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Strategic Analysis of MCI Communications

This research performs a strategic analysis on MCI Communications. In part, this analysis is based upon data provided in Case No. 16, "MCI Communications" (Byars, & Creecy, 1986). The latest case data, however, pertains to 1985. Thus, supplementary data through January 1990 has also been used in the analysis.

The strategic analysis is performed within the framework of three questions. These questions, stated from the perspective of the company, are as follows:

At the beginning of the 1990s, MCI Communications was the second largest longdistance carrier operating in the American telecommunications industry (Woodlief, 1990). MCI's share of this market has grown to approximately 15 percent (Woodlief, 1990).

At the beginning of the 1990s, MCI's primary business is voice transmission. The company has in excess of five million customers (Woodlief, 1990).

In answering the question "where are we going?," the starting point is 1990. Thus, the answer to the question relates to the 19911992 time period.

In the mid1980s, MCI's primary goal was to become a comprehensive provider of telecommunications services in the United States (Byars, & Creecy, 1986). At that time, the company had no hopes of displacing AT&T as the longdistance market leader; however, it did intend to aggressively pursue market share growth (Byars, & Creecy, 1986).

At the beginning of the 1990s, MCI continues to seek to be a comprehensive provider of telecommunications services; however, to build upon past success, the company now has more specific goals. These goals are as follows:

1. The first objective is to attain sales growth in excess of the 10 percent per year projected rate for longdistance communications (Woodlief, 1990a). Attaining this objective, thus, infers that the company will also increase its longdistance market share.

2. The second objective is to gain by 1992, a viable market share in the "800" longdistance...

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Strategic Analysis of MCI Communications. (1969, December 31). In LotsofEssays.com. Retrieved 22:14, April 23, 2024, from https://www.lotsofessays.com/viewpaper/1684569.html