Introduction
In January 2013 T-Mobile’s Business Strategy currently consisted of the following:
1. Target underserved customer segments in our markets.
2. Offer simple, predictable, affordable and flexible service plans.
3. Remain one of the lowest cost wireless service providers in the United States.
4. Expand our markets.
5. Continue to invest in our networks.
6. Offer nationwide voice, text and web services (T-Mobile USA, Inc. 2012).
This strategy has lead them to be the #4 cell phone carrier in the United States preceded by Sprint, Verizon, and AT&T. In 2014 T-Mobile changed their strategy to include their un-carrier strategy. T-Mobile did something that no other carrier did at exactly the right time that consumers wanted it. They
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~ Which of the factors that the industry takes for granted should be eliminated?
1. Which factors should be reduced well below the industry’s standard?
2. Which factors should be raised well above the industry’s standard?
3. Which factors should be created that the industry has never offered?
By answering these questions we can see that T-Mobile needs to reduce the complexity of 2 year contracts and the availability of a new cell phone every two years, raise the network availability and create a service plan that consumers want, no contracts and no upgrade fees.
Below is the industry value curve that shows T-Mobile going after a market of no 2-year contracts and little to no upgrade fees.
T-Mobile has many phases 1.0-8.0 of this new market of consumer they are trying to reach, which consists of the following: (T-Mobile USA, Inc., (2014)).
1.0 Unlimited Data, No Annual Service Contract
2.0 JUMP!
3.0 International Roaming and Tablets Unleashed
4.0 Contract Freedom
5.0 Test Drive
6.0 Music Freedom
7.0 Wi-Fi Unleashed
8.0 Data