As one of the premiere corporations in the wireless industry, T-mobile must forever be diligent in their efforts to stay innovative enough to remain profitable. Whether it is technology, competition, government policies, or customer demand, changes in any or all of these areas have the capacity to affect profitability. In light of our recent economic challenges, companies are wise to consider the real-world challenges that impact business not just domestically, but also the effect these changes could have on their global brand. Therefore, it is imperative that we briefly discuss each of these aspects, and strategically examine how they could potentially affect our industry.
New companies entering the wireless industry always present some threat, however, because of T-mobile’s long experience, solid reputation, and competitive prices on services and products; they have been able to sustain and remain an industry leader. Although the United States Justice department sided with the Federal Communications Commission (FCC) against T-mobile merging with AT&T, in fear that it could create a conglomerate, and monopolize the industry; T-mobile has still been able to remain formidable with strategic plans, pricing, and products.
Operating as an oligopoly within a vertical organizational structure, T-mobile has been “efficient because there is ultimately one point of authority to make decisions and execute initiatives” (Wright, 2012). So without having to consult with partners, T-mobile has been able to counteract competitors prices and products with strategic decisions of their own, that continues to make their brand not only one of the most recognizable, but respected as well. Unveiling their new “Jump” program which allows customers to upgrade their phones at any time, effectively beats their main competitors Verizon and