Organizational analysis is one of the most effective methods to determine a profitable development course. Strategic Factor Analysis Summary (SFAS) and Threats, Opportunities, Weaknesses, and Strengths (TOWS) matrix are the two primary frameworks that are frequently utilized for such purposes. Both methods allow determining the most significant factors affecting the company and reveal the potential solutions to the problems. Ultimately, the current paper provides the organizational assessment of AT&T, analyzes the company from the perspective of SFAS and TOWS, and proposes several recommendations on how to improve the overall financial performance.
As mentioned briefly before, the current business report focuses on AT&T – one of the most prominent and successful telecommunications companies in history. The establishment of the firm is closely connected to the invention of the telephone by Alexander Graham Bell in 1876 (AT&T, 2021). As a result, the first iteration of AT&T was founded in 1877 under the title of ‘Bell Telephone Company’ (Butler, 2020). The symbolic history of the organization transparently reflects the vast impact the firm has had on the telecommunications industry. Consequently, ‘Bell Telephone Company’ was renamed into the American Telephone and Telegraph Co. in 1885 and is now mostly known as AT&T (Butler, 2020). Nevertheless, the company has also had several downfalls throughout the 140 years of providing the means of mass communication to the American people (Butler, 2020). The monopoly of AT&T on telecommunications was continually obstructed by the government in 1913, 1949, and 1980s, which resulted in AT&T separating into seven different firms in 1984 (Butler, 2020). Nevertheless, consequently, the company has fully recovered and is rightfully considered one of the most notable telecommunications organizations of all time.
PESTEL and SWOT methods of analysis are essential elements of organizational development and should be addressed before implementing the business strategy. A comprehensive evaluation of the firm’s strengths, weaknesses, and objectives is necessary to determine the course of action. Furthermore, regardless of the company’s performance, it is possible to enhance the productivity and efficiency of the organization by assessing the internal and external factors. The current business report analyzes AT&T Inc. from the perspective of PESTEL and SWOT and addresses the internal and external environment of the firm.
Before conducting the PESTEL and SWOT analyses, it is essential to evaluate the current goals of AT&T Inc. and the implemented business strategies. AT&T is a global media company focusing on telecommunications and entertainment services (AT&T, 2021). Due to the advantageous position in the market, the primary objectives of the firm include environmental, social, and governance areas (AT&T, 2021). Namely, the environmental goals concern the reduction of greenhouse gas (GHG) emissions, the achievement of carbon neutrality, and the increase of sustainability awareness (AT&T, 2021). The social objectives regard the improvement of educational programs, provision of internship opportunities, and combat against discrimination (AT&T, 2021). Lastly, the company focuses on governance issues, such as supply chain development, supplier diversity spends, and enhancement of sourcing standards (AT&T, 2021). Ultimately, AT&T emphasizes environmental, social, and governance issues and has achieved immense results by focusing on these factors.
Focus on sustainable development (SD), including environmental, social, and economic factors, is an efficient strategy for organizational improvement. According to research, SD has recently become increasingly popular among both academic and commercial fields of improvement (Silvestre & Țîrcă, 2018). Furthermore, the implementation of SD has demonstrated great results within the business sector, and a large number of customers are supporting eco-friendly firms (Silvestre & Țîrcă, 2018). Accordingly, the success of AT&T shows that SD emphasis is an efficient business strategy with a small number of disadvantages.
