Lucent Technologies: The External Environment Term Paper

Lucent TECHNOLOGIES: The external environment

Lucent Technologies was born as a spin-off of the research and development arm of the communications and technology giant at&T. It has become a major player since, in the communications industry, becoming a benchmark of innovation and quality during the it boom, but has since fallen into disfavor with some industry analysts, because it has had to lay off so many of its employees, so quickly, after the telecommunications 'best. As a mobility, optical, data and voice networking company. "From 1996 to 2001, the [Lucent] company completed 38 acquisitions totaling more than $46 billion, including a $24 billion purchase of Ascend Communications, which made Lucent the leading provider of data networking equipment for service providers." But where is Lucent today, after such great highs and lows in its short company history? (Official Website 2004)

The general economic outlook of the global communications environment Lucent operates in has undergone a tenuous recovery since the recession of the past years. Lucent, internationally has had some major coups, such as its Vital Suite Software being chosen by Japan Telecom. (Business wire, 2004) Most of the major research of investment firms such as JP Morgan has upgraded Lucent's rating against other major communications industry competitors in the field of research and development, such as Tekelec, Inc.

But it remains uncertain if communications industry stock is a good investment overall, even if the general economy is improving, and Lucent has moved ahead within the framework of its industry. In its competitor environments, communications stock with less of an emphasis on R&D than Lucent, and more of an emphasis on providing competitive rates to customers, such as Vodaphone and Motorola, Lucent lags behind. If Lucent cannot compete with such firms in terms of its rates, nor develop the next 'big thing' in the telecommunications industry, its future may be in jeopardy in the long-term, particularly if it is continued to cut back on retirement benefits for employees, and institute further layoffs to cut costs.

Works Cited

Business Wire (October 13, 2004) "

Lucent Technologies' Vital Suite Software Chosen by Japan Telecom for Its Enterprise Network Management Service." Retrieved on October 15, 2004 Yahoo Finance.

Industry Analysts." (October 13, 2004) Retrieved on October 15, 2004 http://biz.yahoo.com/research/indgrp/cmt_ar_group.html

Lucent Technologies. (October 2004). "History." Official Website. Retrieved on October 15, 2004 at http://www.lucent.com/corpinfo/history.html

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