The Performances of T-Mobile in the US Market - Example

T-Mobile Introduction Several leading organizations in this world are trying to capitalize on the potential opportunities that have been developed due to globalization and technological advancement. Global telecommunication industry has become highly competitive as well as saturated. T-Mobile can be considered as one of the leading telecommunication service providing organizations in this world. T-Mobile has become one of the leading and profitable telecommunication organizations since 2013 when the organization began trading on the NSE as a public organization. Competition and huge market demand in this industry influenced to research on this one of the leading telecommunication organizations. This report will analyze the performances of T-Mobile in the US market. In addition to this, the study will provide some recommendation plans based on the analysis and evaluation in order to enhance its profitability and competitiveness. Mission, Vision and Primary Stakeholder on Overall Success It is true that the mission, vision and primary stakeholders always have some impacts on the business performance. Mission of T-Mobile is to become one of the leading service providing organizations by satisfying the wishes and needs of the target customers (T-Mobile, 2013). On the other hand, vision of T-Mobile is to integrate reliability, inspiration and simplicity in the service providing operations to meet the demand of the target customers. Stockholders, employees, customers and suppliers are the major primary stakeholders of T-Mobile. However, the management of the organization always tries to provide values and respects to these primary stakeholders by maintaining business ethics and corporate values in each and every business operation activity. Moreover, the organization always motivates these primary stakeholders to follow developed corporate values and business ethics in order to maintain sustainability in the business operation processes. In addition to this, innovation and effective customer service management process helps the management of the organization to follow its developed mission and vision. Therefore, it can be stated that the activities of primary stakeholders, and the mission and vision of T-Mobile helps the organization to maintain its profitability and overall business success. Six Segments of General Environment that affect Industry and Firm PESTLE analysis can be considered as one of the important strategic management tools that help an organization to determine the impact of six segments of general environment that can affect the industry as well as firm. PESTLE Analysis PESTLE analysis framework model can be categorized into six different parts. This part of the report will conduct a PESTLE analysis with respect to the T-Mobile in order to determine the impact of the six different environmental factors on the business performance of T-Mobile in US market. Political US can be considered as politically stable country. The government of US always tries to support the telecommunication service providing organizations as these organizations play an important role in the economic growth of the country. Therefore, it can be stated that political environment is favorable for telecommunication industry as well as T-Mobile. Economical US can be considered as one of the developed economies in this world. However, recent financial crisis and global economic recession affected the economic environment of the country. Growing unemployment rate, limited disposable income and low purchasing power are the major consequences of this economic slowdown. These factors are affecting the growth of the telecommunication industry. Therefore, it can be stated that economic environment is not so favorable for T-Mobile. Social Social demand for the telecommunication services is significantly increasing among the people of US. People of US always love to communicate each other. This factor is enhancing the growth of the telecommunication industry. Therefore, it can be stated that the social environment is highly favorable for the telecommunication industry as well as T-Mobile in the United States. Technological US achieved strong technological growth rate. Organizations in telecommunication industry always get sufficient technological resources that are required to enhance successful business performance. Therefore, it is clear that technological environment is favorable for the telecommunication industry as well as T-Mobile in the United States. Environmental Government of US developed several environmental policies for business organization in order to maintain environmental sustainability and reduce the amount of carbon emission. It is highly important for T-Mobile to maintain each and every developed policies and regulations in order to avoid several legal barriers. Legal The government of the United States developed several strict regulations regarding employment, compensation, employee wages and governance. Several organizations try to maintain these developed regulations in order to maintain conflict free business operation activities. T-Mobile always follows the developed legal legislations to overcome the possible legal conflicts. Porter’s five forces of Competition It is highly important for an organization to consider the degree of porter’s five forces of industry competition to develop effective strategies in order to increase profitability and competitiveness in the competitive business environment. Buyers’ Power Demand for diversified and differentiated telecommunication products and services is significantly increasing among the people of US. In addition to this, too much market competition and inadequate economic growth rate of the country forcing the customers to switch over different brand in order to get quality products and services in economic price. Therefore, it can be stated that degree of buyers’ bargaining power is high for T-Mobile. Suppliers’ Power The telecommunication service providing organizations face low bargaining power of suppliers due to intense competition among the suppliers. Organizations can get cost effective suppliers to source resources and distribute end-products. Huge availability of suppliers in the US telecommunication industry minimizes the degree of suppliers’ bargaining power. Threat of Substitute Day-by-day, demand for online social media communications and chatting through several social media networks is affecting the market demand growth rate of several telecommunication services. The above mentioned options can be considered as the substitute of telecommunication services. Looking into these aspects and facts, it can be stated that threat of substitutes is high for T-Mobile. Threat of New Entrants Telecommunication industry in the United States is highly competitive as well as saturated. It is quite difficult for the new market players to grab the market share of the leading existing organizations. In addition to this, the organizations also have to face several legal entry barriers. Requirement of huge entry capital may affect the business performance of the newly developed organizations during the initial time period. Therefore, it can be stated that threat of new entrants is quite low for T-Mobile. Industry Rivalry It has been mentioned earlier that the industry is highly competitive due to existence of several leading organizations, such as AT&T, Sprint, T-Mobile and Verizon. Each and every organization is trying to adopt and implement new strategies to ensure potential competitive advantages. Therefore, it can be stated that the degree of industry rivalry is quite high for T-Mobile. SWOT Analysis of T-Mobile SWOT analysis is an important strategic marketing tool that helps an organization to determine its internal strengths, weaknesses and external opportunities, threats. A SWOT analysis for T-Mobile has been conducted below. Strengths Strong brand recognition and brand equity in US. Potential customer base and financial stability. Collaboration with leading technology corporations and service providers. Well established and effective 3G network