Despite aggressive campaigns to attract customers with lower mobile phone prices, T-Mobile has been losing large numbers of its most lucrative two-year contract subscribers. Management wants to know why so many customers are leaving T-Mobile and what can be done to entice them back. Are customers deserting because of poor customer service, uneven network coverage, wireless service charges or competition from carriers with Apple iPhone service? How can the company use information systems to help find the answer? What management decisions could be made using information from these systems?
Management should consider these organizational features:
· What are the competitive forces at work in the industry, specifically the relative power of suppliers, customers, and substitute services over prices?
· Is the basis of competition quality, price, or brand?
· How is the industry currently using information technology and is the organization behind or ahead of the industry in its application of information systems?
· How is the company creating value for the customer?
· What are the organization’s core competencies?
Management should make these decisions to ensure the strategy works:
· Has senior management correctly articulated an appropriate business strategy and goals for the organization?
Is the company using the right metrics to measure progress toward those goals?
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