at&t corporation - dcmclub.files.wordpress.com · final recommendation. buy $20,000. title:...
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AT&T CORPORATIONKEATON HOOGENDOORN
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OVERVIEW
• Ticker Symbol: T
• Headquarters: Dallas, Texas
• Industry: Communication Services
• Market cap: 225.91 Billion
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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
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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
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1 YEAR
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2 YEAR
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5 YEAR
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COMPETITORS
• Verizon
• T-Mobile
• Sprint
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3YEAR COMPARISON OF AT&T VS COMPETITORS
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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
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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)
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PORTER ANALYSIS
• Current competition• Verizon
• Sprint
• T-Mobile
• Threat of new entrants
• Very low
• Huge barriers to entry
• Massive amounts of capital required
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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
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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
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FINAL RECOMMENDATION
Buy $20,000