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Sprint Nextel (SWOT Analysis)

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“SWOT is an acronym for the internal Strengths and Weaknesses of a firm and the environmental Opportunities and Threats facing that firm. SWOT analysis is a widely used technique through which managers create a quick overview of a company’s strategic situation. The technique is based on the assumption that an effective strategy derives from a sound “fit” between a firm’s internal resources (strengths and weaknesses) and its external situation (opportunities and threats). A good fit maximizes a firm’s strengths and opportunities and minimizes its weaknesses and threats. Accurately applied, this simple assumption has powerful implications for the design of a successful strategy.”

Sprint Nextel 

Sprint Nextel provides wireless and wire line telecommunications services. The merger of Sprint and Nextel was completed in August 2005, which created the third largest provider in the wireless communications segment. The company offers digital wireless service in all 50 states, Puerto Rico and the US Virgin Islands. Sprint Nextel offers its services under several brands including Sprint, Nextel and Boost Mobile. It operates CDMA networks in over 360 metropolitan markets including341 of the 349 largest US metropolitan areas. Strong market position in wireless business enhances the brand image of the company and serves as an entry barrier. Industry consolidation however has created rivals, who have the market power to stop Sprint Nextel from achieving its objectives.

Strengths, Weaknesses, Opportunities and Threats (SWOT)

Location of Factor

TYPE OF FACTOR

Favorable

Unfavorable

Internal

Strengths

  • Strong market position
  • Wireless spectrum assets
  • Strong brands

Weaknesses

  • High dependence on Motorola

External

Opportunities

  • WiMAX mobile broadband network
  • Cost cutting initiatives
  • Roll out of EV-DO technology

Threats

  • Industry consolidation
  • Saturation in the wireless market
  • Rising number of MVNOs
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