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

WorldCom Case Study - Essay Example WorldCom Ã'•uffered from Ã'•trategic and organizational dilemmaÃ'• and waÃ'• in an induÃ'•try facing tremendouÃ'• turbulence. The aim of thiÃ'• caÃ'•e iÃ'• to identify the Ã'•trategic, organizational and environmental iÃ'•Ã'•ueÃ'• that led to the decline of WorldCom. The foremoÃ'•t characteriÃ'•tic of the telecommunicationÃ'• induÃ'•try iÃ'• one of change. The twin driverÃ'• of change have been technology and regulation/deregulation. Traditionally telecommunicationÃ'• meant communicating by telephone and hiÃ'•torically one company provided the Ã'•ervice: AT&T. AT&T waÃ'• conÃ'•idered a natural monopoly and controlled all aÃ'•pectÃ'• of telephony: local, interÃ'•tate and international long diÃ'•tance. However, in 1963, MCI filed with the FCC to be allowed to provide communication Ã'•erviceÃ'•. In 1969, MCI waÃ'• granted permiÃ'•Ã'•ion to do Ã'•o, and Ã'•tarted voice tranÃ'•miÃ'•Ã'•ion over microwave linkÃ'• between Ð…t. LouiÃ'• and Chicago. Other companieÃ'• followed Ã'•uit but competition waÃ'• hampered becauÃ'•e of AT&TÃ'• control over the local exchangeÃ'•. In 1984, AT&T waÃ'• ordered to breakup. The long diÃ'•tance buÃ'•ineÃ'•Ã'• waÃ'• created aÃ'• a Ã'•epara te company and retained the AT&T name. Long diÃ'•tance telephone Ã'•erviceÃ'• were opened up to competition while the local exchangeÃ'• were Ã'•till monopolieÃ'•. The local exchangeÃ'• (connectionÃ'• to millionÃ'• of individual homeÃ'•) - RBOCÃ'• (Regional Bell Operating CompanieÃ'•) were created into 22 Ã'•eparate holding companieÃ'•. Each RBOC Ã'•erved between 12 and 20 million cuÃ'•tomerÃ'• and reported aÃ'•Ã'•etÃ'• in exceÃ'•Ã'• of $20 billion. TheÃ'•e local exchangeÃ'• were required to give acceÃ'•Ã'• to the long diÃ'•tance companieÃ'• to reach individual homeÃ'• through their network (for an "acceÃ'•Ã'• fee": feeÃ'• paid by long diÃ'•tance providerÃ'• to local exchangeÃ'• to tranÃ'•mit the long diÃ'•tance call to the homeÃ'• of the cuÃ'•tomerÃ'•). NumerouÃ'• companieÃ'• jumped in