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ATT Breakup Our book talks about managing strategy and strategic planning I chose to write my paper on ATTs recent breakup into four satellite companies I intend to show how their past planning was not well-suited for their rapidly changing industry and how they are now adjusting strategies and preparing for the uncertainties that the future holds ATTs voluntary breakup marks the end of the bigger-is-better era For much of the 20th century business strategy was relatively simple - scale up operations and expand market share The greatest opportunities lay in providing standardized products with incremental improvements to a middle-class market But the simple pursuit of scale and market share lost its effectiveness as the 20th century ended Another prime example of this is what is happening to Microsoft Even though they have different legal problems their days of gobbling up any and all businesses that got in their way is over Smaller firms - particularly those with innovative customer-centric business designs became the most profitable This is evident with the popularity of the dotcoms and how well they are doing in the market ATT had not predicted that their stranglehold on the market would be sacrificed because of new start-up companies Scale no longer provides the same benefits even in telecom But the large number of telecom providers competing for business globally and locally shows that many firms have sufficient scale and that the key to success lies elsewhere Perhaps the new solutions lay in new management and management strategies But more important is creating new forms of value for customers leading to sustained growth ATTs breakup reflects the new logic It now sees broadband wireless consumer and business telecom like equipment manufacturing as distinct fast-moving businesses Each has significantly different customers relationships and production systems and each requires a distinct business design ATT has decided that each also needs the full attention of its own chief executive officer ATT had no choice but
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