Verizon Wireless Case Study


VerizonWireless Case Study

Overviewof Verizon Wirelessmissionand strategy

Verizonwas formed after a merger involving GTE, NYNEX and Bell Atlanticwhich are themselves mergers of several companies. Verizon isstructured in about five segments which include retail markets,enterprise, network services group, and Finance and informationtechnology. Verizon communications serves business wire lineconsumers in 30 states. The company has a mission to ensure thatthere is efficient communication across all of America. To achievethis mission it has made a number of strategies including coming upwith the position of the Enterprise Solutions President which is anentity that has been given the responsibility to supply end to endsolutions for large businesses and government consumers. The entitycontrols the maintenance, design and operation of end to endcompletely incorporated network solutions for large businesses andgovernment customers throughout the US (Boudreau,2005).

Theorganizational entity of Human Resources Senior Vice President wascreated in the domestic telecom segment with the objective ofmanaging human resource strategies that are related to the company’swireless business. The company also provides personal managementtechnology, programs, systems, policies and plans. It thus operatesas a shared service. All the business unit lines get the support ofindividuals in human resource department that report via the humanresource local senior Vice President (Deckop,2006).

VerizonWireless has a perfectly defined mission and strategy in relation toits objectives and values. Its mission is a critical element of itspermanent growth strategy to enable the company stay committed andconcentrate on its objectives. Given that the company employs amission statement it has a 40% higher return on its financialmeasures than those that do not have these statements. The financialhealth of Verizon communications is positive but it has someloopholes (Footand Hook, 2011).

Verizonwireless is amongst the pioneer companies to provide services forconsumers for faster connectivity to the internet by use of Verizonlocations that may not be easily breeched through internet solicitorsapart from Comcast that has an internet service that is connected viaa television cable. The challenge of employing a phone lineoccupation has also been eliminated. The objective of the company isnot to report on its progress but to initiate dialogue between it andits communities about what it is, what it believes in and where it isgoing (Greenwald,2013).

Thecompany is at the top of the US communication chain and reasonableprices. Women warrior Inc dissected the company which has becomesound by posting steady growth. In its strategic planning the companyinvents new technology and ways that are innovative to augment itsonline services and provide consumer services that cannot be providedby any other online company.

Thisincredible company has well defined objectives and values in itsstrategic mission and vision. They include being a market leader inthe delivery of integrated and innovative communication solutions toconsumers on the go, at home and at work. It also aims to empowerthrough mobilization millions of people and companies non profits,employees, customers and retirees. To advance the volunteerism ofemployees through matching programs that acknowledges thecontributions of time and money. To ensure that individuals haveprincipal skills such as access to technology and literacy (Huber,2003).

Itsmission is to optimize shareholders returns through heading acompetitive incorporated communication process that concentrates onprogressive improvement in service, costs, quality, process andtechnology. To be the international leader in the market in thedelivery of permanent and strong infrastructure to advance thevolunteerism of employees and the community by matching incentivesthat acknowledge their time and dedication. Its vision is to be anintegrated, customer valued, strategic and world class communicationsprovider that progressively support networking between peopleglobally.

Productsand services

Verizonwireless is America’s largest 4G network. It has the widest area ofcoverage, low latency, highest download and lightening fast uploadspeeds. Enterprises that are connected to it can sufficiently useconnected and mobile devices. Its private network offers wireless andwire-line capacities for real end to end solutions. The delivery ofthis wireless needs results into the management of few contractssingle sourcing of support and the comfort of the knowledge thatthere is a fast and secure delivery of data. The wide Verizonportfolio services is a precursor for companies to outsourceactivities beyond the main competencies so that they can concentrateon the best that they can do (Labaton,2000).

Themanagement of network services is a set of services that come invarious groups such as reporting and assessment of completeoutsourcing of data management as well as corporate network.Companies can manage their network through a simple submission ofrequests in an online portal.

