In 1996, AT&T decided to split into three different companies. These new companies were the new AT&T, NCR, and Lucent Technologies. Lucent Technologies is one of the leading designers, developers, and manufacturers of telecommunications systems, software, and products.1 They are beginning to emerge as a Fortune 40 company. Lucent Technologies builds local networks, business telephone systems, and consumer telephones that access the global networks.2 Lucent Technologies was launched with an initial public stock offering in April.3 AT&T owns an 82% share of the company.4 KEY PERSONNEL Lucent technologies has 125,000 employees worldwide.
Approximately 82% of its employees come from the United States and the other 18% come from foreign countries.5 Lucent Technologies has offices in more than 90 countries, and Bell Labs has offices in 13 countries.6 The chairman and chief executive officer is Henry B. Schacht. Schacht has been on AT&Ts board of directors since 1981. He has also held chairman and chief executive officer positions at Cummings Engine Company, INC.7 Lucent Technologies President and chief operating officer is Richard A.
McGinn. McGinn joined AT&T in 1978. He has previously served as executive vice president and chief executive officer of AT&Ts network group. From 1994 to 1996, McGinn served on the AT&T management executive committee.8 BUSINESS STRUCTURE Lucent Technologies is composed of four operating units. These four units are: Business Communication Systems, Consumer Products, Microelectronics Group, and Network Systems. These units are designed to work together to provide innovative and cost-efficient solutions for customers.
Bell Laboratories supports each group.9 Bell Laboratories is a research and development organization that is recognized throughout the world for its achievements in science and technology. Currently, Bell Laboratories is focusing on developing: Digital signal processor algorithms, Lightwave communications (photonics), Networking, Silicon chips, Software, and Wireless communications.10 Business Communications Systems design, manufacture, install, and service advanced voice and multimedia systems worldwide.11 Consumer Products design, manufacture, sell, and lease communications products for consumers, small offices, and home offices. In 1995 in the United States, Consumer Products sold 31% of the corded phones, 28% of the cordless phones, and 35% of answering machines.12 The Microelectronics Group makes integrated circuits, power systems, and optoelectronic components for Lucent Technologies.13 The largest unit of Lucent Technologies is the Network Systems. The Network Systems designs, develops, and manufactures networking systems and software for telecommunications providers, wireless communications is growing at an annual rate of 33 percent.14 BUSINESS STRATEGY The worldwide demand for communications systems is booming. Lucent Technologies is predicting a 10% annual growth for the communications industry.
The business is pursuing growth opportunities around the world and is trying to build on Bell Laboratories established global relationships with its key customers. 15 Much emphasis for advancement is being put on the areas of Wireless communications, Networking software, and multimedia convergence. With the increasingly mobile society, Lucent Technologies feels that there will be an increasing demand for wireless communications. The more sophisticated technology becomes, the greater the demand for smarter networks. One of the worlds largest producers of networking software is Lucent Technologies.
Multimedia devices deal with all kinds of communications. Lucent Technologies is trying to develop innovations on multimedia that the customers want.16 ADVERTISING STRATEGY The companys name, Lucent Technologies, was thought of after many interviews with customers and other stakeholders. Lucent means, Marked with clarity, or glowing with light. Lucent Technologies logo is supposed to be a bold, red, hand-drawn innovation ring.17 The companys slogan is, We make the things that make communications work.
LIST OF COMPETITORS -DSC Communications -General Electric -Hitachi -Intel -Matsushita -Microsoft -Motorola -Nokia -Sony -Toshiba -U.S. Robotics18