Employing Strategy in a Competitive Environment Research Paper

Download this Research Paper in word format (.doc)

Note: Sample below may appear distorted but all corresponding word document files contain proper formatting

Excerpt from Research Paper:


Environmental Scan

The environmental scan is focused on identifying and analyzing the threats in the external environment. There are factors outside of the company that can reduce revenue or profits for the future. These can be obstacles, externally-driven changes or just competition (MindTools, 2013). Deltacom faces a number of such threats. The main threats in the external environment are competitors, regulators, and economic threats. Competitors are a significant threat. Deltacom operates in eight southern states, and it competes against other national and regional players. Deltacom has been purchased by Earthlink and renamed Earthlink Business, indicating that it competes for business with corporate customers (Deltacom.com, 2013). The competition includes some major companies, like AT&T, Verizon and more, in addition to smaller, more regional players. Competitors will use all manner of enticements to attract competitors, and this can affect the prices or the margins that Deltacom earns. Clearly, Deltacom faced substantial competition in its market, as it was forced to sell out to Earthlink, a tactic normally associated with a struggling company.

The second major environmental threat is regulatory. While all businesses face basic regulatory burden in the form of human resources and environmental laws, the telecommunications industry is one of the more heavily-regulated industries. The industry is governed by the Federal Communications Commission (FCC), a body that among other things investigates the conduct of telecommunications firms and auctions off wireless bandwidth. Because most of Deltacom's business is landline-based, the company is not as heavily-impacted by regulatory burden as many other firms in the industry.

The third major environmental threat is economic. When the economy is struggling, firms will often reduce their expenditure on all items, including telecommunications. It could be argued that a sluggish economy represents an opportunity to grow telecommunications businesses as a substitute for travel, but when businesses are closing and contracting, the net effect is at best a wash, and more likely a revenue downturn for firms that service other businesses.


Deltacom does not have too many strengths. The company was bought out by Earthlink, and this gives it two main sources of strength. First, the Earthlink brand is more widely-known as this was one of the tech companies that rose to prominence in the late 1990s. Deltacom has a presence in eight states, and has built up a network of customers in that region -- this geographic base is a source of strength should the company seek to improve its share, building on the reputation that it already has. The company has a group of talented, dedicated employees who can help it to recover after a difficult period surrounding the Earthlink acquisition.

However, the challenge for Deltacom is that many of its competitors possess the same strengths, and in some cases more strengths. Larger firms have greater capacity to invest in technology upgrades, for example. Earthlink itself is struggling after the purchase. It lost money in the last fiscal year, and with the debt it assumed from Deltacom, Earthlink has seen the book value of its equity decline in the past couple of years. It does not look like there is much financial strength at present for the company, but compared with prior to the acquisition, Deltacom is in a much better place financially, so that is something.

It will be difficult for Deltacom/Earthlink Business to leverage these strengths in the marketplace. Their competitive position as a smaller, regional firm is such that they need to leverage the familiarity of the Earthlink name in one of two ways. They need to either be a low cost provider or a high-end provider. They should not seek the middle ground, taking on the major competitors head-to-head (QuickMBA, 2010). Earthlink does not really have the money to invest in technology to be a high end player, so should probably focus on developing a low cost strategy that sees them undercut the major players in order to build the business. They should still provide strong service, but must keep costs a little bit lower than the national competitors.

Significant Competitor

The industry leader in business telecommunications is AT&T. This company is much larger than Deltacom, and therefore has more capital to invest in superior technology. AT&T is national in scope, which can be seen as a plus or not. AT&T offers a wide range of business services and unlike Deltacom has a strong presence in wireless and even handheld devices. AT&T is a tough competitor because of these advantages. It also…[continue]

Cite This Research Paper:

"Employing Strategy In A Competitive Environment" (2013, November 01) Retrieved November 30, 2016, from http://www.paperdue.com/essay/employing-strategy-in-a-competitive-environment-126101

"Employing Strategy In A Competitive Environment" 01 November 2013. Web.30 November. 2016. <http://www.paperdue.com/essay/employing-strategy-in-a-competitive-environment-126101>

"Employing Strategy In A Competitive Environment", 01 November 2013, Accessed.30 November. 2016, http://www.paperdue.com/essay/employing-strategy-in-a-competitive-environment-126101

Other Documents Pertaining To This Topic

  • Employing Strategies in a Competitive

    Particularly McDonalds and Starbucks fight daily on sales as well as share prices (Brush, 2011). The Starbucks growth has been slow during last some periods yet it offers a tough competition to the McDonalds by offering extensive sale points. The two companies are in competition war yet the customer base of the two is totally different. The Starbucks customers are more affluent and the McDonalds customers are more price

  • Employing Strategy a Competitive Environment This Assignment

    Employing Strategy a Competitive Environment This assignment builds strategy elements created Assignment 1. Please assigment Write a (4) page paper: 1.Create environmental scan company indicating significant environmental threats discuss company respond threat ensure impact business minimal. Employing strategy Environmental scan The Amber Snack Company operates in a highly complex and dynamic industry, in which the final success of the firm is influenced by a series of external factors, and mostly, by the company's

  • Leadership Within the Context of a Globalized Environment

    Organizational Leadership and Performance The environment in which leaders of today operate is increasingly global. It is important to note, from the onset, that today's globalized environment significantly differs from the environment business operated in a couple of decades ago. In addition to being fast-paced, today's business environment is also more competitive and complex. The demands of the current era have meant that leaders of today must embrace new leadership approaches

  • Corporate Structure Strategy and Competitive Environment of Target...

    Target Corporation: Corporate Structure, Strategy, and Competitive Environment The Target Corporation is fascinating, as it has been able to grow and compete with others that are better known, such as Wal-Mart. A history of the Target Corporation is important, but it will be kept brief and to the point, as there is more of a need for analysis of the current situation with the Target Corporation than there is for a

  • Human Resources Management Maintaining a Competitive

    Human Resources Management - Maintaining a Competitive Edge in the Corporate Marketplace Change continues to reshape the workplace. Today's HR professional is called upon to help the organization retain its competitive edge in the marketplace. Along with representing the best interests of employees, HR professionals assume the role of strategic partner, administrative expert, and change agent. HR assumes a critical role in promoting the vision and shaping the focus of the

  • Competitive Intelligence Company Overview Avnet

    Thus, the competitive intelligence assisted the company to align its strategic plan as well as keeping executive informed about the key element of decision-making. The company also derived advantages from market intelligence advantages and the advantages assisted the company to understand the market activities and competitive market environment. Typically, Avnet also used the competitive intelligence to create a Strategic Leverage Matrix (SLM) that the company literarily plots to understand the

  • General Electric Company GE Is a Multinational

    General Electric Company (GE) is a multinational company that operates in more than 116 countries in North America, Europe, and Asia. The company specializes in the production of diversified industrial products, and is organized along 11 businesses such as Energy, Transportation, Infrastructure, Commercial and Consumer Finance, Equipment Service, etc. Over the years, GE has recorded financial success. In 2011, Fortune ranks General Electric as the 7th largest company globally, 13th

Read Full Research Paper
Copyright 2016 . All Rights Reserved