Abstract
This case highlights how AT&T utilized political capabilities and a non-market strategy.The context for this case study is AT&Ts use of political capabilities to secure anti-trust approval in its horizontal acquisitions.Management at AT&T failed to incorporate a changing societal and political environment around 2009 and, therefore, the political capabilities turned into rigidities.By failing to incorporate this new information, AT&T pursued an acquisition of T-Mobile USA, which was subsequently blocked by federal regulators.AT&T took loses exceeding $6 Billion due to its failed takeover attempt.
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