Business theory: Sprint Corporation
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Business theory: Sprint Corporation
Sprint corporation is the fourth largest mobile network operator in the United States. The company provides wireless and internet services to its customers in the US and Canada. It has been perceived as one of the most badly reputed companies in the US. In this paper, we will discuss the economic environment of the corporation and analyze them in accordance with Rostow’s model and Galbraith’s star model.
Before analyzing the company’s progress, we should take a look at the economic stats of Sprint corporation for this fiscal year. In the first quarter of the fiscal year of 2019, the corporation reported a total net loss of $111 million with an operational revenue of $455 million, and attuned EBITDA(Earnings before interest, tax, depreciation and amortization) of $3 billion ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"rJ9Rkw4L","properties":{"formattedCitation":"(\\uc0\\u8220{}Sprint Reports Fiscal Year 2019 First Quarter Results,\\uc0\\u8221{} n.d.)","plainCitation":"(“Sprint Reports Fiscal Year 2019 First Quarter Results,” n.d.)","noteIndex":0},"citationItems":[{"id":51,"uris":["http://zotero.org/users/local/DTmO0ro3/items/MZD9NEHF"],"uri":["http://zotero.org/users/local/DTmO0ro3/items/MZD9NEHF"],"itemData":{"id":51,"type":"webpage","title":"Sprint Reports Fiscal Year 2019 First Quarter Results","abstract":"Wireless service revenue of $5.3 billion Postpaid wireless service revenue of $4.2 billion grew year-over-year Postpaid average revenue per account (ARPA) of $124.89 stabilized year-over-year Net loss of $111 million, operating income of $455 million, and adjusted EBITDA* of $3 billion Postpaid net additions of 134,000 Data device net additions of 262,000 were partially offset by phone net losses of 128,000 Average postpaid accounts were stable year-over-year Continued momentum on Next-Gen Network deployment True Mobile 5G network launched in parts of five major metro areas with more to come Network investments of $1.2 billion grew year-over-year for the fourth consecutive quarter Further progress on digitalization initiatives Postpaid gross additions in digital channels increased approximately 50 percent year-over-year Sprint Corporation (NYSE: S) today reported results for the fiscal year 2019 first quarter, including year-over-year growth in postpaid wireless service revenue and","URL":"https://investors.sprint.com/news-and-events/press-releases/press-release-details/2019/Sprint-Reports-Fiscal-Year-2019-First-Quarter-Results/default.aspx","language":"en-CA","accessed":{"date-parts":[["2019",11,20]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (“Sprint Reports Fiscal Year 2019 First Quarter Results,” n.d.).
Evaluating the economic environment of the company according to Rostow’s stages of growth development model, Sprint corporation started on the take-off stage of development and continued to develop into the age of high mass consumption. Several years ago, Sprint corporation was one of the most well-developed companies with the most advanced smartphone carriers in the industry. It was the first network to offer phones with next generation cameras. But then the downward spiral of the company started ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"7PrffRcT","properties":{"formattedCitation":"(\\uc0\\u8220{}Solving the Sprint Problem,\\uc0\\u8221{} n.d.)","plainCitation":"(“Solving the Sprint Problem,” n.d.)","noteIndex":0},"citationItems":[{"id":43,"uris":["http://zotero.org/users/local/DTmO0ro3/items/CU7BPZQA"],"uri":["http://zotero.org/users/local/DTmO0ro3/items/CU7BPZQA"],"itemData":{"id":43,"type":"webpage","title":"Solving the Sprint Problem","abstract":"A quick look at the wireless industry over the last several years shows wave after wave of innovation and success. In fact, success has been bigger than anyone's wildest dreams. However, success does not come to all. Why do some companies, like AT&T and Verizon, seem to hit the ball out of the park, while Sprint Nextel and T-Mobile keep striking out? And what can they do about it?","URL":"https://www.ecommercetimes.com/story/75200.html","language":"en","accessed":{"date-parts":[["2019",11,20]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (“Solving