Verizonprofessional services deliver technological solutions that includemobility IT, communications, security and networking which aredelivered by experts that are located globally and dedicated toassisting businesses assess and assume robust technologieseffectively and safely. Verizon’s professional services have a widereach effectiveness and can be seen across all phases of solutionslife cycles. They include Operation and management where thecomplete managed to the do it yourself solutions ensure thatenterprise technologies are doing reliably and effectively(Martocchio,2012).

Planningwhere the company offers a detailed evaluation of existing state aswell as options that enhance augmented making of decisions and abasis for change Implementation where Verizon professionals spreadacross abroad network of technologies and seller ecosystems managecustomer implementations while dealing with the human and physicalelements entailed in each installation of solutions.

Internaland external environment


Verizonis a leading provider of wire and wireless services in America. Italso offers directory as well as print information. The company notonly owns but also operates the most expensive IP backbone networksglobally something that has given it an unmatched competitiveadvantage against its rivals in the market. However, if its rivals uptheir game this could adversely impact its revenues and profits.


Thecompany has a strong position in the market. It also boasts of ultrafast internet connections with FiOS. It has networks of strongVerizon business all over America. It also boasts of ultra speed datanetwork in typically the entire major markets in the USA (Michaelsand Axelrod, 2001).


Thecompany’s net working capital is negative. The company alsoconsists of access lines that are already declining. Apart from thatthe company has a long term debt of $50 billion and this is madeworse by the fact that unlike some of its competitors it does nothave an international presence.


Thecompany has a focus on expanding globally. It also has rapid demandfor broadband applications that are wireless in nature. Apart fromthat it is now expanding on its audio conferencing access.


Thereis a lot of saturation by new entrants in the wireless market. Thereis also intensive communication as a result of new entrants in thismarket. Given that the wireless market is prone to lots oftechnological innovations the company’s products could be renderedobsolete if it does not up its game. The regulatory framework by thegovernment for the wireless market is a huge setback for expansion.The intensive competition has brought down prices thus cutting on itsprofits (Sass and Canary, 1991).


Thecompany has possible 150 million customers all over Europe, Germanyand the UK. It has the advantage of stronger foreign currencies thatoperate against the dollar in its Europe missions. The company hasin the recent past increased its use of the wireless services. As aconsequent of competition small providers of the wireless network arenow consolidating with it in order to take advantage of its economiesof scale. This is because the company has in the recent pastincreased its desire of high speed internet services.

However,there are robust regulations such as the new phone portability issuesthat are working against it. The rise in the cost of health care hasalso been a huge setback for the company. Global unrest such as the2008 financial downturn affected the company’s financial andmonetary standing. The company has a likelihood of losing a hugechunk of its customer segments in case of any data loopholes thatwould reveal its customers’ private rights (Scott and Cheney,1998).

Analysisof the talent pools in the organization and selection of pivotaltalent pool Forany company to accelerate its growth development of employee’sskills and knowledge is very important. The skills and knowledgetranslate to improved product, customer satisfaction, and betterworking environment. Verizon Wireless has a workforce of more than83,000 retailers across 49 states in America. Verizon has developed alearning program for its employees this has not only improved itsproductivity and confidence of the employees but has also harnessedmore profitability, which is fundamental to any business.

Anotable policy that Verizon Wireless has successively implemented isretention of its workforce, while progressively training the existingand new employees. According to research employees with skills andknowledge enable a company take greater risk and hence achievegreater productivity (Seeger and Ulmer, 2002).

VerizonWireless provides development of skills for both fulltime andpart-time employees academically. With the company, providing leaningmaterials and sustainable tuition for free employees are encouragedto develop their careers aligned to their current position or theirpreferred career in the company. LearningLINKprogram, which Verizonwireless offers, has successively aided its employees to sharpentheir skills in their career path and helped the employees indecision-making process. In 2009, an estimated number of employeesranging from more than 17,000 participated in learningLINKprogramwhere majority of participants ascertained that the program had apositive impact in relation to their duties in the company.

