Sprint Nextel, a service provider of mobile voice, data and web services over a nationwide wireless network. It also provides long-distance voice, internet and data over a landline based network. Their wireless segment also sells accessories, such as carrying cases, hands-free devices, batteries and battery chargers, as well as the handsets and accessories to use their service to agents and other third-party distributors for resale. Consumers use several of these products along with their service they provide to communicate through mobile (cell) phones, laptops, personal computers, video game consoles, televisions and DVD players loaded with apps, Global Positioning Systems, Voice Over Internet Protocol (VOIP), etc…, the list has far too many uses to name the all.
Consumer demand is greatly affected by price, service availability and reliability and the technology offered in their products, both theirs and that of their competitors. Other factors are laws that restrict usage, ...view middle of the document...
Complements include an entire market of accessories, apps, websites and social media hubs, furniture not to mention an increase in electricity use to include newer solar cell batteries being introduced for use with a number of devices.
The mobile phone market as a whole appears to be very elastic. They are not necessities, there are already a lot of phones out there, so if prices were to go up fewer people would buy new or phones and fewer people would upgrade their existing phones. However there may be a small market with individuals who for professional reasons find mobile phones are very necessary. Doctors, executives, those whose work causes them to travel excessively, work outdoors in different locations and others businesses like these, who need to be reachable as a part of their work, will exhibit inelastic buying behavior. Whether the phone cost is small or large, if they have to have it to do their job, they'll spend the money so they can continue to work.
This industry is very capital intensive and relies heavily on technological advances and the ability to have a large cash flow available. It is most assuredly an oligopoly, as Sprint (together with Nextel) along with Verizon, AT&T and T-Mobile accounted for almost 90% of United States cell phone market the last couple of years. While there is some competition between these companies, any change in price they make will have an effect on the other few companies in the market to respond in line with them, making the interdependent. No question they are price setters rather than takers. The need to use satellites and cell phone towers, landlines and other infrastructure already in place makes entry into the industry extremely high. The prospects for this company are extremely good. They have an obvious firm position in this market and with very few opportunities for other companies to enter into the market; there will be very little opposition from new companies. However, since they are very dependent on continuing to discover new uses and technologies, they must continue to compete with the other currently stable companies already in the market. This requires have large cash flow available for research and development, which could cause a problem if they ever became financially restricted.