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 - – supply chains are disrupted by pandemic , central banks are concerned over increasing inflation, challanges to central banks by blockchain based private currencies, there is backlash against globalization, wage bills are increasing, banking and financial system is disrupted by Bitcoin and other crypto currencies, there is increasing trade war between United States & China,
increasing commodity prices, competitive advantages are harder to sustain because of technology dispersion, 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 -
Organizational Resilience of Sprint Sprint's
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Sprint Sprint's does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
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.
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.
Cross disciplinary teams
– Horizontal connected teams at the Sprint Sprint's 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.
Superior customer experience
– The customer experience strategy of Sprint Sprint's in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
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.
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.
Sustainable margins compare to other players in Leadership & Managing People industry
– Sprint: Turnaround in the U.S. Telecom Industry firm has clearly differentiated products in the market place. This has enabled Sprint Sprint's to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Sprint Sprint's to invest into research and development (R&D) and innovation.
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.
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.
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.
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.
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 -
High operating costs
– Compare to the competitors, firm in the HBR case study Sprint: Turnaround in the U.S. Telecom Industry 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 Sprint Sprint's 's lucrative customers.
Products dominated business model
– Even though Sprint Sprint's has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Sprint: Turnaround in the U.S. Telecom Industry should strive to include more intangible value offerings along with its core products and services.
Workers concerns about automation
– As automation is fast increasing in the segment, Sprint Sprint's needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
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.
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.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Sprint Sprint's supply chain. Even after few cautionary changes mentioned in the HBR case study - Sprint: Turnaround in the U.S. Telecom Industry, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Sprint Sprint's vulnerable to further global disruptions in South East Asia.
Lack of clear differentiation of Sprint Sprint's products
– To increase the profitability and margins on the products, Sprint Sprint's needs to provide more differentiated products than what it is currently offering in the marketplace.
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.
Skills based hiring
– The stress on hiring functional specialists at Sprint Sprint's 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.
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 -
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.
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.
Creating value in data economy
– The success of analytics program of Sprint Sprint's has opened avenues for new revenue streams for the organization in the industry. This can help Sprint Sprint's to build a more holistic ecosystem as suggested in the Sprint: Turnaround in the U.S. Telecom Industry case study. Sprint Sprint's can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Learning at scale
– Online learning technologies has now opened space for Sprint Sprint's to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Leadership & Managing People industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Sprint Sprint's 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. Sprint Sprint's 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.
Building a culture of innovation
– managers at Sprint Sprint's can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Leadership & Managing People segment.
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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Sprint Sprint's is facing challenges because of the dominance of functional experts in the organization. Sprint: Turnaround in the U.S. Telecom Industry 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. Sprint Sprint's can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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.
Using analytics as competitive advantage
– Sprint Sprint's 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 Sprint: Turnaround in the U.S. Telecom Industry - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Sprint Sprint's to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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 -
Consumer confidence and its impact on Sprint Sprint's 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.
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 .
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 Sprint Sprint's business can come under increasing regulations regarding data privacy, data security, etc.
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.
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.
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.
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.
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.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Sprint Sprint's in the Leadership & Managing People industry. The Leadership & Managing People 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.
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 .
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.
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.
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.