Diagnosing Strategic Problems
According to porter for a firm to be successful, it should select vigorously pursue a strong strategy. That is, a firm must deliberately choose an identifiably distinctive position in the industry, in order to be perceived as an industry-wide cost leader, an industry differentiator. This industry must defend his position by erecting entry barriers.
As an example of company which suffers too many customer complaints due to the fact that their network was so welcome compare to the competition has to offer such as (AT&T, Verizon) is T-Mobile. T-Mobile strategy was not able to deliver a set of benefits different from those offered by AT&T and VERIZON. Because, T-Mobile strategy is neither a quest for the best way of competing nor an effort to be all things to every customer.
T-Mobile USA has built its subscriber base in part through the acquisition of regional carriers. In 2008, the company made a move to strengthen its presence in the southern US with purchase of Suncom for $2.4 billion. The deal added over a million customers in the southern US and Caribbean region to T-Mobile's books. Here this strategy was not well implemented; it doesn’t define a way of competing that delivers unique value in a particular set of uses or for a particular set of customer.
The second symptom that indicate T-mobile may have strategic problem is that T-mobile slow to introduce new products in a fast changing environment compare to AT&T which enable the magnificent phone with all in one Option meaning a i-pod and a phone in only one component: i-phone. Product that carries thousand of customers the first week of appearance. T-mobile was expected to fit not only increases competitive advantage but also makes a strategy harder to imitate by the competitors, therefore the company will lack any disadvantage.
