Verizon Wireless Case Study Example | Topics and Well Written Essays - 750 words

Verizon Wireless - Case Study ExampleThese are its racy quality nationwide wireless network, technological choice of CDMA instead of GSM, constant monitoring of its products and services, and provision of the stovepipe product to the customer through with(predicate) an automated software which analyzes customers life history habits.The corporations investment in building a system which takes into consideration the customer service capabilities and coverage has all important(p) implications on the orders long-term cost structure. finished these investments, the company is able to provide the best for its clients thereby minimizing churn. The case states that customer loyalty is very important as the acquirement of a customer totals to $300 to $400 each and it takes six to eight months ahead this cost of customer acquisition is recouped by a business organization. Thus, when a customer stays bimestrial in a service provider, this result mean that the cost of acquisition is c overed while the company will not be spending so much in order to acquire sweet ones. Loyalty excessively has important implications for a company. If customers are loyal, they tend to spread it to word of spill the beans allowing the companies not to spend too much on other promotional activities like television advertising. This, in time, reduces the acquisition cost for a business organization. ... This business level strategy is complemented by the functional strategies of quality, efficiency, and reactivity to customer. The company has invested in quality by checking its signals in nationwide locations through its Test Men as sanitary as having the largest coverage, clearer connections, and fewer dropped calls. Efficiency is also ensured through the employment of CDMA technology which functions better than its GSM counterpart. The company also proves its commitment to customer responsiveness through its consistent communication with clients offering them with the best plan s that suit their calling habits.These strengths allow Verizon Wireless to have a competitive advantage in the wireless business. It should be renowned that having a nationwide coverage is very hard to be replicated by another player since it will call for a massive outlay of investment in its part. As Verizon has already been operating in this nationwide network, it also enjoys economies of scale which drives down cost significantly. Weaknesses Verizon Wireless churn rate is 0.87%. Through reject than its competitors, this still indicate that the company is not able to serve all of its clients and meet their requirements. The company should baffle and strive to bring down the churn rate to 0% since these aggravated customers through word of mouth can ruin the image of the company which is detrimental in the long run Opportunities The quality, efficiency, and customer responsiveness can be used by Verizon in order to allow it to go after its rivals customers. It should be noted t hat the company does not have the most number of subscribers. It can earn more clients through a more intensive