Political and Legal Environments/Structures for Sprint Domestically and Globally
In its pursuit for survival in the domestic environment amidst the different political and legal structures, Sprint has been able to collaborate with Nextel leading to a combination that brought together two wireless companies with similar objectives. This combination between the two companies has resulted in more than 50 million subscribers coming on board with the United States digital wireless market. In that regard, Sprint's wireless business has been able to offer its services via close to seven million lines of access in eighteen states with the United States. The other way through which Sprint has, attempted to pursue its survival in the competitive world of business involving cell phone and wireless networks is making investments in technological creativity and innovation (Besen et al ., 2012). In this respect, Sprint has collaborated with T-Mobile to creatively innovate the integration 5G network into it services to make them more attractive to customers and more competitive in both the domestic and global business environments. Moreover, the innovation of 5G network can raise the capacity of operation for Sprint in a manner that increases the depth and breadth of the coverage require cover as many customers as possible. The global environment for the operation of Sprint is characterized by competition from strong and more economically successful players in the cell phone and wireless service provision industry. Despite being among the companies with the largest market share, in the global market, Sprint still finds itself struggling to cope with the competition from both local and international companies (Curwen, 2014).
The survival of Sprint in the cell phone world has been characterized by its ability to respond and remain sustainable in different local and global political environments. A stable political environment that has been witnessed in the United States over the last couple of years has played an instrumental role in presenting Sprint with opportunities of making a strong come-back through collaboration with other companies. Presently, it is the hope of the leadership and management of Sprint that the Trump administration will create a politically stable and business-friendly environment for it its effort towards growth and sustainability to pay back (Besen et al ., 2012). The argument against the merge that Sprint seems to have been depending on bringing its presence back to the track of profitability is that it violates legal provisions that guide and regulate both the domestic and global engagements between different companies in the cell phone world. The creation of merge may be considered as an opportunity for cell phone service provider companies to encourage growth and development as well as assisting the struggling companies. However, the legal environment within the United States and around the Globe in countries such as Britain does not encourage such a move. This is because the occurrence of such mergers in the world of cell phones is highly likely to reduce competition. The absence of competition in any market often leads to a considerable increase in prices beyond what the customers may be willing and able to pay. For instance, large mergers in the cell phone industry at the local and global markets like that of AT&T and Cingular are likely to introduce the risk of monopoly in the market since the number of alternatives available to customers is significantly reduced (Jung & Xiong, 2017).
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Existing Barriers in Domestic and Global Political-Legal Environments
One of the barriers to the efforts by Sprint in trying to survive in the cell phone world emanates from its lack of sufficient economic and legal merits to support and strengthen its merger with companies like T-Mobile. Moreover, such deals have been regarded as being pro-competition thereby fostering the existence of new rivalries in the cell phone industry. In this case, barriers associated with the legal environment have been making it difficult for Sprint to thrive in its merger with the T-Mobile. The status of this barrier has been worsened by the increase in competition from AT&T and Verizon which happen to among the most prominent wireless companies dominating the cell phone industry at the local level. Concerning the legal environment, it is worth noting that the merger between Sprint and T-Mobile has been subjected to a review based on competition policies operational with the local United State market. Another barrier existing in the political-legal environment and standing in the way of Sprint as it attempts to work towards its survival is associated with regulatory measures (Besen et al ., 2012).
In this way, attempts by Sprint to create a merger with other companies with the objecting of boosting its financial performance have previously been rejected. This rejection has been seen as a barrier based on strict and unfavorable policy and regulatory requirements governing merger and competition among companies in a domestic business environment. Previously, the chief executive officer of Sprint has been involved in long-term political campaigns with the aim of influencing the domestic political-legal environments (Curwen, 2014). This influence was made possible by persuading the political players and those in power to develop favorable and business-friendly policies and regulations. Nonetheless, the Trump's administration has been vigorously working toward the formulation of policies and regulatory measures that are meant to discourage anti-competitive deals such as the one between Sprint and T-Mobile. Domestically, the operations of Sprint have been met regulatory barriers created by state and local governments to ensure that they meet the acceptable quality standards as well as the prevailing demand and customer expectations. Sprint has found such conditions to be acting as barriers owing to the nature of its financial struggles (Jung & Xiong, 2017).
References
Besen, S., Kletter, S., Moresi, S., Salop, S., & Woodbury, j. (2012). An Economic Analysis of the Sprint-T-Mobile USA Wireless Merger. SSRN Electronic Journal . doi:10.2139/ssrn.2045713
Curwen, P. (2014). Anatomy of a merger: Sprint Nextel. Info , 9 (4). doi:10.1108/info.2007.27209dab.001
Jung, J., & Xiong, X. (2017). SoftBank’s Acquisition of Sprint Nextel Corporation. AsianCase Research Journal , 21(02), 377-392. doi: 10.1142/s0218927517500134
