Competitive Strategies and Government Policies

Competitive strategies and government Polices

ECO/365

Competitive Strategies and Government Policies

T-Mobil – Global competition on the decisions made by management with regards to change in labor demand, supply, relations, unions, and rules and regulations in your chosen industry.

T-Mobile US, Inc. is the fourth largest wireless service operator in the United States. T-Mobile international AG is the parent company for T-Mobile US, Inc. Based out of Germany; the company has a strong hold in the globalization market. In 2012, T-Mobile US, Inc. performed a horizontal merge with MetroPCS, the fifth largest wireless service operator. This deal extended cash flow to expand its network to provide service for those desiring contract and prepaid service. This strategy increased its competiveness in the U.S. market.

In 2011, AT&T, the second largest wireless service operator, failed to merge with T-Mobile due to government resistance and FCC regulations. The acquisition would have made AT&T the largest provider, while severely decreasing competition in the market. However, in late 2013, there are talks of a horizontal merger with Sprint, the third largest wireless service operator. The general guidelines that the Justice Department currently uses for horizontal mergers are based on the Herfindahl Index (Coriander, 2010). “The review of a proposed horizontal merger looks at whether the merger will result in the ability of the firm to “maintain prices above competitive levels for a significant period of time” (Horizontal Merger Guidelines, Department of Justice) by improving the firm’s ability either to coordinate its actions with other firms or to unilaterally raise its prices. The Justice Department looks most closely at mergers that result in 35 percent market share, but still takes into account whether viable competitors provide sufficient alternatives to keep prices at competitive level” (Coriander, 2010).

Demand for labor is defined as a concept...