Class Project (Tower Analysis) - easy work - Research Paper Example

Project (Tower Analysis) The American Tower Company aims at developing a real e that is eco-progressive. It aims at transcending approaches that are traditional to built environments, teaching people on how to interact with their environments, promoting a balance between the human mind and body, optimizing human achievement and ultimately treating the planet with respect. American Tower Company operates over thirty-nine thousand (39,000) sites of communication for broadcast and wireless based industries.

How Successful the Company Has Operated Financially In the Last Two Years Year after year, the Company has been able to record a growth in revenues from $1.7B to $2.0B. Impressively, the American Tower Corporation has had the ability to decrease the sales percentage dedicated to cost of the goods sold and expenses such as SGA and income tax. These improvements enhance the company’s growth from $ 246.6M to &372.9M. Tower Company Financial analysis For the Last Two Years Currency in Millions of U.S.Dollars Dec 31 2009(Restates USD) Dec 31st 2010 Revenues 1,724.1 1,985.3 Total Revenues 1,724.1 1,985.3 Gross profit 1, 307.7 1,510.7 Operating expenses 629.2 726.4 Operating income 678.6 784.4 Net interest expense -233.9 -226.8 Data source: American Tower Corp-CL A.Web.22 Feb.2012. From the above data, it is correct to conclude that the company has recorded a significant improvement in terms of profits.

For instance, in 2009 the gross profit was $ 1,307.7 whilst in 2010 the profit was $1, 510.7. Suggestions for the Company’s Strategy The American Tower Company enjoys the advantage of hosting communication equipment from various companies for purposes of providing its customers’ products in an efficient and cost effective manner. This has contributed to the reduction of their operation costs. To gain competitive advantage over its competitors, the company has to apply the following two strategies.

The company has to differentiate its products from its competitors. With the differentiation strategy, the company objective is will be in a position to distinguish its products from a smaller number or just a single target segment of a market. This enables the company to clearly differentiate its products from competitors targeting a wider group of clients. Another strategy the company can utilize is the cost focus. Using the cost focus strategy, the company should seek to become the low cost leader in the market.

This will enhance the company ability to expand its market share via stabilizing its customer base. In addition to product differentiation and low cost leadership, the company can employ the use of marketing strategies that are both offensive and defensive in nature. Competition does occur since more competitors feel the exerted pressure to associate themselves with an industry. American Tower Company may react to challenges posed by competitors via counterattacking with increased expenditures in advertising, cutting on its prices, increasing in its innovative strategies, developing and introducing new products in the market.

Furthermore, the company should accommodate new entrants into its market share as competition is healthy. Conclusion Companies stabilize themselves by acquiring their rival’s market share and creating new markets. Companies should always be ready for competition from other firms with the intent of expanding their business. Companies, Towers being one of them, should strive to defend their market territories and strengthening their position in the market. These will act as a barrier to new entrants who may challenge them in the market.

Markets being dynamic, firms tend to position themselves within the industry segments. In their efforts of improving their market position, they should involve themselves in competitive battles through the adoption of strategies that are offensive. Work cited American Tower Corp-CL A.Web.22 Feb.2012.