AT&T SWOT analysis

AT&T SWOT Analysis

AT&T Company has both successes and failures in its businesses. The company has tremendously improved its businesses favored by its strong strategies both in the market and in leadership. To analyze the AT&T, SWOT analyses is conducted to get the trough picture of strengths, weaknesses, opportunities as well as threats.

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Strengths

-The AT&T Company has an already large established business in the electronic and communication equipment market.  The Company has established itself as a leader in the market

In line with its vision, the AT&T Company has been striving to be the leader in the industry. Through innovation and strategic marketing, the AT&T has acquired about 15% of the US market.

-AT&T has good market reputation. With strong brands in the market, the Company is well positioned in the market. In the American market AT&T has strived to build a good market reputation. This has worked positively for its brands.  It is on this good reputation that the market can embark on introducing its products to a new market.

-The target market is also quite large. The electronics and communication equipment market has been recording growth in the recent past and there are future prospects of growth. Therefore the target market is quickly expanding with the need and the government regulations on the need to have fire fighting equipments.

-The AT&T Company has the best spectrum position with the carriers that are operating in the US. This has made it possible for the company to transports is products to the market as well as making it easy to get law materials.

-On the other hand, the company has strong developing strategies that make it easy to develop its products thus attracting more customers as well as having strong human relation within the company and outside the company.

Weakness

-The target market is quiet large and there are fears the demand for the AT&T products may outdo the capacity of the group to satisfy the demands of the market. It is still not clearly established the rate of growth of the AT&T’s brands in the market but there are expectation that the product will record a high growth rate. This means that the company will need to increase its production capacity in order to match the rate of growth of the market.

-AT&T Company has been able to establish a distribution network of its brands in the region that matches the demands of the market. In this case the AT&T Company has managed established a distribution network to the interior due to infrastructural development. Banking on the success of the other markets in the US may have negative effects on the introduction of the products in the market since they will be targeting the same markets.

-The AT&T has low subscription and growth rate compared with other companies in the same industry market.

- On the other hand, the company has not been able to have a good reputation in the market as it would be expected for a company of its size. The company has not been able to create a reputable relation with other stake holders in the company as well as the business environment.

Opportunities

-AT&T Company is marketing its products in a growing market. This is a unique opportunity for the company.  A stagnant market becomes difficult to introduce new products because there are already other companies which are likely to bring in competition.

-AT&T Company can introduce its products in the market in unique way. With the growing importance of Electronics and communication equipments in the world, the Company has of late been sponsoring youth projects that are also used to market the company’s brands. This will help in marketing the brand in the US market in unique way.  The Company can also sponsor other events like sports or engage in corporate social responsibility activities like girl child education to help the target market identify with its product more.

-The aggressiveness in the deployment of UMTS has enhanced perception of the technology leadership. Through this the company has been able to lead in technology as most of its customers have a perception that the company has quality and advanced equipments.

Threats

-There are threats of entry of other brands in the market.  In this case there are threats of entry of new and existing companies in the US market which will increase the level of competition in the market. There are other companies which are likely to introduce the same products in the market once there is success of the initial brand. The threat of change of external market could also affect the company, example if the government changes its taxing regime -There are other companies in the industry that are doing the same business as AT&T and they are posing threats to the market.

- The integrations Cingular and the AT&T companies’ workforces is a challenge to the company that needs a great observation and care as it may affect the company’s businesses.

Does the system support organizational goals and tie employee performance directly to those goals

The AT&T organization goals have a direct effect to the employees’ performance. The company has been in the front line campaigning for the welfare of the employees’. In AT&T company, the employees’ have freedom to express their views regarding the welfare of the company. This has enabled the company to improve tremendously in its business as every employee has company’s goal in mind and clearly knows his/her responsibility to achieve that goal.

The employees’ performances have a direct effect on the company’s goals. If the employees’ diverts from the main goal, the whole company’s goals would not be achieved because they merely depend on the employees’ performance.

Explain strengths and weaknesses, and recommend improvements

Looking at the strengths of SWOT analysis for AT&T, the company has potentiality of having an improved business and acquiring more market share than the one the company is holding now. The company should strengthen its strategies in order to have a stronger brand in the market. As the company has strong human relation that has enabled the company acquire more market in the US.

On the other hand, the company has a weakness in its production line as the already produced products cannot cover the market demand and thus there needs an improvement in this section.

It’s therefore advisable for the company to do a market research and get to know exactly what the customers wants in order to improve. The company needs to improve its reputation in the market in order to increase the demand of its products as well as well as improving the relation with the current and potential customers.

Reference:

• Annetter, G. 2000, Benchmarking for strategic performance improvement. McGraw-Hill

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