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5 Forces Model of Verizon EssayVerizons wireline business, which includes the operations of the former MCI, provides telephone services, including voice, wideband data and video services, network access, nationwide long-distance and other communications products and services, and also owns and operates one of the or so expansive end-to-end global Internet Protocol (IP) networks. Verizons domestic wireless business, operating as Verizon Wireless, provides wireless voice and data products and services across the United States using one of the most grand and reliable wireless networks.The results of high competitive pressure could impact prices, margins, and hence, on profitability for every social club in the industry. a. Sprint Nextel b. Cingular ATT wireless c. T-Mobile d. AOL e. Qwest f. RBOCs g. COMCAST 4. Bargaining Power of Suppliers Low The term providers comprises all sources for inputs that are call for in order to provide goods or services. If there is a market wit h much choice supplier choice, bargain power will be less. There are many network equipment suppliers, which are suffered from the exhaust telecom market.Having mature technologies also commoditize the products. As such, the bargaining power of suppliers has been weak. 5. Bargaining Power of Customers Low The bargaining power of customers determines how much customers can impose pressure on margins and volumes. Since most of buyers are olive-sized (residential and small business users), they do not have much buyer power. Big corporations are better positioned to perform for discounts but industry consolidations of SBC acquiring ATT and Verizon acquiring MCI have significantly reduced the available lternatives for these corporations and thus their negotiation power.PEST Analysis A PEST analysis is an investigation of the important factors that are changing which mold a business from the outside, these include Political Factors This includes government regulations and legal issu es that define both formal and daily rules of the operation of Verizon. Economic Factors This factor affects the purchasing power of consumers and the Verizons cost of capital. Social Factors Cultural and demographics of the surroundings would affect the customers needs as well as potential market size.technical Factors This can lower barriers to entry, improve production efficiency and influence outsourcing decisions. ? PoliticalEconomicalSocialTechnology Stability of the internal/external semipolitical environmentEconomic growthPopulation growth rate Automation Trading agreementsInterest ratesAge distributionTechnology incentives employment lawsInflation rateCareer attitudesRate of technological change environmental regulationsBudget allocation wisdom of technological change within the unit Trade restrictions and tariffsThe level of inflation