Dan’s grand plan going on now. A race to the bottom!

Verizon's Competitive Pricing Strategy
Aggressive Holiday Promotions
Verizon has recently implemented aggressive holiday promotions that significantly undercut T-Mobile's pricing. This strategy aims to attract customers by offering larger discounts across various price tiers. Analysts suggest that Verizon is now positioned as the discount provider in the market, a role that T-Mobile previously held.
Financial Implications
Despite the attractive deals, Verizon is reportedly incurring losses with these promotions, estimated at $640 per account. The company believes that retaining customers through these discounts will lead to long-term profitability as subscribers typically upgrade their plans and purchase additional services over time.
Market Positioning
Verizon's new pricing strategy includes a "Bring Your Bill" promotion, which allows customers to bring their current bills from T-Mobile or AT&T to receive a customized offer that often matches or slightly undercuts their existing costs. This initiative is part of Verizon's effort to reverse recent customer losses and enhance its competitive stance in the wireless market.
Conclusion
Overall, Verizon's current pricing strategy is designed to attract customers from T-Mobile by offering better deals, even at the cost of short-term losses. This shift in strategy marks a significant change in the competitive landscape of the telecommunications industry.

The result of this is T-Mobile has already followed Verizon’s lead and has started laying off employees in order to cut costs. Dan is a genius, the race to the bottom has begun!

#Competitive #Pricing #Strategy #Telecommunications

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6 replies (most recent on top)

Dan needs a new chro to spin this disaster. Sam worked well with Hans by both lying to employees about how bad things were and glossing it over with toxic positivity. The mismatch of Dan and Sam’s energy now is hilarious.

I suspect Verizon will be gone in about 5 years. The next 2 to 3 years will be big layoffs for office employees, and they will be slowly be replaced by A.I. quarterly. Why would Dan mention the 1000 days until AGI if that did not impact employees? Verizon will eventually be a company with a lot of assets and field techs.

I can see Verizon in 5 years being sold to an Elon Musk's Starlink, Amazon or Google. That would like to acquire it if operation costs were not so high. They need it for their satellite services, cell phone service, wearables, crypto, A.I.,, etc... Those companies are all about the A.I.

When Musk bought Twitter he fired 90% of the company, and has fired another 5%. Amazon is laying people off not because of loss of revenue. It's due to A.I. and robots taking over distribution centers.

For the record, I don't think this change is going to be isolated to just Verizon. The world we are living in will be rapidly changing over the next 10 years. We are in the 4th Turning. Look it up and prepare yourselves for the next stage of human evolution.

The same mistake over and over, throwing money at new customers, ignoring existing customers. That's an F in any business class. Who thinks this has any chance of working? I guess the C-Suite, but nobody else.

An ongoing price war will only lead to margin erosion and end in more cuts. That means overhead (translation: employees), the dividend or both. If they cut the dividend, the bottom falls out on the stock. Buckle up because a rocky road is ahead.

Separately, VZ should be a business school case study in how squander a lead in the market.

And yet, even with a retiree discount of 25% from big red my bill is over $100 less with T-mobile for tbe same amount of lines and service.

Genius ? This is a losing strategy. Just wait and see. Sounds more like he's trying to catch up.

Thread regarding Verizon Communications Inc. layoffs

Dan’s grand plan going on now. A race to the bottom!

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