General presentation of the Verizon Company:
Gain deeper insight about Verizon by learning what the company's business activities are and how it generates revenue. You will then understand how it is likely to behave in the years to come in terms of growth.
The Verizon Communications Group is an American company committed to the telecommunications business line. More precisely, it specializes in the provision of telecommunications services.
To better understand the group's activities, they can be divided into several divisions according to the percentage of turnover they generate as so:
- The major part of the Verizon group's revenues comes from the services of mobile telecommunications with 83.36% of the turnover. These services particularly relate to mobile telephones, data transmission and other services in the United States with the subsidiary Verizon Wireless which is owned in partnership with the Vodafone group.
- The rest of the company's turnover, i.e. 16.4%, comes from fixed-line telecommunications services with local and long-distance telephone services, high-speed internet access with nearly 120 million lines currently in service, broadcasting TV channel and messaging services.
Knowing Verizon shares competition:
Now let's explore Verizon's competitive environment. Here, we'll be focusing more particularly on American competitors as Verizon carries out most of its activities in the United States.
- AT&T: This group is arguably the leader in local and long distance telephone services and xDSL services in the USA. It is also the number two for mobile services. It's important to note that the AT&T mobility subsidiary is currently the second largest mobile telephony provider in the United States after Verizon Wireless.
- Sprint Corporation: Verizon's second major competitor is Sprint Corporation, which specializes in telecommunications, and the country's fourth largest mobile operator with 58 million subscribers. This company operates under various brands such as Sprint PCS. The company also operates in the field of fixed telephony and long distance communications.
The strategic alliances set up by the Verizon group:
After getting to know the direct competitors of the Verizon group, check out its major partners with two concrete examples of strategic alliances that the company has put in place in the past and which have had a significant influence on the price of this value.
- Apple: First in 2019, the Verizon group, signed an agreement with Apple News, through its subsidiary Verizon Media to allow advertisers to run their native advertising in Apple News in the UK, Canada and Australia. These brands are able to reach the many users of Apple devices in these three countries and these opportunities are available programmatically through the native marketplace of Verizon Media and its DSP. Native advertisements are able to fit into the flow between articles or between channels offered by Apple News.
- Microsoft: Also in 2019, the Verizon group and its subsidiary Verizon Media signed a partnership with a new agreement on native advertising. Advertisers have since had access to 20% more native inventories through Oath Ad Platforms. They also benefit from efficient advertising formats on Microsoft News / MSN, including certain exclusive locations. The two companies have also extended their existing relationship by providing unique access to brand safe display and video inventory and content marketing solutions on Microsoft sites that include MSN, Outlook and Xbox.