the Sprint Problem,” n.d.). The company failed to provide good quality services and customer support and thus built a bad reputation for a couple of years. According to recent surveys, the corporation has solved most of its problems but the customers, having a long memory will take a long time to realize it, and the company will continue to suffer ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"QjLWR8e4","properties":{"formattedCitation":"(\\uc0\\u8220{}Top 5 Findings,\\uc0\\u8221{} n.d.)","plainCitation":"(“Top 5 Findings,” n.d.)","noteIndex":0},"citationItems":[{"id":56,"uris":["http://zotero.org/users/local/DTmO0ro3/items/HCZAQK3B"],"uri":["http://zotero.org/users/local/DTmO0ro3/items/HCZAQK3B"],"itemData":{"id":56,"type":"webpage","title":"Top 5 Findings: Sprint Consumer Survey | Sprint Newsroom","URL":"https://newsroom.sprint.com/top-five-findings-sprint-consumer-survey.htm","title-short":"Top 5 Findings","language":"en","accessed":{"date-parts":[["2019",11,20]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (“Top 5 Findings,” n.d.). It already has a debt of $40 billion ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"tavP4zq4","properties":{"formattedCitation":"(St, n.d.)","plainCitation":"(St, n.d.)","noteIndex":0},"citationItems":[{"id":54,"uris":["http://zotero.org/users/local/DTmO0ro3/items/SY2NRWCY"],"uri":["http://zotero.org/users/local/DTmO0ro3/items/SY2NRWCY"],"itemData":{"id":54,"type":"post-weblog","title":"Sprint Corporation (NYSE:S): Time For A Financial Health Check","abstract":"Investors pursuing a solid, dependable stock investment can often be led to Sprint Corporation (NYSE:S), a large-cap worth US$25b. Doing business globally, large caps tend to have diversified revenue streams and attractive capital...","URL":"https://simplywall.st/stocks/us/telecom/nyse-s/sprint/news/sprint-corporation-nyses-time-for-a-financial-health-check/","title-short":"Sprint Corporation (NYSE","language":"en-AU","author":[{"family":"St","given":"Simply Wall"}],"accessed":{"date-parts":[["2019",11,20]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (St, n.d.).
According to Galbraith’s star model, a number of problems can be identified with the economic environment of Sprint corporation. The Galbraith model recognizes the need of organizations to adapt over time and in reply to changes in strategy, in market atmosphere, or in the external corporate environment ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"hVEwr6GE","properties":{"formattedCitation":"(Garner, n.d.)","plainCitation":"(Garner, n.d.)","noteIndex":0},"citationItems":[{"id":45,"uris":["http://zotero.org/users/local/DTmO0ro3/items/HI7HJECS"],"uri":["http://zotero.org/users/local/DTmO0ro3/items/HI7HJECS"],"itemData":{"id":45,"type":"webpage","title":"Implementing Your Business Model With the Galbraith Star Model","abstract":"<p><strong><span><span><span>Organizations struggle to know how to </span>successfully execute their business models and value propositions. </span>They often don't know what to do afte","URL":"https://www.strategyzer.com/blog/posts/2015/2/03/implementing-your-business-model-with-the-galbraith-star-model","language":"en","author":[{"family":"Garner","given":"Benson"}],"accessed":{"date-parts":[["2019",11,20]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Garner, n.d.). . In the Galbraith model, the first and the most important steps in the proper functioning of an organization is its strategy, which determines its direction of development. The Sprint corporation, from a market-leading position failed to compete with its competitors in the long term due to poor strategy. According to reports, one of the biggest difficulties that Sprint is facing is the lack of low band-spectrum to buy ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"1MXlU0Nb","properties":{"formattedCitation":"(\\uc0\\u8220{}Sprint blames network for much of its \\uc0\\u8216{}difficult situation\\uc0\\u8217{} that\\uc0\\u8217{}s only getting worse,\\uc0\\u8221{} n.d.)","plainCitation":"(“Sprint blames network for much of its ‘difficult situation’ that’s only getting worse,” n.d.)","noteIndex":0},"citationItems":[{"id":49,"uris":["http://zotero.org/users/local/DTmO0ro3/items/UPKHTSBU"],"uri":["http://zotero.org/users/local/DTmO0ro3/items/UPKHTSBU"],"itemData":{"id":49,"type":"webpage","title":"Sprint