Legal Final Paper: Overview of T-mobile Writing Assignment

Legal Final Paper
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Legal Final Paper
In today's contemporary business environment, mergers and acquisition are used by many companies to accelerate their business and expand the market share. Mergers of two companies can impact on the business development that is why companies need to be prepared to face challenges in the global market(Cohan, 2017). T-mobile is an example of how companies are adopting different strategies to expand its presence both locally and within international markets despite the challenging business environment. T-mobile's recent announcement of a planned merger with AT&T is one of the attempts to enhance their position in the market. The company has continued to struggle to gain competitive advantage using several strategies.
Even though the main idea behind mergers is to enhance the position of the new company in the market, the problem and challenges associated with mergers can deteriorate the companies' position in a short run perspective (Cohan, 2017). Like other companies, T-Mobile needs to carefully plan for the possible challenges, focusing on maintaining quality and improve its knowledge in management to achieve a positive performance. T-Mobile is faced with some regulatory and political issues both in the domestic and international markets that it needs to address to improve its competitive advantage (Neuman, 2017).
Overview of T-mobile
T-mobile is the fastest wireless and carrier company in the US, according to its customer growth witnessed since its inception. T-mobile is the largest companies providing both data and voice communication worldwide. T-mobile is a German-based mobile phone network established in 1985 known as Deutsche Bundespost Telekom. The company was later renamed Deutsche Telecom in 1996 before it was privatized and renamed T-mobile (Neuman, 2017).
Currently, T-mobile operates in the US and ten other European countries. The number of its subscribers has exceeded more than 150 million, making it the tenth largest mobile service provider. The year 2009 opener for the company, subscribers lost the ability to use their network and could not call or send messages. The problem was witnessed in high-populated areas because the network system was overloaded. T-mobile invested 10 million Euros upgrading its network, a process that was accomplished in 2011(Neuman, 2017).
The company introduced other new strategies to attract new customers, for example, the contract –free simple choice plan has been widely accepted by customers. The "Uncarrier" is also a new plan targeting new customers. The uncarrier plan entails reducing contracts, subsidizing phones calling rates and extra fees for data and providing early termination fees (Neuman, 2017). T-Mobile has faced several challenges due to the explosive demand for its mobile broadband and stiff competition within international markets(Neuman, 2017).
In 2011, the Deutsche Telekom AG and T-Mobile USA from Deutsche Telekom announced plans to merge reaching an agreement valued at $ 39 billion, a move approved by the board of directors of both companies (Neuman, 2017). The merger was meant to provide optimal services by increasing the capacity. The proposed merger also provided an o...