Competitive Profile Matrix AT&T CSF’s Market share Brand name Customers Wi-Fi provider Bundle services Weight 10% 10% 9% 8% 8% Rating 4 4 3 2 3 Weighted Score Explanations 0.4 We weight it for 10% and rate it at 4, because AT&T is the second carrier in US, so we think this CSF is important for AT&T and it’s very strong. 0.4 The reputation of AT&T is no doubt very strong, since it mentioned above, AT&T is the second carrier in US. So we weight it for10% and rate it at 4. 0.27 Customer is an important CSF for AT&T. With more subscribers, AT&T earns more profit as well. AT&T presents well in this CSF, so we weight it for 9% and rate it at 3. 0.16 As a Wi-Fi provider, AT&T doesn’t present better than Verizon, but the CSF is still one of the main areas of AT&T, so we weight it for 8% and rate it at 2. 0.24 AT&T is known for its bundle service. With bundle service, customers could enjoy more convenient service. We think AT&T presents kind of well in this 1 CSF, so we weight it for 8% and rate it at 3. Wireline services 8% 1 Since the development of 4G market, the profit in wireline services has decreased. However, wireline services was one of the main services of AT&T, so we 0.08 weight it for 8% and rate it at 1, for it present poor in this CSF. Industry consolidation 9% 3 Industry consolidation is a good opportunity for AT&T, since it could create more commercial profit for all carriers involving in. So we weight it for 9% and rate it at 3. 0.27 After our discussion, we think global market is not Global market 4G subscribers 6% 8% 2 4 what AT&T pursues, whereas, it focuses more on the expansion of market in US, but it’s still an opportunity for AT&T to invest. So we wright it for 6% and rate it at 2, for the CSF presents a little weak. 0.12 Because 4G is the current stream, so it’s important to develop 4G subscribers. We think this is a good CSF for AT&T, so we weight it for 8% and rate it at 4 since we 0.32 think is a strong part in consist of AT&T. Acquisition 7% 2 The Acquisition means whether customers could use AT&T’s service everywhere at any time. We weight it 0.14 2 for 7% and rate it at 2 since we think the acquisition of AT&T is not that strong. Saturated market 9% 3 We weight the CSF for 9% and rate it at 3 since we think AT&T adapt well in this environment and saturation is the unavoidable trend in 0.27 telecommunication market of US now. Voice market 8% Total 100% 1 We weight the CSF for 8% since we think the profit of voice market accounts for a few part of AT&T’s profit. However, owing to the development of 4G, more customers use network to communicate, which decreases the profit of voice market, so we rate the CSF at 1, because the function is weak. 0.08 2.75 3 Sprint CSF’s Portfolio expansion Brand name Niche marketing Weight 7% 8% 8% Rating 3 4 4 Weighted Score Explanations 0.21 We weight the CSF for 7% since we think it is not Sprint’s main focus. However, it is still a good opportunity for Sprint to develop, so we rate it at 3. 0.32 Sprint is the third carrier in US, meaning it still has some degree of reputation. We think is an important part of Sprint, so we weight it for 8%. The CSF also presents its function well, so we rate it at 4. 0.32 Niche marketing means increasing the profit by specialized operation. We think it is an important part of Sprint, which could focus more on the area of communication, so we weight it for 8%. Also, we rate it at 4 since the CSF presents well. The 4G has become the stream of telecommunication market now. It is essential to develop 4G market, so 4G deployment 9% 1 0.09 we weight the CSF for 9%, which we think it is very important. However, when it comes 4G deployment, Sprint presents poor in this CSF, so we rate it at 1. 4 Churn rate 7% 2 Sprint’s churn rate is high, but we think it is not a very important part of Sprint, so we weight it at 7%. Also, the rate of 2, because it is still better than the fourth carrier T-Mobile. 0.14 Because their ARPU is low compare with other carriers, ARPU 7% 2 0.14 so they can’t get a lot from customers. If they adjust the price, they may lost the market. Network coverage 8% 2 0.16 In the condition of Sprint’s market in the US , Sprint’ service just focus on in the eastern. So we think they can invest more to expand its business. Debt 4% 2 0.08 Debt will be the obstacle for Sprint to expand and will make another expense by interests. 0.21 More and more ITS system need wireless communication to support. They have another opportunity to explore their business in the different industries. ITS development 7% 3 Global market 4% 2 0.08 It is hard to beat AT&T or Verizon, so they must think something different for Global market. Otherwise ,Sprint still cannot win this two carriers Wireless technology in hospital 7% 3 0.21 Just like ITS development, combining industries can make more profit. 5 different Government regulation Saturated market 8% 8% Competitors 8% Total 100% 2 2 1 0.16 It is difficult to avoid for sprint, because they have large amount of debt. 0.16 Compare to another carrier in the saturated market , Sprint didn’t have enough power to fight. But it is an important issue to do. 0.08 Sprint is mainly stressed by the advanced technology and brand of AT&T and Verizon, and T -mobile also gives pressure on Sprint because of its high growth rate. 2.36 6
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