Wednesday, December 5, 2012

Analyzing the Situation


             I am looking at Sprint/Ericsson and the wireless telecom service provider industry. Considering some of the external factors in this area, this is an industry where the consumer trends and business trends are changing very rapidly. We all know that i-Phone has revolutionized the cell phone world and there is a growing shift towards smart phones. We also have many android phones that have come into the market and there is no dearth for mobile applications. This emphasizes the need for research to analyze what features the consumers are looking for and the price they are willing to pay for these. Also with the growth in social networking sites like Facebook, twitter etc the data usage on the cell phones is also on the rise, not only among the business users  but also among the younger generation. Analyzing these trends closely will help in coming up with competitive data plans. Though Apple is leading the pack with the i-phones, other firms like Samsung, HTC and LG are also fighting for the market share. Sprint continues to compete with Verizon and AT&T as it tries to build alliances with these cell phone manufacturers. Sprint had passed up on the i-Phone when approached several years back and that was one of the gravest mistakes made by the then CEO, Gary Foresee and Sprint ended up paying heavily on that decision. There is constant threat from the competition and it is a very fast paced industry that has struggled in the wake of the recession as it is also a capital intensive business. So the company definitely needs strong leadership and good vision accompanied by strong business strategy to maintain market leadership.

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