However, there are always opportunities for development, and PESTEL analysis is one of the most efficient tools to reveal the potential areas of concern. In general, PEST or PESTEL is a comprehensive assessment of political, economic, social, technological, environmental, and legal factors that might affect organizational development (Kenton, 2020). The said characteristics vary significantly in regard to the overall performance of the firm, and some constituents may be irrelevant to the development (Kenton, 2020). Therefore, depending on the organization, some external factors are more significant than others, and this difference should be addressed in the analysis. The PESTEL assessment of AT&T Inc. is presented and explained below:
Table 1. PESTEL Analysis
|Areas of Development||Issues of Concern|
|Political||Political contributions to elections; memberships in trade associations; employee political action committee (AT&T, 2021);|
|Economic||Dependence on financial institutions and fluctuations of the market;|
|Social||Variation of customers’ preferences; evaluation of current trends; increasing demand of social platform content; diversity and inclusivity issues; shift to mobile to devices;|
|Technology||Continuous innovation of technological devices and capabilities;|
|Environment||Vulnerability to potential natural disasters; sustainable development trends;|
|Legal||Pirated and copyrighted content issues.|
Like most telecommunications organizations, AT&T might experience complications in economic, social, technological, and environmental areas. Fluctuations of the economy affect all the companies with a significant presence in the market. Social trends should always be monitored to assess the preferences of the customers and choose the appropriate strategy. Technological and environmental issues are also highly relevant to all organizations in the telecommunications industry. As a result, economic, social, technological, and environmental areas of development are highly relevant to AT&T and are standard concerns in the industry.
On the other hand, political and legal concerns described in the analysis are unique to AT&T. The organization practices a highly active political engagement with consistent contributions to local election parties, participation in trade associations, and political action committee (PAC) grants (AT&T, 2021). However, a notable position on state matters is also associated with certain risks; therefore, political engagement is an area of increased attention. Consequently, legal concerns of pirated and copyrighted content are also highly relevant to AT&T (Hernandez, 2018). The company bans a large number of customers for stealing content, resulting in an increased amount of lawsuits and attention to the organization (Hernandez, 2018). Ultimately, the described political and legal concerns are unique to AT&T and should be addressed accordingly.
SWOT and SFAS Analysis
SWOT and SFAS analysis models are effective strategies that allow determining the importance of internal and external factors and how well the company handles them. These methods evaluate the performance of the firm and demonstrate the necessity of implementing additional business strategies. SWOT assesses the strengths, weaknesses, opportunities, and threats of the company, while SFAS determines the significance of these characteristics (Kenton, 2021). The SFAS evaluation of AT&T Inc. is presented below:
Table 2. SFAS Analysis
|How important to industry (0-1)||How well does the company handle it (1-5)||Weighted Score|
|Infrastructure of wired and wireless communications||0.1||5||0.5|
|Large economic debts over the last year||0.15||2||0.3|
|Emphasis on the USA||0.15||3||0.45|
|Highly competitive environment||0.15||3||0.45|
|Penalties from lawsuits||0.05||3||0.15|
The current SFAS analysis demonstrates some of the most subjectively significant factors that could affect the development of the organization. The five identified areas of concern include two weaknesses (debts and national focus), two opportunities (international growth and sustainability), and one threat (competitors). For instance, AT&T competitors include Frontier Communications, Verizon, Vodafone, Sprint and T-Mobile. Among these competitors, Verizon offers better 4G LTE reception range (Verizon, 2021), while T-Mobile currently offers weekly promotions from their T-Mobile Tuesdays application (T-Mobile, 2021). Each competitor offers their own advantages; however, AT&T must understand consumer needs and trends so that consumers do not look for other alternatives. Having an unlimited plan that includes more high-speed cellular data is no longer enough to captivate consumers (AT&T, 2021). Evidently, the company might experience more complications when adapting to the new environment; however, it is essential to determine the most significant opportunities to choose an appropriate business strategy. Concerning weaknesses, the total amount of liabilities has increased from $346,521B in 2019 to $364.864B in the second quarter of 2021 (Macrotrends, 2021). A decline in revenue and increased debt signifies the economic problems that should be prioritized in the business plan. Namely, a significant portion of these debts is connected to the purchase of DirecTV, which was ultimately a loss-making investment, the damage from COVID-19 (Dang & Malara, 2020). AT&T has lost approximately $3 billion due to movie business restrictions, which, in turn, increased the overall amount of debt (Dang & Malara, 2020). Ultimately, these findings reflect that long-term debt is one of the most notable weaknesses of the company.
