Sprint's new Chief Executive Officer, Marcelo Claure is wasting no time in modifying Sprint's business model and strategy. Claure, the tenacious founder of Brightstar, a billion dollar telecommunications company, has a track record of bold business moves-- which is exactly what he is doing at Sprint. Claure is planning to implement cell phone plans at a cost that will be, "very disruptive" to the market next week.
Mr. Claure has acknowledged the weaknesses and faults with Sprint, like their sub par network coverage and lack of 4G LTE capable areas. As a result of this, he realizes that in order to be successful and remain relevant, Sprint must provide its services at a competitive price compared to the competition.
The next big move that Claure believes is paramount to Sprint's success is improving its obsolete infrastructure. For years Sprint has been running its services on old and slow technology, and as a result, they have lost customer after customer. Not only does this mean that they provide sub par service, but it also keeps them from gaining critical leverage in the industry. While other providers can justify charging customers higher prices because their service is superior while also having the freedom to offer heavily discounted promotions to attract new customers, Sprint can only offer discounted promotions and cheaper service if they want to attract new customers. They lack the latitude that companies like Verizon and AT&T have, which gives Sprint a huge competitive disadvantage.
Claure has also acknowledged that its current promotion, the Sprint Framily plan, leaves customers confused as to how they are actually benefitting. They will look to improve this and Sprint has already tested offering plans nearly identical to its competitors but at a cheaper price or at the same price with twice features in a number of small markets, and I wouldn't be surprised to see them undercut their competition with the rollout of their new plans next week. They will also look to simplify their plans, similar to T-Mobile in recent months.
Things should be looking up for Sprint in upcoming years, though the path to get there will certainly be an investment for the company, which all consumers can cash in on. Sprint's revenues will take a hit in upcoming months but hopefully their increase in market share can compensate for any losses. With Marcelo Claure at the helm today, Sprint is preparing and ready to not only get back into the game, but also compete for the gold.
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