Essay, Research Paper: Lucent Technologies

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