Verizon Communications SWOT Analysis

SWOT Analysis (Internal Factors)
Verizon Communications as a company does have exclusive strengths that aid it in conducting business as a stable telecommunications player in the mass media market. Company strength does not negate the necessity to have its weaknesses checked, its opportunities solidified, and the present threats mitigated (DiMaggio, 2016). The best mode of operating the SWOT analysis is first conducting an internal audit on the constituent factors as discussed below (DiMaggio, 2016).
Corporate Structure
Corporate structure at Verizon Communications is divided as operationally based. This structure is based on the possibility of restructuring necessitated by business expansion. The reasoning is also due to the ever-changing technologies and demand that is rampant in the information and telecommunications industry. These structures allow for the acquisition of new firms, which widens the company’s scope in (a) significance, (b) profit levels, and (c) revenue contributions.
Corporate Culture
The corporate culture is one that empowers, and as a global technological leader, Verizon Communications take responsibility towards not only the world but all their employees (Borodai, 2017). Internal diversity partnering with inclusion has proven sustainable in the years. Inclusion, for example, has enabled Verizon Communications to be awarded the AnitaB.org Top 2019 Companies for Women Technologists. It shows that the company is committed in the continued creation of a conducive platform for individuals for all walks of life (Borodai, 2017)
Marketing
Standings are made by the implementation of a marketing mix, as a holistic approach price, place, promotion, and products (Yi, 2018). Verizon Communications, therefore, has diversified into Verizon Wireless, Verizon Enterprise, Verizon Fios and Verizon internet. Mixing these segmentations of business, shield the company from extreme losses in the event that any segment of business falls. It has been a prerequisite that has been beneficial in planning internally of all strategies for current and future operational synergies (Yi, 2018).
Finance (Ratio Analysis)
Their growth rate in revenue was at 1.44% in the 4th quarter of 2019. Verizon Communication’s net income in the same period grew by approximately 153.64% which is above the normal company average (“Verizon Communications Inc Financial Strength Comparisons to Industry Sector and S&P,” n.d.). In analyzing the profitability ratio of Verizon Communications, the company’s operation margin did fall from the 3rd quarter at 24.87% to 19.09% in the 4th quarter. Profitability margin strengths in the 2019 financial year stand with Verizon Communications at 15% making it the 3rd in the communication service industry (“Verizon Communications Inc Financial Strength Comparisons to Industry Sector and S&P,” n.d.). The ratio analysis factors include (a) Capital Ratio at 0.9, (b) Total Debt to Equity at 1.77, (c) Asset Turnover Ratio at 0.46, (d) Tangible Leverage Ratio at 7.84, (e) Inventory Turnover Ratio at 22.9, (f) Working Capital Ratio at 0.9, (g) and the Quick Ratio at 0.06 (“Verizon Communications Inc Financial Strength Comparisons to Industry Sector and S&P,” n.d.). Consolidation of the above ratio analysis puts the strength of the company at a stable measure, and this protects its finances as well as the protection of shareholders’ investments and interests.
Research and Development (R & D)
One of the greatest weaknesses at Verizon Communications is in regards to Research and Development. With minimal Research and Development (R&D), new innovations are not achieved, and in the current market, innovation makes the target market very volatile (Van de Kaa & Greeven, 2016). Therefore, Verizon Communications need more investment in their internal research as well as development strategies, so as to maintain its position as one of the market leaders (Van de Kaa & Greeven, 2016).
IT
Verizon Communications has good Ad Technologies that are the complimentary basis to the Information Technology systems already in place. A perfect example is in the cost synergies of their products, as customer-friendly. In 2016, Verizon Communications had a leading 4G LTE growth phase. The recorded usage stood at 47% in the same financial year. With internal networks also as strong, Verizon Communication’s software and hardware systems stood as great pillars of strength, and this created opportunities for it from internal factors into the external market (Van de Kaa & Greeven, 2016). A perfect example is them becoming industry leaders in the 5G network (DiMaggio, 2016). This opened up huge potentials internally, as the creation of more jobs, more benefits to the company as well as improved stamina of internal modus operandi.
Human Resources
The Human Resource is implementing a balanced scorecard which checks of the SWOT adaptability of its internal opportunities and minimization of threat factors (DiMaggio, 2016). The Human Resource scorecard is dissected into four portions that put into consideration four aspects. These fundamental aspects include (a) leveraging on strengths to target opportunities (b) overcoming internal weaknesses so as to exploit opportunities. (c) leveraging on strengths in minimizing threats, and (d) overcoming internal weaknesses so as to minimize threats (“Verizon SWOT Analysis & Recommendations,” 2017). Implementation of this SWOT from a Human Resources and administrative standpoint, has assisted Verizon Communications in maintaining the required internal status quo. Another strength accrued is that Verizon Communications has found it easier to adapt to the changing business environments and personnel shifting to other departments, improving on their employee maintenance mechanisms (DiMaggio, 2016).

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