Lucent Technologies




Lucent Technologies

BACKGROUND

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
-Matsushita
-Microsoft
-Motorola
-Nokia
-Sony
-Toshiba
-U.S. Robotics18

BIBLIOGRAPHY

1.) AT&T\'s 1995 Annual Report

2.) Lucent Technologies fact booklet

3.) America on line

TABLE OF CONTENTS

Background - page 1
Key personnel - page 1
Business Structure - page 2
Bell Laboratories - page 2
Business Strategies - page 3
Advertising Strategies - page 3
List Of Competitors - page 4
Bibliography - page 5