T-Mobile in 2013: The Un-Carrier SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Finance & Accounting
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of T-Mobile in 2013: The Un-Carrier
By 2013, the U.S. wireless industry was in the midst of a costly transition. As consumers began to embrace more sophisticated mobile devices, the industry's four main players spent heavily to improve their infrastructures for providing reliable high-speed data services. T-Mobile, the smallest of the four major carriers, lacked the scale of its competitors and risked falling further behind in the contest for market share. Faced with this daunting business environment, T-Mobile's new CEO declared war on the rest of the industry, decrying competitor pricing practices and upending the traditional contract-based business model. This case provides background information on the state of the wireless industry in 2013 and follows T-Mobile's early steps to transform its market position.
Authors :: John Beshears, Francesca Gino, Jonathan Lee, Sean Yixiang Wang
Swot Analysis of "T-Mobile in 2013: The Un-Carrier" written by John Beshears, Francesca Gino, Jonathan Lee, Sean Yixiang Wang includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Mobile's Mobile facing as an external strategic factors. Some of the topics covered in T-Mobile in 2013: The Un-Carrier case study are - Strategic Management Strategies, Change management, Communication, Competition, Economics, Marketing, Technology and Finance & Accounting.
Some of the macro environment factors that can be used to understand the T-Mobile in 2013: The Un-Carrier casestudy better are - – there is increasing trade war between United States & China, supply chains are disrupted by pandemic , competitive advantages are harder to sustain because of technology dispersion, customer relationship management is fast transforming because of increasing concerns over data privacy, cloud computing is disrupting traditional business models, wage bills are increasing, digital marketing is dominated by two big players Facebook and Google,
increasing inequality as vast percentage of new income is going to the top 1%, there is backlash against globalization, etc
Introduction to SWOT Analysis of T-Mobile in 2013: The Un-Carrier
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in T-Mobile in 2013: The Un-Carrier case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Mobile's Mobile, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Mobile's Mobile operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of T-Mobile in 2013: The Un-Carrier can be done for the following purposes –
1. Strategic planning using facts provided in T-Mobile in 2013: The Un-Carrier case study
2. Improving business portfolio management of Mobile's Mobile
3. Assessing feasibility of the new initiative in Finance & Accounting field.
4. Making a Finance & Accounting topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Mobile's Mobile
Strengths T-Mobile in 2013: The Un-Carrier | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Mobile's Mobile in T-Mobile in 2013: The Un-Carrier Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of Mobile's Mobile in the sector have low bargaining power. T-Mobile in 2013: The Un-Carrier has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Mobile's Mobile to manage not only supply disruptions but also source products at highly competitive prices.
Cross disciplinary teams
– Horizontal connected teams at the Mobile's Mobile are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Highly skilled collaborators
– Mobile's Mobile has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in T-Mobile in 2013: The Un-Carrier HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Innovation driven organization
– Mobile's Mobile is one of the most innovative firm in sector. Manager in T-Mobile in 2013: The Un-Carrier Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Strong track record of project management
– Mobile's Mobile is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Digital Transformation in Finance & Accounting segment
- digital transformation varies from industry to industry. For Mobile's Mobile digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Mobile's Mobile has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
High switching costs
– The high switching costs that Mobile's Mobile has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Operational resilience
– The operational resilience strategy in the T-Mobile in 2013: The Un-Carrier Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Superior customer experience
– The customer experience strategy of Mobile's Mobile in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Successful track record of launching new products
– Mobile's Mobile has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Mobile's Mobile has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Sustainable margins compare to other players in Finance & Accounting industry
– T-Mobile in 2013: The Un-Carrier firm has clearly differentiated products in the market place. This has enabled Mobile's Mobile to fetch slight price premium compare to the competitors in the Finance & Accounting industry. The sustainable margins have also helped Mobile's Mobile to invest into research and development (R&D) and innovation.
