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Business & Marketing
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Strategy in Practice assignment. Tmobile and Sprint merge

Research Paper Instructions:

STRENGTHENING A COMPANY’S COMPETITIVE POSITION:
STRATEGIC MOVES, TIMING, AND SCOPE OF OPERATIONS
Among other topics, this week’s chapter covers mergers and acquisitions. For this week’s
Strategy in Practice assignment, you are charged with finding a contemporary news article, from
a reliable source, that discusses a merger or acquisition that has recently been announced, is
currently in progress, or has just been finalized. The article that you select must be one published
within the last four (4) months. Write at least 200 words summarizing the article (20 points) and
at least 500 words explaining how it ties into the material presented in Chapter 6 (80 points).
Provide, in the Works Cited section, the full citation (do not include the article) for your selected
article, including the URL, if applicable.
Fully discuss the selected merger or acquisition, and include as much pertinent information as
necessary, both from the text and from your own research, to thoroughly describe the strategic
ramifications of the transaction, the impact of the deal on the industry(ies), and the advantages
and disadvantages of the strategic choice discussed in the article.
Remember that your article must be current, and your discussion must be comprehensive.

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T-Mobile and Sprint merger
Internationally, companies merge with an eye of stimulating growth, increasing market share, improving efficiency, to gain competitive advantages as well as increase supply chain pricing power. Over the years, mergers and acquisitions have been on the rise, with the global value of merger deals reaching $ 3.2 trillion by the year 2018 (Schmidt, 430). For example, in the United States, merger and acquisitions were over $1.6 trillion by the year 2018. Therefore, this study seeks to explore the merger between T-Mobile and Sprint.
Over the years, the merger between T-Mobile and Sprint, two among the four major mobile carriers has been occurring. However, the deal did not materialize until June 2018 when the two companies made an application to the relevant authorities, publicly beginning the evaluation process that would see the emergence of one company, T-Mobile. On July 26, 2019 the Justice department accepted the deal that made T-Mobile the third largest carrier after Verizon and AT&T, with its new combined customer count at over 126 million and estimated value of $146 billion (Cheng).
Like many other mergers, the deal between T-Mobile and Sprint will bring more resources to each organisation than previously held when they were independent entities. In reality, the merger is expected to accelerate growth in terms of new devices and coverage. For example, the merger is believed to bring 5G coverage easily and earlier which promises more pervasive connectivity and greater speeds. Similarly, the merger will see the customers enjoy more benefits such as lower prices attributable to economies of scale as well as better overall cell coverage. For instance, T-Mobile users will be able to reach Sprint Towers while Sprint customers will be able to utilize T-Mobile towers. However, the merger has received many speculations over how it will play out for customers and employees (Cheng).
The logic behind the merger is quite simple; with Verizon and AT&T commanding more customers and network technologies than either T-Mobile or Sprint, merging would create a higher ...
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