The Sprint Corporation is a United States’ communications company that provides communication services and products suitable fo businesses, resellers, and government corporations among others (Crandall, 2010) . Along with the 51 estimated States that Sprint Company serves, it also provides communication services and products to the Virgin Islands and Puerto Rican markets. Other services and products offered by Sprint Corporation include emailing services, Internet Protocol services, navigation tools, and fleet management services (Crandall, 2010) .
Sprint’s domestic environment is the United States. The US has a 318 million populace that is diversified and ensures a stable market for Sprint (Bairoch, 2013). Some crucial aspects facilitating the country’s economic development include specialized labor, improved savings patterns, increased participation in export business, and outstanding urban development. Nevertheless, the economic developments have been compromised by terror attacks, high costs of property ownership, increased interest rates, and the 2008 financial crisis (Bairoch, 2013). Despite these incidences, the economy has seen consistent growth in a bid to ensure increased employment rates, business investments, and consumer spending. The USA’s GDP is over 15million, hence a capacity to develop its economy with support from its service and manufacturing sectors (Bairoch, 2013). However, the constantly increasing budget deficit hinders Sprint Company’s growth.
Delegate your assignment to our experts and they will do the rest.
As identified by Rostow, there are five economic phases that businesses undergo. These phases are such as consumer spending, take-off prerequisites, actual take-off, and efforts to attain financial maturity. Rostow’s takeoff prerequisites comprising of enhanced infrastructural investments, imports development, mass consumptions, and takeoff essentials necessitate a growth in net investments and notable events in manufacturing corporations such as Sprint Telecommunications (Witcher & Chau, 2010). Moreover, this phase requires a well-organized support structure including financial institutions and tax systems. The US manufacturing sector is the central economic pillar. Thus, Sprint Corporation has ensured increased investments by maintaining approximately 12.1% of the market after Verizon and AT&T with 31.2% and 25% respectively. Due to the existing competition, Sprint has participated in mergers and acquisitions to reinforce its market share and resources further. For instance, Sprint acquired Nextel and predisposed of the WiMax segment to create Clearwire, a 14 billion dollar move.
However, other economists such as Galbraith maintain that demographic, organizational, social, and cultural factors are crucial to business success and efficiency, in addition to capital accumulations (Szirmai & Verspagen, 2015). Many telecommunication establishments have been compromised by a lack of motivation and inadequate production skills, hence calling for increased investments. Subsequently, the Sprint Company has ensured constant infrastructural developments to overcome expenses relating to poor trade systems and unhappy consumers (Witcher & Chau, 2010). For instance, the company has invested millions in reinforcing its telecommunication infrastructure, taking advantage of its age-long existence to introduce the 4G network. Rostow also acknowledges the role of mass consumption in motivating economic developments. In the case of Sprint, mass consumption has been encouraged by the conducive relationship that the company has managed to maintain with both consumers and suppliers. Relationship building has mainly been done through concentration on research to determine the company’s security, evaluation, and technical needs.
Considering Rostow’s phases of economic development, Sprint’s market positioning and development can be termed encouraging, as indicated by recent restructuring efforts that focused on the utilization of core competencies (Szirmai & Verspagen, 2015). Sprint’s markets have maintained profitable inter-boundary trade connections, diverse consumer segments, and efficient trade logistics. These advantages have enabled the organization to incorporate the best talents in its workforce and financially strong suppliers. The company also has an innovation-centered development that has reduced the need for resources and facilitated the creation of digital fiber optic infrastructure and security technologies.
On the contrary, Galbraith’s model states that training, capital supply, specialized education, security, and advanced infrastructures form the pillars for effective industrialization (Szirmai & Verspagen, 2015). Galbraith highlights security as the backbone of economic development, considering that the Sprint Corporation has well-established support systems and infrastructures (Witcher & Chau, 2010). Thus, incidences of employee retrenchment that left 55% of workers in the supply chain department jobless created job security concerns and trust issues among the remaining workers. In spite of this, however, Sprint continues to realize considerable survival due to factors assessed above such as market positioning and development, infrastructural developments and mass consumptions.
References
Bairoch, P. (2013). The economic development of the Third World since 1900 . Routledge.
Crandall, R. W. (2010). After the breakup: US telecommunications in a more competitive era. Brookings Institution Press.
Szirmai, A., & Verspagen, B. (2015). Manufacturing and economic growth in developing countries, 1950–2005. Structural Change and Economic Dynamics , 34 , 46-59.
Witcher, B. J., & Chau, V. S. (2010). Strategic management: Principles and practice . S.l.: Cengage Learning.
