Tag: SWOT Analysis Paper on T-Mobile
SWOT Analysis Paper on T-Mobile
SWOT analysis is a significant strategic planning tool that the managers of the T-Mobile US, Inc to do the organization’s situational analysis. This is assumed to be a handy strategy that can present the strengths, weaknesses, opportunities and threats that T-Mobile faces in the current business environment.
T-Mobile is among the leading companies in its industry. In the market, it can maintain its dominant position if the SWOT analysis is analyzed and reviewed. SWOT analysis is a highly interactive strategy; effective coordination among different departments in the organization, for instance –
finance, management information systems, marketing, strategic planning, and operation are needed.
In the United States, T-Mobile is among the largest American wireless providers. Its headquarter is in Bellevue, Washington. It is the United States operating entity of Deutsche Telekom (A German-based company). In America, it has about 40,000 workers. Originally, in 1994, T-Mobile was established as VoiceStream Wireless PCS. For $35 Billion, VoiceStream Wireless was bought by Deutsche Telekom in June 2001. In 2002, the VoiceStream was rebranded T-Mobile. AT&T made an attempt to purchase T-Mobile in 2011, but it could not succeed because of legal issues and the US government’s resistance. To increase the company’s competitiveness with other wireless service providers, T-Mobile decided to merge with the Metro PCS. In May 2013, on the New York Stock Exchange, T-Mobile started to trade shares as a public entity.
In April 2020, T-Mobile and Spint managed to complete their mega-merger. The resultant entity retains the name T-Mobile. According to the post-merger, Deutsche Telekom AG (the parent company) started owning 43% of the shares, while Softbank owned another 24%.
Despite this company offering attractive advantages such as the most recent 4G LTE network and competitive prices, in the American wireless providers’ hierarchy, T-Mobile is still behind Verizon and AT&T.
SWOT Analysis Chart
• GoSmart Plan
• Fastest nationwide 4G LTE network
• Competitive price
• Wifi calling
• At no extra cost, it has the largest global data coverage
• Incentives associated with switching to T-Mobile
• Smaller marketing budget
• Customer service perception
• Network performance
• Using attack-like strategies for commercial
• Perception of edgy
• Increasing their plans
• Increasing wireless coverage
• Reaching more Americans
• Expanding wireless coverage for tablets
• Enhancing corporate image
• Merging of two of the top three wireless service providers
• Competitors lowering their prices
• Verizon and AT&T enhancing their speed and networks
• A competitor secure, in the wireless industry, exclusive rights to groundbreaking new technological advancements
SWOT Analysis Discussion
The GoSmart Plan is among the strengths of T-Mobile. It was introduced in 2013 to allow users to have unlimited access to Facebook; this needs a lot of data. Another strength of this company is Wifi calling, which allows uses to receive and make calls or messages using wireless internet connections (T-Mobile Support, 2011). For clients who are worried about getting a wifi connection to call or send messages and are not sure of coverage, this is a very attractive alternative.
The global coverage is another T-mobile’s strength. Among all carriers, T-mobile has the largest global coverage that does not require any additional fees. Several customers ought to call or message people in other nations for business and family purposes, and this feature makes T-mobile stand apart.
T-mobile is the best for clients looking for speed since, nationwide, it has the fastest 4G LTE network. T-mobile’s network reaches more than 200 million individuals. Several clients are interested in being ‘in the range,’ and you would be with T-mobile.
Competitive prices is another major strength of this company. You do not need to pay extra for going over your internet limits when using T-mobile. This incorporates international calls and data. With T-mobile, you are not charged roaming fees. Moreover, compared to its competitors’ plans, it has the cheapest monthly plan (Morran, 2013).
Other mobile phone service firms have an ‘upgrade’ fee for the new phones. Nevertheless, T-mobile came up with the Jump! Program to enable their clients to upgrade their phones whenever they want. Offering clients an opportunity to upgrade their phones gives room for them to keep up technologically.
The Gosmart mobile program is another strength for T-mobile. It is meant for clients who cannot commit. Since the beginnings of the industry, cell phone carriers are known for being incredibly competitive. Now, several companies offer deals that give clients money for switching service providers. One of them is T-mobile. For T-mobile (which pays $650 of your termination) (Pagliery, 2014), this is an obvious strength.
