Group Project 2- Verizon
PROFESSOR: KUANG CHIU HUANG
MEMBER: SHIH KUAN YANG
LI SHING CHENG
YUN HUA LIAO
Internal Factor Evaluation
Internal Factor Evaluation
Key internal factor
Strength
Weight
Rating
Weighted
score
1 Strong network
10%
4
0.4
2 Large 4G Wireless coverage
13%
3
0.39
3 Good 4G network capacity
11%
4
0.44
4 Extensive brand recognition and
good will
9%
3
0.27
5 Largest wireless carrier in US
13%
4
0.52
6 Higher postpaid V.S. prepaid
subscribers
9%
3
0.27
7 High ARPU and low churn rate
10%
3
0.3
8 Geographically concentrated assets
8%
3
0.24
IFE
Weight：10%
Rating Weighted Score
Verizon
4
0.4
Strong Network
Verizon’s network performance is better
than other carriers.
IFE
Weight：13%
Rating Weighted Score
Verizon
3
0.39
Large 4G Wireless Coverage
Verizon 4G LTE coverage includes
almost entire US.
IFE
Weight：11%
Rating Weighted Score
Verizon
4
0.44
Good 4G Network Capacity
Verizon’s upload and download speed is
so fast just slower than AT&T in
download speed.
IFE
Weight：9%
Extensive brand recognition
and good will
Rating Weighted Score
Verizon
3
0.27
IFE
Weight：13%
Largest Wireless Carrier in US
by subscribers
Verizon has 102,200,000 device in US.
IFE
Weight：13%
Rating Weighted Score
Verizon
4
0.52
Largest Wireless Carrier in US
by 4G LTE cities
Verizon has 371 $G LTE cities in US.
IFE
Weight：13%
Rating Weighted Score
Verizon
4
0.52
Largest Wireless Carrier in US
by 4G LTE cities
Verizon 4G LTE coverage is much
better than others.
IFE
Higher of postpaid subscribers
vs prepaid subscribers
Weight：9%
Retail Net Adds (thousand)
Retail Postpaid
14
Retail Prepaid
9
134
1427
1516
2014 Q2
2014 Q3
927
2013 Q3
Rating Weighted Score
Verizon
3
0.27
Verizon’s postpaid subscribers’ net
adds is more than prepaid subscribers’.
IFE
Weight：10%
High ARPU and low churn rate
Verizon’s ARPU is higher than other carriers.
IFE
Weight：10%
High ARPU and low churn rate
Rating Weighted Score
Verizon
3
0.30
Verizon’s churn rate is lower than other carriers.
IFE
Weight：8%
Geographically Concentrated Assets
Verizon Cell Service
Rating Weighted Score
Verizon
3
0.24
The red point is so concentrated which shows
that Verizon could provide convenient service for
subscribers in US.
Internal Factor Evaluation
Weakness
Key internal factor
Weight Rating Weighted
score
1 Lacking standard process
5%
2
0.1
2 Downgrading of longcredit rating in 2013
6%
1
0.06
3 Increasing in debt to
equity ration form 2012
to 2013
6%
2
0.12
IFE
Weight：5%
Lacking standard process
 Verizon was formed due to merger of GTE
and Bell Atlantic companies.
 Different cultures
 Conflicting beliefs
 Different process being followed in different
parts of the company
 No standard processes and procedures
Rating Weighted Score
Verizon
2
0.10
IFE
Weight：6%
Downgrading of long-term
credit rating in 2013
 Moody’s downgrades Verizon’s long-term
debt rating to Baa1 following announcement.
 Because Verizon’s decision to purchase
Vodafone Group Plc’s stake in Cellco
Partnership with a significant component of
debt.
 Verizon announced that it will be buying out
Vodafone’s 45% ownership for about $130
billion.
Rating Weighted Score
Verizon
1
0.06
IFE
Weight：6%
Increasing in debt to equity
ratio form 2012 to 2013
 The company reported debt to equity ratio of
2.41 in FY2013 as compared to 1.56 in FY2012,
reflecting highly leveraged capital structure.
