| Since its founding in 1885, AT&T was under the regulatory protection to monopolize telecommunications services. The anti-trust ruling by Federal Court in 1984 created the new AT&T for long distance services and seven other regional phone companies known as baby bells. This breakup has permitted a more competitive market environment for the ;We then focus our attention to each marketing force and how each firm utilizes it to the best of its own competitive advantage. Strategic marketing practices such as technology development, regulatory lobbying, market segmentation, alliance and acquisition, service bundling, competitive pricing, advertising, public image building, organizational alignment and management adaptation are discussed in detail.;Finally, we conclude with a development of the apparent offensive and defensive marketing strategies used by MCI and AT&T, respectively, utilizing some of Porter's concept. The principles that both firms used to develop their own competitive advantage in market positioning can be applied to many other industries when deregulated. It is especially useful to those who is the existing market leader and to those who are new entrants to seek and gain market position.;A strategic outlook for the future of both firms and the industry by the author is also presented.;During the past 8 years, all players in this market experienced a transition from monopolistic to oligopolistic market. While AT&T tried to withhold its dominant market position, the new entrants like MCI and US Sprint were aggressively positioning themselves and gradually gained market share. In the all out effort to create and achieve competitive advantages, we first analyze the market share and financial conditions of AT&T, MCI and the industry as a whole. We then examine each major market segments in light of the competitive activities. |
