Running head: T-MOBILE SWOT ANALYSIS 1

SWOT T-Mobile Analysis

Kimberly Simpson

Kennesaw State University

PR 3375

September 13, 2017

Running head: T-MOBILE SWOT ANALYSIS 2

Strengths

T-Mobile has an extensive network that in 2012 successfully merged with MetroPCS, a

prepaid cellphone company, increasing their subscriber count from 34 million to 43

million within the same year (Welch, 2013). This is a strength because the merger

resulted in a network that was repurposed to help increase T- Mobiles data network

from 4G to 4G LTE. What this means is that T-Mobile is now able to give their current

subscribers and potential subscribers data speeds that are 7 times faster than the data

speeds they had before the merger (Welch, 2013).

Unlike other carriers that offer other services such as cable, security systems, or Internet,

T-Mobile still thrives amongst the other competitors with its consumer base almost

entirely just cellphone users. This is considered a strength merely because they have far

less to offer than their competitors but still maintain the third spot as Americas third

largest cellphone provider (T-Mobile Running Laps Around its Competition, 2016).

T-Mobiles data plan capabilities is another strength because it gives their subscribers

the ability to stream on the worlds fastest data speed network 4G LTE. This is a strength

because T- Mobiles innovative data capabilities allow their customers to be able to

stream videos on apps such as Netflix or Hulu without taking away from the Giga Bits

on their plan (T-Mobile Running Laps Around its Competition, 2016).

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T Mobiles outreach program that launched in 2006 is another one of their strengths.

This program is called T- Mobile Huddle Up. This is an example of strength because it

shows that T-Mobile goes above and beyond not only in the services sold but also within

the community. This outreach program engages volunteer support from T- Mobile

employees that help create awareness for the need of after school programs and creating

a safe and fun place for kids across the United States (T- Mobile USA Launches new

Community Outreach Program Tapping Into Employee Volunteerism Nationwide,

2016).

T-Mobiles exemplary customer service. T-Mobile has won the J.D Power customer

service award consistently since year 2014. T-Mobile is aware of how important it is to

not only gain customers but also keep them (T-Mobile, 2017).

Weaknesses

Despite having cost efficient rate plans, T- Mobile doesnt allow many affordable options

for purchasing handsets. All handsets must be paid in full because T-Mobile is no longer

requiring its consumers to sign up with a contract (Hogan, 2017).

Since T- Mobiles merge with MetroPCS, it is now more difficult for customers to keep

their current device to activate service on them. This serves as a weakness because if a

customer cannot afford one of T-Mobiles handsets and cannot activate their current

phone on their network, T-Mobiles at high risk of losing this customer (Hogan, 2017).
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Market shares have lost more than 10% since June due to many factors, one being the

lack of resources for its consumer base (Hogan, 2017). This leaves room for customers to

consider other carriers that allow more resource options.

As T-Mobiles network is still growing, other carriers offer a better range of international

roaming coverage than T-Mobile. T-Mobile has tried to make up for this by offering the

same roaming prices as their competitors at $.20/minute but for travelers this may be a hit

or miss (Holmes, 2017).

Nationwide coverage is still ranked in third place despite efforts to be at number one.

Network reliability stands at 95.4% but still can vary based on the customer location

within the city or even home (Holmes, 2017).

Opportunities

T- Mobile joined Free Move Alliance which is a company that was founded in 2003 that

offers reduced rates for intra-company calls (T-Mobile USA Joins Free Move Alliance;

Strengthens Support for Multinational Corporations, 2010.) There is opportunity for T-

Mobile to use this alliance to increase their mobile Internet expansion.

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To sign-up with T-Mobile in most cases a credit is completed that determines whether or

not you have a deposit to put down on a device of your liking. T-Mobile offers no rate plan

contract; they do however offer cellphone contracts based on credit. There is opportunity to

look into other leasing companies that do not go by credit but by bank history to give other

customers who are either too young to have established credit or may not have the best

credit to get started with service. Sales will no doubt increase by reducing initial sign up

costs (T-Mobile Running Laps Around its Competition, 2016).

T-Mobile ranks third as having the most reliable coverage and network in the United

States. There is opportunity to expand the 4GLTE Network and reach places that other

carriers do not such as places that are mountainous, places that are notably known for no

reception, etc (T-Mobile Running Laps Around its Competition, 2016).

T-Mobile is apart of an outreach program that focuses on kids and providing after school

programs for them. This means that there is a unique opportunity to look into other ways

similar to this program to make a difference in the community to show potential

customers of how well rounded the company is (T- Mobile USA Launches new

Community Outreach Program Tapping Into Employee Volunteerism Nationwide,

2016).

