Sprint: Turnaround in the U.S. Telecom Industry SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Sprint: Turnaround in the U.S. Telecom Industry
Sprint Corporation, a major U.S. wireless carrier, had been losing customers and suffering financially since its merger with Nextel in 2005. Sprint was also ranked the lowest among major U.S. carriers in terms of network speed and data performance. But a new opportunity emerged when the SoftBank Group acquired Sprint in 2013. The new chief executive officer (CEO), appointed in August 2014, publicly gave himself three to five years to turn around this major telecommunication company. The new CEO had a plan; however, he faced many challenges. Sprint had national brand recognition, but customers demanded improvements in network quality and service reliability, and the turnaround plan needed to be implemented in a capital-intensive industry with a saturated market. The optimistic CEO admitted that he faced the biggest challenge of his career. Would he be successful in turning around Sprint's fortunes in this competitive industry? Won-Yong Oh is affiliated with University of Calgary.
Swot Analysis of "Sprint: Turnaround in the U.S. Telecom Industry" written by Won-Yong Oh, Duane Myer includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Sprint Sprint's facing as an external strategic factors. Some of the topics covered in Sprint: Turnaround in the U.S. Telecom Industry case study are - Strategic Management Strategies, Mobile and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Sprint: Turnaround in the U.S. Telecom Industry casestudy better are - – there is increasing trade war between United States & China, increasing inequality as vast percentage of new income is going to the top 1%, wage bills are increasing, increasing household debt because of falling income levels, customer relationship management is fast transforming because of increasing concerns over data privacy, central banks are concerned over increasing inflation, geopolitical disruptions,
increasing transportation and logistics costs, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Sprint: Turnaround in the U.S. Telecom Industry
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Sprint: Turnaround in the U.S. Telecom Industry case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Sprint Sprint's, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Sprint Sprint's 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 Sprint: Turnaround in the U.S. Telecom Industry can be done for the following purposes –
1. Strategic planning using facts provided in Sprint: Turnaround in the U.S. Telecom Industry case study
2. Improving business portfolio management of Sprint Sprint's
3. Assessing feasibility of the new initiative in Leadership & Managing People field.
4. Making a Leadership & Managing People topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Sprint Sprint's
Strengths Sprint: Turnaround in the U.S. Telecom Industry | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Sprint Sprint's in Sprint: Turnaround in the U.S. Telecom Industry Harvard Business Review case study are -
Successful track record of launching new products
– Sprint Sprint's has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Sprint Sprint's 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.
Low bargaining power of suppliers
– Suppliers of Sprint Sprint's in the sector have low bargaining power. Sprint: Turnaround in the U.S. Telecom Industry has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Sprint Sprint's to manage not only supply disruptions but also source products at highly competitive prices.
Operational resilience
– The operational resilience strategy in the Sprint: Turnaround in the U.S. Telecom Industry 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.
Strong track record of project management
– Sprint Sprint's is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
High brand equity
– Sprint Sprint's has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Sprint Sprint's to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Sprint Sprint's digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Sprint Sprint's 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.
Ability to recruit top talent
– Sprint Sprint's is one of the leading recruiters in the industry. Managers in the Sprint: Turnaround in the U.S. Telecom Industry are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Innovation driven organization
– Sprint Sprint's is one of the most innovative firm in sector. Manager in Sprint: Turnaround in the U.S. Telecom Industry Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Training and development
– Sprint Sprint's has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Sprint: Turnaround in the U.S. Telecom Industry Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Diverse revenue streams
– Sprint Sprint's is present in almost all the verticals within the industry. This has provided firm in Sprint: Turnaround in the U.S. Telecom Industry case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Analytics focus
– Sprint Sprint's is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Won-Yong Oh, Duane Myer can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
High switching costs
– The high switching costs that Sprint Sprint's 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.