Consequently, while AT&T has a global presence, the company emphasizes the American segment, potentially losing a large number of customers. The separate segment of the company (AT&T Latin America) provides services in Mexico and throughout South America; however, the European and Asian segments are relatively underdeveloped. At present, experts argue concerning the effectiveness of the expansion strategy in Europe, specifically, due to the regional monetary policies (Shas & Rasay, 2021). However, the analysts of the company are hopeful concerning the HBO Max distribution in other regions besides North and South America.
Therefore, the two primary opportunities for the organization are international growth and sustainable development. Now, that AT&T is the owner of the streaming business HBO Max, they reached a customer count of 64 million quickly reaching their goal of 70 million. AT&T should continue to pursue streaming services and perhaps follow the Netflix model to creating the next trending streaming series (Conrad, 2021). AT&T transparently indicates sustainable development as its primary objective, and this business strategy has greatly assisted the company (AT&T, 2021). This approach led to positive change in the national and global rankings, while also improving the corporate image of the firm (GlobalData Technology, 2021). Consequently, at present, there is a large number of competitors due to a high density of organizations in the telecommunications industry. Therefore, it is critical to develop innovative strategies or technologies to separate AT&T from the rest of its competitors and hold the top place in the market.
AT&T Inc. is the largest company providing telecommunications services in the world. Nevertheless, there is always room for improvement, and the current business report has revealed a number of potential areas of development. According to PESTEL analysis, political and legal factors present unique concerns to AT&T. Consequently, the SFAS method demonstrates such weaknesses as large long-term debts and focus on the national segment and threats, such as a highly competitive environment and potential penalties from copyright lawsuits. Nevertheless, it is possible to solve these problems by addressing international growth and sustainable development.
AT&T TOWS Analysis
Based on PESTEL and SWOT analyses, it is possible to conclude that the most significant issues of AT&T are emphasized in the US and their highly competitive environment. Nevertheless, the examination also highlighted several opportunities, including the impact of international growth and the focus on sustainable development. These factors are particularly significant due to the recent trends of globalization, digitalization, and sustainability in practically all industries (Olawumi & Chan, 2018). As an ongoing trend, environmental awareness has become important for everyone in this generation. AT&T provides an Eco-rating 2.0 system to every customer with information about the equipment sold and how they make environmentally friendly products. Customers can learn more information through this system and purchase sustainable product when they know which products are recyclable. On the other hand, AT&T helps their business customers operate more efficiently and reduce waste resources. AT&T helps companies like Lineage Logistics, a cold food storage company reduce energy consumption by ensuring food safety through logistics, energy reduction and reduced carbon emissions. Using smart meters and sensors connected through the AT&T, Lineage was able to maintain the optimal temperature in 78 different warehouses across the country and reduce electricity consumption by 33 million kilowatt-hours per year. This is equivalent to avoiding the emissions of 2.4 million gallons of gasoline (AT&T, 2021). Therefore, when AT&T provides customers with products and services that reduce resource usage, customers will see that AT&T’s contribution to the world is not only applies to the application of modern smart technology, but also the protection of the earth.
