A Comeback Story
Sonya Nicole Maynes
Mesa Community College
Introduction
The world of telecommunications is a dog eat dog world. Marketing and innovation is key. Leading the pack as America’s fastest growing network (*) is none other than T-Mobile. Of course it was not always this way. With the on boarding of CEO John Legere in 2012, the then small telecommunications company, skyrocketed to 73 million customers(Feloni, 2016). In 1994 T-Mobile, with the name of VoiceStream Wireless PCS, was established by John Stanton. Seven years later it was purchased by Deutsche Telekom AG for a whopping $39 million and rebranded T-Mobile US the following year. In 2011 T-Mobile was in financial trouble and was looking to be purchased by AT&T. The deal was struck down by the US Department of Justice because it would lessen the competition in the market. In early 2012 John Legere became CEO and the rebranding started. T-Mobile then went on to acquire MetroPCS Communication in October 2012 to broaden their customer base and increase prepaid service revenue. John Legere then introduced contract-free pricing in 2013 which then forced the big guys (Verizon and AT&T) to follow suit. Due to their success, Sprint attempted to acquire the company in 2013 but abandoned the idea due to the fact that it was unlikely to be approved by the government (Maynes, 2017). In 2016 there were talks of T-Mobile purchasing Sprint. In November of 2017, after months of negotiations and
Information systems interact with the organizations and influences the organization in many aspects of the whole organizational structure to the daily behavior. Information systems can enable strategies in four aspects including low-cost leadership, product differentiation, focus on market value and strengthen customer and supplier intimacy.
If they are able to maintain the loyalty of most of their current customers, the companies will then have a shared amount of about 100 million customers. This potential customer volume for the merging companies would greatly outnumber the customer volume of the industry leaders, AT&T and Verizon. This kind of turnout would create greater competition between the two merging companies and the two leading companies (Sprint Wireless News, 2014). Although the outcomes seem promising for Sprint and T-Mobile, there are also potential negative effects of a merger that the companies should take into consideration. Current Sprint and T-Mobile customers have expressed their fear of the possible merger for multiple reasons. The two biggest worries for telecommunication services consumers is the potential for rising costs and a reduction in provider options (John, 2016). In making a final decision, the companies, as well as the Federal Communications Commission, should weigh the advantages and disadvantages of a
We are undergraduate students in the course IT 396-44 Management Information Systems at Monroe College. Professor Asteria Villegas is the instructor for
On the other hand there are also many other strategies that can achieve profitable growth such as a takeover or a merger. Orange and T-Mobile were two mobile phone companies that had nearly reached the end of their product life cycle in 2008 due to the rising popularity of other networks offering new USP’s such as 3’s unlimited internet and Vodaphones ‘freebees’ perks. However with the equal merger of the two companies in 2010 and performing under the new refurbished name that is EE (everything everywhere), it is now the largest mobile network operator in the UK, with around 28 million customers. The synergy between these two companies has not only increased
The Verizon Wireless brand remains successful despite increasing competition in the telecommunications industry. After breaking away from Bell Atlantic (AT&T) in 2000, Verizon made advancements toward connection speed and coverage. Verizon was the first to employ 3G network in 2002, and repeated again in 2010 when it introduced 4G LTE. Since 2000, Verizon has spent over $80 billion in technology innovation which allows it to provide top coverage amongst competitors and develop its network (About Verizon Wireless).
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 two major carriers in my area are T-Mobile and AT&T. Since I live 30 minutes from a major metropolitan area and there are swampy areas between me and the metropolitan, I generally do not benefit from the latest cellular technology. Most of the towers in the area are owned or operated by AT&T or T-Mobile. Since T-Mobile and AT&T use the GSM standard, they can share the same towers and support each other’s customers. AT&T and T-Mobile have a strong 2G presence in the area. AT&T installed a decent 3G infrastructure about three years ago to handle the increase in the number of devices sold in the area. T-Mobile has skipped the 3G installation in most of my area and moved directly to 4G LTE installations. There are still very few T-Mobile
The monopolistically competitive industry advertises to differentiate their product from their competitor. They want to communicate with their consumer to inform about the product and educate them. They also influence the consumer to convince about the product.
Verizon Wireless is the result of “one of the largest mergers in U.S. business history” between Bell Atlantic Corp. and GTE Corp. on June 30, 2000” (History and Timeline. Verizon 2017). Even though “Verizon was ranked #1 in three out of four regions for residential internet service, #1 in six out of six regions surveyed for wireless, and #1 overall among U.S. large-business customers” in 2016, there was unrest in the organization (Building a Connected World 2016).
The churn rate is 2% per month. So for a year retention rate,r, will be = 1-(.02*12) = .76 or 76%
Verizon Communications formed by the merger of two big and successful companies, Atlantic Corp. and GTE Corp., is the largest telecommunication company. The company serves large part of the market in United States. However the company faces certain strengths and weaknesses which affect the way company formulate its strategies.
Customer service and store cleanliness are, and should be the pinnacle of a company’s priority focus. Each of these key factors can have a huge effect on whether or not a company is, or isn’t successful. Therefore, setting a positive first impression is significant when building a relationship with customers. Whether that impression is over the phone, in-person, or at first sight; the first impression can set the tone for the entire customer experience. That being said, I’ll be sharing my secret shopping experience at a local Verizon store— if my T-Mobile experience was a pleasant one.
threats as an organization. This case analysis will highlight the top three for each category and provide a rational for each factor. The SWOT analysis will serve as a tool for identifying alternative strategies for the organization and help define a 3-year growth plan. Various matrices, including a SWOT analysis and a Financial Ratios Analysis, will also support specific strategies and long-term objectives. Other relevant, recent activities and supporting research will also be supporting the strategies defined in the case analysis.
The Vodafone case study has given us a good overall view of the company and shown the companies good and bad points, whilst showing the mobile phone business as a whole and explaining the ups and downs of the industry.
AT&T was broken up into the Bell companies in “1974 by the U.S. Department of Justice antitrust suit against the monopoly” (From Wikipedia, the free encyclopedia). Today AT&T has become a competitor vying for control of the telecommunications industry. “In monopolistic competition, there are many firms vying for control of one market. Each firm offers a different type of product, as opposed to perfect competition in which all offer the same product. Each firm, then, has a monopoly in the market of their own product”(Oracle ThinkQuest Education Foundation) AT&T in 1988 began purchasing stock in Sun Microsystems to begin its diversity in product services. Throughout the 90s AT&T continued purchasing more computer companies and cell phone companies to gain market share in the growing telecommunication industry (CyberStreet). Good pricing structures align with costs. AT&T Wireless realized that the marginal cost of a cellular minute was small compared to the cost of acquiring and maintaining customers. Their switch to a flat fee “One-Rate” plan was a huge success, stealing heavy users away from the competition. Prices increased for light users and many became hooked on the cellular lifestyle (Lake Partners Strategy Consultants, Inc. [LPSCI], 2001-2004). AT&T has seen that the ability to change quickly in the ever-evolving telecommunications market will help in gain market share. Its ability to see the value in keeping customers rather