Verizon Communications, Inc. has many strengths, weaknesses, opportunities and
threats as an organization. This case analysis will highlight the top three for each category
and provide a rational for each factor. The SWOT analysis will serve as a tool for
identifying alternative strategies for the organization and help define a 3-year growth plan.
Various matrices, including a SWOT analysis and a Financial Ratios Analysis, will also
support specific strategies and long-term objectives. Other relevant, recent activities and
supporting research will also be supporting the strategies defined in the case analysis.
Verizon Communications, Inc. is one of the largest providers of broadband and
wireless communications in the United States (David, 2004). Verizon operates wireless
networks and serves home, business and wholesale customers in 28 states, totaling 49.3
million customers nationwide (Verizon.com, 2003). With their Corporate headquarters in
Manhattan, New York, Verizon has nearly 215,000 employees and generates annual
revenues of more than $71 billion from four business segments: Domestic Telecom,
Domestic Wireless, Information Services and International (Verizon.com, 2003).
Although Verizon Communications is a young organization, formed in 2000, its parent
companies have a very solid history and foundation (David, 2004). Verizon was an
organization born from the merger of Bell Atlantic and GTE Corp (David, 2004). GTE and
Bell Atlantic were two of the leading telecommunications companies in the U.S. and
internationally (David, 2004). Their capabilities ranged from providing telephone access
lines, wireless services and networks and various Internet services (David, 2004).
Verizon Communications has well defined goals and values in lieu of the traditional
mission and vision statements (David , 2004). However, mission and vision statement
recommendations will be defined in the case analysis in order to provide clear
understanding of what the business is in the todays industry and what is recommended it
become in order to execute a long-term growth strategy. This is an important component of
a long-term growth strategy so that an organization can stay focused and committed to the
objectives at hand. As David states in Strategic Management Concepts, “Business Week
reports that firms using mission statements have a 30% higher return on certain financial
measures than those without such statements.” (David , 2004)
Verizon Communications financial health is positive, but questionable. For example, in
2002, Verizon earned over $67 billion in annual revenues, but only closed the year with $4
billion in net income due to the $49 billion in long-term debt that was paid out (David ,
2004). They continued this trend into 2003 with virtually flat growth in revenues and an