From these considerations, it is essential to conduct the Threats, Opportunities, Weaknesses, and Strengths (TOWS) analysis. This method allows determining possible solutions to the problems by connecting all of the factors. For instance, the combination of opportunities and weaknesses defines a strategy that could be used to mitigate weaknesses by choosing to pursue opportunities. The TOWS analysis of AT&T and the following elaboration are presented below:
Table 1. TOWS Analysis
|Brand value||Large economic debts over the last year|
|Infrastructure of wired and wireless communications||Emphasis on the USA|
|International growth||Brand value & International growth – Expansion (the revenue growth benefit)||Debts & International growth – Long-term Investments into Geographic Expansion (the revenue growth and global presence benefits)|
|Sustainable development||Brand value & Sustainable Development – Replacement of Older Technologies (Maintaining competitive advantages benefit)||–|
|Highly competitive environment||Competitors & Infrastructure – Focus on 5G and Digitalization (Maintaining competitive advantages benefit)||Competitors & Debts – Innovative Streaming Policies and Sales of Unnecessary Assets (mitigating long-term debts and overall revenue growth) |
Competitors & Emphasis on the USA – HBO Max Expansion (the revenue growth, global presence, Maintaining competitive advantages benefit)
|Penalties from lawsuits||–||–|
The depicted TOWS matrix highlights four primary strategical approaches: strengths to maximize opportunities, strengths to minimize threats, opportunities to minimize weaknesses, and strategies to minimize both weaknesses and threats. The matrix provides a list of possible solutions which is why it is essential to brainstorm the presented data and analyze each of the combinations.
Brand Value & International Growth
One of the safest ways for AT&T to gradually improve its position in the market of telecommunications is via expansion of services. AT&T is one of the leading companies in the industry and operates under three primary segments: Communications, WarnerMedia entertainment and streaming services, and Latin America (Reuters, 2021). While the company lost some of its revenue in 2020, its advantageous position in the market cannot be denied. As a result, it is possible to allocate the finances into the development of international services and consequent expansion to other regions. At present, the Latin America segment provides approximately 3% of the total revenue with 11 million subscribers (Wall Street for Main Street, 2021). With expansion in mind, AT&T’s profit scale has gradually moved closer to Europe. By focusing on international infrastructure, international expansion is a profitable course of action to take.
Brand Value & Sustainable Development
At present, AT&T has already put significant efforts into sustainable development, including environmental, social, and economic aspects, which explains the highest score in the SFAS chart. Furthermore, sustainability is a crucial component for every organization’s success due to the ongoing trends (Olawumi & Chan, 2018). In its vision, AT&T addresses GHG emissions, education, diversity, inclusion, and even political engagement. For instance, AT&T monitors and controls equipment on the factory floor to increase energy efficiency and reduce process waste. Efforts have been implemented to reduce greenhouse gas emissions in 2020. AT&T produced 736,785 metric tons (11.3%) less CO2 than in 2019 (AT&T, 2021). North Carolina A&T State University, the University of Texas at El Paso, Hampton University and Champlain College create opportunities for degrees or certifications in specialized fields to support this sustainable future (AT&T, 2021). In addition, AT&T has many contributions and developments in all fields of society. While there is an admirable improvement to the number of eco-friendly sources for energy consumption at 18%, other tech companies, such as Google or Intel, are approaching a 100% mark (GlobalData Technology, 2021).In other words, while the objectives of AT&T align with sustainable development, there is much work to be done concerning its current assets. Ultimately, it is essential to review the existing technologies and replace them with innovative and eco-friendly options.
Large Economic Debts & International Growth
As mentioned in the SFAS analysis, AT&T is struggling with long-term debts, which have increased drastically in 2020. Some of the reasons for the unprofitable financial year include the purchase of DirecTV and the shutdown of the movie business due to pandemic restrictions (Sun, 2020). Subjectively, one of the ways to mitigate these consequences is the geographic expansion to European and Asian markets. At present, AT&T covers the North and South American regions with a vast focus on the United States (Reuters, 2021). However, the European expansion, specifically, Nordic regions might be a profitable decision (Shah & Rasay, 2021). For starters, AT&T signed a global network agreement with the Dutch Industrial Services Company. As work begins to migrate 350 sites around the world, AT&T also provides a global wide area network (WAN) for ERIKS in 17 countries/regions. AT&T will look to migrate ERIKS’ US transmission network to a network fully managed by AT&T. Their goal is to migrate all 250 sites in Europe and the Asia-Pacific region to AT&T while providing dedicated service management resources to support 350 sites in Europe and the Northern Hemisphere (AT&T,2021). Of course, this development process may increase AT&T’s own financial burden and increase short-term debt by a large margin. Nevertheless, the finances of the organization allow for a brief disruption of revenue growth since the primary debt problems are long-term. Therefore, the suggestion is to focus on geographic expansion, despite the possibility of short-term revenue losses.
