Create a 6 pages page paper that discusses at&t & verizon: giants of bell systems. Given the huge differences in these two (2) companies’ business performance and revenues, this essay will purposely analyze the relevance and significance of several economic indicators such as employment and unemployment rate, gross domestic product, inflation rate, consumer price index, consumer confidence index, and producer price index. Eventually, several highly recommended strategies were clearly outlined in order to provide the top management of these two (2) companies some ideas on how they can maximize their revenues in the upcoming years.
Both AT&T and Verizon offer products and services that are related to wireless or wired broadband networks and telecommunications (Waters, 2014). Economic indicators such as employment and unemployment rate could somehow explain why there is an increase or decrease in the sales, profit, and revenues of AT&T and Verizon (AAII, 2015). Normally, if the employment rate is high, more people in the United States can have more money to purchase certain products and services offered by these two (2) telecommunication companies. On the contrary, assuming that the unemployment rate is high, it means that more people will have no fixed income which is necessary to enable them to pay extra money for their telecommunication needs. When this happens, more people would stick to their old mobile gadgets rather than purchasing a new model sold by both AT&T and Verizon.
As a coincident and procyclical indicator, the gross domestic product (GDP) can be used in determining whether or not the U.S. economy is going up. Using GDP information, AT&T and Verizon can easily predict the status of the U.S. economy. As such, each time the U.S. GDP increases, both AT&T and Verizon could experience a sudden increase in the total monthly sales. On the contrary, each time the GDP decreases, both AT&T and Verizon could experience a sudden decrease in their total monthly sales.