Question

Part 1 (mandatory): Create a market positioning map (MPM) for AT&T and its major competitors. Discuss the marketing strategies of the company versus strategies of major competitors. What are the advantages and disadvantages of the firm's versus competitors' market strategies?

Please ensure that you have at least three (3) companies on the MPM, including AT&T. You must comment on the MPM results.

Answer 1

The perceptual map shows that al the companies are nearly the same when compared on the price aspect as they all offer competitive rates for calls and data, the only differentiator is the service quality which depends on a host of factors like coverage, customer care response, customer grievances, dropped calls etc. Verizon fares well on all the price and quality but AT&T would be an overall better player as it has a presence in multiple businesses related to wireless telephony.

The marketing strategy of AT&T focuses on providing reliable and best in class services to its customers at affordable prices whereas its competitors like T- Mobile is more focused on a cost leadership strategy.

The advantage of AT&T strategy is that it can leverage its good reputation form the telecom sevices to tap in ancillary revenue from the other products and services that it offers such as  Cloud Services, Network Service like VPN, Ethernet, Wi-Fi, Internet Connectivity, Integration solutions, Internet of Things solutions, Enterprise Mobility Management, Hosting Services, Network Security solutions to name a few.Presence in multiple areas strengthens the company and provides a sustainable business model and competitive advantage over its peers.