Altice Case Study

Altice Case Study
Q1:
Ans: the key success factors for a telecom industry are the competitive elements which
impacts the participating firm’s ability to prosper. Deregulation is an important key success
factor. The other key success factor is data services that bring increases revenues. Economies
of scale are also important success factor because it gives companies an opportunity to take
advantages of expanding market. Companies’ ability to rapidly adopt advanced technology is
also an important key success factor in telecom industry. In telecom industry rate of
technological change is very high, and firms which can provided the updated technology at
affordable prices will succeed. Services performance particularly has to fulfill increasing
demands of customer for speed of data transmission, data volume through bandwidth, and
connection quality.
To stay competitive in a mature industry, a company has to focus on data services because it
can increase revenues as everything turned into data along with video and voice. A company
must increase its investments in broadband and high speed mobile infrastructure to hold
growing data volumes. To differentiate further offers and decrease content cost, a company
has to diversify into the content production space. Consolidation is necessary because it
yields solid monetary health for companies, and decreases competition.
Q2:
Ans: Altice pursues following types of synergies: Revenue Synergy to acquire more access to
more services and goods to sell over a widespread network of distribution, Financial Synergy
to get benefit from different monetary synergies like access to tax saving, cash flow, and
debt, Customer Operation Synergy to further enhance customer experience and reduce
operational complications, and Network & Operations Synergy to implement best practices,
and decreases operating costs. In future Altice does pursue synergies by; Management
Synergy to experience better resource usage, proper delivery of services, and employee
motivation improvement, and Marketing Synergy to gain the marketing benefits for
promoting their goods and services. Obviously, Altice will pay a price for these synergies like
sharing revenues, goals, objectives, debts, and organizational control.
To balance among different compensation modes amongst Debt, Cash, Equity, and other
participant investors, Altice aims to increase synergies of 900 million dollars in operating
costs, and 150 million dollar per year in capital costs by implementing its best tested M&A
playbook. Altice elevated 8.6 billion dollar of new debt in addition to present debt. In an
effort to stop its share prices’ descending spiral, management of Altice planned to respond
rapidly and declared the greatest raise in capital.
Q3:
Ans. The ownership structure of Altice is cooperation. Its pros are that usually there is little
or no liability for harms or debts about the cooperation. It reduces or eliminates some income
taxes. The disadvantage of the cooperation is control of operations is handed over to the
shareholders and board of directors. There is more complex and frequent tax filing.
The Leadership style of Altice is transformation where they create a vision on the basis of
recognized needs and direct their organization towards a mutual goal by motivation and
inspiration. The pros of Altice’ leadership style is that the team is always motivated,
favorable to encourage collaboration, and provide team members freedom to do their tasks.
The cons of their leadership style are that it can cause instability feelings at the time of
disrupting the status quo and a lot pressure on the leader.
The ownership structure and leadership style of the Altice impacts the decision making and
company’ performance positively by enabling them to rapidly respond to alterations in their
operation circumstances and to take advantages of business opportunities when they arise and
their boosted performance improved profitability by almost 20% and decreases operating
costs.
Q4:
Ans. The business model of Altice is very sustainable. The Altice focuses on innovation and
delivers a reliable and exceptional customer experience meanwhile showing care for their
workforce, the environment and the community where they operate. The company is devoted
to decrease their total effect on the environment at the same time activating and encouraging
eco-friendly behavior on the behalf of their every employee. Their dedication to decrease the
effects on the environment starts with their own operations to create a zero harm culture in
everything they do. They are on their way to build a culture of zero harm by putting into
practice an eco-friendly system and program which will promote accountability and
responsibility for environmental care. They are making many investments to decrease their
environmental footprint. Their long term vision for fiber to home is an example of their
ability of technology to offers customers improved services whereas decreasing consumption
of energy and waste of material. But their insatiable appetite for dominating telecom industry
may cause problems for their sustainable business model by making them compromise on
sustainability and eco-friendly commitment in order to gain more profits and acquire more
companies.

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