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Get At and t Case Study Help at Best Price- SWOT & PESTLE Analysis of At and t

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AT&T Inc. is a renowned telecom company offering the services of communication and digital services to millions of people in the US along with Latin America and Mexico. The company has experienced several issues in the business world but its performance has never been affected owing to several factors like huge customer base, low management cost and excellent services. To evaluate the position of the company currently in the telecom industry, the SWOT and PESTLE analysis would be of great help. 
 
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SWOT analysis of AT&T:

Strengths:

•    Brand value: The company has a huge brand value amounting to about $59.904 billion. It has been ranked 7th in the Brand Finance Directory. This offers a huge edge to the company. 
•    Business portfolio: The offers telecommunication services to individuals, businesses and the government agencies. This diversity in their portfolio helps in reducing dependencies and risks. 
•    Infrastructure: The company has a huge network of wireless and wired access capabilities along with advanced backbones of internet protocols. This helps the company in delivery seamless services to its customers. 
•    Great CSR initiatives: The company enjoys great brand value as it gives back to the society in a huge amount through various charitable activities. 
•    Alternate use of Wireline: AT&T has helped its wireline customers to get adapted to the next generation offerings of the company like advanced IP-based services, private virtual network and Ethernet.
Weaknesses: 
•    Financials: The company has witnessed a massive fall in its financials which can prove to be an alarming situation for the company. 
•    Reduction in voice calls: In the modern days, most people are opting for video calls and the amount of voice calls are reducing massively. This is also hampering the revenue of the company. 
 
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Opportunities: 

•    Cloud computing: The demand for the services of cloud computing gets increased in the world has the technology is going digital and wireless. Therefore, exploring this area of operation can fetch great results for the company. 
•    Acquisitions: This can help in the inorganic growth of the company. The customer base can increase and by acquiring companies like Nextel Mexico and DIRECTV, AT&T can also enhance its service offerings to the customers. 
•    Internet of Things: As per the estimates of the industry, the market of IoT can expect a huge growth in CAGR in the upcoming years. Offering multiple services related to IoT solutions can prove to be a huge revenue generator for AT&T. 
•    Mobile subscribers preferring high bandwidth: Studies have shown that most of the customers are heading towards getting better speeds with high bandwidth. Offering services to the customers in this range can be a great option to combat the losses of the company with regard to drop in the voice calls. 
Threats: 
•    Saturation: Wireless penetration in the markets of US has been seen to be 110% in the current years reflecting lack of growth potential and saturation in the markets. 
•    Regulations: There are high regularities that the company has to follow both in the domestic and international markets to carry out its operations. This can adversely affect the revenue of the company and its data traffic. 
•    Competition: The company faces huge competition from Sprint, Verizon Wireless and several other regional players in the telecom industry. 
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PESTLE analysis of AT&T: 

Political Factors: 

  AT&T having global operations gets exposed to various risks of government regulations and political instability both the domestic and international markets. The adverse changes that come up owing to the alterations in ties between the foreign and US government also affect the company’s profitability. Changes in law that take place from time to time also have material effect on the business of the company. 
Economic Factors: 
    The company is dependent on various financial institutions for hedging needs against foreign exchange, interest rates and credit requirements. The regulations of these institutions have turned quite strict which affects the business of AT&T. The volatility and uncertainty of the financial markets, increase in capital cost, changing rates of the services, etc. are also pressurising the revenues of the company. Other crucial economic factors to take note of include: 
•    Stability in currency of the host countries
•    Government intervention in technology sector
•    Availability of skilled workforce
•    Stage of business cycle in the economy 
Social Factors: 
    Changes in the preferences and tastes of the customers is the primary social factor affecting the operations of AT&T. Most of the customers today are preferring to watch mobile videos and subscribing for services of Amazon Prime and Netflix. These trends are forcing the company to bring about new services to cater to the interests of the customers. Some of the other social factors to consider for the company are: 
•    Demographics
•    Education and skill level of the people of the society
•    Environmental and health consciousness of the people
•    Gender roles
Technological Factors: 
    Growing demand of faster data usage and video streaming, improved broadband and wireless services and the emergence of multi-access computing and the 5G technology impact the business of AT&T. To cope up with the technological advancements adopted by various competitors of the company, AT&T also continues to grow its coverage and network capacity for transporting quality data, voice and video experience to the customers. 
Legal Factors: 
    The legal framework of various countries in which the company operates also affects its operations quite a lot. There are various legal changes that take place in various countries from time to time and all such alterations affect the business of the company. Some of the vital legal factors that the company chooses to consider while planning its business operations in various locations include: 
•    Discrimination law
•    Anti-trust laws governing the telecommunication industry
•    Employment law
•    Laws related to safety and health
•    Data protection regulations
•    Laws related to intellectual property, patents and copyright 
 
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Environmental Factors: 
    The company needs to consider the environmental regulations that are prevalent in various countries and locations where its business operates. For instance, various countries react in different manners and have varied laws related to environmental damages caused to the business of the company. The environmental factors, which affect the operations of AT&T, include: 
•    Environment pollution law
•    Climate changes
•    Waste management regulations in the technology sector
•    Attitude and support towards renewable energy
•    Attitude towards ecological and green products
 
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