T-Mobile USA, Inc.: A Case Study
Today’s communication is all about cell phone technology. Every day new cell phone models are coming and carriers are luring the customers with attractive low pricing on these cell phone models with monthly plan to go along with it. This was not the case a year back in a very saturated wireless industry in US. Major players like AT&T and Verizon were ruling the market and companies like T-Mobile and Sprint were struggling to keep the customers. T-Mobile USA, Inc. made some bold moves to break away from saturated market and offered customers contract free plans along with payment plan on new handsets. These bold moves not only changed the company’s fortunes but also changed the US wireless industry. How are they attempting to increase revenue? …show more content…
By offering low pricing and contract free plans, T-Mobile targeted to boost the customer base and increase the revenue. The strategy is surely working for T-Mobile. The company once on the brink of buyout is now major driving force in wireless market. T-Mobile just posted the biggest quarterly growth in company’s history by adding 2.3 million total customers from the end of the second quarter of 2014 and 10 million total customers over the last 6 quarters. Company’s service revenues also grew 10.6% year-over-year to $5.7 billion. (Quarterly Results, 2014) How are they trying to increase efficiencies? How are they doing? While other competitors are relying on job cuts, T-Mobile is finding other sources to increase the efficiencies. T-Mobile revamped the marketing strategy to cut the spending. T-Mobile took approach of no high paying celebrity ad campaign and focused more on advertisement via social media. This allowed T-Mobile not only saving on capital expenditure but allowed to invest more in operational efficiencies. How are they trying to decrease operating
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