Table of Contents 1. Introduction to the Cellular Service Provider Industry2 2.
SWOT3 2. 1. AT&T3 2. 2.
Sprint Nextel3 2. 3. T-Mobile3 2. 4.
Verizon3 3. The Top 4 Competitors in the Cellular Service Provider Industry3 3. 1. AT&T3 3.
2. Sprint Nextel3 3. 3. T-Mobile3 3. 4. Verizon3 4.
Porter’s 5 ForcesError! Bookmark not defined. 4. 1. Internal RivalryError! Bookmark not defined. 4.
2. Threat of EntryError! Bookmark not defined. 4. 3. Substitutes and ComplementsError! Bookmark not defined. 4.
4. Bargaining Power of SuppliersError! Bookmark not defined. 4. 5.
Bargaining Power of BuyersError! Bookmark not defined. 4. 6.Overall Market AttractivenessError! Bookmark not defined.
5. Value Net AnalysisError! Bookmark not defined. 6. Financial AnalysisError! Bookmark not defined.
6. 1. AT&TError! Bookmark not defined. 6. 2. SprintError! Bookmark not defined.
6. 3. T-MobileError! Bookmark not defined. 6. 4. VerizonError! Bookmark not defined.
7. Future3 7. 1. Introduction3 7. 2. New Entrants and Providers3 7.
3. Cell Phones – Compliments Change Over Time3 7. 4. New Technologies / Applications / Features3 7. 5.
Government Influence3 7. 6. New users3 7. 7. The Future is Bright3 8. References3 1.
Introduction to the Cellular Service Provider IndustryA cell phone would be nothing with out a cellular service provider. In order for you and I to have teleconferences, talk with family and friends, or hold any type of conversation while on the go without being tied down by wires cellular service providers offer transmission services to us through radio frequency signals rath...
er than through end-to-end wire communication like land lines. These services can sometimes be complemented with data, messaging, and GPS packages and even more. Due to our constant need to be connected with each other cellular service providers are continuing to grow in the domestic market.For an industry that started less than 30 years ago it had revenues of about $138 billion in 2007 and currently has an estimate of 238.
2 million subscribers. Wireless services were based on cellular technology in the beginning. Cellular technology divided geographic regions in cells and sent analog signals to customers using a wave through radio transmitters. Now digital technology is used to provide wireless customers with more efficient wireless service. Digital technology uses the same wave as analog technology except it divides the wave and converts it into data then sends it to the customer.
Digital technology provides a more secure call and a decreased chance of dropped calls. AT&T is one of the pioneers of cellular service providers that have gone through both the digital and analog stages of wireless technology but as time passed they were joined by three other major players in this industry: Verizon, Sprint, and T-Mobile. It is obvious these companies play an integral part in our lives. Communication is one key component that keeps us informed as business men and women and without it we would be stranded.
2. SWOT Four Strategic Factor Analysis Tables are listed below; one for each of the our major domestic cellular service providers. AT&T, Sprint Nextel, T-Mobile, and Verizon are all faced with internal and external factors that affect their business. They do have on
thing in common, the threat of economic downturn. In order to be prepared to face this best, they should use their strengths and maintain minimum capital for economic downturn contingencies.
Other strategies these carriers can create by combining their strengths, weaknesses, opportunities, and threats include T-Mobile introducing new products and services such as the Linux Razor to promote innovations and the use of more advanced technology.AT&T can invest in different ways to improve their customer service rating through more intensive problem solving training for their service representatives. Sprint Nextel could use a short term strategy to gain customers and market share by cutting the price of their unlimited calling plan below their competitors but they would have to find a way to maintain what is gained from this strategy. Verizon can target those customers that want to prepay for their talk time but also want the same benefits offered to contracted customers by offering new prepaid services.The previously listed strategies are just some of the many ways these carriers can combine the forces that work with and against them to obtain success. 2.
1. AT&T Strategic Factors Analysis Factor WeightRatingWeighted ScoreSMLComments Strength Duration S1Technology0. 1540. 6X Most advanced & powerful backbone network S2Deep Pockets0. 2051 XPut wireless revenue here Weakness W2Customer Service0. 1030.
3XFailure to resolve customer issues W3Phone Service0. 1030. 3 X Dropped calls Opportunities O1R&D 0. 1540.
4X Innovative and flexible customer offerings O4Expansion in other markets0. 030. 45X Offer services in more retail chains and authorized dealers Threats T2Economic Uncertainty0. 1540. 4X Economic Downturn T3Lawsuits and Government Regulations0. 0530.
3X Total Weighted Score1. 00 3. 75 2. 2.
Sprint Nextel Strategic Factors Analysis Factor WeightRatingWeighted ScoreSMLComments Strength Duration S1Service plans0. 2051X Unlimited voice, data, and messaging for a flat fee S2Technology0. 155. 75 XAdvanced & up to date technology Weakness W2Revenue0. 1530. 45XDeclining revenues W3Number of Subscribers0.
1540. X Loss of subscribers to competition Opportunities O1Price War 0. 1040. 4X Plans to undercut competitors’ price O4White Space0.
0530. 15X Lower backhaul costs Threats T2Economic Uncertainty0. 1040. 4X Economic Downturn T3Price War0.
1030. 3X Potential decrease in profits Total Weighted Score1. 00 4. 05 2.
3. T-Mobile Strategic Factors Analysis Factor WeightRatingWeighted ScoreSMLComments Strength Duration S1Customer Service0. 1540. 6X Rated top carrier for service by J. D.
Powers & Associates S2Phone Service0. 1050. 5 XBest value in phone service Weakness W2Coverage0. 520.
1XSpotty coverage W3Lack of Innovation0. 1520. 3 X Behind on implementing the latest technology Opportunities O1Target Niche Markets0. 1040. 4X Increasing need for services that cater to the elderly population O4Different OS Platform0. 1530.
45X Linux Razors Threats T2Price Wars0. 2040. 8X Existing competitors cutting price T3Lobbyist Spending0. 1030. 3X Decreased $400,000 over the last year Total Weighted Score1. 00 3.
45 2. 4. Verizon Strategic Factors Analysis Factor WeightRatingWeighted ScoreSMLComments Strength Duration S1Customer Turnover0. 2040.
X Customer base is maintained due to low customer churn S2Call Quality0. 2051 XRated best quality by J. D. Powers & Associates Weakness W2Technology0. 1520.
3XLacks innovation and up to date technology W3Network0. 0520. 1 X Continues to use CDMA networks Opportunities O1Expansion 0. 1040. 4X New prepaid plans O4Niche
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