Thursday, May 16, 2019

WorldCom Case Study Essay Example | Topics and Well Written Essays - 1500 words

WorldCom Case Study - stress ExampleWorldCom uffered from trategic and organizational dilemma and wa in an indu take heed facing tremendou turbulence. The aim of thi cae i to identify the trategic, organizational and environmental iue that led to the decline of WorldCom.The foremot characteritic of the telecommunication indutry i one of change. The twin driver of change have been technology and regulation/deregulation. Traditionally telecommunication meant communicating by telephone and hitorically one company provided the ervice AT&T. AT&T wa conidered a natural monopoly and controlled all apect of telephony local, intertate and international huge ditance. However, in 1963, MCI filed with the FCC to be allowed to provide communication ervice. In 1969, MCI wa granted permiion to do o, and tarted voice tranmiion over microwave link between t. Loui and Chicago. Other companie followed uit but competition wa hampered becaue of AT&T control over the local exchange. In 1984, AT&T wa or dered to breakup. The long ditance buine wa created a a eparate company and retained the AT&T name. Long ditance telephone ervice were undefendable up to competition while the local exchange were till monopolie. The local exchange (connection to zillion of undivided home) - RBOC (Regional Bell Operating Companie) were created into 22 eparate holding companie. Each RBOC erved between 12 and 20 million cutomer and reported aet in exce of $20 billion. Thee local exchange were required to implement acce to the long ditance companie to reach individual home through their network (for an acce fee fee paid by long ditance provider to local exchange to tranmit the long ditance call to the home of the cutomer). Numerou companie jumped in

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