Swot Analysis Of T-Mobile

Introduction

In an ever-changing market, companies have to be resilient and adaptable. This proves to be extremely true for markets based on technology, especially for the Wireless industry. In order to keep up with consumers companies must keep up with the latest consumer trends while keeping costs low in order to grow their market share.

In contrast to the largely stationary internet of the early 2000s, Americans today are increasingly connected to the world of digital information while “on the go” via smart phones and other mobile devices. In fact, according to pewinternet.org 95% of Americans now own a cell phone of some kind. The share of Americans that own smart phones is now 77%, up from 35% in 2011. As consumers become more and more

Not long ago T-Mobile was the last of the top four in the industry and now, it’s providing services and rates that are not only taking customers from the two leading competitor Verizon and AT&T but it’s also put a scare in them. Verizon who is #1 also made the statement that they would never offer bundle plans and unlimited services has now changed their plans to meet the demands and try to regain the customer’s they have lost to T-Mobile. There are several factors that differentiate T-Mobile from its competitor. The three main elements includes price, service and

“T-Mobile is a remarkably steady growth company. Each year it adds 8.2-8.3 million subscribers at $60 per year in profit per subscriber. Altogether, T-Mobile has, far from raising unlimited prices, actually cut them 20% since 2013. Despite offering far higher speeds and more features like tethering, it has cut prices. And it has done this under competitive pressure, not of its own volition. Base plan prices haven't gone down but after adjusting for Kickback and taxes included haven't gone up, either.” (Greve, 2017)

Industry Stability

T-Mobile’s disruptive and competitive customer offerings continue to eat into the subscriber bases of rival carriers Verizon and AT&T, according to Wells Fargo Securities. T-Mobile added an estimated 911,000 postpaid customers during Q4 2016, with a large share coming from Verizon and AT&T. The report goes on to suggest that T-Mobile’s aggressive tactics continue to be successful despite rival companies giving similar offerings. AT&T and Verizon have dominated the carrier market over the past seven years while T-Mobile and Sprint have struggled to gain subscribers. Then in 2013, T-Mobile tweaked its strategy to turn around its business. This move, along with slowing smartphone adoption and other forces in the mobile industry, killed the two-year contract and initiated an ongoing price war between carriers. The movement