Analysis of Sprint PCS Essay Example | Topics and Well Written Essays - 750 words

Analysis of dash PCS - Essay ExampleWhile in services main cost are connected to equipment maintaining those services and puzzle little impact on prices (which are mainly formed by clients demands), brisk phones have a lot of issues on manufacturing and in particular testing product costs. One hundred percent of mobile phones are tested to ensure regulative and standard compliance, where many other consumer electronic products are merely sample tested. (Strickler, 2004). Additionally, mobile phones have ultra-short brio cycles comparing to other consumer electronics, which is followed with more funds spent on designing new models. As about of the manufacturing of Sprint is outsourced to China manufacturing labor costs are considered to be low. Still in the context of obstreperous competition in the wireless industry they must be taken into account.Recent years have been regarded as productivity increasing due to technological innovations in manufacturing. Raw materials needed for production of cellular phones are the industry without a clear cut leader, which on with decreasing overall waging costs and at the same time slight increase in average wages had a positive invite on productivity and average total costs of cellular phones as labor productivity growing settles in near its longer-run trend of 2 to 2-1/2 percent, increases in unit labor costs may begin to put some upward pressure on prices, offsetting possible moderation in nonwage costs (Bernanke 2005).As iMarket StructureAs it was stated earlier cellular phone industry is very expectant leaving no free space to possible new contenders. Market structure in mobile services is an oligopoly, when power is concentrated in the hands of several key players, that is Cingular, Sprint, T-Mobile, Verizon etc. Position of Sprint in mobile phones industry is comparatively weaker, major players are Nokia, Motorola, Siemens, Alcatel and Sony Ericsson.Such heavy competition along with the wide choice of ve ndors available to clients creates implications on pricing. Simply there is very little space for adjusting prices because a company has to stay close to its main pricing curve. Cellular phones have evolved from a hi-tech thingamabob to an everyday life commodity negatively affecting prices, which continue to decrease. On the other side exceedingly wide audience of consumers and further shortening life-cycle increases amounts of cell phones sold.Recent performance of Sprint shows that while the customer beggarly of the company continues to increase its revenues are the same as two years ago. Sprints subscriber base grew 110% but its market share has barely changed since June 2002. Price erosion and competition has reduced service revenue by 19% (Alexander Resources, 2005) Moreover the company experiences low customer satisfaction recently gear up by Strategy Analytics Sprint PCS posts below average ratings on many measures, though the carrier does redeem itself somewhat with a well-received product and service range (Wi-fitechnology.com 2004).Therefore Sprint PCS needs changes in its dodging for further development. First of all, if bigger is not better Sprint needs to reduce the distance surrounded by the company and a certain customers group. Secondly it should pay more attention to the quality of its products to increase customer satisfaction with more added value.Economic ForecastBasing on the macroeconomic forecast presented by the learning group (Hahn et al 2005) I have selected the following factors that will affect the demand of