T-MOBILE SWOT ANALYSIS

T-Mobile SWOT Analysis

T-Mobile SWOT Analysis

Introduction

The main purpose of this paper is to make an analysis on the SWOT Analysis of T-Mobile. The paper makes an analysis on the internal strengths, weakness, external opportunities and threats of the company. The paper also makes an analysis on the ways through which the company can maximize its opportunities and avoid threats in the lights of strengths and weakness.

Company Overview

T-Mobile is the mobile operating company, which exists in Germany. The company is a subsidiary of Deutsche Telecom Company. The main purpose of the company is to provide the best quality and better services to customers. The headquarter of the company is located in Bonn, Germany. With the passing time, the company is getting success day by day, and it is considered to be the sixth largest mobile phone service providing company around the globe. With the 101 million subscribers, the company is considered to be the third largest multinational company. The company has also gained success in America, and is ranked as the fourth largest wireless telecommunications networks in America (Baalbaki, 2003). T-Mobile has originated in 1985 by introducing the analog first generation C-Netz. The company started its operations as Deutsche Bundespost Telekom in 1992, under the brand of DeTeMobil. The company is operating under a very competitive industry. The competition in the telecom industry is increasing day by day. Many companies have emerged and made their position in the telecommunication industry.

Internal Strengths of the Company

Strong market position providing enhanced brand image

T-Mobile has a strong market position in various regions in which it operates. The group is a multinational telecommunications group offering mobile phone and data services to individuals and businesses. It has global system for mobile communications (GSM) licenses in 21 countries and internet service provider (ISP) businesses in 13 countries. At the end of 2010, T-Mobile had 141.6 million total subscribers. Further, the group has the largest market share in 15 of its operating markets at the end of 2010 (Shimp, 2000). The group's operations in Germany, USA contributed 61.6% of the total subscribers at the end of 2010. In FY2010, T-Mobile increased its market share to 36% from 32%. T-Mobile in 2010 increased its market share by two percentage points to 52% despite increased competition. Also, T-Mobile cell increased its market share to 44% at the end of 2010, compared to 40% in 2009. In addition, as per the industry sources, the group's brand value was estimated at $4,920 million in 2010, an increase of about 5% over 2009. Strong market position will provide a competitive advantage to the group over other players and helps it in enhancing the brand image (Hills, 1992).

New customer additions to fuel future growth

The group has reported a significant addition of new customers in recent years. T-Mobile's subscriber number has increased at a compounded annual growth rate (CAGR) of 32% from 61.4 million to 141.6 million during FY2007-10. In FY2010, the group reported the net customer additions of ...