BUSINESS STRATEGY

Porter's T-Mobile USA Five Forces:

Technology is evolving rapidly, and the demand for wireless is steadily increasing. Describing the key factors fueling the growth and the increasing demand for developing smart sensors for surging adoption of the internet of things, the development of 5G networks, particularly the efficiency of the automotive sector depending on the technology to be possible. 

Rivalry among the Existing Competitors:

T-Mobile has AT&T and Verizon wireless as competitors, offering similar products and services. However, the company ranks number 2 according to comparably "T-Mobile Competitors," T-Mobile competitors include AT&T, Verizon, and Sprint. T-Mobile ranks 2nd in CEO Score comparably vs. its competitors.

 Competition can be strategic as the rivalry between the competing players can become intense, as it can drive down prices and decrease the industry's overall profitability. To manage this threat, T-Mobile must:

·       Differentiate better tactics and strategies than their competitors.

·       Better promotions and marketing

·       Develop strategies to increase their footprint within the market rather than just competing for a small market.

Potential of Entrants in the Industry:

New entrants in the industry open doors for opportunities to be innovative and have different perspectives and new ways of doing things. These forced T-Mobile to get creative to stay competitive.

The company can use various strategies by lowering prices, providing new value propositions to its customers, and reducing costs with a good quality product. T-Mobile must be creative to remain competitive in the market. T-Mobile US, Porter's Five Forces Analysis strategy measures that can be used to counter these threats include:

·       Product and service innovation. When the company creates new products, it will help the company have new customers and old customers to buy T-Mobile products. It will build economies of scale and reduce fixed costs per unit.

·       The company is spending money on development to help the company stay ahead of market trends, research and building capacity. The new entrants are less likely to enter the competitive market where established companies such as T-Mobile regularly define the standards. It reduces extraordinary profits for the new company and discourages new competitors in the competitive industry.

Bargaining Power of the Suppliers:

Suppliers that are powerful in the technology sector, the company uses its negotiating power tactics to extract higher prices from businesses in the wireless communication industry. 

T-Mobile can mitigate and address supplier bargaining power by developing efficient and effective multiple suppliers and supply chains. Experimenting with a product design of one raw material using a different material increases cost, and the organization can switch to another raw material. Businesses depend on a solid and effective strategy and the development of specialized suppliers.

Bargaining Power of the Buyers:

Buyers can be demanding when spending their money, and often they want the most for less. The company must take drastic measures to tackle the bargaining power of the buyers by: Building large customer base. It will decrease the buyer bargaining power and provide an opportunity for the company to streamline its production and sales.

Innovating new products at a very rapid rate. Customers like discounts and offerings on established products, so if T-Mobile keeps coming up with new products, it can limit buyers' bargaining power.

 Creating a new line of products will reduce the defects of existing customers of T-Mobile US, Inc. to its competitors.

Threats of Substitute Products or Services

·       T-Mobile can use the following strategies below to tackle the threats of substitute products and services:

·       By focusing on being service oriented rather than simply product orientated.

·       Have a great understanding of the customer's core need and focus on what the customer is buying and the quality of the product

T-Mobile's competitive advantage is offering its customers good value, and a transparent pricing strategy that appeals to consumers. The company puts the customer first and makes the customer aware of the services the company offers.