Strategic Action Portfolio
Bruno R. Gaita, MS., MBA
University of Phoenix

The advent of technological advances in global communications coupled with deregulation has resulted in an examination of the corporate strategic action portfolio of American Telephone and Telegraph (AT&T). According to Kim & Prescott (2005) “the relationship between a firm’s strategic action portfolios can be directly attributed to environmental changes” (p. 417). The environmental changes promote organizational transformation through redrawing industry boundaries, shifting the scope of permissible activities by incumbents and new entrants. The nature of AT&T’s business necessitates frequent proactive and reactive adjustments to their corporate strategic action portfolio.
From the beginning of the telecom industry in 1879 through Bell’s invention of telephony to 1984, AT&T enjoyed a dominant market position in the U.S. telecom industry. The construct was comprised of twenty-two regionally controlled Bell operating companies. In 1984, AT&T was broken into one long-distance company and reconstituted AT&T and the previous twenty regional Bell operating companies were reduced to seven (Fransman, 2001). As a result, MCI and Sprint became larger competitors. The process of breaking up the century’s old paradigm that was AT&T was complex and the actual divesture process was fraught with many lengthy legal debates and approvals.
The fast growing diffusions of the above have created a more intense competitive environment. In response to such changes AT&T has internally invested into new generations of digital wireless networks and has invested in infrastructure around the world. As a result of environmental changes, AT&T has been able to institute various types of strategic actions to expand their boundaries. As deregulation eliminates the market sharing