Learning organization
- Mobile's Mobile is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Mobile's Mobile is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in T-Mobile in 2013: The Un-Carrier Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses T-Mobile in 2013: The Un-Carrier | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of T-Mobile in 2013: The Un-Carrier are -
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study T-Mobile in 2013: The Un-Carrier, is just above the industry average. Mobile's Mobile needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Skills based hiring
– The stress on hiring functional specialists at Mobile's Mobile has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study T-Mobile in 2013: The Un-Carrier, it seems that the employees of Mobile's Mobile don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
No frontier risks strategy
– After analyzing the HBR case study T-Mobile in 2013: The Un-Carrier, it seems that company is thinking about the frontier risks that can impact Finance & Accounting strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
High operating costs
– Compare to the competitors, firm in the HBR case study T-Mobile in 2013: The Un-Carrier has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Mobile's Mobile 's lucrative customers.
Low market penetration in new markets
– Outside its home market of Mobile's Mobile, firm in the HBR case study T-Mobile in 2013: The Un-Carrier needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Need for greater diversity
– Mobile's Mobile has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Mobile's Mobile is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study T-Mobile in 2013: The Un-Carrier can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Interest costs
– Compare to the competition, Mobile's Mobile has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Slow decision making process
– As mentioned earlier in the report, Mobile's Mobile has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Mobile's Mobile even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study T-Mobile in 2013: The Un-Carrier, in the dynamic environment Mobile's Mobile has struggled to respond to the nimble upstart competition. Mobile's Mobile has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities T-Mobile in 2013: The Un-Carrier | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study T-Mobile in 2013: The Un-Carrier are -
Better consumer reach
– The expansion of the 5G network will help Mobile's Mobile to increase its market reach. Mobile's Mobile will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Developing new processes and practices
– Mobile's Mobile can develop new processes and procedures in Finance & Accounting industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Mobile's Mobile in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Finance & Accounting segment, and it will provide faster access to the consumers.
Leveraging digital technologies
– Mobile's Mobile can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Low interest rates
– Even though inflation is raising its head in most developed economies, Mobile's Mobile can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Manufacturing automation
– Mobile's Mobile can use the latest technology developments to improve its manufacturing and designing process in Finance & Accounting segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Mobile's Mobile is facing challenges because of the dominance of functional experts in the organization. T-Mobile in 2013: The Un-Carrier case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Mobile's Mobile can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Mobile's Mobile can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Finance & Accounting industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Mobile's Mobile can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Mobile's Mobile can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Mobile's Mobile in the consumer business. Now Mobile's Mobile can target international markets with far fewer capital restrictions requirements than the existing system.
Using analytics as competitive advantage
– Mobile's Mobile has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study T-Mobile in 2013: The Un-Carrier - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Mobile's Mobile to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Buying journey improvements
– Mobile's Mobile can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. T-Mobile in 2013: The Un-Carrier suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Threats T-Mobile in 2013: The Un-Carrier External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study T-Mobile in 2013: The Un-Carrier are -
Technology acceleration in Forth Industrial Revolution
– Mobile's Mobile has witnessed rapid integration of technology during Covid-19 in the Finance & Accounting industry. As one of the leading players in the industry, Mobile's Mobile needs to keep up with the evolution of technology in the Finance & Accounting sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Mobile's Mobile business can come under increasing regulations regarding data privacy, data security, etc.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Mobile's Mobile will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Mobile's Mobile in the Finance & Accounting industry. The Finance & Accounting industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Mobile's Mobile.
Shortening product life cycle
– it is one of the major threat that Mobile's Mobile is facing in Finance & Accounting sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Easy access to finance
– Easy access to finance in Finance & Accounting field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Mobile's Mobile can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Stagnating economy with rate increase
– Mobile's Mobile can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Consumer confidence and its impact on Mobile's Mobile demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Mobile's Mobile with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study T-Mobile in 2013: The Un-Carrier, Mobile's Mobile may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Finance & Accounting .
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Mobile's Mobile in the Finance & Accounting sector and impact the bottomline of the organization.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Weighted SWOT Analysis of T-Mobile in 2013: The Un-Carrier Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study T-Mobile in 2013: The Un-Carrier needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study T-Mobile in 2013: The Un-Carrier is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study T-Mobile in 2013: The Un-Carrier is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of T-Mobile in 2013: The Un-Carrier is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Mobile's Mobile needs to make to build a sustainable competitive advantage.
