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Verizon Communications (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.”

Verizon Communications 

Verizon Communications (Verizon) is one of the leading providers of wire line and wireless communications in the US. The company also provides print and on-line directory information. Verizon Business owns and operates one of the most expansive IP backbone networks in the world giving it a considerable competitive advantage. Intense competition, however, may adversely affect the company’s revenue and profit growth.

Strengths, Weaknesses, Opportunities and Threats (SWOT)

Location of Factor

TYPE OF FACTOR

Favorable

Unfavorable

Internal

Strengths

  • Strong market position
  • Strong Verizon business
  • Ultra-fast FiOS Internet connections

Weaknesses

  • Declining access lines
  • Negative net working capital

External

Opportunities

  • Increasing demand for wireless broadband applications
  • Expansion of audio-conferencing access
  • Focus on International expansion

Threats

  • Saturation in the wireless market
  • Technological change
  • Regulatory framework
  • Intense competition
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