 The increase is due to 80% increase in total
debt from US$51,987 million in FY2012 to
US$93,591 million in FY2013.
 Such huge debt increases the financial
burden on the company, limiting the
availability of cash for its growth.
Rating Weighted Score
Verizon
2
0.12
Internal Factor Evaluation
Key internal factor(Strength)
Overall Review
Weight
Rating Weighted score
1 Strong network
10%
4
0.4
2 Large 4G Wireless coverage
13%
3
0.39
3 Good 4G network capacity
11%
4
0.44
4 Extensive brand recognition and good will
9%
3
0.27
5 Largest wireless carrier in US
13%
4
0.52
6 Higher % of postpaid V.S. prepaid subscribers
9%
3
0.27
7 High ARPU and low churn rate
10%
3
0.3
8 Geographically concentrated assets
8%
3
0.24
Key internal factor(Weakness)
Weight
Rating Weighted score
1 Lacking standard process
5%
2
0.1
2 Downgrading of long-credit rating in 2013
6%
1
0.06
3 Increasing in debt to equity ration form 2012 to 2013
6%
2
0.12
Total
100%
3.11
External Factor Evaluation
EXTERNAL FACTOR EVALUATION
Key external factors(Opportunities)
Weight Rating
Weighted Score
1
VOIP business and its growth
20%
4
0.8
2
International expansion provide service in
developing countries
11%
3
0.33
3
Increase high-speed internet service
19%
4
0.76
4
Cannibalization due to 3G and 4G LTE
18%
4
0.72
Key external factors(Threats)
Weight
Rating
1
Net neutrality-Data provider
10%
2
0.2
2
Government Regulation
10%
2
0.2
3
Intense competition in the saturated 4G market
12%
3
0.36
Total Weighted Score
100%
Weighted Score
3.37
Opportunities
1
VOIP business and its growth
Weight Rating
20%
4
Weighted Score
0.8
Opportunities
2
International expansion provide service in
developing countries
Weight Rating
20%
3
Weighted Score
0.6
Key external factors(Opportunities)
3
Increase high-speed internet service
Weight Rating
17%
4
Weighted Score
0.68
Key external factors(Opportunities)
4
Cannibalization due to 3G and 4G LTE
Weight Rating
17%
2
Weighted Score
0.34
Threats
1
Net neutrality-Data provider
Weight
Rating
10%
2
Weighted Score
0.2
Key external factors(Threats)
2
Government Regulation
Weight
Rating
10%
2
Weighted Score
0.2
Threats
3
Intense competition in the saturated 4G market
ALL
Weight
Rating
13%
3
Weighted Score
0.39
EXTERNAL FACTOR EVALUATION
Key external factors(Opportunities)
Weight Rating
Weighted Score
1
VOIP business and its growth
20%
4
0.8
2
International expansion provide service in
developing countries
11%
3
0.33
3
Increase high-speed internet service
19%
4
0.76
4
Cannibalization due to 3G and 4G LTE
18%
4
0.72
Key external factors(Threats)
Weight
Rating
1
Net neutrality-Data provider
10%
2
0.2
2
Government Regulation
10%
2
0.2
3
Intense competition in the saturated 4G market
12%
3
0.36
Total Weighted Score
100%
Weighted Score
3.37
Competitive Profile Matrix
CPM
Market Share
Weight：14%
Mobile Network Operator Share
3%
2%
2%
5%
AT&T
Sprint
6%
T-Mobile
27%
Verizon
US Cellular
Tracfone
Cricket
MetroPCS
Other
12%
31%
Rating
Weighted
Score
Verizon
4
0.56
AT&T
3
0.42
Sprint
2
0.28
12%
Verizon has the largest market share.
Source : comScore Mobi Lens, 3 mon. avg. Ending Nov. 2010
CPM
Weight：14%
Market Share by revenue
Also, by revenue, the Verizon has the largest market
share, where the red part is bigger than the green one.