T-Mobile offers T-Mobile Tuesdays that allows their subscribers the opportunity to win

prizes or money just for being a part of the T-Mobile family. There is unique opportunity
Running head: T-MOBILE SWOT ANALYSIS 6

to create awareness of outreach programs for their customers to be apart by including

information and ways to get involved within this app (Hogan, 2017).

Threats

There are many other carriers such as Verizon and AT&T that also work hard to provide

the best services and network that can lure customers away from T-Mobile services

(Worthman, 2016).

As competitors are consistently working to offer the lowest rate plan deals this can in turn

cause T- Mobile to lower their rates to a more affordable cost that will benefit their

customer base but make it harder to gain customer revenue (Worthman, 2016).

Dave Mayo, T- Mobiles SVP of technology says that T- Mobiles wireless infrastructure

segment is ripe for disruption as the industry moves toward 5G, (Worthman, 2016).

This is a threat because according to Mayo the business model is too complicated, not

sustainable.

Competitors have established more resources as far as roaming options for subscribers

that can lure customers towards the other carriers specifically those that travel often

(Tonner, 2015).
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Google goes wireless and plans to enter the United States wireless market. This is a

threat because Google seeks to interact between available cellular networks such as T-

Mobile and Wi-Fi signals to provide service to its customers at any given time

(Tonner, 2015).
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References

G. (2016, February 18). T -Mobile Running Laps Around Its Competition.

Retrieved September 03, 2017, from

https://www.forbes.com/sites/gurufocus/2016/02/18/t -mobile-running-

laps-around-its-competition/#3e611faf577d

Holmes, C. (2017, June 20). Who Has the Best Coverage? Retrieved

September 02, 2017, from

https://www.whistleout.com/CellPhones/Guides/who -has-the-best-

coverage

International roaming services. (n.d.). Retrieved September 04, 2017, from

https://support.t-mobile.com/docs/DOC -3226

M a t t H o g a n L o n g / s h o r t e q u i t y, v a l u e , r e s e a r c h a n a l y s t , g r o w t h a t

reasonable pricefinbox.io.cls -1{fill:#024999;}. (2017, July 19). The

Market Is Discounting T -Mobile's Growth. Retrieved September 04, 2017,

from https://seekingalpha.com/article/4088632-market-discounting-t-

mobiles-growth
 Running head: T-MOBILE SWOT ANALYSIS 9

(n.d.). Retrieved September 04, 2017, from https://www.t-

mobile.com/templates/popup.aspx?PAsset=Ftr_Ftr_TermsAndConditions

(n.d.). Retrieved September 04, 2017, from https://www.t-

m o b i l e . c o m / c o m p a n y/ c o m p a n y - i n f o / a w a r d s . h t m l

The Cell Tower Business Model Is Changing and Maybe not for the Better |

AGL (Above Ground Level). (n.d.). Retrieved September 01, 2017, from

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T-Mobile USA Joins FreeMove Alliance; Strengthens Support for

Multinational Corporations. (2010, November 10). Retrieved

September 01, 2017, from

http://www.businesswire.com/news/home/20101 110005673/en/T-

Mobile-USA-Joins-FreeMove-Alliance-Strengthens-Support
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T-Mobile USA Launches New Community Outreach Program Tapping Into

E m p l o ye e V o l u n t e e r i s m N a t i o n w i d e . ( n . d . ) . R e t r i e v e d S e p t e m b e r 0 3 ,

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l a u n c h e s - n e w - c o m m u n i t y - o u t r e a c h - p r o g r a m - t a p p i n g - i n t o - e m p l o ye e -

volunteerism-nationwide.htm

Tonner, A. (1970, January 01). How Big a Threat Is Google Wireless to

A T & T , V e r i z o n , S p r i n t , a n d T - M o b i l e ? @ t h e m o t l e yf o o l # s t o c k s $ V Z , $ S ,

$T, $GOOGL, $TMUS, $GOOG. Retrieved September 01, 2017, from

https://www.fool.com/investing/general/2015/03/08/how -big-a-threat-is-

google-wireless-to-att-verizon.aspx

Welch, C. (2013, May 01). T -Mobile and MetroPCS merger finalized,

company to begin trading as 'T -Mobile US'. Retrieved September 03,

2017, from https://www.theverge.com/2013/5/1/4286622/t -mobile-us-

metropcs-merger-complete-tmus