Solution
Sangeeta answered on
May 24 2020
1. For the corporation that has acquired another company, merged with another company, or been acquired by another company, evaluate the strategy that led to the merger or acquisition to determine whether or not this merger or acquisition was a wise choice. Justify your opinion.
AT&T amalgamated with T-Mobile in the year 2011 and at present AT&T is considered as being the leading wireless ca
ier all around the US leaving behind their key competitor i.e. Verizon Wireless. The acquisition proved beneficial for T-Mobile as it was capable of reducing all its debts through acquiring AT&T stocked value (Cameron, 2014). Subsequent to the acquisition, AT&T has started focusing upon increasing the network as well as coverage and expanding their Long Term Evolution technology distribution. Moreover, the wireless sector performs a vital part for AT&T as it enables long-term sustainability for the business since the company would require working on latest strategies for developing new devices and newest applications for the buyers. Moving ahead, T-Mobile was struggling hard and its stocks were decreasing. In such a condition, the only possible solution was joining hands with AT&T and it was a sound prospect for both the corporations. T-Mobile initially laid emphasis upon basic provisions such as texting, free minutes over the weekend, voice mail and accessible plan for the users. The company was performing quite well with all its basic services; nevertheless at the time when the wireless data captured the marketplace it began losing business. Majority of its users looked for superior technology, prefe
ed using new devices, inexpensive data plans and good volume of wireless data (Besanko et. al., 2012).
Additionally, T-Mobile completely forgot upgrading the internet network and this one mistake
ought them behind their key rivals. At the time when T-Mobile recognized that all these modifications were taking place and the company was gradually losing customers, it made an effort of entering the business again however it was quite late by then (Cameron, 2014). The company’s competitors including AT&T, Sprint and Verizon were providing latest technology, latest devices as well as advanced wireless internet data to the users. The corporation began focussing upon wireless data, superior services along with latest technology and they started gaining back its customer. The company couldn’t compete with the 3G network, thus it introduced the 4G network within the US. But, once the wireless sector gained pace with 4G network, the company began to lose its business once more. This sector is a speedy marketplace for the reason that users want newest technology and continuously upgrade plan and devices.
In such a situation, AT&T observed a good chance of merging with T-Mobile as by doing so it would become the leading wireless corporation within the US. The company observed that T-Mobile was a key rival and an outstanding opportunity. AT&T is enjoying high advantage as it is competing effectively with its competitors and makes available cheaper plan, no contract plan and phones (Cameron, 2014). Being a prepaid corporation it offers the best unlimited plan at reasonably low cost for attracting the buyers. Further, on the whole it can be stated that AT&T made a good choice by uniting with T-Mobile as that has placed the company among the leading positions within the business industry.
2. For the corporation that has not been involved in any mergers or acquisitions, identify one (1) company that would be a profitable candidate for the corporation to...