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Ford vs Gm

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Competitors Analyis

1. Major Competitors

As a major communication service provider that covers 280 million people in the United States, T-Mobile still has major competitors that the company has to continuously compete with. T-Mobile’s major competitors are At&t Inc., Sprint Nextel Corporation, and Verizon Communications Inc. (Annual, 2014).

3. Competitors Comparative Advantage

T-Mobile’s competitors have a comparative advantage that makes competition fierce. At&t Inc. has a strong competitive advantage over T-Mobile by having a strong position in the business services market. Among their business strong position At&t Inc. also has the world’s most advanced Internet Protocol (IP) backbones in the industry (AT&T Inc., 2014). At&t Inc. is also one of the largest telecommunications service providers as they serve to 110.4 Million wireless subscribers, 24.6 million line subscribers, and 16.4 million broadband subscribers by the end of fiscal year of 2013. The company shares a 58% market share with Verizon, AT&T holds a 27% market share (AT&T Inc., 2014). Another fierce competitor that T-Mobile has to strategically compete with is Sprint Nextel corporation. Sprint Nextel Corporation has a competitive advantage over T-Mobile as they are the third largest telecom provider in the United States. Sprint as also partnered up with SoftBank, an internet company, that has invested $22.2 billion for an 80% stake in Sprint (Sprint Nextel Corporation, 2013). This new addition to the Sprint family has given the company a major competitive advantage by having sufficient funds to upgrade its technology, expand its services and improve quality and reliability in all its products. Verizon’s competitive advantage over T-Mobile is similar to AT&T’s, both have a market share of 58%, Verizon holds 31% market share. The company also holds an extensive wireless network that covers 100 most populous areas and was also available to 97% of the United States population covering about 305 million people (Verizon Communications Inc., 2014). Verizon has also been continuously growing and has shown a increase in the average revenue per account (ARPA). During the fiscal years of 2011-2013 Verizon’s ARPA grew from $134.5 in 2011 to %153.9 in the end of fiscal year of 2013 making them stronger as they continue to show growth (Verizon Communications Inc., 2014).

Proposed Project

Target

T-Mobile’s target market is not just a family or anyone interested in sharing 4 lines but also targets to compete against their rival’s competitive family plans as well. T-Mobile offers a family plan that includes 4 lines for $100 making them the most economical of all other telecommunications service providers (Moscaritolo, 2014). Taking a look at their competitors we have all other telecommunication service providers offering 4 lines for $160. Details can be observed in the chart below (Moscaritolo, 2014).

Financial Terms

Chapter 2 Term

Income Statement represents the company’s results during a specific period that may demonstrate a profit or loss for that specific time.

The following illustrates T-Mobile’s Income Statement for 2013

The above graph illustrates T-Mobil 2013 Income Statement (2013 Annual Report).

Financial Report Summary

During the fiscal year of December 2013, T-Mobile recorded a total revenue of $24.4 million in which a gross profit of $12.1 million was gross profit. The company also recorded an operating income or loss of $996 thousand compared to operating profit of $6.4 million in fiscal year 2012. T-Mobile’s net income for the fiscal year of 2013 was $35 thousand compared to their net income of $7.3 million in fiscal year 2012 (2013 Annual Report).

2013 Annual Report. (n.d.). Retrieved November 18, 2014, from http://investor.tmobile.com/Cache/1500059458.PDF?Y=&O=PDF&D=&fid=1500059458&T=&iid=4091145

AT&T Inc.SWOT Analysis. (2014). SBC Communications, Inc. SWOT Analysis, 1-10.

Moscaritolo, A. (n.d.). T-Mobile Targets AT&T With Data-Heavy Family Plan. Retrieved November 18, 2014, from http://www.pcmag.com/article2/0,2817,2461498,00.asp

Sprint Nextel Corporation SWOT Analysis. (2013). Sprint Nextel SWOT Analysis, 1-8.

Verizon Communications Inc.SWOT Analysis. (2014). Verizon Communications SWOT Analysis, 1-10.

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