Transcript Group # 3 曾冠瑋 H54006020 陸凱拉 H54017013 李星諭 H5400104

GROUP # 3
曾冠瑋 H54006020
陸凱拉 H54017013
李星諭 H54001046
PROFESSOR
KUANG-CHIU HUANG
11/5/2013
Outline








Background
Main services
Wireless Network Technologies
Vision & Mission
Business Strategy
-Marketing Strategies
IFE Analysis
EFE Analysis
Q&A
History of Sprint
Origin : Brown Telephone Company founded in
1899.
Went bankrupted due to The Great Depression in
1930 and then reorganized as United Utilities in
1938
In 1972, United Utilities changed its name to United
Telecommunications
Sprint Corporation brand mark 1987-2005
Changing its name to Sprint Corporation.
Merged by Softbank in July, 2013.

Basic Information
Sprint is a United States telecom operator.
Headquarter in Overland Park, Kansas.
 Main rivals :AT&T, and Verizon Wireless (Verizon)
 Third largest U.S. wireless network operator, and
serves more than 55 million customers.
 40,000 Employees

Main services

•
•

•
•
•
•
•
Wireless
Data: Internet access, messaging, email services, etc.
Voice Services – roaming
Wireline
Sprint TV
Domestic and international data communications using
multiprotocol label switching technologies (MPLS)
Managed network services
Voice over Internet Protocol (VoIP)
Voice local and long distance services to cable MSOs
Wireless Network Technologies





Third generation (3G)
Code division multiple access (CDMA)
Internet protocol (IP) technologies
Fourth generation (4G) services through their deployment
of Long Term Evolution (LTE)
Worldwide Interoperability for Microwave Access
(WiMAX) technology through their mobile virtual network
operator (MVNO)
Mission & Vision


Mission
Sprint’s mission is to be number one in providing a
simple, instant, enriching and productive customer
experience.
Vision
Sprint’s vision is to be a world class company, with
standards by which others are measured, including
a commitment to be developed as a world class
supplier base reflective to the communities.
Business Strategies
Our business strategy is to be responsive to changing customer mobility
demands by being innovative and differentiated in the marketplace
with the three key priorities:
Priority
Rationale
Improve the customer experience
Measures the degree to which we retain
our most profitable customers.
Strengthen our brands
Measures the degree to which we have
attracted new customers to our brands.
Generate operating cash flow
Measures our ability to generate cash and
profit, which are critical to our ability to
invest in our business and service our debt.
Business Strategies

Wireless service revenue of $7.3 billion grew yearover-year for the 13th consecutive quarter
 Best-ever
Sprint platform postpaid service revenue of $5.8
billion
 Best-ever Sprint platform postpaid ARPU of $64.28

Net income of $1.1 billion in predecessor period and
net loss of $699 million for successor period results in
combined quarterly net income of $383 million
 Operating
Loss of $398 million
 Adjusted EBITDA* of $1.34 billion, up 5 percent yearover-year
Marketing Strategies

Introduced innovative new pricing programs
My WaySM and My All-InSM Plans
 Sprint Unlimited GuaranteeSM
 Sprint One UpSM
 Unlimited,
 http://www.youtube.com/watch?feature=player_embe
dded&v=ymxbykCDzTk
Input stage
Strengths
Threats
IFE
EFE
Opportunities
Weaknesses
Internal Factor Evaluation IFE
Internal Strengths
Weight
Rating
Weighted score
Deploying a next generation wireless network
0.10
4
0.4
Strong incentives for employees
0.10
3
0.3
Customer Satisfaction
0.10
3
0.3
Only carrier to provide unlimited data plans
0.15
4
0.6
lowest price in the market
0.15
4
0.6
Strong Brand Recognition
0.10
3
0.3
Unable to retain wireless subscribers
0.1
1
0.1
Poor LTE coverage
0.10
2
0.2
D/E ratio much higher than its rivals
0.05
1
0.05
deficient management
0.05
2
0.1
TOTAL WEIGHTED SCORES
1
Internal Weaknesses
2.95
IFE-Internal strengths


Sprint is deploying a next-generation wireless
network that will revolutionize the telecom industry
and provide exponential enhancements to wireless
communications
http://www.youtube.com/watch?v=Zp_jpIdr_uw
The American Customer Satisfaction Index rated
Sprint as the most improved company in customer
satisfaction, across all 47 industries, during the last
five years.
Only carrier to provide unlimited data plans
IFE weakness


If we are unable to retain and attract wireless
subscribers, our financial performance will be
impaired, and we could fail to meet our financial
obligations.
Beginning in 2008 through 2012, we experienced
net decreases in our total retail postpaid subscriber
base of approximately 9.7 million subscribers.
Data coverage- Sprint
Data coverage- Verizon
Data coverage-AT&T
External Factor Evaluation EFE
Opportunities
Weight
Rating
Weighted score
Increasing Demand for Mobile Broadband
0.2
3
0.6
Mergers will create the economies of scale
0.15
3
0.45
The expanding scope of demand for
Telecommunications service due to integration
0.1
3
0.3
U.S. mobile ecosystem generated economic activity 0.1
2
0.2
increasing consumer interest
0.1
2
0.2
Increasingly faster network speeds
0.1
3
0.3
Global Economic Slowdown
0.02
2
0.04
Competitive pressures from the incumbent players
0.1
2
0.2
Breaches of network security
0.03
2
0.06
Increased legal and administrative expenses
0.1
1
0.1
TOTAL WEIGHTED SCORES
1
Threats
2.45
Increasing Demand for Mobile Broadband
EFE Threats


It is estimated that in 2012 the U.S. mobile
ecosystem generated economic activity of nearly
$200 billion—the equivalent of one of the 50
largest economies in the world.
Global economic slowdown