base. Adoption of cost based pricing and differentiation strategy enhances its business growth rate. Weaknesses Lack of presence in each and every emerging region in US. Day-by-day, the average revenue per user growth rate is declining. Opportunities Increasing 3G and 4G network coverage in US market. Consideration of Free-move alliance and expansion of mobile internet. Adoption of cost leadership strategy to offer products and services in economic pricing to meet the current market demand. Strong introduction and coverage of Google based Android phones in US. Threats Intense market competition and economic slowdown is affecting sales growth rate. Regulation on the cross-border mobile phone usage by the customers. Strict legal and environmental policies and regulations are posing real threat to T-Mobile. Strategy to Capitalize on Strengths and Opportunities It is important for the management of the organization to capitalize on the strengths and opportunities to improve its business performance. First of all, the management of T-Mobile should utilize its strong brand recognition and equity to maximize sales growth. This aspect will help to increase the sales growth rate of the newly introduces differentiated products and services of T-Mobile in the United States. It is true that economic environment of US has affected due to recent economic slowdown. Therefore, adoption of cost leadership strategy will help the organization to offer products and services in economic price. In addition to this, it will help the organization to gain potential competitive advantages in the competitive US telecommunication industry (Pride & Ferrell, 2008). The organization should try to regard the government as important stakeholder. The management of the organization should try to follow developed strategies and policies that can help to influence the government of the country to support the business operation activities of the organization. Adoption of cost leadership strategy, stakeholder engagement and continuing differentiation strategy will help the organization to mitigate its degree of weaknesses and threats. Strategies to maximize profitability and competitiveness The management of T-Mobile can develop and implement several unique strategies to enhance business profit maximization and potential competitive advantages. It has been discussed earlier that business environment in US is suffering from recent economic downturn. Therefore, people are trying to consume high quality products and services in low and economic price. Looking into this market demand, it is important for the management of T-Mobile to consider cost leadership strategy under the porter’s generic strategy. This strategy will help to reduce the overall business operation cost of T-Mobile (Ziegler, 2009). Therefore, the organization can offer its differentiated products and services to the customers in economic pricing. Most importantly, it will help the organization to retain its existing customers and acquire new target customers. In this way, the management of T-Mobile can enhance business profit maximization and potential competitive advantages. Corporate Governance Mechanism It is clear from the above mentioned facts that the management of T-Mobile follows both external and internal corporate governance mechanism. According to its, internal corporate governance mechanism, the management of the organization is able to control and monitor each and every decision making process and correct the actions based on the evaluation results. It enhances degree of integrity and discipline. On the other hand, consideration of external corporate governance mechanism helps the management of the organization to get valuable support from important external stakeholders in the decision making and strategy implementation process. Some of business operation activities are controlled by the government of the United States that helps the organization to maintain sustainability in the business operation processes. Relationship between strategy and organizational structure It is clear from the above discussion that the management of T-Mobile always considers two corporate governance mechanisms in order to maintain control on the decision making or strategy development process and influence the important external stakeholders to gain morale and legal support in the business operation activities. On the other hand, the organization follows decentralized communication and decision making process to control the entire business operation activities. In occasional time, the management of the organization includes effective and experienced employees in the strategy development process to enhance employee motivation and innovative strategy development process (Annual Report, 2012). Effectiveness of Leadership Effective and valuable leadership style of the management of the T-Mobile helps the organization to maintain both effective workplace environment and positive business growth rate. The management or the organizational leaders generally implements democratic leadership style in order to motivate the employees to perform with high self-confidence. It allows the employees to increase their productivity within the workplace. Ultimately it can enhance the profitability of the firm. Recommendation to improve leadership It is true that the adoption of the democratic leadership style by the organization is helping the organization to maintain the high motivation and self-confidence level of the employees. But, it is highly important for the organization to consider a different leadership style when the organization will suffer from several unfavorable external environmental factors. First of all, it is highly important for the organization to adopt laissez-faire leadership theory as it can allow the group members to take all the responsibilities that are required to complete the tasks. In addition to this, it also ensures that the leaders should provide necessary tools, knowledge or strategies during the challenging situations. Last but not the least; it is also important for the organization to consider centralized decision making process in order to motivate the employees and enhance effective communication process among the employees and top level management (Wood, 2014). Conclusion It is clear from above discussion that the management of T-Mobile always tries to ensure effective business process by enhancing significant customer service management process. Management of T-Mobile always tries to give respect and values to its primary stakeholders in order to maintain sustainability in the business operation process. However, recent financial crisis and economic recession affected the purchasing power and disposable income of people. Therefore, it is highly important for the organization to consider cost leadership strategy in the business operation process in order to offer products in economic price level to the customers. It will help to increase profitability and will help to gain potential competitive advantages. The management of the organization considers both external and internal corporate governance mechanism to get control over the business activities and gain legal support from government. However, it is important for the organization to consider centralized decision making process to enhance employee motivation and conflict free workplace environment. Last but not the least; it is highly important for the management of the organization to adopt and implement laissez-faire leadership skill to develop strategies based on the nature of the situation. References Annual Report. (2012). The Employees. Retrieved from: < http://www.t-mobile.mk/public/documents/GI2012%20complete%20Angl.pdf>. Plunkett, J. (2008). Plunketts Wireless, Wi-Fi, RFID & Cellular Industry Almanac. London: Plunkett Research Ltd. Pride, W., & Ferrell, O. (2008). Marketing. Stamford: Cengage Learning. T-Mobile. (2013). Vision. Retrieved From: < http://www.t-mobile.mk/public/vision.nspx>. Wood, J. (2014). Communication in our lives. Stamford: Cengage Learning. Ziegler, C. (2009). T-Mobile G1for Dummies. New Jersey: John Wiley & Sons. Read More