrated voice, data and security solutions
  • Enterprise-grade managed services
  • IoT and private network solutions

Key Metrics

  • Wireless retail postpaid phone churn rate
  • Fixed wireless and fiber broadband net adds
  • Wireless service revenue growth percentage
  • Network reliability and performance metrics
  • Customer satisfaction and Net Promoter Score

Unique

  • Most reliable wireless network infrastructure
  • Comprehensive B2B and B2C solution portfolio
  • Combined wireless and fixed connectivity options
  • Network security and management capabilities
  • National reach with local market presence

Advantage

  • Extensive physical network infrastructure
  • Valuable licensed spectrum portfolio holdings
  • Scale driving favorable equipment economics
  • Established brand trust with businesses & homes
  • Long-term customer relationships & contracts

Channels

  • Company-owned retail store network
  • Direct enterprise sales organization
  • Digital and e-commerce platforms
  • Indirect retail partners and distributors
  • Telesales and customer service centers

Customer Segments

  • Consumer wireless subscribers
  • Residential broadband households
  • Small and medium businesses
  • Large enterprise organizations
  • Government and public sector agencies

Costs

  • Network infrastructure deployment & maintenance
  • Spectrum acquisition and licensing fees
  • Customer acquisition and retention marketing
  • Technology platforms and IT systems
  • Employee compensation and benefits
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Overview

Verizon Communications Product Market Fit

1

Network reliability customers can count on

2

Advanced connectivity driving digital growth

3

Enterprise solutions that solve real problems



Before State

  • Spotty connectivity in remote areas
  • Insufficient bandwidth for modern applications
  • Limited mobile connectivity options
  • High latency for real-time applications
  • Digital divide limiting access

After State

  • Reliable, ubiquitous high-speed connectivity
  • Seamless integration of home & mobile networks
  • Enhanced customer digital experiences
  • Connected enterprise operations
  • Reliable mission-critical communications

Negative Impacts

  • Lost productivity & business opportunities
  • Inability to support remote work effectively
  • Limited access to digital services & education
  • Higher operating costs for businesses
  • Competitive disadvantage for underserved areas

Positive Outcomes

  • Accelerated digital transformation
  • Increased operational efficiency
  • Enhanced customer experiences & loyalty
  • New revenue streams through connectivity
  • Future-ready infrastructure supporting growth

Key Metrics

143.3M wireless retail connections
7.2M broadband connections
19M Fixed Wireless access customers
70.3% wireless retail postpaid phone retention
4.2M FiOS Internet subscribers

Requirements

  • Network expansion & modernization
  • Spectrum acquisition & optimization
  • Investment in fiber & 5G infrastructure
  • Customer experience transformation
  • Operational efficiency improvements

Why Verizon Communications

  • Accelerated 5G deployment nationwide
  • Fiber expansion in key markets
  • Enterprise solution innovation
  • Digital-first customer experience
  • Network reliability investments

Verizon Communications Competitive Advantage

  • Superior network reliability & performance
  • Comprehensive enterprise solutions
  • Best-in-class customer experience
  • Mobile + fixed offering synergies
  • Sustainable infrastructure investments

Proof Points

  • #1 in reliability & call quality ratings
  • 140 million Americans covered by 5G Ultra
  • 99.9% network reliability assurance
  • 30% faster average 5G speeds vs competitors
  • 91% customer retention in enterprise sector
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Overview

Verizon Communications Market Positioning

What You Do

  • Provide reliable wireless and fixed connectivity

Target Market

  • Consumers, businesses, and government agencies

Differentiation

  • Network reliability
  • 5G coverage and speed
  • Business solutions expertise
  • Enterprise security services
  • Customer service quality

Revenue Streams

  • Consumer wireless service
  • Business wireless
  • Fixed wireless access
  • Enterprise solutions
  • Fiber internet services
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Overview

Verizon Communications Operations and Technology

Company Operations
  • Organizational Structure: Segment-based with consumer and business units
  • Supply Chain: Global equipment vendors and distribution partners
  • Tech Patents: 10,000+ telecommunications and tech patents
  • Website: https://www.verizon.com
Top Clients
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Competitive forces

Verizon Communications Porter's Five Forces

Threat of New Entry

LOW: High capital requirements ($100B+ network investment), spectrum scarcity, and regulatory barriers limit new facilities-based entrants

Supplier Power

MODERATE: Reliance on few network equipment vendors (Ericsson, Nokia, Samsung) balanced by Verizon's scale providing leverage in negotiations

Buyer Power

MODERATE: Individual consumers have low power, but business customers and MVNOs have significant negotiating leverage in bulk purchasing

Threat of Substitution

LOW-MODERATE: Fixed wireless and satellite emerging as alternatives, but limited by performance; voice substitution by OTT services complete

Competitive Rivalry

HIGH: Concentrated market with 3 major wireless carriers (AT&T, T-Mobile) and increasing competition from cable MVNOs with 15-20% market share

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Drive AI transformation

Verizon Communications AI Strategy SWOT Analysis

To create the networks that move the world forward by becoming the most trusted technology company in the world

Strengths

  • DATA: Vast customer data sets for AI model development
  • INFRASTRUCTURE: Network infrastructure to support AI solutions
  • ENTERPRISE: Strong relationships with business AI early adopters
  • SECURITY: Advanced security frameworks for responsible AI use
  • RESOURCES: Financial capacity to invest in AI technologies

Weaknesses

  • TALENT: Limited specialized AI engineering talent bench depth
  • CULTURE: Traditional telco culture slowing AI transformation
  • INTEGRATION: Siloed systems hampering data utilization for AI
  • SPEED: Slower innovation cycles than tech-first competitors
  • LEGACY: Technical debt in legacy systems limiting AI adoption

Opportunities

  • OPERATIONS: AI-driven network optimization and automation
  • EXPERIENCE: Personalized customer experiences through AI
  • PRODUCTS: AI-enhanced services for enterprise customers
  • EFFICIENCY: Cost reduction through AI-powered processes
  • SECURITY: AI-driven threat detection and network protection

Threats

  • COMPETITION: Tech giants investing heavily in telecom AI
  • DISRUPTION: AI potentially disrupting traditional revenue
  • REGULATION: Evolving AI regulations creating compliance risk
  • EXPERTISE: Competition for limited AI talent resources
  • PERCEPTION: Customer concerns about AI data privacy issues

Key Priorities

  • AUTOMATION: Deploy AI for network operations & efficiency
  • EXPERIENCE: Transform customer service through AI solutions
  • ENTERPRISE: Develop AI-powered business solutions portfolio
  • TALENT: Accelerate AI expertise acquisition and development
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Verizon Communications Financial Performance

Profit: $21.7 billion (2023)
Market Cap: $160.2 billion
Stock Symbol: VZ
Annual Report: View Report
Debt: $148.8 billion total debt
ROI Impact: 9.3% adjusted ROIC

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