Strategic alliances and growth: firm acquisition, benefits, drawbacks, and eBay's China strategy
In this modern era when the corporate world is full of competition and every organization is running for its own benefits and generating revenues, alliances and acquisitions are of immense importance. Different firm shave different criteria's of entering into alliances or acquisitions and it primarily depends upon the present situation of the business as well as on the nature of the business.
Verizon SWOT Analysis Verizon Communications
Verizon Communications (NYSE: VZ) is one of the world's leading providers of wireless and wireline-based communication services including broadband, data, network access and global internet protocol (IP) Services. In their latest full fiscal year the company reported revenues of $110, 875 million with an operating profit of $12,880 million during FY2011 (Verizon Investor Relations, 2012). At present the company has 192,000 employees and operates in 150 nations both in a franchised and direct selling model (Verizon Investor Relations, 2012). The strengths, weaknesses, opportunities and threats (SWOT) of Verizon are the basis of this analysis.
Strengths
Verizon continues to have a commanding market presence globally with one of the most profitable brands in the telecommunications industry (Brown, 2010). The strength of their brand has given the company the ability to manage customer churn more effectively than competitors, reducing the relative churn rate of customers by 56% over the last three years while competitors have seen churn rates increase by over 67% (Verizon Investor Relations, 2012). The combination of the Verizon brand stability and customer loyalty has given the company a unique level of stability in a very turbulent global telecommunications market (Zoakos, 2002).
Another significant strength of Verizon is their ability to orchestrate and complete alliances, mergers and questions quickly. They have also been one of the few telecommunications companies to pioneer the development of effective shared-risk mergers that drastically reduce the downside risk of being an industry consolidator, a role they continue to take on globally (Peaks, Arbogast, O'Keefe, 2009). The well orchestrated acquisition of Alltel by AT&T that Verizon played a central role in is a case in point (Seidenberg, 2002).
Verizon also is moving aggressively into new markets including cloud computing using their core strengths in mergers and acquisitions. An example of this strength is the company's recent $1.4B acquisition of Terremark (Ya, 2011). Verizon continues to aggressively and successfully pursue an inorganic growth strategy by concentrating on mergers and acquisitions to bring greater cloud-based innovations to their customers (Gorski, 2005). Verizon continues to also seek out opportunities to define advanced e-commerce encryption standards globally, looking to become the global e-commerce platform at the infrastructure level for enterprises (Everett, 2012).
Research Paper
Undergraduate
Exxon Corporation financial analysis
¶ … worldwide energy market, focusing on one of its largest players, Exxon Corporation, and its influence over the overall economy. There are a number of key issues and challenges that have to be highlighted and…