Last Updated 20 Apr 2022

T-Mobile: SWOT analysis

Category Swot Analysis
Essay type Analysis
Words 702 (3 pages)
Views 742
T-Mobile: SWOT analysis

T-Mobile USA, Inc. was first created in the early 2000s, headquartered in Bellevue, Washington owned by German-based Deutsche Telekom AG and its founder John W. Stanton. T-Mobile is a cell phone service that provides wireless voice messaging and data services in the United States, Puerto Rico and the Virgin islands. The company is the fourth-largest wireless carrier in the U. S. market. In 2005 T-Mobile had reached 20 million customers, following endorsement deals, corporate sponsorships, and along the way earned awards for its customer service from J. D. Power and Associates market surveys (Martin, 2011).

A major strength of T-Mobile is its excellent customer service. Providing excellent service helps the company not only keep their loyal customers it can also bring new ones. People like to receive good service when they have questions or trouble shooting with their phones, bills, and such. When a company fails to solve a costumer’s problem they intend to lose that customer loyalty and switch to another company. T-Mobile makes sure they are able to do whatever they can to keep their costumer satisfied.

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In J. D. Power and associates 2011 U. S. Wireless Customer Care Performance study T-Mobile has received a score of 758 out of 1,000 for customer satisfaction, they managed to outshine Verizon Wireless, Sprint and AT&T. The scores were based on how well costumer receives support through phone conversations with live reps or help from automated response systems (Whitney, 2012). Another major strength of T-Mobile is its Unlimited Data Plans in the United States. Unlike most phone companies such as Verizon and AT&T does not provide unlimited Data Plans.

When a person reaches its data plan, their Internet starts to either slow down or end up receiving over charges fees for going over their plans. Not only T-Mobile provides the Unlimited Data plans, they also have the Hot Spot, which is where you can make your phone available for your laptop or computer to access its Wi-Fi anywhere. This helps people connected wherever they need to be and the cost is very affordable. Most Organizations has its weaknesses for T-Mobile, one major weakness would be its lack of IPhone.

Many costumers switch to other companies due to the fact that people want to have the IPhone, although T-Mobile provides affordable plans it’s not enough to keep customers. In order to minimize this weakness, T-Mobile is offering better service than its competitors on the pre-paid side, also focusing on increasing revenue from customers while maintaining its credibility as a value player (Higginbotham, 2012). Another major weakness of T-Mobile is decreasing ARPU. In its quarterly earning T-Mobile reported loss of 318,000 of its higher-revenue contract customers in the quarter that ended in December 2010. 

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The main problem is that pre-pay manages to bring in lower revenues and even fewer because T-Mobile gains were from MVNO partners, who resell T-Mobile services under their own brand which they end up sharing revenues with (Lunden 2011). Another issue was shortcoming in the devices, in order to minimize this weakness T-Mobile came out with more 4G android phones such as the Galaxy S II, HTC one S but what really made T-Mobile gain back its revenue and receive new customers was when the Galaxy S III, Nexus, and Galaxy Notepad came out in late 2012.

T-Mobile has great strength and faced weaknesses but they also have the chance to come across opportunities for advancement. One of T-Mobile’s opportunities is a technological dimension of the general environment to have the capability to increase prepaid services and provide a fast growing no contract services by partnering up with Metro PCS. With this opportunity T-Mobile can significantly expand and thus gain more customers by providing them with the most affordable cost and not having to worry about contract deals.

T-Mobile’s has positioned itself as a cheaper option for customers who cringe at wireless bills that often exceed a hundred dollars a month. Merging the companies would build opportunities to cut costs in areas like marketing and network maintenance, while the bigger scale would let it spread remaining costs across a larger base. It would also gain access to Metro PCS's airwave rights and broadband LTE network, which T-Mobile lacks (Roger, 2012).

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