Cingular has developed a brand name synonymous with extended network coverage and fewest dropped calls. The Cingular brand name was built by putting in years of planning and this definitely gives Cingular a sustained advantage.
Global Presence
Yes
No
Parity
T-Mobile, Verizon and Cingular all have international presence.
As long as these tie up’s with enterprises is not exclusive, other mobile operators can enter the enterprises with attractive rates and plans for employees.
Large subscriber base (free minutes between subscribers)
Yes
Yes
No
Yes
Temporary
Subscribers could move across networks thereby reducing the subscriber base of Cingular.
Most of the service providers are in wireless business. For them to invest in end-to-end solutions of being in both wired and wireless domain will require either merging into other companies or investing in capital intensive equipment to get into wired business; so they will have to invest in building equity alliances with other providers of wired solutions.
Rollover Minutes
Yes
Yes
No
-
TCA
Although Cingular is the only service provider to offer rollover minutes, the offer can be easily imitated by competitors if they choose to.
Technology
Yes
No
-
-
Parity
Most of the wireless providers invest in latest technology to stay competitive in market place.
b) VRIO Analysis for Sprint-Nextel
Resource / Capability
V
R
I
O
Competitive Implications
Reasoning behind “Hard to Imitate”?
Brand Name
Yes
Yes
Yes
Yes
Sustained
Tie up with enterprises
Yes
Yes
No
Yes
Temporary
As long as these tie up’s with enterprises is not exclusive, other mobile operators can enter the enterprises with just as attractive rates and plans as Sprint.
Large subscriber base (free minutes between subscribers)
Yes
No
-
-
Parity
Gaining market share and thereby increasing subscribers is valuable since IN network calling is generally free. However, all competitors are trying to increase their subscriber base.
Integrated voice, wireless, wired services
Yes
Yes
Yes
Yes
Sustained
Not all competitors have wired and wireless service offering and entering into wired business can be costly.
Technology
Yes
No
-
-
Parity
All wireless service providers are investing heavily in technology.
Walkie Talkie Technology
Yes
Yes
No
Yes
Sustained
Walkie Talkie technology can be useful especially in enterprises where corporate users may want to leverage walkie talkie technology instead of making calls. Not all competitors provide this feature.
c) VRIO Analysis for T-Mobile
Resource / Capability
V
R
I
O
Competitive Implications
Reasoning behind “Hard to Imitate”?
Brand
Yes
Yes
Yes
Yes
Sustained
T-Mobile brand is known for providing exceptional GSM service.
Quality: Superior
Yes
Yes
No
Yes
Temporary
T-Mobile offers superior quality of service. Other service providers can offer this service through a little capital investment and phasing out their out equipment with new equipment.
Delivery
Yes
No
Parity
Offer end to end business solutions – both broadband and mobile communications
Yes
Yes
Yes
Yes
Sustained
Significant capital investment and license procurement are needed for firms to enter into broadband and mobile communications. Some firms are in one of these fields while other firms are in both the fields.
Deutsche Telekom Laboratories
Yes
Yes
No
Yes
Temporary
Deutsche Telekom Laboratories performs central research and development. Other service providers can have similar R&D in-house to identify market opportunities.
T-Venture
Yes
Yes
Yes
Yes
Sustained
This group finances and supports innovative start-ups in the telecommunications and IT sectors. Other companies may have to change their organization mentality to come up with such venture group within their organization.
Security
Yes
Yes
No
Yes
Temporary
T-Mobile looks to offer security as a bundled solution in all its offerings.
DT has presence in multiple countries and is governed by one group. So it can use its parental ties to expand services and offerings in one market to other markets.
GSM Network
Yes
No
Parity
d) VRIO Analysis for Verizon
Resource / Capability
V
R
I
O
Competitive Implications
Reasoning behind “Hard to Imitate”?
Brand image
Yes
Yes
Yes
Yes
Sustained
Verizon is known to provide quality coverage at just about everywhere.
V-Cast
Yes
Yes
No
Temporary
Online video and music streaming is limited due to data transfer speed. Verizon is able to use its 3G technology to provide V-Cast. However, this resource can easily duplicated by competitors.
VZ Navigator & Chaperon
Yes
No
Parity
Since all mobile handsets are required to have GPS locator for 911, VZ Navigator and Chaperon is not that rare.
Although it is not impossible to imitate wide area of coverage, it is very difficult. There are limited wireless spectrum allocated from FCC. The only way to increase coverage area is to acquired licenses from existing wireless service provider. Because of the limited spectrum availability, the licenses can be very expensive.
