Verizon Communications Inc. is a telecommunication service-providing American multinational company. The telecom company started its business under the name of Bell Atlantic Corporation in 1983. Today, we’ll discuss the PESTLE analysis of Verizon; it focuses on external environmental factors like; political, economic, social, technological, legal, and environmental factors.
Political Factors Impacting Verizon
Some of the main political factors in the Verizon PESTLE analysis are as follows;
I-International Trade Policies
Verizon is a giant telecommunication brand and it should comply with international trade policies and alliances like NAFTA, USMCA, and others. The international trade alliances and the US political relationship with other countries directly impact the company’s supply chain, cost infrastructure, and service operations in other countries.
II-Government Regulations
Verizon should comply with the government policies and regulations of the country, such as the FCC (Federal Communication Commission) in the US and various other regulatory departments. The regulatory challenges and requirements directly impact the revenue stream and service operations. The non-compliance would impose significant restrictions and cause various regulatory challenges.
Economic Factors Affecting Verizon
Some of the main economic factors in the Verizon PESTLE analysis are as follows;
I-Currency Rate Fluctuation
Verizon is operating its business in various countries across the globe. It makes the company deal with multiple types of currencies along with USD. However, the currency exchange rate of different countries keeps fluctuating relevant to the USD due to various social, political, and economical factors.
II-Telecom Investment
The telecommunication infrastructure requires heavy capital investment to build, maintain, and update the routine operational setup. They could be in the form of cables, poles, technological tools, equipment, and digital devices. When the government and economic policies are suitable, then companies, then companies and their stakeholders invest a significant amount of capital infrastructure on the tech development.
III-Economic Recession
The global economy is going through a recession phase due to various international business, political, and international relations issues and conflicts. It has increased the unemployment rate to a great extent. When people have limited income, they would prefer saving and won’t spend their income on luxury telecommunication services. Verizon should adjust its packages and business marketing strategies relevant to the changing customer market trends.
Social Factors Impacting Verizon
Some of the main social factors in the Verizon PESTEL analysis are as follows;
I-Internet Demand
The demand for internet and Internet-related services has increased significantly over the past few years. Verizon is a telecommunication brand and it provides telecom and internet services. It presents a great opportunity for the telecom company to develop, update, and adjust its products and services relevant to the customer market trends.
II-Compliance with Social Trends
Verizon has a great capability of complying with various social and societal trends of the customers. They’re like utilizing and investing in renewable sources of energy, data privacy and protection, cloud services, remote workers, and others. It helps the company to keep up with the growing customer market trends and increases their customer satisfaction level.
Technological Factors Affecting Verizon
Some of the main technological factors in the Verizon PESTEL analysis are as follows;
I-5G Technology
Verizon invested approximately 18.2 billion USD in the 5G technology infrastructure by acquiring C-band spectrum in 2021. The investment of the telecom brand would reach 414.5 billion USD on the 5G technological improvement. However, the technological upgrade would help the company to maintain its market leadership position in the telecom industry.
II-Integration of Cloud & IoT
Verizon has integrated the IoT and cloud technology to improve its data connectivity and data management solution services. It helped the company to provide a seamless customer experience; it showed the company’s strong commitment to technological innovation and employing the latest technology for telecom growth and development.
III-Cybersecurity
Verizon has invested a significant amount of capital resources in the development of cybersecurity to avoid the risk of cybersecurity and other potential threats of hacks. The telecom brand is highly proactive in protecting the private data of users and ensuring the end-to-end encryption of the users.
Legal Factors Impacting Verizon
Some of the main legal factors in the Verizon PESTEL analysis are as follows;
I-Data Privacy Regulation
Verizon deals with the private data of millions of customers in various countries across the globe. The telecommunication brand should comply with the data privacy laws and regulations of different countries. Any type of non-compliance would bring a lawsuit of billions of dollars, heavy fines, duties, penalties, and operational restrictions. Most importantly, it jeopardized the trust and confidence of the customer’s market.
Environmental Factors Affecting Verizon
Some of the main environmental factors in the Verizon PESTEL analysis are as follows;
I-Environmental Sustainability
Verizon has allocated a significant amount of capital resources on the green project comprising of employing solar panels and wind energy. It allows telecommunication to employ renewable sources of energy to decrease the negative impact on the environment. The telecom brand has made a strong commitment to environmental sustainability and to achieve operational efficiency with green project initiatives.
Conclusion: Verizon PESTLE Analysis |PESTEL Analysis of Verizon |External Environmental Analysis of Verizon | Strategic Analysis of Verizon
After an in-depth study of the PESTLE analysis of Verizon; we have realized that Verizon is the world’s leading telecommunication brand. If you are learning about the Verizon PESTLE analysis; then you should keep in mind the abovementioned external environmental factors like; political, economic, social, technological, legal, and environmental.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.
