Company Analysis of T-Mobile – Research Paper Example
Company analysis is a process where an investor engages in the in-depth evaluation on a corporation. The investor analyses the code of conduct, growth prospects, financial information and financial statements. Information got from the unit is useful for to comparison purposes with other business groups in the same industry. Thus, business analysis enables an investor to know whether to invest in the company.
The T-Mobile company is a subsidiary of Deutsche Telekom AG Company (located in Germany). T-Mobile incorporates code of regulation to establish social expectation of the employees of the company. The Company acts in honesty and integrity in its business dealings in order to gain confidence and respect from its clients. Each employee has a responsibility to understand the code of conduct. The code of ethics/conduct is in alignment with the Deutsche Telekom’s code of conduct. Adherence to the rules helps the company to manage and provide pleasing results.
The growth potential of T-Mobile USA seems to be weak. The goal of the T-Mobile company is to provide an excellent and extensive wireless network. All through T-Mobiles history, the company has experienced growth after emerging from its parent company. For example, in 2003, T-mobile was the first wireless carrier to take video messaging services in the United States. With a steady growth in its history, the company seems to have taken a jeopardizing turn when it recently stopped offering handset discount to its customers. The bold step by the US wireless service provider has the potential of interfering with the pricing of the handsets. If this trend continues, it will translate to larger competitors benefiting from poaching of clients who would require subsidies from the T-Mobile company in the USA.
As of August 2012, the company’s revenue fell by 3.3%. The 2012 profit of the company fell from $212 million to $207 million. The wireless carrier lost 557,000 long term contract customers who were the most lucrative and paid the highest monthly bills. At the moment, the company’s management system lacks stable organization after CEO Philip Hum had to step down in June 2012. Jim Alling took over the role.
In conclusion, the basic analysis of the T-Mobile company reveals that investors are less likely to invest with the corporation due to its diminishing growth. The T-Mobile business performance is decreasing with time, and if this inclination continues, the company will encounter more losses.