Weaknesses Sprint: Turnaround in the U.S. Telecom Industry | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Sprint: Turnaround in the U.S. Telecom Industry are -
Aligning sales with marketing
– It come across in the case study Sprint: Turnaround in the U.S. Telecom Industry that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Sprint: Turnaround in the U.S. Telecom Industry can leverage the sales team experience to cultivate customer relationships as Sprint Sprint's is planning to shift buying processes online.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Sprint: Turnaround in the U.S. Telecom Industry, is just above the industry average. Sprint Sprint's 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Won-Yong Oh, Duane Myer suggests that, Sprint Sprint's is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Low market penetration in new markets
– Outside its home market of Sprint Sprint's, firm in the HBR case study Sprint: Turnaround in the U.S. Telecom Industry needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow decision making process
– As mentioned earlier in the report, Sprint Sprint's 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. Sprint Sprint's 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.
Interest costs
– Compare to the competition, Sprint Sprint's 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.
Need for greater diversity
– Sprint Sprint's 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Sprint: Turnaround in the U.S. Telecom Industry, in the dynamic environment Sprint Sprint's has struggled to respond to the nimble upstart competition. Sprint Sprint's has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow to strategic competitive environment developments
– As Sprint: Turnaround in the U.S. Telecom Industry HBR case study mentions - Sprint Sprint's takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Sprint: Turnaround in the U.S. Telecom Industry, it seems that the employees of Sprint Sprint's 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.
High cash cycle compare to competitors
Sprint Sprint's has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Opportunities Sprint: Turnaround in the U.S. Telecom Industry | 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 Sprint: Turnaround in the U.S. Telecom Industry are -
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Sprint Sprint's can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Manufacturing automation
– Sprint Sprint's can use the latest technology developments to improve its manufacturing and designing process in Leadership & Managing People 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Sprint Sprint's 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.
Better consumer reach
– The expansion of the 5G network will help Sprint Sprint's to increase its market reach. Sprint Sprint's 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Sprint Sprint's can use these opportunities to build new business models that can help the communities that Sprint Sprint's operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
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 Sprint Sprint's in the consumer business. Now Sprint Sprint's can target international markets with far fewer capital restrictions requirements than the existing system.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Sprint Sprint's to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Sprint Sprint's to hire the very best people irrespective of their geographical location.
Loyalty marketing
– Sprint Sprint's has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Buying journey improvements
– Sprint Sprint's can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Sprint: Turnaround in the U.S. Telecom Industry 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.
Leveraging digital technologies
– Sprint Sprint's 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.
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. Sprint Sprint's can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Sprint Sprint's in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Leadership & Managing People segment, and it will provide faster access to the consumers.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Sprint Sprint's can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Sprint: Turnaround in the U.S. Telecom Industry, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Threats Sprint: Turnaround in the U.S. Telecom Industry External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Sprint: Turnaround in the U.S. Telecom Industry are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Sprint Sprint's can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Sprint: Turnaround in the U.S. Telecom Industry .
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Sprint Sprint's needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Increasing wage structure of Sprint Sprint's
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Sprint Sprint's.
Easy access to finance
– Easy access to finance in Leadership & Managing People field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Sprint Sprint's can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Technology acceleration in Forth Industrial Revolution
– Sprint Sprint's has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Sprint Sprint's needs to keep up with the evolution of technology in the Leadership & Managing People 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.
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.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Sprint Sprint's 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 Sprint: Turnaround in the U.S. Telecom Industry, Sprint Sprint's may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Leadership & Managing People .
Regulatory challenges
– Sprint Sprint's needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Leadership & Managing People industry regulations.
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 Sprint Sprint's.
High dependence on third party suppliers
– Sprint Sprint's high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Shortening product life cycle
– it is one of the major threat that Sprint Sprint's is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of Sprint: Turnaround in the U.S. Telecom Industry 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 Sprint: Turnaround in the U.S. Telecom Industry 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 Sprint: Turnaround in the U.S. Telecom Industry 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 Sprint: Turnaround in the U.S. Telecom Industry 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 Sprint: Turnaround in the U.S. Telecom Industry 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 Sprint Sprint's needs to make to build a sustainable competitive advantage.
