In 2000, The Company that could seemingly do no wrong in the first three years after it was spun off from AT&T in 1996 seriously lost its way in 2000(Snell, 276). Lucent Technologies had problems competing with Nortel Networks in marketing of optical-fiber telephone switches. Lucent downfall came when they thought the demand for complex technology would develop slowly. The reasons why the company assumed this is because the company's management didn't check to see what the consumers wanted. They assumed the consumers were satisfied with the service that lucent provided, and didn't see any need for change at that point of time. When Nortel introduced a new and faster optical-fiber telephone switch the people at Lucent decided to stay with their slower switch because consumers weren't asking for a faster switch. .
Lucent was now struggling to compete with Nortel, there archrival because they maid the decision to settle for less transmission speed. The only way the company could bounce back from a 20 percent turnover rate is by remaking itself into a company that can be quick to responding to the needs of the consumer, and develop new technology quicker. Lucent hired new management in the company who where not familiar with the companies old mindset. They also got into small divisions based on product lines, with managers closely matched to customers (Snell, 276). The company tries to evaluate the profitability of all new products, respond to the needs of the consumer quicker, and stay on top of the race for the delivery of new technology. .
Lucent could have introduced an upgraded optical system after they saw the success of Nortel, which was faster that of Nortel. With a new faster optical system consumers would have changed from Nortel to Lucent because of Lucent's faster system.
Lucent technologies are more of a streamline company with a focus on customer satisfaction, which is stronger and sharper than ever.
