SWOT Analysis of AT&T

Introduction 

Swot analysis of AT&T Inc. AT&T (American Telephone & Telegraph Company) is the world’s largest telecom and mobile service providing conglomerate US multinational company. Thomas Sanders, Alexander Graham Bell, and Gardiner Greene Hubbard were the founders of AT&T, and they laid the foundation of the company in 1885. It started by the name of Graham Bell Telephone Company in 1877. The headquarter of the company is in Whitacre Tower, Dallas, Texas, USA.

AT&T’s main products and services are Broadcasting, Satellite TV, Web Portal, Fixed-line telephones, radio, mobile telephones, music, internet services, streaming, broadband, theme parks, digital TV, Let’s Play, Home Security, Video Games, IPTV, Newsagency, OTT Services, sports management, network security, podcast, film production, publishing, television production, pay television, and cable television.

According to an estimate, the annual revenue of AT&T in 2020 was 171.76 billion dollars. Out of which, the net income of the conglomerate was -5.18 billion dollars. However, the company has employed over 230,000 employees to manage its various operations worldwide.

AT&T’s main competitors are Telefonica, America Movil, Nippon Telegraph, Comcast, China Mobile, Deutsche Telekom, KDDI, Vodafone, Verizon, and Singtel.

Today, we’ll discuss the swot analysis of AT&T. It would analyze the internal and external factors impacting the world’s leading conglomerate company. Here’s the swot analysis of AT&T as follows;

Strengths of AT&T

Diversified Investment

AT&T has diversified its resources in various categories like telecom, media, music, games, tech, and many others. The diverse investment has helped the company to decrease the risk factor, and stabilize the company’s earnings.

Sponsorship

AT&T has sponsored many international events like Club America, Red Bull Racing, National Collegiate Athletic Association, US Olympic Team, Mexico National Football team, Major League Soccer, and many others. The sponsorship of such mega-events expands the exposure of the company.

Advanced Marketing

AT&T uses various platforms like online, social media, print, and electronic media for the marketing and promotion of its products and services. The brand is using the smart marketing strategy of not relying on any of the marketing platforms.

Acquisition

AT&T has acquired many telecoms, media, and various other brands in different categories to expand the company’s product portfolio and diversify its investment. They have helped the company to achieve its targets.

Global Presence

AT&T is providing its products and services in more than 200 countries across the globe. The company has reached the target of more than 100 million worldwide.

Market Leader

AT&T is the market leader in the US market of being the largest of telephones. According to an estimate by Forbes, the market capitalization of AT&T in 2021 is 214.08 billion US dollars with a total brand value of 29.99 billion dollars. However, the company ranked at the 14th position of the world’s most valuable brand. The brand falls at the 8th position of Just Companies 2021.

Strong Financial Position

The total worth of AT&T’s total assets is 545.4 billion US dollars and brand equity of 179.24 billion dollars. The telecom company has a strong brand value, brand equity, assets, and financial position with a well-diversified business and product portfolio. However, its revenue has dropped because of the pandemic of covid-19.

Product Portfolio

AT&T has a vast and well-diversified product portfolio. It comprises products ranging from telephones, video games, music, sports management, web portal, film production, videos, and radio to broadcasting and so much more. The diversified product portfolio is one of the top strengths of AT&T.

Weaknesses of AT&T

Censorship

AT&T changed its legal policy in Sep 2007 and giving itself a right to terminate any of its services without notice that doesn’t fit according to its standards and disrespecting the brand’s name. Many critics hailed this company’s legal policy and said that it goes against the values of freedom of speech.

Network Security

The Electronic Frontier Foundation filed a class-action lawsuit against AT&T in 2006. It claimed that the company had allowed the NSA (National Security Agency) to check the phone calls and internet communications of its customers. It goes against the 1st and 4th amendments of the constitution.

Market Share

AT&T has a limited market share in the telecom industry compared to the other competitive brands like Verizon; even though the brand has specialized and pioneered in the telecommunication sector.

Opportunities available to AT&T

Acquisitions

AT&T has acquired many brands over the years. They have successfully helped the company to expand its market share and product portfolio. Now, the company should keep on merging and acquiring other smaller brands by utilizing its resources.

5G Technology

Since AT&T is already in the telecom and telecom industry. Now, the company should exploit the latest development of 5G technology and offer the 5G services. It would attract the customers’ attention and increase the market share.

Partnership with Smartphone Brands

The usage and sale of smartphone brands like Samsung and Apple have been increasing for the past few years. AT&T should develop a partnership with the smartphone companies; it would increase the sale of the company’s telecom services.

Global Expansion

As we know that AT&T is operating its business in over 200 countries worldwide. The company should further expand in the smaller markets and Asian markets. The expansion would increase the company’s profitability, market share, and net income.

Threats AT&T has to face

Economic Recession

The pandemic of covid-19 has brought a worldwide economic recession in the form of a higher unemployment rate, lower purchasing power, and uncertain market condition. It has impacted the business of companies like AT&T.

Competition

Verizon, Vodafone, China Mobile, and many others are some of the main competitors of AT&T. Their market share is increasing. In fact, Verizon and others have already dominated the US market in the telecom industry. Their growth and expanding market share pose a severe threat to the company.

Regulations

Censorship, privacy, IPR, and data leakage are some of the main challenges. Customers have also become cautious about such issues. The lawsuit in any of the abovementioned categories could cost AT&T billions of dollars.

Conclusion: AT&T Swot Analysis 

After an in-depth study of the swot analysis of AT&T, we have concluded that AT&T is indeed the world’s leading multinational brand. The economic recession, lawsuits, regulations, security issues, and censorship are some of the main challenges. AT&T should find a way to live within the legal environment of different countries.