Supplier power
AT&T purchases a considerable amount of supplies and services each year. These supplies and services include switching equipment, network facilities, supporting equipment and others of the same degree. However AT&T generally purchases these utilities straight from the manufacturer or through their authorized distributors and value added resellers. Therefore suppliers that sell telecommunication components or support services for these products, usually sell to the manufacturers or the distributors, to AT&T itself. AT&T is contracted with individual manufacturers who assemble the finished products for AT&T. For over-the-counter items, AT&T buys from local companies, however, if they buy a high volume of a supply many smaller companies would bid and AT&T chooses the most cost efficient. The suppliers’ powers for AT&T are insufficient because AT&T is contracted to a select group of manufacturers, and the suppliers do not sell directly to AT&T, they are bought through these manufacturers who put the parts together for a finished product. AT&T is constantly seeking out ways to improve its performance and reduce costs leaving the suppliers power feeble. However, AT&T is committed to a goal of Supplier diversity by providing minority, women and disables veteran business enterprises the opportunity to compete for business opportunities by subcontracting through AT&T primary suppliers. They plan to procure 21.5% of there supplier business through the supplier diversity.