DIVERGENT STRATEGIES

AT&T and Verizon Pursue Different Paths Into the Future (WSJ) https://www.wsj.com/articles/at-t-and-verizon-pursue-different-paths-into-the-future-1541999131

One is focusing on acquiring content, while the other seeks to acquire new customer groups. Reminiscent of Coke vs Pepsi, where Coke focuses on being a leader in beverages, while Pepsi aims to diversify in food and beverage.

ATT aims to attract individual consumers, which are content driven and value entertainment. By owning content providers, ATT will not only expand revenue streams, but can create exclusive customer experiences for ATT wireless consumers.

On the other hand, Verizon strives to invest in technology and expanding its industry consumer base, which is more stable than personal consumers. Industry consumers prefer service contracts, which provide cost stability and detailed service guarantees. This could provide Verizon stable revenue streams over longer periods.

ATT will have to manage divergent business unit and balance varying goals and industry norms. Conversely, Verizon will be able to focus on its core competency and strengthen consumer quality in multiple segments.

Both have viable paths forward. Interesting to see how smaller competitors adjust.

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