Highly Competitive Environment & Large Economic Debts
The economic debts of the company have been gradually increasing over the last few years, which can be connected to the high competitiveness of the market and the pandemic restrictions. For instance, AT&T lost 151,000 mobile phone users who paid monthly bills, including 338,000 customers who stopped paying their bills but were still using the network during the COVID pandemic (Sheila Dang, Neha Malara, 2020). As mentioned briefly before, the purchase of DirecTV and emphasis on the pay-tv were highly unprofitable for the organization, and the shift to streaming services is needed (Sun, 2020). Furthermore, it is essential to improve the existing streaming platform – HBO Max – since many competitors, such as Netflix and Apple TV Plus, consistently offer innovative solutions.
Highly Competitive Environment & Infrastructure of Wired and Wireless Communication
One of the most notable AT&T’s advantages in the technological advancement is 5G. 5G is the fifth-generation mobile network, which allows increasing the connection speed and reducing latency (Bajenescu, 2020). Compared to LTE, 5G has a large number of advantages and is particularly effective for video-streaming support and other types of entertainment (Bajenescu, 2020). From these considerations, AT&T should focus on the development of the network and prioritize technological research; because competitor T-Mobile dominated the latest 5G report from Opensignal. Their lead competitor scored higher than AT&T and Verizon in terms of coverage, availability, as well as upload and download speed. On the other hand, if AT&T does not break away from the original service plan, it will not be competitive (Fletcher, 2021).
Highly Competitive Environment & Emphasis on the USA
As mentioned briefly before, AT&T has a large number of competitors in every segment of operations. T-Mobile and Verizon are offering better 4G solutions, while Netflix and Apple TV present a considerable danger to HBO Max. While the importance of telecommunication expansion is described in previous solutions, streaming platforms need to be introduced to the international arena as well. At present, AT&T plans to roll out HBO Max in Europe (Middleton & Easton, 2020). Nevertheless, it is essential that the company focuses on other regions as well. Nevertheless, it might be profitable for the company to focus on other regions, such as the Asian markets, and eventually establish a global presence of the firm.
While all of the mentioned strategies might be effective to a certain extent, emphasis on 5G development and consequent improvement of streaming services seem like the most appropriate choices for AT&T. While it is complicated to predict the exact relevance of 5G in the near future, it might solve the primary problems of the company, such as debts and competitors. According to AT&T’s new Chief Financial Officer Pascal Desroches presentation at the Bank of America’s 2021 Media, Communications and Entertainment Conference on Tuesday, the company has a relatively simple strategy to achieve its financial goals, especially in the mobile business. Desroches said that AT&T plans to continue to encourage its existing customers to upgrade to more expensive post-paid unlimited plans. In addition, AT&T expects to gain market share from rivals Verizon and T-Mobile. AT&T will achieve this goal through a variety of strategies, including targeting specific market segments, such as first-aid personnel provided by FirstNet and through localized marketing promotions (Dano, 2021). If they continue to invest, AT&T has good chances of becoming a pioneer in the development of 5G networks and maintain its place as the leading distributor of services. Furthermore, the improvement of HBO Max in terms of both innovative features and geographic expansion might underline its competitive advantages. In the dense market of streaming platforms, it is essential to continually evaluate the preferences of customers and act accordingly.
The last step of the organizational analysis is the implementation of the recommended changes. As mentioned in the SWOT and SFAS analyses, AT&T emphasizes sustainable development as the primary objective of the firm. The executives focus on both environmental and social factors, such as the reduction of GHG emissions and diversity (AT&T, 2021). Nevertheless, according to the TOWS analysis, these methods might not be sufficient to maintain the advantageous position in the market, and other strategies are required. From these considerations, 5G development and the expansion of streaming services are chosen as the appropriate methods to strengthen the firm.
