T-mobile's Core Competency

T-Mobile's core competency lies in price, price, price! T-Mobile's rate plans are noticeably cheaper than their competitors, for example:

(2 lines) T- Mobile - Verizon - AT & T
700 minute Family plan: 79.95 99.99 99.99
UNL N/W/MSG

This is a very common family plan and right here, by choosing T-mobile, a 2-line customer would save 20 dollars (plus taxes) every month. T-mobile also offers about 10 dollars less for Internet features for their blackberry devices and other smart phones/PDA devices as well. When price becomes an issue to potential wireless consumers and to existing customers of T-Mobile's competitors, T-Mobile's luring lower prices definitely act as its core "deal-sealing" component above all else.

Also, T-mobile does not require new customers to pay crippling deposits if their credit is less than "adequate" for a regular post-paid account. Verizon and AT&T can ask for hundreds of dollars worth of deposits upon activations for these type of customers, however T-mobile no longer requires such deposits, but instead rolled out with "Flex-pay," which is a new type of service payment plan, allowing customers to get the same benefits of post paid, but with the same "pay before usage" structure of pre-paid. This has sealed the deal with the alluring quality of price for T-mobile, especially since it now can attract and keep customers with even not-so-good credit.

Additionally, although it does not compare to price as the spotlight core competency for T-mobile, the product of the My faves plan for T-mobile definitely has acted as a nice compliment for the Price tactic. They are able to attract their competitors customers away with their prices, yet they understood that they may run into the problem of the customers having their friends and family still having their competitors' services. Therefore, this my faves plan gave customers the ability to pick five people from any network, any provider, and talk to them as much as they want, anytime they want, for free. They can even change this whenever they want to, as long as its not more than once a month. This my faves plan enhanced the main strength of T-mobile and acted, and still acts, as the final push for many customers to switch. It lets them save money and still talk to the people they want for free.