Question

AT&T is a firm that follows a strategy of related diversification. Evaluate its success (or lack thereof) with regard to how well it has (1) built on core competencies, (2) shared infrastructures, and (3) increased market power.

Answer 1

AT&T is one of the oldest companies providing telecommunication services in the US. The company has sustained and grown greatly from its day of incorporation.on the stated three grounds, following can be used for the evaluation:

1. Built on core competencies:

Definitely, the company offers services which give them a competitive edge. Core competencies of AT&T are high voice/ data services, brand recognition, customer services.the company has managed to offer quality services and has given thrust to their customer needs and this has made the company see success in its years of operations.

2. Shared infrastructure: Though AT & T face cut throat competition from Verizon, it has managed to have relationships by building shared towers etc for network extensibility.in anyway the infrastructure base of the company being very strong and it's strategic policies has kept the company growing.

3. Increased market power:

AT&T is the market leader in this segment , with around 34% of market share in the US. It has a wide customer base and enjoys good reputation in the industry.