'Current and Future Market Trends Essay\r'

'When supposeing of radiocommunication resound or internet proceeds, the setoff teleph wholenessr that probably comes to mind is Verizon radiocommunication. Verizon offici eachy became a labor to be reck peerlessd with in the radiocommunication food grocery storeplace in 2000 when Verizon communications and Vodafone merged. Verizon states, â€Å"Verizon Communications Inc., headquartered in bleak York, is a global leader in delivering broad mass and some otherwise tuner and wire line communications run away to mass trade, stemma, government and wholesale customers.” Since entering the market in 2000, Verizon has do itself popular by broadening run in more aras than each other wireless network.\r\nMarket Structure\r\nWithin economics, quad types of market social systems exist. The four types be: monopoly, monopolistic ambition, perfect tense contender, and oligopoly. Colander (2008) describes market structure as, â€Å"the physical character istics of the market within which firms interact.” Verizon wireless’ market structure washbasin be defined by a junto of monopolistic competition and oligopoly. Colander (2008) defines monopolistic competition and oligopoly as, â€Å"a market structure in which there are many firms selling differentiated products and some barriers to entryâ€and oligopoly †a market structure in which there are only a few firms and firms explicitly take other firms’ likely reply into account.\r\nThe wireless industry is smaller that mickle think and not much competiton exists. For ex adenylic acidle: Cingular and AT&T are both wireless carriers, provided Cingular is a part of AT&T. Essentially, when a consumer spends money with Cingular, it still goes to AT&T. victimization an oligopoly structure has worked well for Verizon in the past and currently. verit fit and future market trends should not have any affect on the market structure of Verizon.\r\n New Companies\r\nCompetition in the wireless industry has forever and a day been tough. It seems as though every month or few weeks, a spick-and-span mobilize or new service is being unveiled by a well-k instanter fraternity or a phoner trying to get started. Besides Alltell, Verizon is usually the companionship the competition seeks to argue with. To compete with Verizon most companies offer a service standardized to Verizon for a cheaper value, or they offer a similar phone for a cheaper determine. Verizon would not be alter heavily by any new companies entering the market, because Verizon is already schematic and consumers are already familiar with the brand. Aside from that, Verizon offers a number of serve and slogans to pro presbyopic their consumers interested. Some of the slogans employ are: America’s largest and most true(p) network, #1 in customer loyalty, and the worry withdraw guarantee. Verizon does not have to worry about the competition, the com petition should worry about Verizon.\r\n sets\r\nOne of the downsides to having wireless go and phones is the price. Since the introduction of booth phones, the price of phones and the price of service have risen signifi suffertly. On come, a deoxidise for cell phone service with two lines would make up anywhere from $160 †$250, depending on the run the customer chooses. That price does not include the price of the phone which could be anywhere from $50 †$900. The prices to maintain the whatsis of a cell phone are ridiculous, plainly it is a necessity that most individuals find it effortful to live without. The current and future trend of the wireless industry shows the price of serve and phones increasing. With that being said, despite the prices of phones and service, consumers will continue to pay the prices set by Verizon and other wireless companies.\r\nTechnology\r\nCell phones and services have definitely evolved over the classs. Technology is one of the leading factors when consumers consider purchasing a phone or selecting a troupe as their wireless provider. Most cell phone users use school text messaging, check email, and log onto social networking sites like facebook and myspace from their unstable phones. Like any other invention cell phones have evolved and become an important part of our lives. Televisions went from but being in homes to our cars. Computers were usually found in places such as: homes, offices, and libraries. Now cell phones are the more modern version of computers. Verizon has continuously do note of the changing trends when it comes to employ science and the company has always delivered excellent products the consumer wants or needs.\r\nProductivity\r\nTo maintain the mystify as the largest and most accepted wireless carrier, Verizon radio must spend money. The be range from construct the network, to maintaining the network. cost include employees, equipment and applied science needed to musi cal accompaniment the company on top. The company makes endings based on what the benefit will be in the long run. These decisions are make by researching trends and technology in the wireless market and changing tastes of the consumer. The company knows the catalyst of success is a strong network. The law of diminish marginal productivity states as more of a variable arousal is added to an existing fixed input, in conclusion the additional output one gets from that additional input is going to fall (Colander 2008). I was not able to get information specific from Verizon radio that would help oneself me graph out this law.\r\nThe company has over 86,000 employees and made 56.8 billion dollars in net income for 2008 (about us 2009). severally socio-economic class bonuses are given to employees based on individual performance and company performance. Last year the bonuses were based on the fact that the company made 12% in profits. In today’s economic meters, the e p rofit achieved was outstanding and was supra any other profits made in the wireless industry for 2008.\r\nCost Structure engage and Benefits\r\nEmployees of Verizon radiocommunication are compensated well. The employees salary on with the benefits provided are above others employed in the wireless industry, according to David Brown an analyst at Verizon radiocommunication human resources. At Verizon Wireless a broad- mickleed structure is used to organize line of reasonings and manage pay. There are six bands that range from A to F. Depending on the skills of the individual, he or she is usually hired in on the F band, which is a customer service representative, or assistant. The duties are usually task oriented. The next band is E, which is a coordinator or analyst, who are proven to work independently, usually on projects and technical functions. D band consists of level one managers, supervisors etcetera. C through A bands are the higher levels of management and CEO. Jobs ar e depute to bands based on similar roles and levels of responsibility.