Diversification – Coursework Example
Business Level Strategy AT&T Inc. For my e-activity I chose AT&T Inc. headquartered in Dallas, Texas, which offers telecommunication services to its clients, businesses & other entities. AT&T Inc. is one of the most diversified company in the telecommunication industry offering a variety of services and products. The company uses the business level diversification strategy to diversify in terms of products; for instance, it offers landline & wireless services, data and phone services primarily to American clients in more than 200 countries globally. The company’s most recent diversification was the acquiring of cable television companies for its Uverse service at $120 billion, to enable it wire America with ultra-high speed internet & high interactive TV cable service. Moreover, the company is talks with America Online for a probable joint venture to enable it expand its concentric diversification strategy.
AT&T Inc. can increase its level of value creating diversification through innovation and better service by providing efficient high speed internet, which is superior than those of competitors to enable maintain its competitive edge in the industry e.g. through its 4G LTE network. However, if AT&T Inc. continues with acquiring cable television companies for its Uverse service, the company can cause high unemployment levels in Texas resulting from layoffs in the acquired companies. Although I believe with better innovative services such efficient high speed internet AT&T Inc. can be able to revolutionize the telecommunication industry and be able to maintain its market leadership and competitive advantage (Hitt, Ireland & Hoskisson, 2012).
Hitt, M., Ireland, R. D., & Hoskisson, R. (2012). Strategic management cases: competitiveness and globalization. Cengage Learning.