High Performing Industry Sectors Effects of Covid-19 and Relocation of Standard & Poors 500 Companies

COVID-19, which required firms to concentrate on technology and procedures to gain customers and enhance their enterprises, made information technology (IT) the best industry. Technology businesses are growing and fashionable. Most enterprises, businesses, and the government use the technology. Due to this pandemic, more customers are reluctant to buy their products in the store. Customers find neither travelling nor shopping to be at all comfortable. Despite being invented in 1969 by electrical engineering Dr John R. Goltz and Jefferey Wilkins, where CompuServe was established with a dial-up, e-commerce marketing is currently popular (BigCommerce, n.d.). Nowadays, more businesses are making use of the technologies. There are greater needs for online transactions such as shopping, commerce, education, virtual meetings, teleworking, doctor phone consultations, and online healthcare. In addition, the government is attempting to shift as much of its phone and internet transactions as possible (International Finance Corporation, n.d.).

COVID-19 impacts several variables, including shopping, dining, health care, and education. All businesses are impacted, but retailers were the most severely hit and needed to adapt themselves to accommodate online clients. COVID-19 significantly impacted the economy. Thus, it is necessary to rethink their strategies to reach all customers. Reaching $82.5 billion in e-commerce transactions in 2020—a 77% increase from 2019—should take 4 to 6 years when traditional sales are considered. Online spending will reach $476 billion in eCommerce sales by the end of 2024 (Big Commerce, n.d.). Even though some customers are uncomfortable sharing their personal information, particularly their credit or debit cards, others avoid online purchasing because of its shortcomings. To increase the number of online shoppers, retailers must earn the public’s trust.

I selected AT&T as the company that would be a candidate for relocation to another country after reviewing the S&P 500 corporations. As a holding company, the business provides media, technology, and telecommunications services. I have to break down the market segments this company appeals to most to understand better its operations and decision-making processes (UMGC, 2021). Latin America, WarnerMedia, and communications make up its three core segments. Numerous rivals, including Comcast, Verizon, Netflix, Viacom, and T-Mobile, arise due to the company’s wide range of media and services. The ability to accurately judge whether the company’s industry performance is generally good or poor over the long run depends on understanding these segments (UMGC, 2021). While AT&T trails Comcast, Verizon, and Netflix in the S&P ranking, it has shown a strong competitive edge over those companies as of August 16, 2021, surpassing Viacom and T-Mobile.

The company’s primary issue is that, as of March 4, 2021, its revised credit outlook changed from stable to negative (Gubagaras, 2021). The corporation purchased 1,621 licenses for $23.41 billion, a significant factor in this. The low grade also suggests a higher probability that financial results will continue to be poor in 2021. Despite this forecast, the financial outcomes will be favourable if the business uses these licenses to grow and offer more services. The business intended to add 60 countries to its platform for commercial WiFi service in 2018. Thanks to this provision, Customers and companies could maintain connectivity while carrying out important tasks (AT&T, 2018). The strategy also stated that the business would keep adding other nations in the future.

One might have easily chosen another top-performing corporation, but given AT&T’s continuous expansion and improvement, it is likely that the company will rank among the fastest-growing in the United States and possibly abroad. In May 2021, “the company would be spinning off its WarnerMedia assets, combining them with Discovery, leaving AT&T a more concentrated bet on the future of communications” (Jasinski, 2021), especially in light of its newest endeavour. At the end of 2022, AT&T will have reduced its net debt by about $43 billion. These initiatives alone reinforce my decision for the business to relocate or continue its international expansion. The company’s power movements by AT&T offset any prospective losses.

When AT&T does relocate, the corporation ought to consider offering media and telecommunications services to a nation with little to no access to these sectors. Leading this development will be a highly lucrative endeavour. There will be difficulties in global value chains, nevertheless, in decomposing industrial processes so that various steps can be carried out in various nations. AT&T will need to take note of the nation’s labour laws and regulations and ascertain which businesses, if any, can help develop or supply the nation. Regarding labour rules and regulations, AT&T will also need to get familiar with organizational and cultural norms, national and local laws, and any development projects that can incite opposition from locals. Hiring locals or subject-matter experts familiar with the area to offer advice is a recommended first step.

References

Big Commerce (n.d.). Retrieved from HTTPS://www.bigcommerce.com/articles/ecommerce/#history-of- e-commerce

International Finance Corporation ( n.d.). Retrieved from

https://www.ifc.org/wps/wcm/connect/537b9b66-a35c-40cf-bed8- 6f618c4f63d8/202009-COVID-19-Impact-Disruptive-Tech-EM.pdf? MOD=AJPERES&CVID=njn5xG9

AT&T business expands WI-FI services to 60 countries. AT&T Business Expands WiFi Services to 60 Countries. (2018, September 25). https://about.att.com/story/2018/att_business_expands_wi_fi_services.ht ml.

Jasinski, N. (2021, May 17). AT&T is going back to its Roots. What it means for the stock. AT&T Is Back to Being a Telecom Company. What It Means for its Stock, 5G, and Streaming. | Barron’s. https://www.barrons.com/articles/att-telecom-company-what-means- stock-5g-streaming-51621273800.

MarketWatch, & FACTSET. (n.d.). T stock Price: AT&T INC. stock quote (U.S.: NYSE). MarketWatch. https://www.marketwatch.com/investing/stock/t.

S&P 500 Companies. S&p 500 companies – s&p 500 index components by market cap. (2021). https://www.slickcharts.com/sp500.

University of Maryland Global Campus. (2021). Industry Analysis. LEO Content. https://leocontent.umgc.edu/content/umuc/tgs/mba/mba670/2215/learnin g-topic-list/industry-analysis.html?ou=583325.

University of Maryland Global Campus. (2021). Industry Structure. LEO Content. https://leocontent.umgc.edu/content/umuc/tgs/mba/mba670/2215/le arning-topic-list/industry-structure.html?ou=583325

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Topic 1:

What industry sectors tend to be better performers? Why? How may Covid-19 lead to growth in certain sectors and decline in others that will have to ‘re-invent’ themselves to make them competitive? You may pick a sector from healthcare, education, retail, hospitality, manufacturing, IT, or transport.

Topic 2:

Select any company from the Standard & Poor’s 500. Select one or more activities in the company’s value chain that would be candidates for relocation to another country. Provide a brief justification and examine the challenges you see in coordinating the global value chain after the proposed value-chain activities of your chosen company are set up in the new country.

Cite examples when you describe theories from the attached reading and research. You may use examples from your organization or industry, current or recent news-makers, or other reliable sources.

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