1. AT&T vs Verizon Communications Alex Fraser- May 2011- Operations and Supply Chain Jeff Horan-May 2011- Finance Chase Pumerantz- May 2011- Marketing

2. Key Success Factor Table Key Success Factor Equation to Measure KSF AT&TVerizon Economies of Scale (Revenue-Operating Income) /Total Assets.36 =(($124,280- $19,753)/$288,488) 0.42 =(($106,565- $14,645)/$220,005) Network Service Reliability National Survey Data by NovaRum Inc. 68%89.8% G*, G-star the Index of Sustainable Growth (1 - Dividend Payout Ratio) * ROE.008895 =((1-0.5)*0.01779 -0.075354 =((1-2.14)*0.0661) Customer Loyalty Customers Lost/ Total Customers -1.15%-1.02%

3. Key Success Factor (KSF) AT&TVZN Strength Assessment on a Scale of 1-5: 1=weakest, 3= the same, 5=Strongest AT&T ScoreVZN Score Economies of Scale.360.42 51 Network Service Reliability 68%89.8% 15 G*, G-star the Index of Sustainable Growth.008895-0.075354 51 Customer Loyalty-1.15%-1.02% 33 Average Strength Score: 3.252.50

4. Superior Rival: AT&T Despite the fact that AT&T has a significantly lower Network Service Reliability Rating and a comparable customer attrition rate they are the superior rival. This is because AT&T is most likely to create and sustain competitive advantage against Verizon Wireless because of: Superior Economies of Scale More readily available financial resources to support further growth. This superiority was demonstrated in the First Quarter of 2011 when AT&T surpassed Verizon Wireless as the largest Wireless Carrier in the industry.

5. Works Cited AT&T INC. Annual Report Persuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. Form 10-K. Dallas: Thomson Reuters, 2010. Rosenbluth, Todd. "AT&T, INC." S&P Focus Stock of the Week 7 February 2011. Shields, Mike. "Verizon's Strategy: Simple, Boring, Effective." Adweek 7 June 2010: 26-27. Sullivan, Mark. "A Day in the Life of 3G." PCWorld Magazine 28 Jun 2009. Svensson, Peter. "AT&T to push Android phones more vigorously." The Commercial Appeal 28 January 2011. Verizon Communications Inc. Annual Report Persuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. Form 10-K. New York: Verizon Communications Inc., 2010.