Gartner Research

Diversification Strategy Fails for AT&T

Published: 04 February 2003

ID: G00112812

Analyst(s): Mike Harris

Summary

In 1997 AT&T began acquiring cable companies for over $100 billion in a bold move to diversify revenue and control access to customers. Its failure highlights the risks of diversification plans.

Table Of Contents
  • What Happened to Ma Bell?
  • Strategy vs. Reality
  • Lessons Learned
    • Lesson No. 1: A Diversification Strategy Requires Many Small Steps, Not Just a Single Massive Leap
    • Lesson No. 2: Speed of Execution Is Critical
    • Lesson No. 3: Communication and Consensus Are Critical
  • Gartner Dataquest Perspective

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