Case Study Of T-Mobile

According to Laudon & Laudon (2014), information systems help company obtaining and analyzing customers’ data and information, recording business data and transactions, analyzing and budgeting current and future sales and activities of company. Sales patterns basis business needs to be monitored by information system, attention needs to be paid on updating sales price, checking on low inventories, and timely delivery to each store.

Due to continuous innovation in technologies, cost of production has been reduced drastically and has caused the emergence of new devices in the global handset market and competition among companies have been increased heavily for survival. It has forced companies to change their business strategies. Few big companies acquired small companies to increase their market share, few followed a brand extension strategy by launching new products and hence increased their market penetration. For this reason, an integration between Microsoft and Nokia, two market leaders in their own rights, may create new opportunities to challenge the market.

This is in response to the above-referenced complaint filed by Ms. Lisa Wadsworth, received by Verizon Wireless on March 6, 2017. Ms. Wadsworth reports her daughter visited an agent location to purchase a new phone thinking it was a direct Verizon Store. She purchased a new iPhone 6 and agreed to a device payment plan. However, the representative did not explain to her that she would also have to pay off remaining amount for her existing device payment plan. It was not until she received her next invoice that she realized she was billed for three device payment plans.

The fear of the same monopolistic effect has increased due to the media’s recent reports that announced AT&T’s plans to acquire T-Mobile. AT&T publicly revealed on March 27 that it had agreed to buy T-Mobile USA from Deutsche Telekom for $39 billion (Sorkin, 2011). AT&T currently ranks second in the industry, with Verizon falling in first, T-Mobile in third, and Sprint in fourth. Considered as one of the largest telecom mergers, the deal would leave Verizon and Sprint lagging behind based on the number of subscribers, pushing the companies into lower ranking positions within the market. Currently, AT&T and Verizon account for a large percentage of the market, but it is possible that soon AT&T will advantageously gain a subscriber base twice that of Verizon. It is likely that AT&T would gain 130 million subscribers from merging with T-Mobile (“AT&T and T-Mobile”, 2011). Purchasing T-Mobile and gaining a large subscriber base would be unethical on AT&T’s behalf because the company’s size could stifle innovation and competition within the telecommunications market, something that antitrust laws do not condone. This is bad news for consumers who would be faced to deal with the after effects of the merger, such as fewer telecom choices, higher prices, and lower quality products to fit their mobile wireless needs. The approval of this

Verizon Wireless is utilizing many ways to create its current culture. By implementing a mandatory training program for executives, the process of cross-train along with problem solving, and solutions being presented to a board, has set the example for training on all levels (Freifeld, 2012). Verizon has dedicated a plan to choose top performing graduates and enroll them in an internship, which aids in the employment of intelligent and career centered employees who also care about customer service. This training along with employee recruitment meets both the role modeling, training, and coaching process along with the organizational goals and performance criteria. Verizon has developed steps to hire and train at a challenging level.

Weaknesses: Tighter Margins. Price wars between large wireless phone service providers have hurt overall profits at AT&T. Moreover, recent smartphone introductions, such as Apple’s (AAPL) iPhone 6, have spurred many customers to jump ship. Low-cost and pay-as-you-go plans from peers like Sprint (S) and T-Mobile have chipped away at AT&T’s market share and customer base. Furthermore, the carrier’s spending on updated networks and infrastructure have driven up expenses and added to its already sizable debt obligations. Too, we believe the

The cost leadership strategy seeks to improve profit margins by bringing down the costs of producing while enabling the organization to still charge market prices. They also focus on increasing the market shares through lower pricing, enabling the organization to continue to reach profits because of reduced costs. As with any organization the goal is to minimize cost directly to the organization providing the delivery of products or services. According to Barney (2007) low cost leadership strategy takes pride in initiating its costs advantage abilities to charge lower prices while reaping the rewards of higher profits.

We analyzed Verizon’s current business operations and strategies to better understand areas where the company is thriving and struggling, where it has room to capitalize on new opportunities and where external factors pose major threats to the company. To get an accurate snapshot of Verizon we utilized a SWOT analysis, Porters Five Forces, and the VIRO framework to gain insight on the company’s competitive position. There are many competitors within the wireless telecommunications industry and the intensity of rivalry among them is high. Competitors include other wireless providers like AT&T, T-Mobile, and Sprint; as well as software and application providers such as Microsoft and Google. Many of these companies have a strong market presence, brand recognition, and existing customer relationships which contribute to excessive competition levels and causes a possible threat to Verizon for

Historically, Verizon Wireless focused its customer-base direct marketing efforts primarily on speaking to customers during the points in their lifecycle when they were equipment-upgrade-eligible. The purpose of these communications was to renew customer contracts using an equipment-upgrade message and offer. The challenge was that these points in the customer lifecycle coincided with spikes in customer churn.

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A few companies AT&T is competing against would be Sprint, T-mobile, and Verizon. Each of these companies reach their customers in roughfully the same way. However, each cell provider has to do something that sits them apart from others. Verizon had the “Can You Hear Me Now” guy. This commerical was widly known whereas Sprint was known for taking any trade in. Now, Sprint is known for actual taking the “Can You Hear Me Now” guy from Verizon to show that their service is better. AT&T is known for having lower costs while providing quailty services and products. Unfortunalty, the number of competitors won’t decrease, therefore, causing the companies to continue creating new products, services, promotions and extra offers such as special discounts on

Just a day after Verizon announced its unlimited data plan, T-Mobile countered with a competitive upgrade to its own.

     In today’s telecommunication market there is a lot of competition by industry giants such as Sprint,

In analyzing Verizon's strengths, it is apparent that they have strong brand recognition in the market and industry. They are not only the leader in market share for wireless presence in the U.S., they were also ranked at the top for branding and customer loyalty in the wireless phone category and received the 2005 BrandWeek Customer Loyalty Award as a result (Verizon Customer Satisfaction – Award & Recognition, 2005). In addition to strong brand recognition, Verizon is ranked the

EV: Generally, the threat of substitutes is low in the smartphone industry as there are not definite products that can readily substitute the smartphone. Consumers rely heavily on Smartphone and would not be able to find a close substitute that has all the function of a mobile phone. Furthermore, Nokia is a long and established company with many loyal customers. These people may continue to stay faithful to Nokia and are hence less resistant to change. Also, the perceived level of product