Describe Strategic Alternative Risk Analysis on AT&T (Essay Sample)

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Strategic Alternative Risk Analysis on AT&T.
Strategic Alternatives
* Disruptive mobile phone innovations.
* Mobile phone digitization.
* Low-cost market leadership.
Disruptive mobile phone innovations.
The mobile industry is growing by the day, and soon it will become saturated with smartphones and tablets. Therefore, AT&T must rethink its strategy on the mobile market.AT&T can innovate on customer based products such as mobile advertising; many companies have since resulted to mobile advertising as nearly everyone is in possession of a cell phone. Thus, market penetration is quite fast. Mobile payments have become the primary payment method in the economy thus for AT&T have to incorporate this payment method in their growth strategy. Banks have designed mobile applications that allow customers to deposit from their phones; this is quite revolutionary, and this will disrupt the mobile industry. Cell phones have also become the stock exchange platform, enabling clients to trade right from their cell phones.AT&T must seek to have a share in this fast changing industry via these mobile applications. CITATION Hrd02 \l 1033 (Hrding, 2002)
Mobile phone digitization.
Digitization in the mobile industry is fast being embraced in today's market; the economy has become digitized, and AT&T cannot afford to lag behind.AT&T must be the market leader in designing and selling the emerging devices and also on the new and trendy market applications. Creation of an I store to ease in customer sales right from their residence will attract customers in huge numbers. The mobile innovations must take in consideration client's ways of living. Mobile applications will come in handy in digitization such as mobile banking.
Low-cost market leadership.
AT&T have ventured beyond mobile phones in the market as they are selling television sets, bundles, and phone accessories, to be distinguished in the market they can seek to sell their products at a fair price. This strategy has been used as a growth strategy in many organizations to penetrate new markets and has worked well. CITATION Sha91 \l 1033 (Shaw, 1991)The market is very responsive to cheaper goods but which conform to quality. The next market leader will be the lowest in pricing as well as high quality; this may eat on profitability at the start, but once AT&T have established themselves they will leverage on huge numbers. Once a loyal customer base has been created via this strategy, then AT&T will be on a growth trajectory.
Alternative Risk Analysis.
Disruptive mobile phone innovations.
The downside of having revolutionary products that disrupt the market is that the market may be saturated with the products thus reducing prices significantly. The pilot study before a new product is introduced costly and may hurt the profitability of AT&T. CITATION Sha91 \l 1033 (Shaw, 1991)There is a lot of uncertainty and testing in the market by customers to establish whether it's good enough. Due to quick changing customer tastes market penetration may be a challenge for the new clients. High advertising costs is another factor AT&T must consider since a new product will require vigorous marketing to cause the desired disruption.
Mobile phone digitization.
The quick growth in the digital world is making real gains but on the flip side, it has also enhanced cybercrime. CITATION Hrd02 \l 1033 (Hrding, 2002)Crucial information has on various occasions landed on unwanted people and have used this information to hurt business or ask hold companies at random expecting bribes.AT&T must be above the cybercrime architect and make a good investment in cyber security.
Low-cost market leadership.
AT&T must first conduct a market survey before deciding on the price to place on its mobile phones or television set; this will cost the company as well as time. Low pricing has worked against businesses that have gone that route as customers tend to question the quality, once credibility has been put in doubt, then the customer tend to pull off and practice a watch and see the strategy. Customers are always expecting discounts in their purchases, and this strategy may not favor customer discounts as the budget will be tight thus reducing the client's number. The AT&T competitors may use the low-cost strategy to discredit their products on quality which may work against them. CITATION Sha91 \l 1033 (Shaw, 1991)
Support of Alternatives.
To have a clear understanding of these alternative solutions recommended, we need to do a SWOT (Strength, Weakness, Opportunities and Threats) analysis on each of them.
SWOT Analysis on disruptive mobile phone innovations.
Strengths.
Increased profit margins due to increased customer base.
AT&T brand will become popular with the market
Customer loyalty will increase on the existing clients as products suit them.

Weakness.
The phone market may become saturated reducing on AT&T market share.
Low market penetration for the new products due to customer uncertainty.

Opportunities.
AT&T will receive market endorsements from the service providers they work together.
The company may also seek to expand its scope to provide services such as internet bundles.

Th...