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AT&T (SWOT Analysis)

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“SWOT is an acronym for the internal Strengths and Weaknesses of a firm and the environmental Opportunities and Threats facing that firm. SWOT analysis is a widely used technique through which managers create a quick overview of a company’s strategic situation. The technique is based on the assumption that an effective strategy derives from a sound “fit” between a firm’s internal resources (strengths and weaknesses) and its external situation (opportunities and threats). A good fit maximizes a firm’s strengths and opportunities and minimizes its weaknesses and threats. Accurately applied, this simple assumption has powerful implications for the design of a successful strategy.”

AT&T 

AT&T (formerly SBC Communications) is one of the largest telecommunications groups in the US. The merger with BellSouth in December 2006 further expanded the wire line business of the group in the US, besides providing full control over AT&T Mobility (Cingular Wireless) and Yellowpages.com. AT&T has a strong market position in enterprise services and wireless business. Leading market position in select businesses provides the cash flow to invest in new technologies, which further strengthen its market leadership. However, intense competition and industry consolidation may adversely affect the financial performance of the group.

Strengths, Weaknesses, Opportunities and Threats (SWOT)

Location of Factor

TYPE OF FACTOR

Favorable

Unfavorable

Internal

Strengths

  • Strong brand image
  • Leading market position
  • Robust financial position

Weaknesses

  • Lack of content
  • Geographic concentration

External

Opportunities

  • Acquisitions
  • The Shell deal
  • Expanding U-verse fiber network
  • Investments in global networks for business services

Threats

  • Intense competition and industry consolidation
  • Saturation in the wireless market
  • Government regulations
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