AT&T Inc. is a multinational company that deals with entertainment services. Essentially, the company has various units which provide services such as cable service, mobile communication, pay-TV, and fixed telephone service provision. Essentially, the company is linked to warner media which makes the corporation the largest media and entertainment company in the world. The corporation's revenues were rated at $ 181 billion in 2020, indicating its ability to assert itself in the market over the years since 1877 (Amir & Ghitti, 2020). However, the company has various business problems facing its units that could be solved through the use of various types of data analytics.
Analytics
The company has for a long time faced criticism for its use of data acquired from its customers in a way that exposes the clients to threats. For instance, being a telecommunications company, the company maintains a database of call details that have previously been leaked to the authority. This fact proves their ability to use data to solve problems such as the inability to grow time warner and DirecTV units to be competitive and lose customers.
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Descriptive
Descriptive analytics provides an organization with significant metrics that affect the business. The corporation could use its profit and loss statements which provide a descriptive analysis of its primary problem, which is losses (Holmlund et al., 2020). For instance, the company's pay-TV and mobile service units suffered a loss of $ 2.8 billion due to phone subscribers' loss (Amir & Ghitti, 2020). In essence, both loss of phone subscribers and making losses could be addressed using this data. The company lost 3 million subscribed to the HBO unit, which previously had 36 million subscribers (Amir & Ghitti, 2020). This information shows the company the trend of revenue and customers' losses.
In essence, AT&T could address these problems by first understanding the nature of their subscribers. For instance, more than 70% of the HBO max subscribers were streaming movies during the corona pandemic period. Of this population, 40% were already earning a lower income than before due to loss of jobs or pay cuts (Amir & Ghitti, 2020). This information that the company has accumulated through questions posed to subscribers during registration could help the company better understand the problem. After such an analysis, the company may decide to lower the subscription fee for various packages to accommodate the customers.
Predictive analytics
Significantly, there is a need to predict a possibility in the future due to the current situation. For example, there is higher competition from established service providers such as Netflix. The predictive aspect, in this case, revolves around the possibility that in two years, 50% of the HBO Max subscribers will migrate to Netflix, which has consistently provided cheaper rates and ensured new movies are available for streaming in time (Amir & Ghitti, 2020). The predictive model is significant in this case as it is crucial in ensuring the company makes decisions that will help counter the problems that might occur. The creation of easy-to-use and data-free programs compatible with the company's mobile services may be important in attracting more customers to counter losses made in other units such as HBO and DirecTV due to the migration of subscribers.
Prescriptive
The prescriptive model utilizes a host of actions to create the ability to learn alternatives and navigate problems. The company may use the customer's database to learn the trends of buying packages in units such as DirecTV and HBO Max to understand the majority's financial ability. Buying cheaper packages by most subscribers in a particular month may indicate financial strains cutting across the subscriber population. This occurrence, in turn, may inform the provision of friendlier tariffs and packages for the following two months or retain the same rates but make all programs accessible for all customers at one rate without differentiation of packages.
Conclusion
Significantly, AT&T Inc. has faced problems in recent years, which can be solved through the utilization of analytics. The problems include making of losses and loss of subscribers. Descriptive, predictive, and prescriptive models will help visualize, understand and create solutions for the problems.
References
Amir, E., & Ghitti, M. (2020). AT&T: Equity Method Investments. In Financial Analysis of Mergers and Acquisitions (pp. 217-223). Palgrave Macmillan, Cham.
Holmlund, M., Van Vaerenbergh, Y., Ciuchita, R., Ravald, A., Sarantopoulos, P., Ordenes, F. V., & Zaki, M. (2020). Customer experience management in the age of big data analytics: A strategic framework. Journal of Business Research , 116 , 356-365.
