MKT305-1104A-10 Marketing and the Virtual MarketplacePhase 1 Individual Project

Sabrina MergenthalerColorado Technical UniversityProfessor Monique Georges

October 10, 2011

Measuring Up: A Strategic Analysis of Competition

Introduction --Successful companies have competition --What is SWOT analysis?

Overview of Masergy --Company Information --Key players --Company Earnings Overview of AT&T (the competition) --Company Information --Key players --Company Earnings

Masergy’s top products

AT&T’s top products

SWOT analysis of Masergy

SWOT analysis of AT&T

Further Evaluation

Marketing strategy

Conclusion

Agenda

Marketing Strategy

# 1:

Know your

competition

• Succession of a business

• All companies have competition

• The necessity of understanding competition

• SWOT Analysis Strengths

Weaknesses Opportunities

Threats

Founded in 2000

Location: Plano, TX

QoS-based, customer-controlled

network and software services

Real-time application performance

Video, voice and data

Intelligent Transport product line

Worldwide ethernet

Single or multiple transport service

options

Disaster recovery network solution

Services companies in the United

States and the United Kingdom

Chris MacFarland Chief Executive OfficerDirector

Robert E. BodnarChief Financial Officer

Key Players

Tim NaramoreChief Technology Officer

John DumbletonSenior Vice PresidentBusiness Development

Scott StricklinSenior Vice PresidentGlobal Sales

Cam AndersonSenior Vice President Operations

Masergy

in the

Spotlight

2011 American Business Awards 2011

• Finalist—Customer ServiceTop 50 Channel Partner Program - Channel Partners Magazine

2010Network Computing Awards• Finalist – Managed Service Provider of the YearAmerican Business Awards• Finalist – Customer ServicePhone + Top 50 Channel Program

2009Global Telecoms Business (GTB)Innovation Awards (2009)• Advanced Video Services Innovation AwardWorld Communications Awards (2009)• Finalist – Best Global Operator

2008

Nemertes Pilot House Awards (2008)Customer Experience –Emerging Carriers• Best Technical Service• Best Network Performance & Reliability• Best Value• Best Overall• Favorite Provider –Midsize Business CustomersMPLS – Emerging Carriers• Best Technical Service• Best Network Performance & Reliability• Best Value• Best Performance Monitoring & Reporting• Best SLAs• Best OverallEthernet – Emerging Carriers• Best Technical Service• Best SLAs(Industry Recognition, n.d.)

2010 Revenue………………97.5 millionRank in Industry (Inc500)…….…. 122Projected Earnings 2011........116 mil

(Masergy PE, 2011)

Meet

the

Competition

Originally founded 1885 American Telephone and

Telegraph CompanyLocation: Currently Dallas, Texas Provides voice, video, data, and Internet telecommunications

Services businesses, consumers, and government agencies--global,

national, midsize and regional business customers

Provider of choice among large businesses

World's leading IP network Offer apps of Virtual Private

Networks, Voice over IP (VoIP), state-of-the-art hosting capabilities

and advanced messaging and conferencing

AT&T Key Players

Randall L. StephensonChairmanChief Executive OfficerPresident

William A. Blase, Jr.Senior Executive VP Human Resources

James W. CicconiSenior Executive VP External & Legislative AffairsAT&T Services, Inc

Catherine M. CoughlinSenior Executive VP &Global Marketing Officer

Ralph de la VegaPresident & CEO AT&T Mobility

&Consumer Markets

Ronald E. SpearsSenior ExecutiveVice President

Executive Operations

John T. StankeyPresident &

CEOAT&T Business

Solutions

John StephensSenior Executive

Vice President &

CFO

Wayne WattsSenior Executive Vice President

&General Counsel

Rayford Wilkins, Jr.CEO – AT&T Diversified Businesses

BrandZ: 7th Most Valuable Global Brand (2011)BrandZ: Most Valuable Global Brand in the Telecommunications Industry (2011)Global Telecoms Business: The GTB Power 100 — Randall Stephenson ranks #2 out

of the 100 most powerful telecoms executives (2011)Connected World: AT&T is No. 1 for connected devices (2011) Current Analysis: AT&T is U.S. leader in M2M solutions (2011)The Patent Board: AT&T is third on the telecommunications patent scorecard

(2011)Frost & Sullivan: 2011 Product Leadership of the Year Award for mobile enterprise

applications (2011)Current Analysis: AT&T is a top competitor in the managed mobility space cited for

innovation, telecom expense management and logistics (2011)IDC: AT&T's SMART tool for small businesses recognized for the 3rd consecutive

year (2010)Yankee Group: AT&T is the preferred carrier of M2M solutions in a survey of IT

decision-makers (2010)Web Marketing Assoc: AT&T BusinessDirect® Premier and AT&T Small Business

Storefront won 2010 WebAwards in the 14th annual WebAward Competition for Web site development (2010)

Telco TV Vision Award: U-verse Mobile was honored for service provider innovation (2010)

CIO: CIO 100 list (2010)

Employs………………………..…..Over 250,000 peopleRevenues ………………………………………$31.5 billionRank in Industry (Fortune 500)……………………12

Full PDF Document

AT&T Achievements

Masergy’s

Top

Products

Video QoS Intelligent Network Analyst

Key Features•Unmatched Video SLA•100% video packet delivery• Guaranteed in-sequence• <1ms maximum latencyvariation (”jitter”)• Sub-1 second fast failoverfor network recovery

