Sprint and External Environment

850 Words Jan 11th, 2006 4 Pages
It is very critical for organization to understand the importance of external environment, which includes remote, operating and industrial environments before developing its future objective. Each environment bases on different factors, therefore the analysis of external environment will help the company seeks for new opportunity in many areas as well as discovering challenges that might have direct impact to the organization in the future. The remote environment consists of the study of the economic trend such as the level of disposable income, inflation rate and prime rate, the study of social factors such as life style of consumers. The political factor also plays an important role in external environment. Political factor focuses …show more content…
Sprint realized these predicted changes; the company has long term plans and objectives to support consumers ' needs. For instance, Sprint has set a joint ventures agreement with various cable companies to provide TV services for customers anywhere and anytime. For this, Sprint has also started improving its network infrastructure to include high speed data services in order to support enormous data applications.
The ultimate goal of every wireless company is to minimize its coverage-hole area, which can be done by adding more cell tower. However, the major challenge is to deal with the political factor – zoning. In the area where residences of the community are eager to preserve land and historical values is most likely very difficult for Sprint to place its cell tower equipment. In the next five years, zoning will be even more difficult for Sprint to fill-in those coverage holes. Sprint has long term strategy to face with this unavoidable challenge. The company expects to spend more time and money in constructing visual-friendly stealth structures, i.e. stealth trees and vaulted equipment underground.
Cellular network consisted of 2 parts, cell tower or base station and mobile phone. Industry environment of the cell tower part is considered "Supplier Power" due to the limitation of equipment manufacturers. For instance, Sprint only utilizes a few cell tower suppliers – Lucent, Motorola, and Nortel, where these suppliers also produce equipment
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