Verizon Competitive Advantages

This article is all about Verizon Competitive Advantages. Verizon incorporations provide information and communication to its consumers. Verizon Communications is a major telecommunication company in the United States. The company also provides entertainment services to its customers. It is worth noting that Verizon is the second-largest telecommunication company in the United States after AT&T.

Verizon Competitive Advantages

Like all companies, it does not matter what the firm is involved in, it requires advanced operation strategies to maintain its position. Competitive advantage is a firm-based attribute that gives a business the advantage to outshine its rivals.

Being a technological company, Verizon has to strategize on its technology innovations and strategies to stay at its current position. Using its number of subscribers and position Verizon has been able to maximize the number of profits it bags in.

What is a competitive advantage?

In business operations, the competitive strategy focuses on the industry a business is operating in. On the other hand, competitive advantage concentrates on the firm or business itself.

Competitive advantage can be described as the trump card that a firm holds over the others. The advantage allows a business to produce goods and services at a cheaper cost compared to the same firms in the same field. 

Verizon competitive advantages

Being the second-largest telecommunication company in the United States implies that the company has been holding several advantageous cards over its competitors. 

The company, over the years, has been making returns averaging 3.6 billion USD. This has enabled Verizon to diversify its operation to other sectors such as entertainment. Discussed below are some of the major competitive advantages that Verizon holds over its rivals.

Capital advantages

Verizon has realized strong financial performance since its establishment. Until 2020, Verizon realized an operating margin averaging 20 percent. During this period, Verizon realized a profit margin averaging 24 percent. The company also has averaged revenue growth of 1 percent every year.

With Verizon’s continually growing profits, it has been able to roll out some features that other telecommunication firms have not been able to operate.

Verizon’s wireless market

Verizon has gained a competitive advantage in its wireless market.  The company has leveraged the high cost of providing wireless services to its advantage.  This has made it possible for Verizon to provide wireless network coverage services to its clients. 

While competition in the wireless sector shrinks, Verizon’s market position strengthens. By venturing into the production of wireless network coverage, the firm has been able to “kill” its competitors. This is evidenced by Verizon’s position in maintaining higher margins in the wireless market.

Quantitatively, Verizon commands almost 40 percent of the US postpaid phone services. This number speaks louder than words.

Verizon’s innovativeness

Being a tech company requires a firm to be constantly involved in the search for new tech inventions. This attribute can be traced back to recruiting a highly skilled and inventive workforce. In this century, consumers have been spoiled by the ever-changing technology. The least consumers would need is some medieval tech invention. 

On the contrary, the version has been serving its customers with the very same tech inventions they require. Verizon communication has been serving its consumers with different tech rollouts, from 4G networks to 5G networks to voice over internet protocol (VoIP). 

Verizon has indeed been one of the leaders in innovations. This has allowed Verizon to gain a competitive advantage over other telecom firms. This has further enabled Verizon to grow its customers base over the years.

Verizon’s brand value

Consumers tend to stick to a given brand because of a brands’ popularity or rapport. This is the same case within the telecom industry. Verizon has been developing its brand name since its establishment. In 2019 Forbes magazine ranked Verizon as the 19th most valuable brand globally. Verizon was further ranked as the 43rd strongest brand in the world by Fortune 500.

By having established its brand name, Verizon stands out as one of the telecom companies that consumers would prefer purchasing its services.

A stronger brand name allows a company to sell out itself. For instance, companies such as Apple, Amazon, and Google are some of the companies that have dominated the communication industry just by their brand names.

Wide geographical operations

Verizon telecom does not only operate in the United States. The company has established branches in Europe, Northern America, Asia-Pacific, and Latin America. Verizon’s internet protocol’s network service is present in more than 2700 cities around the globe. 

While its telecommunication services are available in 150 locations.

With these wider operations, Verizon develop more aggressively than other telecom firms. This is considered an advantage because it enables Verizon to expand its operations globally, while other US-based telecom firms are not able to.


Verizon has been making several acquisitions over the years when compared to its rivals. These acquisitions have been made strategically to outperform the rivals. Some of the most strategic acquisitions made by Verizon include AOL, yahoo, and BlueJeans. 

These acquisitions have resulted in Verizon’s success compared to the other telecom firms. These acquisitions have been made possible by the immense capital that Verizon has been able to accumulate in its ventures.  


Verizon is one of the successful telecoms in the US. The company is the second-largest network provider in the United States and Latin America. The company has been thriving because of the competitive advantage it holds over its rivals.


Q: Who is Verizon’s major rival?

A: Verizon’s main competitor is the American telecom giant AT&T.

Q: What is Verizon’s main competitive advantage?

A: Verizon uses high fixed costs to provide wireless coverage to its consumers.

Verizon Competitive Advantages

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