Lucent Essay, Research Paper

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&T?s 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&T?s 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 world?s 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 company?s 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 company?s slogan is, ?We make the things that make

communications work.?

LIST OF COMPETITORS

-DSC Communications

-General Electric

-Hitachi

-Intel

-Matsu*censored*a

-Microsoft

-Motorola

-Nokia

-Sony

-Toshiba

-U.S. Robotics18