Question
T-Mobile: The Un-CarrierConsumer frustration with perceived unnecessary costs and complexity in the wireless telecommunications industry has long been prevalent. Yet among a market landscape dominated
T-Mobile: The Un-CarrierConsumer frustration with perceived unnecessary costs and complexity in the wireless telecommunications industry has long been prevalent. Yet among a market landscape dominated by rigid contractsand layers of bureaucracy for customers, one company saw an opportunity for disruption. T-Mobile,long overshadowed by AT&T, Verizon, and Sprint, decided to craft a unique "Un-carrier" strategy thatcentered on not acting like a wireless carrier.Since 2013, T-Mobile has introduced a series of improvements to consumer plans that emphasizesimplicity, fairness, and value. These have included eliminating long-term contracts, institutingunlimited access to data, and allowing for faster phone upgrades. Though each campaign has differed,the overarching Un-carrier strategy was designed to highlight T-Mobile's commitment to improvingthe wireless carrier experience beyond parity levels.T-Mobile has gained traction with the strategy through targeted brand positioning and creativemessaging. Positioned as the "rebel," T-Mobile is not afraid to challenge industry leaders over the statusquo. Putting caps on data utilization, for example, has historically allowed carriers to maximize revenue.T-Mobile observed that this frustrated consumers and thus decided to eliminate the common practiceof metering voice and text capabilities. By placing customer needs ahead of profit margins, T-Mobilewas able to effectively separate itself within the market. Additionally, rather than trying to obtain anedge with technological advances, T-Mobile created a series of must-haves that other carriers weren'tset up to provide. One example was the company's willingness to pay the early termination fees of allcustomers who switch to T-Mobile from other carriers. Ultimately, T-Mobile's goal was to beeverything that traditional players were not. To support this positioning, the company generated aseries of humorous advertising spots highlighting why individuals were switching their plans over fromcompetitors. CEO John Legere also initiated a series of TED-talk
Within a year and a half of launching the campaign, T-Mobile had added 22.5 million subscribersto its network. The company was also recognized as one of Fast Company Magazine's Most InnovativeCompanies.
Questions:1. Perform a competitive analysis of the wireless telecommunications industry?
2. How can T-Mobile maintain its competitive advantage?
David A. Aaker; Christine Moorman. Strategic Market Management, 11th Edition (p. 57). Wiley. Kindle Edition.
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