Verizonwireless has also collaborated with colleges and universities tooffer courses in a number of its branches. These efforts have helpedthe company to grow its internal workforce and increased completionwithin the employees. Coupled with higher education the employeeshave increased their ability of getting promotion within the company.One of the best ways to assess on relevance of deployment programs isto conduct a return on investment (ROI) (Sellnow and Seeger, 2001).

Accordingto research undertaken in Verizon Wireless more than 55% of employeeswho had participated in the learningLINKprogram highlighted this wasthe attraction towards seeking employment in Verizon Wireless. Theemployee also suggested they were also likely to stay at Verizon forat least two years after completing the learning program.

Inconclusion, for any company to have global market impact it is veryimportant to invest on its incumbent employees since investing inemployee’s education improves on their skills. Development ofemployee’s talent also has a positive influence on their careeradvancement, therefore influencing their decision-making rationale.It is also very critical for any company to share its value gainedfrom an employee through increasing their remuneration to encouragethem to be more productive. One of the ways to retain an employee isto offer a retention fee or promoting them (Ulmer and Sellnow, 2002). Recommended staffing model for the pivotal talent pool you identified

Talentpool incorporates the existing employees or those employees who aredeveloped to occupy pivotal talent positions. The developmentinvolves training which is beneficial to the business and employees.The employees gain from developing career and remuneration while theorganization gains profits from their returns on investment. Talentpool seeks to identify individuals who are likely to excel toleadership position in an organization. However, talent pool alsofocuses on junior employees. According to studies, talent pool isachievable without developing a clear talent management policy, sinceall talents are aimed at delivering on a business idea withoutfocusing on individual skill or capability but rather managementprocess (Williams, 2001).

Talentmanagement is sub-divided into talent recruitment in these criteriathe organization seeks to hire new employees who are competent andare a valuable asset to drive the organization to achieve itsstrategy. The second criterion is Talent Maintenance that seeks toposition employees in areas, which they are best suited through theHuman Resource (HR) department in order to achieve maximumproductivity. The third criterion is talent development, whichinvolve providing employees with learning programs. These programsnot only help the organization meet its future expectation but alsoimprove on productivity, decision making and encourage on employeeretention.

HumanResource Department are faced by the challenge of identifyindividuals to occupy pivotal position.Majorityof organization’s fail since they use traditional staffing modelswhich focus on identification rather than developing new and existingtalents. It is therefore vital for any organization to focus ondevelopment of talent rather than identifying talent. Theidentification of talent has proved to be the worst nightmare foremployees. One of the best approaches to acquire a talented pool ofemployees is to group them according to their potentiality. Managersand top management then conduct a talent review contrasting withtheir past performances. From these performances, a rating is givenand individuals who qualify are considered. Specialized training isvery important for it helps employees discover key decision strategymaking processes. Verizonwireless has continuously encouraged its employees through offeringaffordable tuition fees, these have not only helped the employeesachieve their aspirations but also live their dreams (Boudreauet al., 2005).

Recommendationfor development of internal talent as a part of the model

Internaltalents are perhaps the best method of creating a sustainableworkforce in an organization. However according to research the bestway of achieving sustainable leadership is to hire externally.Companies that have 25% of their workforce hired from outside inmiddle management level acquire more profits than hiring internally.While companies that hire in top management level, achieve 66%externally in comparison to 78% internally. It is therefore importantfor top management to focus their energies in creation of an internalworkforce that is promotable and have talent (Michaels,2001).

Amanager therefore should be guided by several core principles inorder to achieve sustainable internal talent. Every business shouldbe guided by its reason for existing that is articulated through thecompany strategic plan. Managers should therefore be guided bystrategic plan to secure talents that are in line with theorganization strategy. Managers are also required to obtain a talentpool to help them have a wide scope of choice when making selectionto promote. The pool of talent also offers contingencies, although itis a gross mistake to make failures during decision-making process asa manager (Charan and Drotter, 2001).

Itis therefore important to make best of the best choice justifying theneed to have a pool of talent but recognizing managers make prudentdecisions. Effective leadership and educating the workforce is also agreat step to attract a talented work force hence organizationsshould strive to develop training programs in line with theemployee’s career aspirations. Most successful business has adoptedtraining their employees boast of majority of their middle classhired internally (Deckop,2006).

