Reference no: EM133201069

Assignment:

Part 1

Back in the mid-2010's I use to work for Verizon wireless and loved when I initially joined. I saw Verizon being the innovator and prided itself on being a one-stop solution for most consumers and businesses. Because of this they outgrew ATT in cellular telecommunication and became the number one in the market share. They were so focused on growing the new customer base they focused on promotions to gain customers and did not offer plans to help retention and customer loyalty. This was escalated because T-Mobile was disrupting the market with its offers such as unlimited data and no data caps. Since they were offering these programs and they had the lowest share out of the big four companies their marketing was focused on gaining new customers and with a promise that their investment will be towards gain infrastructure which would increase coverage. Since Verizon didn't foresee that another company would outgrow their new incremental sales and left their base open to leave for a better deal, Verizon lost share, sales, and personnel which took a few years to correct and build again.

Part 2

For this particular topic, we will discuss about firms' decisions. In your initial posting, please response to the following:

1. Explain why pricing and production are extent decisions and not decisions that should be tackled with break-even analysis.

2. Does the same apply for investment decisions? Provide a rationale to support your response.