Sprint is in a cost cutting and restructuring stage. The company is seeking to dump $2.5 billion in expenses and lay-off employees. They are in a craze to right size their sinking ship and seek to redevelop themselves on a sleeker model. There are a few lessons any business should consider before getting into this situation.
Sprints decline was apparent from years ago when other companies like T-Mobile offered no-contract services that attracted consumers. Sprint stayed with older contract models and were unyielding to disgruntled customers.
They no longer led the market and didn't offer exciting new products. Their products were the same as everyone else and did not differentiate their brand. The failed to scour the market for new innovations to refresh themselves.
They failed to diversify fast enough into other services when the cell phone business became saturated. Offering other related services might have opened up new revenue streams. They could have used their powerful position to corner a related market.
Their structure became huge, expensive, uninnovative, and lacked efficiency. Their structure became bureaucratic and they failed to seek a less centralized model that limited liabilities.
They didn't see the need for change fast enough. Sprint was having problems for some time but executives didn't see the need for change. It is a problem of poor leadership and poor culture.
Sprint will take a big hit and will need to rethink their business if they hope to survive. Their cost structure is mammoth and their cash is burning quickly. Soon they may be digging into their assets and selling off sections of their business. Without rethinking their business model and market approach they will limp along as a weaker version of the once powerful giant.
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