Weakness & Opportunities
Among the top four wireless providers in the United States, T-mobile is the smallest. E T-mobile’s weakness. This is known to be tT-mobile can consider this an opportunity to expand by increasing its shares of the market. Moreover, with another major and advanced provider, T-mobile can merge.
T-mobile provides lesser quality wireless services, unlike some of its competitors. Though it is difficult to tell the technology used by wireless providers, such a weakness gives T-mobile a great opportunity to change that image. It can improve its wireless services; the perception of the public’s company can tremendously improve.
Likewise, T-mobile has an opportunity to add brand new coverage plans on top of what it has been offering. In the past years, Sprint (T-mobile’s competitor) has been seen increasing its plans. T-mobile can also consider adding coverage plans for clients to purchase; hence, enhancing its image to enable clients to see it as a client-friendly firm.
The brand and current logo of T-mobile can also be a weakness. The color pink is not perceived to be excellent for potential clients. In addition, there is a way through which it can alienate male clients. The company can take this as an opportunity to correct this since T-mobile is in a position of rebranding itself with new color schemes and a new logo. The ability to design and promote the new logo is perceived to be an exciting opportunity for the company.
By the end of 2014, the T-mobile coverage was expected to 250 million people; this is about 96% of the continental United States. The fact that T-mobile has the intention of reaching more people, even today, has an opportunity to start new advertising and marketing campaigns and, as a sub-par provider, a chance to enhance its image.
Recently, tablets managed to join the wireless market since they are interested in getting the coverage that can allow them to work without wifi. T-mobile wireless provider has an opportunity to take over the tablet field and offer coverage that it competitor cannot. In the market, there is a new technology that can be an opportunity for this company.
Sprint, Verizon, and AT&T are the current top three wireless providers. There are no possibilities of AT&T and VerizonVerizon ever merging, though one of them can potentially purchase SprintSprint. This would bring about a huge problem for T-mobile since among the larger carriers, Verizon or AT&T is most likely to become more powerful, and therefore, this will put them possibly the head of this company, T-mobile. Currently, AT&T has more than 100 million subscribers, Sprint has more than 54 million subscribers, and Verizon has more than100 million. So, if either Verizon or AT&T purchases sprint, they are likely to gain about 54 million new clients, and this is something that will put them further ahead of Sprint. Moreover, they will become more powerful and profitable to the extent that it will be much difficult for T-mobile to compete with them.
Another possible threat to the business of T-Mobile would be its competitor, enhancing their speed and network. At the moment, according to Kelly (2014), T-Mobile has the fastest nationwide 4G LTE network, and this is why they have experienced recent growth as far as getting more clients is concerned. Suppose a different wireless provider, i.e., Verizon, can develop networks similar to those of T-Mobile or even surpass it. In that case, there are greater chances of the carrier losing clients since Verizon’s benefits are more appealing to them.
A serious threat to this company is pricing. As of right now, the packages of T-Mobile are more appealing to clients since they are of lower places, as well as various gimmicks (no annual contracts, paying clients for switching from other wireless providers, etc.). So, in case one of these top carriers decides to drastically lower prices to meet that of T-Mobile, clients will find little reasons for switching to T-Mobile or even thinking about using their packages in general. Unlike the top three wireless providers, T-Mobile is believed not to have the best prices; this is an aspect that some clients cannot refuse.
Another possible threat to the business of T-Mobile can be another carrier securing exclusive rights, in the wireless industry, to a revolutionary new technological advancement. In 2007, the release of the iPhone was a perfect example of this. AT&T exclusively sold iPhone (Kuittinen, 2012). The fact that everyone needs the iPhone, in terms of business and profits, other carriers had to suffer until they struck a deal with Apple and acquired the iPhone immensely. In case this happens with a different service and just one or two service providers secure the right (a carrier that is different from T-Mobile), in terms of getting more clients, T-Mobile will lose potential clients. This suggests that the company will not have room for competing with its competitors in the industry. In as much as T-Mobile has several strengths, there is a need for it to work on its weaknesses to stand a chance of delivering wireless services that can greatly improve client experiences.