At present, largest telecommunications companies are exploring the potential capacity of the 5G networks and how they could be applied to gain an advantageous position in the industry. AT&T, Verizon, T-Mobile, and Sprint are the most notable organizations pursuing this objective (Crotty & Strover, 2020). According to the latest rankings from Opensignal, T-Mobile has a considerable advantage in 5G coverage and speed (Rizzato, 2021). The three illustrations below demonstrate the current metrics of 5G development:
Note. Availability demonstrates the percentage of total customers of the company connected to 5G services. In other words, it is a relative metric that does not calculate the objective number of clients.
Note. Reach is the scale of 0-10, which demonstrates the overall availability of the 5G services, depending on the locations in which users attempted to connect to the network.
Note. Video experience metric shows the overall evaluation of real-time streaming services by the customers of the respective company.
According to Figure 3, AT&T holds the top position in 5G video experience and is a close second in the rating of 5G Games Experience (Rizzato, 2021). As mentioned in the TOWS analysis, 5G has a large number of advantages over previous generations of networks, specifically in the entertainment segment. From these considerations, it is possible to implement a 5G development strategy with a focus on video and game experience.
Currently, the entertainment industry is rapidly expanding, and the video, game, and music sectors are some of the most profitable areas to invest in. Furthermore, the habits and preferences of the customers are continually changing, and the most adaptable company might have immense success by implementing 5G technologies (Caruso et al., 2019). For instance, 5G might be applied to an innovative approach in gaming, such as interactive games, which require the simultaneous connection of several devices (Caruso et al., 2019). Furthermore, 5G does not only provide better speed and stability compared to previous generations but is also more cost-efficient and allows optimizing infrastructure (Caruso et al., 2019). These findings imply that the continual shift to 5G from LTE might yield a competitive advantage for the company in the entertainment industry.
Consequently, it is essential to discuss the contemporary means of technological advancement and how the said strategy might be applied to practice. One of the potential methods to utilize 5G is the Quality and Experience (QoE) modeling framework for video streaming (Nightingale et al., 2018). At present, approximately 73% of all internet traffic is utilized for streaming services; therefore, it is vital to improve the experience and satisfaction of the customers in this area (Nightingale et al., 2018). From these considerations, the 5G-QoE framework is an efficient tool to enhance the quality of high-end services, such as real-time streaming and ultra-high quality videos (Nightingale et al., 2018). The primary advantage of the model is the capacity of flow and video sensors to detect any type of anomaly (Nightingale et al., 2018). In other words, the simultaneous usage of several quality control frameworks allows identifying any potential frame drops, delays, and lags and fixing them before the customers notice. Potentially, it removes any type of possible inconvenience during ultra-high quality video streaming and significantly improves the satisfaction of the customers.
Evidently, the development and expansion of the 5G networks would require considerable funding and comprehensive research. For instance, the implementation of 5G-QoE into the current infrastructure entails the changes of virtualization, multi-tenancy, cloud computing, software technologies, and other designs (Nightingale et al., 2018). Therefore, while the ultimate effect of 5G-QoE might be highly beneficial for the company, AT&T needs to invest significant funding into the development. Namely, the company should focus on national coverage since AT&T has a high chance of becoming the first organization to provide ubiquitous nationwide 5G (Crotty & Strover, 2020). The current availability covers most parts of the United States; however, there is a large number of regions, where only LTE is available (AT&T, 2021). Furthermore, the 5G architecture differs significantly from previous generations and is associated with higher costs, specifically, due to 5G modems that require multi-core processors (Remmert, 2021). While it is complicated to predict the accurate amount of necessary funding, the ITIF research demonstrates shows that national 5G coverage might require approximately $275 billion, while returning $500 billion of GDP to the economy (Brake, 2020). Ultimately, the profitability of 5G development is supported by various experts, and AT&T has good chances of succeeding in this area.