Managersare always required to communicate and offer leadership in alllevels, it is important to undertake continuous reviews in anorganization and communicate the findings to motivate and awaken thesleeping employees. It is also give priority to internal employeeswhenever an opening occurs this not only helps in motivating junioremployees but also creates competition among employee. Competitionamong employee to gain recognition to their seniors helps the companyto grow efficiently. In conclusion, every manager should strive todevelop internal talent, which is arguably well placed to conducttest. This is evident since the company has clear record of allemployees and has wide selection from the pool of talent (Sims,2010).

Estimatedrisk of attrition and retention strategies

Riskattraction or churn refers to defection or loss of clients churn isan extensive occurrence that affects companies across the globehaving a negative impact on profit margins. Churning presents acomplex situation of identifying the probability of a client todefect and the balance to maintain the client. This is evident sinceevery company necessity is to maximize profits. Maximizing profitstherefore becomes a delicate balance since every manager must checkon the viability of retaining the customer as well as retention costoffered. However, it is very important for a company to establish thepreference for a customer to churn hence make a viable decision onthe cost and methods to deploy in order to maintain them.

Inmost cases, customers churn voluntary or involuntary, in thevoluntary case clients churn from their urge to switch to anotheroperator while involuntary churn is as result of geographicalrelocation. Churn management is critical in identifying attractionwith proper management, the clients who are most likely to churnidentified and more resources allocated to prevent defection (Footet al., 2011).

Inhuman resource terms, attrition refers to reduced size of workforce,although attrition can have a negative impact on the productivity ofa company it is encouraged when the strategic plan of a company is toreduce wage burden. A number of reasons can lead to attrition thesemay include employee retirement which can be enhanced by reducingthe retirement age, the employee may opt to quit for greener pasturesor seek a better working environment.

Attritionin workforce is influenced by corporate strategy, for instance somecorporate may plan to undertake a restructuring plan. This planinvolve failure to hire incase an employee voluntary exits or retiresfrom a company. In such attrition is commonly referred to as upsideof attrition. Downside of attrition presents itself when employeesreceive small pay while the workload is hefty and opts to move toother companies for better remuneration and working conditions(Greenwald,2013).

Itis critical for any company to leverage on retention strategies,since majority of existing employees are more talented and have awide knowledge of customer relation and skills. Verizonwireless has leveraged on retention strategy focusing mostspecifically on employee education. A number of employees, whoparticipated in a survey pertaining the effect of the tuitionprogram, highlighted that they wish to continue working in Verizonwireless even after completion of the learning program. Employeemobility has also played a critical role in retention of employees. Anumber of employees have been promoted and internally transferreddepending on credibility. In 2008, 28% of employees who participatedin the learningLINKprogram were promoted. Such promotion makes theemployees to have a strong bond with the company and facilitate oncareer development (Huber,2003).


Verizonwireless is America’s largest 4G network. It has the widest area ofcoverage, low latency, highest download and lightening fast uploadspeeds. It was formed after a merger involving GTE, NYNEX and BellAtlantic which are in themselves mergers of several companies. Thecompany provides personal management technology, programs, systems,policies and plans. Verizon Wireless has a perfectly defined missionand strategy in relation to its objectives and values. Its mission isa critical element of its permanent growth strategy to enable thecompany stay committed and concentrate on its objectives.

Verizonwireless is amongst the pioneer companies to provide services forconsumers for faster connectivity to the internet by use of Verizonlocations that may not be easily breeched through internetsolicitors. Its mission is to optimize shareholders returns throughheading a competitive incorporated communication process thatconcentrates on progressive improvement in service, costs, quality,process and technology.

Thereare robust regulations such as the new phone portability issues thatare working against it. The rise in the cost of health care has alsobeen a huge setback for the company. Global unrest such as the 2008financial downturn affected the company’s financial and monetarystanding. However, given its huge economies of scale its future isbright.


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