\r\nThe jobs themselves can be quite different in depots of what people do. Jobs in the same band are similar in terms of their impact on our business results, the decision-making authority of the employees who hold them, and the knowledge and skills required. VZW classifies a job as either salaried exempt or salaried non-exempt. Verizon Wireless provides medical, dental and vision benefits to employees at a reduced cost, but also provides at no cost an education benefit up to 8,000 per year, 401k contribution matching up to 6% and per annum performance bonuses as well as profit sharing if enrolled in 401k and a long term incentive program that is also based on company performance.\r\nEmployees are a vital summation to Verizon Wireless and the salaries along with the benefits are designed to step-up performance.\r\nCost Structure Fixed and uncertain Costs\r\nFixed be are defined as costs that are spent and cannot be changed in the period under consideration (2008). Fixed costs for Verizon Wireless include buildings, warehouses used, and upkeep of cellular sites. Variable costs, or costs that change, include workers employed, contracts for equipment production, new technology etcetera. Verizon Wireless is a firm that sells produced goods to individuals, businesses and government (2008). The company’s main output is technology. The fixed costs dived by the variable costs equal the average costs of the company. As was stated earlier, last year Verizon Wireless made a 12% increase in profits from the year before.\r\nMost of the receipts occurred in the quaternate quarter of the year with the discover of the BlackBerry Storm touch screen invention. The device was the answer to the I phone distributed by AT&T. Over 100,000 devices were sold on the first day of release alone. The cost of the device was 199.99, which is well-nigh 2 million dollars made in one day. The direct for the devices increased, and the company met the demand with more phones. check to the March 2009 newsletter given to the company for 4th quarter earnings, the CEO Lowell McAdam advised that Storm gross sales were the factor that significantly raised the company’s profits and set the bar for future ventures.\r\nPrice Elasticity of Demand\r\nThe relation between the supplanting in quantity and shift in price of a product is known as price elasticity. â€Å"Price elasticity of demand is the calculation of the circumstances change in quantity demanded divided by the percentage change in price” (Colander, 2008). Verizon Wireless has to make an effort to stay in synch with the set and offerings by their competition. Verizon Wireless must implement services and products that incorporate modern technology and are ground-breaking to compete in the wireless market and affordable in today’s economy.\r\nImpact of Government Regulations\r\nVerizon Wireless realizes t he importance in ensuring that all regulations that are schematic by the Federal Communications Commission. Abiding by these regulations will guarantee that Verizon Wireless will keep providing long-standing benefits for the taxpayer and customers. Verizon Wireless trusts that the present structure â€Å"of auctioning spectrum licenses, with clearly defined, exclusive-use and negotiable obligations, is the right approach to spectrum policy” (Verizon Wireless, 2009). Although clear benefits towards allowing unlicensed use of spectrum is visible, that advance will not form the revenue for the United States Treasury or the surpass value for American economy. Broadband is one of the services provided by Verizon Wireless. Over the past ten old age Broadband services have been used commercially.\r\nDuring that time the government has acknowledged the significance of implementing market-based motivations to persuade broadband usage and investment. â€Å"Rather than applying more-stringent regulations to telecommunications services and infrastructure, the FCC generally has applied an old wires, old rules; new wires, new rules doctrine towards broadband services and networks” (Verizon Wireless, 2009) By doing this, customers will take out in the benefits form the government’s decision to enhance incentives for broadband service providers to invest in better and superior broadband networks and services. â€Å"Investment and deployment in next-generation broadband networks †such as Verizon’s FiOS network †is happening at a remarkable pace, and consumers now have more choices than ever before” (Verizon Wireless, 2009).\r\nCompetitors\r\nVerizon Wireless has a substantial amount of competition in the wireless industry. Verizon competes with wireless companies such as T-Mobile, bolt and AT&T. Verizon Wireless became the largest wireless service provider by beating out AT&T. Nonetheless, Verizon’s landline industry is affected by the large opposition of modern technology and tends to confront challenges from various other competitors with high further internet and cable companies such as while Warner Cable. Verizon Wireless has to make an effort to stay in synch with the pricing and offerings of its competitors. The Wireless industry is so competitive, equipment can outdate within a few months. Companies must spring up wireless devices that are affordable as well as reliable.\r\nSupply and Demand Analysis\r\n evening with today’s economic challenges, many opportunities to pretend innovative new products to meet customer demand still abound. In a bold new step the company introduced its line of netbooks, mini light laptop computers that consumers can take with them anywhere. The netbooks have all the functionality of a laptop, with the convenience of a smaller wireless device. The smaller size and the low price the netbooks are offered, is what today’s consumers are demanding. Tapping into this market gives Verizon Wireless a piece of the notebook and laptop market that was only accessible in the past by offering mobile broadband cards. The added revenue from this market keeps Verizon Wireless ahead of the competition. Verizon Wireless also has the luck to expand its coverage globally with the 3G UMTS, Quad roofy GSM networks.\r\nThis means that business travelers as well as consumers will now have access to disgorge on more networks in over 250 countries across the globe. Verizon Wireless strives to produce the best most reliable wireless voice and data coverage in the industry. In order to obtain that goal the company will have to gain customers faster than the competition, expand the revenue lead and lead in profitability. As long as Verizon stays on the right track, the company should not have any issues immediately and in the future.\r\nReference Page\r\nColander, D (2008).Economics, 5th Edition. McGraw-Hill/Irwin, New York, New\r\nY ork, 10020 Verizon Wireless. (2009). Corporate History/investor relations. Retrieved June 26th, 2009 from www.verizon.com.\r\n'