The second recommendation concerns the highly competitive market of streaming services headed by Netflix and Amazon Prime. Compared to the giants of the industry, HBO Max is a relatively new and undeveloped platform. Nevertheless, the current expansion rates are promising, as AT&T claims that HBO Max will reach approximately 150 million subscribers by 2025 (Hayes, 2021). The executives of AT&T declare customer relationships as the core focus of the HBO Max development (Hayes, 2021). As a result, loyalty programs, longer subscription periods, and versatile pricing strategies are prioritized. However, there are certain challenges obstructing the development of the platform.
Pricing is one of the most significant factors that affect the choice of customers in the video streaming industry. Consequently, the pricing strategy implemented in the United States might not be appropriate for the expansion in Europe. Experts display uncertainty concerning this factor since it is complicated to adjust the rates in various regions (Shah & Rasay, 2021). For instance, the current instance of international HBO services – HBO Go – regulates the prices based on the country: approximately $5 for Eastern European regions and $13-$16 for Nordic areas (Shah & Rasay, 2021). On the other hand, HBO Max charges $14,99 in the United States to maintain its financial health (Shah & Rasay, 2021). As a result, expansion to the European streaming market with an identical pricing strategy might be profitless. In such cases, the company needs to attract new customers by implementing an effective sales strategy.
Ultimately, seasonal deals, prolonged free trial periods, and collaboration with established organizations might significantly facilitate the expansion process. Therefore, the plan of implementation should be structured according to the said recommendations. First, it is advisable to conduct experimental streaming in Nordic regions, which require a minimal amount of regional pricing deviation due to the developed economy of the countries. Consequently, if the project demonstrates significant progress, it is possible to expand further into European developed markets, specifically, England, Denmark, Belgium, and the Netherlands. The company does not require any localization processes associated with additional costs. Lastly, AT&T should explore less economically developed regions and adjust the pricing strategy by utilizing regional and seasonal deals to attract new customers.
As mentioned before, the primary competitors of AT&T in the telecommunication industry are Verizon and T-Mobile, while Netflix overwhelms HBO Max in the streaming services. The companies continually implement innovative strategies, organize technological research, announce numerous sales, and effectuate subscription policies to improve their positions in the market. Ultimately, a large variety of methods have been tested already, and there is little prospect for new opportunities. However, as mentioned before, 5G development is a relatively innovative area of research, and it is possible for AT&T to take the leading position in this sector.
The TOWS analysis revealed several potential opportunities for AT&T to improve its financial condition and competitive presence, namely, 5G development and the expansion of streaming services. The current report proposes technological research of 5G and regional sales as the primary means of organizational expansion. Innovative methods, such as 5G-QoE, might significantly improve the quality of video streaming services and enhance customer relations. On the other hand, thorough planning of regional sales and free trial policies is going to attract new customers in the European region. Focusing on these areas of development, AT&T might gain a competitive advantage in the market and take the leading position in the telecommunication and entertainment sectors.
The current report has provided a thorough description of AT&T, including SWOT, SFAS, and TOWS analyses. The examination has revealed that, despite the advantageous position in the telecommunications market, the company has several weaknesses and potential threats. Namely, large economic debts and a highly competitive environment might significantly obstruct financial development. However, according to the TOWS matrix, technological development in 5G areas and geographic expansion into the European streaming market might mitigate the said weaknesses and threats. Namely, the national 5G coverage in the United States and providing streaming services in Nordic regions with the consequent expansion into less economically developed markets are the two suggested implementations. The former strategy might help AT&T maintain its advantageous position in the telecommunications market in the United States and mitigate the ongoing threats from Verizon and T-Mobile. The expansion of streaming platforms might also be a highly profitable investment and reduce the existing long-term debts. Overall, the proposed suggestions might significantly increase the financial performance of AT&T.
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