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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/
