Making the things that make communications work
A Lucent Technologies case study

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Page 4: Growth

Acquisitions

Lucent Technologies 4 Image 4As Lucent focused on growth opportunities, it became possible to strengthen its portfolio of businesses with a number of acquisitions (buying other companies) and business partnerships. However, in order to remain a leader in an industry which is currently undergoing profound change, it will be necessary for Lucent to reassess the portfolio of business offerings continually.

Global growth

Industry analysts predict that the telecommunications market across the world will exceed $250 billion by the year 2000. For Lucent to succeed, therefore, it must capitalise on this new market opportunity outside the United States. Although Lucent is the world’s leading supplier of telecommunications infrastructure equipment, top rivals in the global arena have a long history of doing business around the world.

The new operating units have been developed with a global focus. For example, the Business Communications Systems unit has 1.5 million customers outside the US and is growing by 20% annually outside the US. Across Europe, there are approximately 15,000 employees and 135,000 world-wide. Lucent has offices or distributors in more than 90 countries and territories, including 133 locations in 28 European countries. As a truly global business, therefore, it has to create a culture of winning contracts wherever markets are located. It must develop a global strategy and focus on telecommunication developments world-wide.

The multi-local business

With increasing competition across its markets world-wide, Lucent has adopted a 'multi-local' approach to its business. More than 70% of Lucent’s growth potential is outside the United States. To achieve this growth, Lucent employees need to develop a global mindset focusing on better ways to penetrate and serve such markets.

Although Lucent is a large organisation, it must not be restricted by many of the diseconomies which troubled AT&T. It must be able to respond to opportunities to support and supply customers wherever they are in the world. Even though it is a multi-national business, it must develop business opportunities with the response time of a much smaller, local business. This involves focusing on customer needs and requirements wherever they are.

Lucent Technologies | Making the things that make communications work
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