Case study 5.1 Failure To Convince Others Of The Need For Change At AT&T, illustrates that it can be proved difficult to translate a need for a change into desire for change, especially at that point when a company has enjoyed a period of success.
Prior to the deregulation in the telecommunication sector, consumers were used to lease their mobile phone from the bell operating companies that were the part of the AT&T as they did not have another option.
These companies were monopolies and they were allowed to earn maximum return and profit on the assets of the consumers due to which AT&T was able to pursue high-reliability and high cost strategy for the production of its telephone.
After the deregulation, customer started to purchase their own telephones and attracted towards the low-cost strategy, which had drastic change over the AT&T. Due to which, managers planned to focus on the low cost strategy instead of the high-reliability. But they were unable to convince other that the change is necessary.
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