Windstream’s (WIN) traditional market has been internet broadband service and land-based telephone services to the underserved areas in rural communities. It was a niche that served it well, allowing it to thrive among its much bigger competitors, such as Verizon (VZ) and AT&T (T).
Having over 100,000 route miles, a good portion of which it obtained through acquisition of smaller companies, gives Windstream an established and robust, broadband infrastructure. Windstream has some definite strong points to recommend it to investors, as well as areas of weakness and market vulnerability. A basic SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis is a good way to assess whether or not Windstream is an attractive near, or long-term, investment opportunity.
Clearly, Windstream’s long-range, strategic plan, and its thoughtful execution by the company’s management team, is Windstream’s biggest strength. Recognizing the consumer’s shift away from land-based to wireless devices, Windstream has an aggressive, targeted acquisition program to help it grow new lines of related business and revenue. Capitalizing on its already-established network of broadband, fiber-optic cable, Windstream has geared its acquisitions to include the expansion of its broadband services, and open new opportunities with “cloud computing” and data recovery services.By pursuing these new lines of business, Windstream is now operating in the suburban market as well as the rural markets which made up its traditional, core business. Following its strategic plan, Windstream has completed twelve acquisitions since calendar year 2007.To continue reading, click here.
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