Question: Activity # 1 - Pick a company or brand / business on which to focus. What are the emerging submarkets? What are the trends? What
Activity # Pick a company or brandbusiness on which to focus. What are the emerging submarkets? What are the trends? What are the strategic implications of the submarkets and trends for the major players? Develop a list of strategic uncertainties and possible strategic actions.
Activity # Case Study: TMobile: The UnCarrier
Consumer frustration with perceived unnecessary costs and complexity in the wireless telecommunications industry has long been prevalent. Yet among a market landscape dominated by rigid contracts and layers of bureaucracy for customers, one company saw an opportunity for disruption. TMobile, long overshadowed by AT&T Verizon, and Sprint, decided to craft a unique Uncarrier strategy that centered on not acting like a wireless carrier.
Since TMobile has introduced a series of improvements to consumer plans that emphasize simplicity, fairness, and value. These have included eliminating longterm contracts, instituting unlimited access to data, and allowing for faster phone upgrades. Though each campaign has differed, the overarching Uncarrier strategy was designed to highlight TMobiles commitment to improving the wireless carrier experience beyond parity levels.
TMobile has gained traction with the strategy through targeted brand positioning and creative messaging. Positioned as the rebel TMobile is not afraid to challenge industry leaders over the status quo. Putting caps on data utilization, for example, has historically allowed carriers to maximize revenue. TMobile observed that this frustrated consumers and thus decided to eliminate the common practice of metering voice and text capabilities. By placing customer needs ahead of profit margins, TMobile was able to effectively separate itself within the market. Additionally, rather than trying to obtain an edge with technological advances, TMobile created a series of musthaves that other carriers werent set up to provide. One example was the companys willingness to pay the early termination fees of all customers who switch to TMobile from other carriers. Ultimately, TMobiles goal was to be everything that traditional players were not. To support this positioning, the company generated a series of humorous advertising spots highlighting why individuals were switching their plans over from competitors. CEO John Legere also initiated a series of TEDtalk style presentations that pointed to the unique points of differentiation TMobile offered.
Within a year and a half of launching the campaign, TMobile had added million subscribers to its network. The company was also recognized as one of Fast Company Magazines Most Innovative Companies.
Questions:
Perform a competitive analysis of the wireless telecommunications industry?
How can TMobile maintain its competitive advantage?
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