Seems like 3 mutually exclusive aims but maybe I’m wrong
7 replies (most recent on top)
Yes, but it was mostly about cutting areas that didn't bring revenue and simplifying out complicated processes and streamlining complexity.
This is something VGS and GTS are terrible at, and they add more complexity and complications than anything. They also aren't aligned across with the business, and so the whole enterprise operates in siloes, increasing inefficiencies and making complexities compound
Outsourcing is a cheap and nonesense strategy. It creates rework and poor quality.
All very true but as you said… Execution… DEI polluted the employee base and need to get back to meritocracy culture and remove from the process
Reducing fixed operating expenses (like full-time employees) through outsourcing or automation lifts EBITDA margin and improves cash flow efficiency, which leads to stronger investor confidence and higher EV/EBITDA multiples.
Yes, Verizon under the leadership of Hans Vestburg.
It seems all about net adds and showing growth.
1) Aggressively cut costs in parts of the business where revenue is stagnant or not growing. Lean on AI and automation in all parts of the business.
2) Lower costs for customers (no. 1 factor for churn). Aggressive promos. Reintroduce a true unlimited plan. Lean on AI for customer service, offer discounts/drawbacks when network quality is poor (even unsolicited). It’s all about treating customer right and not abusing them through costs increases and fine print shenanigans.
The better you are at 1), you can get more aggressive in 2).
And of course this model depends on proper execution and AI/automation actually materializing.
You’d have to qualify “cost cutting”. Scaling businesses often do all three when they decrease rates on a variety of expenses even though total expenses increase, margin should grow. This isn’t Verizon and I’m not smart enough to understand how you aggressively cut costs while maintaining a “value leader” brand.