Verizon Communications Pricing Strategy
In reference to Verizon's competitors, is Verizon the price leader? If not, who is?
Is Verizon's pricing at the skimming (high) or penetration (low) level? Provide rationale for your answers. Include at least three competitor prices.
Measures the company has taken in an effort to sustain or enhance its competitive position in the given market structure. This can include the following:
Does Verizon have a strong marketing budget to create awareness for the product and/or service?
Provide examples of media advertising the company has used.
Name two countries that your company has entered. Has it been received favorably?
Does the company offer value-added benefits to the product and/or service that competition does not have, such as extended warranty, rebates, buy-1-get-1 promotions, seasonal or quantity discounts, free samples?
The response address the queries posted in 1267 words with references.
// Pricing strategy is an important constituent of any Company's competitive advantage. This paper deals with the communication pricing strategy of Verizon Communications. But before talking about the main issue, it is essential to give an introduction of the Company. //
Verizon Communications is an American broadband and Telecommunications Company. It was established with the merger of Bell Atlantic, one of the important Bell Operating Companies with GTE in 2000. Earlier than this alteration into Verizon, Bell Atlantic had merged with another Regional Bell Operating Company, NYNEX in 1997.
Company's headquarters are established in New York. Its indispensable products are broadband Internet services, TV services, and local cable line & wireless telecommunication services. Verizon Communications offers a wide array of wire line & wireless telephone and data transmission services, including Internet access and media broadcasts through its recently launched services. The company's operations are planned in three key business groups (Verizon Communications, 2008).
- Verizon Wireless,
- Verizon Telecom,
- Verizon Business,
The company is working very efficiently with its different businesses and has got a position in Fortune 500. Company is leading in the list of all telecommunication industries listed in Fortune 500 Companies (Verizon Communications, 2008).
// Moving on, the following section presents Verizon's position in pricing strategy vis-a-vis its competitors in the Telecommunication Industry.//
Verizon the Price Leader
The wireline telecommunications industry is highly competitive. Present and prospective competitors consist of wire companies, wireless service providers, other home and overseas telecommunications providers, Internet service providers and other companies that offer network services and managed enterprise solutions. Several of these companies have a well-built market existence, brand appreciation, and accessible customer relationships. All of these things intensify competition.
As far as its competitors are considered, Verizon is the price leader in market and has got top position in telecommunication industries in the list of fortune 500 companies. Verizon communications is the price leader because it continues to market competitive bundled offerings that include high-speed ...