Price Barriers to Entry
- Submitted by: tdepps
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- Date Submitted: 02/25/2011 06:37 PM
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Price Barriers to Entry
Introduction
In today’s business, economic influences play a vital part in the success of an organization, especially when customers are cautious about spending their money on goods and services. In order for Sprint Nextel Corporation to be successful, they must carefully analyze the industry they are in by understanding how economic influences can affect the role and infrastructure of their organization. When it comes to completing with competitors like Verizon Wireless, AT&T Mobility, and T-Mobile, executive leaders must act intelligently to strengthen their foothold in the market, while finding creative ways of promoting their products globally. These major telephone service providers also want to maintain a market structure that makes it difficult for new competitors to enter the market, creating an oligopoly market. By creating an oligopoly market these companies are creating and maintaining high standards for barriers to entry that create obstacles for potential competitors trying to enter the market. It also gives Sprint an advantage because of the limited number of competitors makes it easier for them to monitor and track changes.
The goal for Sprint is to become a global leader in the telecommunication industry. In order to do this the organization must revolutionize the telecommunication industry by limiting the access of potential competitors while increasing its current customer base. The primary objective is to establish target goals through aggressive advertising by offering exclusive services packages that will give the organization a competitive edge over competitors. The use of non price barriers will give Sprint and its current competitors a unique market strategy that will discourage future competitors from entering the telecommunication industry.
Barriers for Entry
Advertising
Trademark infringement / Customer Loyalty
Advertising is at the beginning of the maturing stage. The organization must continue to stay...
Introduction
In today’s business, economic influences play a vital part in the success of an organization, especially when customers are cautious about spending their money on goods and services. In order for Sprint Nextel Corporation to be successful, they must carefully analyze the industry they are in by understanding how economic influences can affect the role and infrastructure of their organization. When it comes to completing with competitors like Verizon Wireless, AT&T Mobility, and T-Mobile, executive leaders must act intelligently to strengthen their foothold in the market, while finding creative ways of promoting their products globally. These major telephone service providers also want to maintain a market structure that makes it difficult for new competitors to enter the market, creating an oligopoly market. By creating an oligopoly market these companies are creating and maintaining high standards for barriers to entry that create obstacles for potential competitors trying to enter the market. It also gives Sprint an advantage because of the limited number of competitors makes it easier for them to monitor and track changes.
The goal for Sprint is to become a global leader in the telecommunication industry. In order to do this the organization must revolutionize the telecommunication industry by limiting the access of potential competitors while increasing its current customer base. The primary objective is to establish target goals through aggressive advertising by offering exclusive services packages that will give the organization a competitive edge over competitors. The use of non price barriers will give Sprint and its current competitors a unique market strategy that will discourage future competitors from entering the telecommunication industry.
Barriers for Entry
Advertising
Trademark infringement / Customer Loyalty
Advertising is at the beginning of the maturing stage. The organization must continue to stay...