Abstract

In this study we try to explore the concept of “Business Strategy” in a holistic context. The main focus of the research is on “Business Strategy” and its relation with “AT&T Business strategy”. The research also analyzes many aspects of “Business Strategy” and tries to gauge its effect on “AT&T Business strategy”. Finally the research describes various factors which are responsible for “Business Strategy” and tries to describe the overall effect of “Business Strategy” on “AT&T Business strategy”.

History of the Company

The American Telephone and Telegraph Corporation (American Telephone and Telegraph) began with the purpose of handling the first long-distance telephone network in the United States ( March 3 of 1885 ). Starting in New York, the network was extended to Chicago in 1892 and San Francisco in 1915. Began providing transatlantic services in 1927 using radio as the first submarine transatlantic telephone cable did not arrive until 1956.

The patent to Bell on the telephone expired in 1894, but the company managed to "control" the competition by cutting demand and prices. The American Telephone and Telegraph Corporation purchased the assets of American Bell, creating a telephone monopoly in the United States. He was known as the Bell System because Bell had acquired in previous years several companies that had granted licenses to produce telephone equipment.

The Five Forces Model of Porter

The Five Forces model of Porter is a tool for strategy-oriented business unit from the outside inward, used to analyze the attractiveness (value) of the structure of an industry. The analysis of AT & T Company is made by the identification of 5 fundamental forces of competition:

Entry of new competitors. (New entrants) is it easy or difficult for new entrants to the sector begin to compete, which barriers exist.

Yes in the case of AT&T Company there were no new entrants in the market because of the barriers so it was difficult for new entrant to enter the market. But the competitor's new products were playing role as a threat to AT&T.

(Substitutes) the ease with which a new product or service can be substituted, especially by being cheaper.

As Apple Inc launch I phone in December, it became difficult for the AT&T to have an answer to their launching product.

Bargaining power of buyers. (Buyers) Buyers are in a position of strength. Can they work together to order large volumes.

Yes, as US market is not a small market it was dangerous for the company as the competitors were launching new products so it can be happen.

Bargaining power of suppliers. (suppliers) Sellers are they in a position of strength. Are there many potential suppliers or not, a monopoly?

No, suppliers were not playing monopoly as AT&T was providing services at a large scale and had not threat from suppliers.

Rivalry among existing players in the market. (Existing FIRMS) Is there a strong competition between market players or not Does one player is dominant or are they all of equal strength and size.

Yes Apple INC was an existing player in the market and ...