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T-Mobile Case Study Essay

To remain competitive with competition like T-Mobile, Verizon Wireless has begun to include a video calling feature for families who are currently enrolled in their family plan at no additional charge. The plan will be cost effective while giving customers high quality HD voice and video calling features. The market for video chatting is becoming more and more popular with more apps popping up every year. Factors that will affect the demand for family plans that offer video calls for those on the plan include phone quality, video quality and pricing. Consumers may ask if their current phone will be compatible with video calling or if they will need to upgrade their phones, which has the potential to cost a lot of money. T-Mobile is one of Verizon Wireless’s biggest competitors. Currently Verizon is ahead of the curb with its free video chat option while T-Mobile does not offer this for its family plan.

Currently T-Mobile only offers one family plan which limits consumer options. With the added video chatting, Verizon Wireless will provide consumers and future customers with added options to its current selections of family plans. T-Mobiles current family plan limits its customers and does not allow them to even consider adding video chatting. With this new family plan, it is only natural that potential buyers and customer who will be targeted are those who would need a family plan to keep costs at a minimum. Some of these potential buyers include families who have children away for college, the working parent of loved one who does a lot of traveling for work and for family who lives long distances from one another. Many parents also like to have contact with their younger children as well. Having the ability to video chat will give parents added relief in knowing their children are safe and sound.

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