CPM
Weight：7%
Brand Name
AT&T’s brand name is the best.
Rating
Weighted
Score
Verizon
3
0.21
AT&T
4
0.28
Sprint
4
0.28
CPM
Weight：7%
Brand Name
Sprint is mentioned more on
twitter than AT&T and Verizon.
Rating
Weighted
Score
Verizon
3
0.21
AT&T
4
0.28
Sprint
4
0.28
CPM
Weight：8%
Wireline Services
AT&T has the largest market share in
wireline services since 2002.
CPM
Weight：8%
Wireline Services
AT&T earns a lot on wireline services.
Rating Weighted
Score
Verizon
3
0.24
AT&T
4
0.32
Sprint
2
0.16
CPM
Weight：11%
Subscribers
Verizon has the most subscribers.
2013 Q3
Carrier
Subscribers
(millions)
Verizon
119.450
AT&T
109.460
Sprint
54.572
Rating
Weighted
Score
Verizon
4
0.44
AT&T
3
0.33
Sprint
2
0.22
CPM
Weight：10%
Rating
Weighted
Score
Verizon
3
0.3
AT&T
4
0.4
Sprint
2
0.2
3G Network Services
AT&T has the fastest speed in 3G network.
CPM
Weight：6%
Sprint
27,525
Global Market
Rating
Weighted
Score
Verizon
3
0.18
AT&T
4
0.24
Sprint
1
0.06
Verizon
90,162
AT&T
99,181
0
20,000
40,000
60,000
80,000
100,000
120,000
Sales Worldwide in 2012 (in Million euro)
AT&T had more sales worldwide in 2012 than
Verizon and Sprint.
CPM
Weight：9%
Saturated Market
Verizon can survive well in the saturated market.
Rating
Weighted
Score
Verizon
4
0.36
AT&T
3
0.27
Sprint
2
0.18
CPM
Weight：11%
Verizon has the best coverage in 4G LTE.
4G Deployment
Rating
Weighted
Score
Verizon
4
0.44
AT&T
3
0.33
Sprint
2
0.22
CPM
Weight：11%
Churn Rate
2013 Q3
Carrier
Churn
Rate
Verizon
1.28%
AT&T
1.31%
Sprint
2.71%
Rating Weighted
Score
Verizon has the lowest churn rate.
Verizon
4
0.44
AT&T
3
0.33
Sprint
1
0.22
CPM
Weight：10%
ARPU
2013 Q3
Carrier
ARPU
Verizon
$55.57
AT&T
$47.49
Sprint
$51.5
Rating Weighted
Score
Verizon has the highest ARPU.
Verizon
2
0.2
AT&T
4
0.4
Sprint
3
0.3
Overall Review
Competitive Profile Matrix
Verizon
AT&T
Sprint
CSF’s
Wt
Rating
Wt’d
score
Rating
Wt’d
score
Rating
Wt’d
score
Market Share
14%
4
0.56
3
0.42
2
0.28
Brand Name
7%
3
0.21
4
0.28
4
0.28
Wireline Services
8%
3
0.24
4
0.32
2
0.16
Global Market
6%
3
0.18
4
0.24
1
0.06
Subscribers
11%
4
0.44
3
0.33
2
0.22
3G Network
Services
Saturated Market
10%
3
0.3
4
0.4
2
0.2
9%
4
0.36
3
0.27
2
0.18
4G Deployment
14%
4
0.56
3
0.42
2
0.28
Churn Rate
11%
4
0.44
3
0.33
1
0.11
ARPU
10%
2
0.2
4
0.4
3
0.3
Total
100%
3.51
3.41
2.07
Group Project 2 - Verizon
References
Grading the top U.S. wireless carriers in
the third quarter of 2013，
http://www.fiercewireless.com/specialreports/grading-top-us-carriers-thirdquarter-2013
Statista，http://www.statista.com/
Thanks for your listening 
Q&A