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AT&T CORPORATIONKEATON HOOGENDOORN

OVERVIEW

• Ticker Symbol: T

• Headquarters: Dallas, Texas

• Industry: Communication Services

• Market cap: 225.91 Billion

HISTORY

• Founded in 1885 by Alexander Graham Bell

• Broken up by the Federal Government (Monopoly/Anti-trust)

• Bought Nextel Mexico in January 2015

• Acquired DirecTV in July 2015 for $48.5 billion

• June 12, 2018 – Given permission to go ahead with its deal for TimeWarner• Purchased for $85 Million – now known as WarnerMedia

WHAT DO THEY DO?

• AT&T mobility• Both mobile and fixed phone service

• Entertainment group• Channels (CNN, TNT, CBS)

• NCAA March Madness, NFL Sunday Ticket

• DirecTV

• Production Studios

• Broadband

• International• AT&T Mexico (Nextel)

• Business solutions• Cloud services

• Cyber security

• Networking

• Business mobility

1 YEAR

2 YEAR

5 YEAR

COMPETITORS

• Verizon

• T-Mobile

• Sprint

3YEAR COMPARISON OF AT&T VS COMPETITORS

SWOT ANALYSIS

• Strengths• Largest market share

• Excellent brand recognition

• Massive international presence (200 countries)

• Technology mobilization

• Weaknesses• Customers can easily leave

• Eroding customer base

• Profit margins are tight

SWOT ANALYSIS

• Opportunities• International expansion, particularly in Spanish-speaking countries

• Acquisition of Time Warner Cable

• Rapid technological growth

• Threats

• Numerous competitors

• Price competition from less commonly known companies

• Streaming services (Netflix, Hulu, Amazon Prime)

PORTER ANALYSIS

• Current competition• Verizon

• Sprint

• T-Mobile

• Threat of new entrants

• Very low

• Huge barriers to entry

• Massive amounts of capital required

PORTER ANALYSIS

• Potential substitutes• Cheaper, less commonly known brands• Other larger brands such as Verizon and Sprint

• Suppliers' bargaining power• High• Higher supply costs can threaten AT&T's already thin margins

• Buyers' bargaining power• Very low• Prices of phone plans are set

FUTURE OUTLOOK

• Other companies are charging more competitive prices• Razor-thin margins for the whole industry

•5G?• Verizon is starting to work on these towers

•International growth

• Acquisition of Time Warner Cable• Diversification

FINAL RECOMMENDATION

Buy $20,000