blames network for much of its ‘difficult situation’ that’s only getting worse","container-title":"FierceWireless","abstract":"Responding to comments in connection with the FCC’s review of T-Mobile and Sprint's proposed merger, the Kansas-based operator said it’s “in a very difficult situation that is only getting worse” and proceeded to spell out many of its troubles in a new FCC filing.","URL":"https://www.fiercewireless.com/wireless/sprint-blames-network-for-much-its-difficult-situation-s-only-getting-worse","language":"en","accessed":{"date-parts":[["2019",11,20]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (“Sprint blames network for much of its ‘difficult situation’ that’s only getting worse,” n.d.). As a result, customers are shifting to their competitors. Such conditions show the lack of leadership vision in the executive leadership. This when added with the allegations, on Sprint corp. by the federal communication commission, of accepting subsidies without providing services to the customers, paints a very dismal picture ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"AhVu4vzq","properties":{"formattedCitation":"(Lowe, n.d.)","plainCitation":"(Lowe, n.d.)","noteIndex":0},"citationItems":[{"id":53,"uris":["http://zotero.org/users/local/DTmO0ro3/items/GQUHLETD"],"uri":["http://zotero.org/users/local/DTmO0ro3/items/GQUHLETD"],"itemData":{"id":53,"type":"webpage","title":"Feds Say Sprint Falsely Took Millions For Service It Failed To Provide For Low-Income Consumers","abstract":"Sprint Corp. was accused by the Federal Communications Commisison on Tuesday of falsely accepting millions of dollars in subsidies for low-income","URL":"https://www.kcur.org/post/feds-say-sprint-falsely-took-millions-service-it-failed-provide-low-income-consumers","language":"en","author":[{"family":"Lowe","given":"Peggy"}],"accessed":{"date-parts":[["2019",11,20]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Lowe, n.d.). The business model of Sprint is failing big time.
The sprint corporation needs to restructure its business model to get itself out of the hole it is in right now, with the company already perceiving to miss its yearly target after the first quarter. One of the solutions that is being proposed for the struggling corporation by experts is re-branding. The reason is that in the open market, reputation plays a big part. Once you gain a bad reputation in the industry, a customer is usually very reluctant to use your services. It seems like the executive leadership of Sprint, is again showing lack of vision.
Works cited:
ADDIN ZOTERO_BIBL {"uncited":[],"omitted":[],"custom":[]} CSL_BIBLIOGRAPHY Garner, B. (n.d.). Implementing Your Business Model With the Galbraith Star Model. Retrieved November 20, 2019, from https://www.strategyzer.com/blog/posts/2015/2/03/implementing-your-business-model-with-the-galbraith-star-model
Lowe, P. (n.d.). Feds Say Sprint Falsely Took Millions For Service It Failed To Provide For Low-Income Consumers. Retrieved November 20, 2019, from https://www.kcur.org/post/feds-say-sprint-falsely-took-millions-service-it-failed-provide-low-income-consumers
Solving the Sprint Problem. (n.d.). Retrieved November 20, 2019, from https://www.ecommercetimes.com/story/75200.html
Sprint blames network for much of its ‘difficult situation’ that’s only getting worse. (n.d.). Retrieved November 20, 2019, from FierceWireless website: https://www.fiercewireless.com/wireless/sprint-blames-network-for-much-its-difficult-situation-s-only-getting-worse
Sprint Reports Fiscal Year 2019 First Quarter Results. (n.d.). Retrieved November 20, 2019, from https://investors.sprint.com/news-and-events/press-releases/press-release-details/2019/Sprint-Reports-Fiscal-Year-2019-First-Quarter-Results/default.aspx
St, S. W. (n.d.). Sprint Corporation (NYSE:S): Time For A Financial Health Check. Retrieved November 20, 2019, from https://simplywall.st/stocks/us/telecom/nyse-s/sprint/news/sprint-corporation-nyses-time-for-a-financial-health-check/
Top 5 Findings: Sprint Consumer Survey | Sprint Newsroom. (n.d.). Retrieved November 20, 2019, from https://newsroom.sprint.com/top-five-findings-sprint-consumer-survey.htm
