Case Study -1

SUBMITTED TO,
Dr. Farhana Ferdousi
Associate Professor and Chairperson, Department of Business Administration
East West University

SUBMISSION BY:
Name ID

Kaniz Zehra Priya 2017-1-10-071

Al Sabah 2017-2-10-117

Tasnima Ahmed 2017-1-10-322

Md. Jahidul Islam 2017-1-10-324

ANSWER ON 1
To achieve lower churn rate as an advantage in the U.S Wireless industry, the resources are
 Extensive Network
Verizon has largest coverage network in U.S; it almost covered 95% of area in U.S
 High Speed Web Connection
They invested huge amount to gain a wireless, high-speed, fiber-optic network; that gives
highest speed in Mobiles.
 Customer Service
Their customer service which is an automated software program gives most customer
oriented services.
 Customer Satisfaction
They customized offer according to their customer preference that’s helps them to gain
customer satisfaction.
By using those recourses Verizon has strong Competitive Advantage in U.S wireless tele-
communications industry.

ANSWER ON 2
Churn Rate, curse for any organization in any industry. Where attracting customer is so costly and
that is why organizations try to lower that churn rate. Verizon already have that, they have the
lowest churn rate in the industry. So definitely they have an advantage among others. As mentioned
above, the resources Verizon use to be in the position of the leader in the industry, they use the
most extensive network, aggressive investment on their network for best web connection, heavy
investment on customer care and service is the reason why the customers are satisfied.
The quality of Verizon is made sure using Automated Software programs and AI which
gives the customers best deal and package for them according to the usage of that particular
customer, their extensive network making sure the lowest drop calls rate and flawless and super-
fast web surfing. Their quality is somewhat unbeatable by the competitors they have now.
Customer Responsiveness is another huge area where Verizon is above their competitors.
Huge investment on customer service. The software they using, the AI they have is giving their
customers exactly what they need, the best package for them.
As Verizon has invested heavily on their network and software which is immensely higher
than any of their competitor, they have the most innovative ways of creating their customers
satisfied, delighted to some extent, and their operation of business gets smoother.
ANSWER ON 3
According to the VRIO model, these resources will be categorized in the following manner as
valuable, rare, inimitable, and well organized.

1. Valuable: Resources that allow a firm to gain competitive advantages over its
competition and neutralize and forthcoming threats are considered as valuable
resources. The extensive network of Verizon has covered up to 95% of the whole
USA with its strong and powerful network. Their promotional character test men
have successfully conveyed the messages to the customer regarding this advantage
of Verizon as well. A well-covered network can be a perfect defense line strategy
for newcomers as well as the existing competitors as it is very much expensive and
effort worthy. This extensive range of networks attracts consumers to purchase
their service and keep them which keeps the churn rate lowest in the industry.
2. Rare: Resources that are scarce and possessed by very few current and potential
competitors are rare resources. Every wireless company in this industry has
customer care service but Verizon has invested heavily in its customer care
function. Its automated software programs analyze the call pattern of individual
customers so that their customer representatives can contact the customers and meet
their needs. That also reduces the churn rate.
3. Inimitable: Inimitable resources are costly to imitate and other competitors cannot
obtain them because of the cost disadvantages. Verizon has invested very highly in
its network system which allows them to have high-speed web connections as well
as their expensive network. This allows them to be inimitable for current or
potential as not everyone has such financial capabilities as Verizon have.
4. Well organized: Well-organized resources mean having good organization,
orderly, and efficiency in organizing. Verizon is undoubtedly a well-organized
organization based on its resources. Its best score on the industry reflects its
efficiency. It has a faster service which provides them the greater customer
satisfaction as well as an efficient network.