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AT&T vs. Verizon Competitive Advantage
Some of the key components that show an organization has a competitive advantage are when "it has an edge over rivals in attracting customers and defending against competitive forces" (Schneider, 88). This is increasingly evident in the case of AT&T versus Verizon Network because AT&T is already a well-known established business for carrying iPhones. For this reason, we believe AT&T has a competitive advantage over Verizon when it comes to carrying Apple’s iPhone 4.
In the article “AT&T iPhone 4 vs. Verizon iPhone 4: what's changed?” a comparison is given on the iPhone 4s both companies carry. It appears that AT&T has the best-made product and proprietary manufacturing technology because it uses Global System for Mobile Communications (GSM) technology as opposed to Verizon’s older and slower Code Division Multiple Access (CDMA) technology. The GSM allows AT&T users to enjoy faster network speed and the ability to enjoy multiple features at the same time; this is very critical in today's fast paced world. Unlike GSM, CDMA does not allow for multiple activities to take place while using the phone, which is a great disadvantage to Verizon.
Although Verizon claims to have a better coverage area, we still believe that AT&T would deliver superior customer service because iPhone 4 is not the first iPhone that AT&T has carried. Although the price is said to be the same, it seems as though a customer would short change themselves by buying the phone from Verizon knowing its capabilities have no comparison to that of AT&T’s iPhone 4. We also believe that Verizon has a shorter lead time which we see as a disadvantage because it allows for more glitches in its phone (iPhone 4).
AT&T is emerging much stronger and adjusting significantly to the demands of its market. This means that their network is better prepared for the future, something Verizon is yet to encounter. While Verizon claims to cover more area, this does not shake the business of AT&T as long as AT&T’s network service still operates both efficiently and effectively. AT&T is clearly the well-known carrier when it comes to iPhones. When combined with the other assets discussed, it allows for AT&T to have the competitive advantage over
Verizon.
Verizon.
If you want to find more information about this subject, the following links might be helpful:
http://www.businessweek.com/magazine/content/11_04/b4212032854327.htm
Sources:
Joe Valacich, Christopher Schneider. Text: Information 4e Systems Today. Page 88. March 11, 2011.
AT&T iPhone 4 vs. Verizon iPhone 4: what's changed? March 11, 2011. http://www.engadget.com/2011/01/11/atandt-iphone-4-vs-verizon-iphone-4-whats-changed/
I agree with your statement. AT&T has been global for decades and still increasing in our economy today. I been with AT&T for over a decade and I can see how the technology for phones and other styles they have came out with. Verizon to me is trying to become the next AT&T. I say this because of they come out with the same stuff that AT&T comes out with and try to make there advertisement better than AT&T's. With the technology they both bring to the table, AT&T advance and increase with products and also with costumers.
ReplyDeleteThe topic that you have chosen to explore concerning the AT&T network verses the Verizon Network is important to the business world in many ways. It is important for businessmen and women to have access to the internet constantly due to the mobility of the business culture that is in the world today. I agree that AT&T has a competitive edge over Verizon. Although Verizon now has the iPhone4, AT&T’s iPhone4’s ability to multitask while talking on the phone has the advantage at the present time.
ReplyDeleteYour group was able to compare the services of AT&T and Verizon concerning the iphone nicely. As you stated both companies have access to the iPhone4, but the difference between the companies is the length of time that AT&T has had the phone compared to length of time that Verizon has had access to the new phone. Only time will tell if Verizon will have to play “catch up” to AT&T. Your visual presentation was very nicely done. The graphics represent your topic and are eye catching.
I enjoyed the article, but personally I have to say that I disagree with the quicker speeds offered by ATT simply because I believe that network speed and coverage are really more dependent on location rather than on service provider alone. For instance, I was discussing ATT vs Verizon with a friend of mine in Texas. He was saying that in one city he gets better reception on his ATT phone, but 1 or 2 cities away his friends on verizon get better service. As far as speeds are concerned in individual areas, it also has to do with distance from the cell towers and how many users there are in the area. If you're in a city close to a tower, but there are many users on that tower's network, you're likely to still run into some slow down times. However, you could just as easily live in a small town with fewer users on the closest tower's network and you'll still run into some slow reception times simply because of how far away from optimal service distance you happen to be. ATT does have an advantage at the moment simply because they got a head start. with time, you could very easily see shift in competitive advantage depending on which carrier offers the best deals, though considering the price for their data plans are almost identical, that could take some time.
ReplyDeleteI like this blog about how AT&T has the competitive advantage in terms of the Apple iPhone 4. Personally, I been a customer of both Verizon and AT&T. I prefer AT&T. I have an iPhone 3gS and I love it. It is almost like apples and oranges when comparing the two. It mainly comes down to informing yourself and what experiences that each individual consumer has had with both carriers. You have your pros and cons with each but, Verizon had to get some type of even footing with AT&T in being able to carry the iPhone 4. I just wonder maybe they put there customer at a disadvantage in rushing to be able to carry it with the rumored release of the iPhone 5 to be in the summer/fall. Did Verizon customers have time enough to get used to their iPhone 4 without having to pony up more money for an iPhone 5?
ReplyDeleteAs of now, Im going to have to agree that AT&T's Iphone4 does has a competitive advantage over Verizon's Iphone4. I personally think they will always have an advantage over them because AT&T did come out with the Iphone first. However, there are a few other reasons I believe they have the advantage. After doing a little research, I found that Verizon's Iphone will be running on a EV-DO, which is a CDMA network and is 3G. To me, it seems like they could be misleading people into thinking they are going to be having a faster network, when they really still only have a 3G network. I also found, that CDMA networks are not as common in the US, therefore they may be limited connectivity compared to AT&T's. Another reason i believe AT&T has an advantage is because with their Iphones you can talk on the phone and be on the internet at the same time. You can not do that with Verizon's Iphone. Being able to talk and be on the internet at the same time I think is a very important feature to have, today. More people will be drawn to AT&T's Iphone because it will give them the opportunity to multi-task. Lastly, AT&T has already started to reduce the price of their older Iphone's making them more affordable for people. Therefore, AT&T may eventually reduce the price of their Iphone4 which will give them the advantage over Verizon's Iphone because they will be cheaper.
ReplyDeleteIt will be interesting to note the number of new accounts Verizon receives over the next several months. Companies compete two ways: by lowering cost or differentiating. What we are seeing is customers wanting better coverage, less dropped calls, and better all-around service. I in particular have had a love/hate relationship with AT&T for years and would eliminate long term contracts, given the chance. The iPhone 5 is due to come out in June and sacrificing a bit of roaming/multi-tasking may be well worth the switch.
ReplyDeleteWe also agree that the iphone 4 for AT&T is better than Verizon. The reason why is the iphone has been on AT&T longer and has experience dealing with the problem and upgrades with it. It is true that Verizon has more coverage than AT&T, but they are known for having problems with their smartphones. Jordan Greggs, Allison Fletcher, Fabio Ribeiro, Kristin Childress, Lila Doherty.
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