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VERIZON COMMUNICATIONS
Verizon Communications formed by the merger of two big and successful companies, Atlantic Corp. and GTE Corp., is the largest telecommunication company. The company serves large part of the market in United States. However the company faces certain strengths and weaknesses which affect the way company formulate its strategies.

Internal Analysis:
The IFE (Internal Factor Evaluation) matrix summarizes the major strengths and weaknesses of Verizon Communications.
KEY INTERNAL FACTORS
WEIGHTS
RANKING
SCORE
Strengths
1. Employee satisfaction.
2. Well positioned company.
3. Increase in revenue and EPS.
4. Offering fiber-optic lines.
5. Largest directory publisher.
Weaknesses
1. Not much emphasis on R&D.
2. Not yet achieved its goal.
3. Global coverage.
4. Poor financial position.
5. Technological competencies.
TOTAL
3.35
Strengths
Verizon communications has announced salary raise and job security for their employees which will result into increase in employee morale (management).

Verizon serves 49 out of the top 50 markets in United States which implies that the company is well positioned among its competitors (marketing).
There is increase in the company’s revenue and Earnings per share (EPS) which will attract investors to invest their money in the company (finance/accounting).

Verizon’s plan to offer extended fiber-optic lines to homes and businesses will give the company competitive advantage against cable companies (production/operations).

Verizon Communications is the largest telephone directory publisher in the world.
Weaknesses
Verizon Communication’s Income Statement implies that the company does not give much importance towards research and development.
Verizon Communications is not able to achieve its objective of becoming the market leader in delivering innovative, integrated communications solutions to its customers (management).

The company widely covers most of the territories in United States but its telecommunication services are not being expanded globally in other parts of the world in comparison to its competitors (marketing).

Verizon’s financial position is not very impressive. The company has $49 billion debt load. Moreover the Gross Profit Margin of 2003 has decreased to 0.67, which was 0.70 in 2002 (financial/accounting).

Verizon Communications is not well placed against its competitors like AT&T who offer services using technologies like TDMA (time division multiple access) (production).

FINANCIAL RATIOS
FINANCIAL RATIOS
2001
Liquidity Ratios
Current Ratios
4.49
Quick Ratios
0.55
Leverage Ratios
Debt to Total Asset Ratio
0.37
Debt to Equity Ratio
1.97
Long Term Debt To Equity Ratio
0.26
Times Interest Earned Ratio
0.17
Activity Ratios
Inventory Turnover
44.95
34.14
Fixed Asset Turnover
1.28
Total Asset Turnover
0.39
Accounts Receivable Turnover
Average Collection Period
Profitibility Ratios
Gross Profit Margin
0.38
Operating Profit Margin
0.17
Net Profit Margin
0.005
Return

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Weaknesses Of Verizon Communications And Successful Companies. (June 21, 2021). Retrieved from https://www.freeessays.education/weaknesses-of-verizon-communications-and-successful-companies-essay/