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- The need to formulate other strategies
- AT&T is the biggest telecommunication company in America and globally; however, other companies will soon challenge global and American communications market domination. If not, its growth is likely to decline due to the rise of many telecommunication companies that offer similar services as AT&T (Kwoka, 2019). As the competition grows stronger, AT&T will likely lose certain market shares to new companies hence the need to formulate other strategies to maintain its profitability despite the decline in the market share within the telecommunications sector.
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The need to formulate other strategies
One of the ways AT&T can maintain its market position is by venturing into other sectors closely related to telecommunications. One of the most profitable and lucrative sectors is the web and services. Companies such as Amazon and Microsoft have recently increased their market share and sizes due to their dominance in this sector. AT&T has not ventured into the sector yet, but it depends on other companies such as Amazon for its data backup and cloud services needs.
This sector would be profitable for AT&T because it has a wide consumer base that can easily be converted into market opportunities and subscribers. Most individuals, startups, SMEs, and big organizations rely on AT&T for internet and telecommunications services; hence it would not be difficult to gain the market (Trenz et al., 2019). It will gain more market and profitability when it ventures into the sector. The greatest benefit will be to the consumers who will get affordable cloud services subscriptions compared to other companies’ current offerings. This is because AT&T can rely on its large market to subsidize prices for smaller organizations, startups, and individuals to get cloud services. The company also has the necessary resources, which will make it easier for users to get user-friendly and expert services.
The need to formulate other strategies
References
Trenz, M., Huntgeburth, J., & Veit, D. (2019). How to Succeed with Cloud Services?. Business & Information Systems Engineering, 61(2), 181-194.
Kwoka, J. E. (2019). The effects of divestiture, privatization, and competition on productivity in US and UK telecommunications. Review of Industrial Organization, 8(1), 49-61.