Project Milestone Two: Analysis of Verizon Wireless

Project Milestone Two: Analysis of Verizon Wireless


This paper analyzes the company Verizon, which is publicly listed. The analysis focuses on the financial and strategic priorities of the firm. Further, the paper explores the non-financial factors that give it an edge over other firms, which it should exploit maximally. The most significant internal risks that Verizon grapples with are also stated in the document


Project Milestone Two: Analysis of Verizon Wireless


As the second-largest telecommunications company in the USA, Verizon has opportunities to expand its market share. By 2018 Verizon’s revenue was 131 billion dollars and had a staff of more than 144, 000 workers (“Verizon,” 2018). The firm also ranks 16 in the Fortune 500 Lists, meaning it is highly profitable and has a significant market share. Although there is stiff competition from rivals like T-Mobile and AT&T, the firm is still among the best performing as noted by the revenue. Success factors like leadership are instrumental for the firm to attain its strategic priorities even with existing internal risks.

Financial and Strategic Priorities

Returning Value to Employees and the Community. Verizon Wireless’s priority is to share its success with its innovative employees in the wake of tax reforms(“Market Screener,” 2018). Equally, the firm plans on impacting the community through various activities. In 2017, for instance, Verizon contributed 75 million dollars for community projects and disaster recovery endeavors. The firm pledged to increase contributions in the Verizon Foundation by 200 to 300 million dollars in 2019 and 2020 to improve community lives. Verizon’s priority is improving the existence of its workers and community.

Its Brand. Verizon is keen on cementing its position in the market as a provider of the best wireless network in the country (“Market Screener,” 2018). Correspondingly, Verizon has invested in assets that would support the 5G network like Intelligent Edge Network. The 5 G network would be compatible with the Internet of Things (IoT) and other technological advances. Verizon will protect and promote its brand by spearheading communication technology with the introduction of the 5 G services.

Cost Cutting. Cost cutting is a top priority for Verizon. The company has an initiative aiming to minimize costs by 10 billion dollars (Smith, 2018). The ten billion will be reduced in four years. The cut would improve the margin expansion that Verizon is after. The firm plans to cut operating costs to improve its profit margin.

Capitalizing on non-financial Factors

Innovation. Verizon is an innovative company regarding communications. Thanks to Verizon, Americans have access to 5 G, a feat that was considered impossible before 2029 (“Market Screener,” 2018).The 5 G connectivity is set to transform the world, with Verizon leading the way.Verizon also has innovation labs called, Verizon Innovation Labs, where children can explore different ideas and create new things (“Verizon,” 2019). By promoting innovation among young children, Verizon is playing its part in fostering technological growth in society. Being an innovation leader gives Verizon an edge over its competitors and satisfies its growing customer base. Verizon is a leader in communication innovations.

Leaders. The leaders at Verizon contribute to its success. The leadership team constitutes individuals with expert knowledge in communication (“Verizon,” 2019). The leaders are also visionary as depicted by their financial and strategic priorities noted above.With such knowledgeable individuals on its panel, Verizon has steadily increased its customer and employee retention and embarked on revolutionizing the communication industry with 5 G. Verizon’s leaders have vast knowledge in communication technology, which they use to grow the company.

The Community. Verizon uses its popularity in the community to its advantage. Through initiatives like Humanability, Verizon has gained popularity in society (“Verizon,” 2019). Showing an interest in social needs makes customers loyal to the firm. People are more inclined to purchase products from firms that are concerned with community welfare like Verizon. As a result of its communal responsibilities, Verizon has gained more loyal clients and subsequent market share.

Significant Internal Risks

Verizon risks low-profit margins. With pressure from competitors like T-Mobile, the firm was forced to incorporate unlimited plans, which means more data for less money (Tenebruso, 2017). While the firm justified its high costs with unbeatable internet quality, T-Mobile has equally good services. Forthwith, Verizon was forced to decrease its prices, which have an adverse effect on its profit margin. In 2017, this price reduction led the firm to losses that marred its image. Although the company registered profits in 2018, bending to pricing pressures would decrease its profit margin. Verizon’s price reduction strategy is harmful to its growth.

Verizon’s Oathinvestment decision crippled its worth. The 9 billion dollar-investment that Verizon in digital platforms through Oath digital properties incurred losses, forcing the business to take a 4.5 billion dollar writedown (Berr, 2018). The poor performance makes it hard for Verizon to spin the Oath would be difficult because the firm has weak advertising revenues, which are unappealing to investors.Unfortunately, part of the solution could entail laying off 10,400 workers. Another strategy is integrating the Yahoo and AOL technology platforms to boost advertisements, which in itself is hard to accomplish. Verizon’s investment in the Oath would lead to unemployment and a problematic technological integration process for the Oath members.


Success factors like leadership are instrumental for the firm to attain its strategic priorities even with existing internal risks. Through innovation and cutting costs, Verizon can solve its cost and investment issues. Verizon is a successful firm, whose success can vastly increase if it capitalizes on its assets.


Berr, J. (2018). Layoffs Loom At Verizon’s Oath In The Wake Of $4.5 Billion Writedown. Forbes Magazine. Retrieved From

Tenebruso, J. (2017). The 2 Biggest Challenges Facing Verizon Communications Inc. Motley Fool. Retrieved From

“Verizon.” (2019). Who We Are: We’re Problem-Solvers, Engineers, Technologists, And Innovators. Verizon Inc. Retrieved From

“Market Screener.” (2018). Verizon CEO: Our 2018 strategy to return value to customers, shareholders, employees, and communities. Market Screener. Retrieved From

Smith, A. (2018). Verizon’s Top Priorities for 2018. Market Realist. Retrieved From


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