Key Benefits•Maximize ROI by

Leveraging VideoOverlay Network as aData Backup Network•Two distinct VLANS withseparate physical Ethernethandoffs – one for Videoconnections, one for Data• Video connections can bepublic or private• No requirement for a router• No additional cost for theuse of the video overlaynetwork as a databackup network

Key Features• Hosted on the Masergy network • Easy to use, streamlined interface • Flexible, granular reporting • Configurable alarms and email alerts • Extensive filtering capabilities • Enhanced search capabilities • Configurable applications • Printer-friendly, customizable graphs • Top 15 sites’ data exchange view • Export data functionality

Key Benefits

• No deployment/management burden • No software or hardware costs • No bandwidth utilization • No impact on latency • Low monthly service fee • Always available via web-based portal

AT&T’s

Top

Products

Key Features• View presentations and applications • See participants and who's talking • Signal an opinion • Send a note • Take a poll • Global audio with in-country access • Delivered by the AT&T global network

Key Benefits•Allows users to take advantage of existing devices, such as laptops and Smartphones •Is integrated with many common desktop applications, like Microsoft® Outlook® and IBM® Lotus® Notes®

AT&T Connect® AT&T Networking ExchangeKey Features• Networking - improve how people connect with information and each other • Applications - deploy and maintain applications with efficiency and security • Mobility - exchange the reach of your company's workforce, and rethink how and where work gets done • Managing Risk - keeping information secure, and strategies for managing compliance• Managing Change - learn to adapt your

network strategy as your business evolves• Trends - understand the latest technologies and how to make them work for your business

BenefitsFREE access to:•Live and on-demand webcasts.•Our entire library of White Papers, Presentations, Podcasts, Videos, Case Studies and more.

•High-grade WNA platform that provides superior quality on all grounds including performance and price compared to AT&T•Initiative in taking a proactive stance on server issues•Inorganic growth by strategic acquisition & the intention to go public over the years.

• ABRY merger

• Becoming a publicly traded company

• Countering security threats from hackers

• Employee destruction

Strengths Weaknesses

Opportunities ThreatsExternal

Internal •Small company size with large

demands. Fewer than 200 employees. Lack of advancement opportunity due to size.

•Limited service agreementsLink

SWOT Analysis

SWOTAnalysis

• Brand Name recognition

• Diverse Product

• Over 100 years experience

•Robust financial position

•Leading market position

•Acquisitions

•Expanding U-verse fiber network

•Investments in global networks

•Increasing 3G/4G coverage

• Smartphone popularity

•Regulated business

•Loss of iPhone exclusivitiy

•Saturation of the wireless market

•Major competition and industry

saturation

SWOTAnalysis

Strengths Weaknesses

Opportunities ThreatsExternal

Internal

SWOT Analysis

•Wireless Business Concentrated on the iPhone

•Acquisition Integration

• Low subscriber growth

• Poor reputation for coverage

Essential

for

Growth

Employee DiscontentAs the Greatest Challenge

• Improve employee satisfaction

• Prohibit company slander

• Require contracts that clearly define consequences

• Build a business culture

Market

Penetration

a Vital Key

to Success

Masergy Opportunity and AT&T Threat

• iPhone Exclusivity

• ABRY Merger

• Bringing to the table what consumers want

Market Penetration• Satisfy more of the desires of current consumers

• Build strong service agreements

• Develop employee base

• Expand

Progressing Business

• Potential to achieve

• Minimize threats

• Take advantage of an opportunity

• Build on strengths

• Reduce weakness

Grewal, D. and Levy, M. (2009). Marketing Third Edition. New York, NY: McGraw-Hill

Company Profile of Masergy Communications, Inc. (2011). Inc 500. Retrieved from http://www.inc.com/inc5000/profile/masergy-communications

References

AT&T. (n.d.). AT&T Company Information. AT&T. Retrieved from http://www.att.com/gen/investor-relations?pid=5711

AT&T Company Profile. (2011.). Telepresence Options. Retrieved from http://www.telepresenceoptions.com/2011/01/att_company_profile/

Executive Bios. (2011). AT&T Management Team. AT&T. Retrieved from http://www.att.com/gen/investor- relations?pid=7811

Engebretson, J. (June 2011). Connected Planet online. Retrieved from http://connectedplanetonline.com/business_services/news/ABRY-merger-with-Masergy-will-fuel-service-expansion-0628/

Dybwad, B. (May 2010). AT&T has iPhone exclusivity until 2012. CNN Tech. CNN.com. Retrieved from http://www.cnn.com/2010/TECH/05/11/iphone.att.2012.mashable/index.html

SWOT analysis. (n.d.) Business Link. Retrieved from http://www.businesslink.gov.uk/bdotg/action/detail?itemId=1073790720&type=RESOURCES

Masergy PE buy sparks hiring of up to 50. (2011). Dallas Business Journal. Retrieved from http://www.bizjournals.com/dallas/print-edition/2011/07/01/masergy-pe-buy-sparks-hiring-of-up-to- 50.html?page=2

Masergy Communications, Inc. (2011). Bloomberg Businessweek. Retrieved from http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=604428

Masergy. (n.d.). Masergy Global Networking Redefined. Retrieved from http://www.masergy.com/

“Masergy.” (2010). Glassdoor. Retrieved from http://www.glassdoor.com/Reviews/Masergy-Communications-Reviews-E31601.htm

Management team. (2011). Masergy. Retrieved from http://www.masergy.com/about-us/management-team

Industry recognition. (n.d.). Company Overview. Masergy. Retrieved from http://www.masergy.com/sites/default/files/MASERGYCorporateOverview-web.pdf