MCI CASE

Topics: Stock, Stock market, Corporate finance Pages: 4 (1250 words) Published: April 5, 2014

Background of Company
MCI communication corporation was a telecommunication company found in 1963. In the beginning the business plan of MCI was to build up a group of microwave relay stations that allow limited-range two-way radios signal to transfer. Which means providing long distance telecommunications. In 1971, the Federal Communications Commission (FCC) allowed those long distance companies compete and try to break out AT&T’s monopoly telephone service in the U.S. MCI wanted to grow further, however the AT&T did not want to provide interconnection services which MCI needed. As a result, MCI sued AT&T in 1974 and later won the law suit and FCC force AT&T to provide service to MCI , thus MCI continue its construction on its own network build. Before 1974, MCI was not profit too much but is all change based on their successful business strategy, knew as “Execunet” service they offer affordable service to those customers who could not afford AT&T’s service. MCI successfully attracted small business user and residential to use their services. Due to that success strategy MCI turning to very profitable. Because of that, MCI saw a really high potential growth opportunity that could bring the company to a different level. However, they find out the need more funds and capital to support the growth. AT&T is MCI’s major competitor. And AT&T break up its business , AT&T now compete with MCI in the local telephone business, the means MCI must rise their rate in the local business, but at same time AT&T left a big cake on its market share that MCI could toke from them. SWOT analysis

Before AT&T break up, MCI has strengths on its Execunet service, and fairly lower charge in their local network services. Their weakness is short of capital and market shares which control by AT&T. Their opportunities was growth execunet services. They also face threats such as competition from AT&T. Before AT&T break out:

Some of the SWOT analysis have changed...
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