Competitive Strategy

Industry-Wide Low Cost Strategy 

FIVE FORCES

Bargaining Power of Customers

Although there are several choices within the wireless industry, customers are limited to the carriers available in their area.  They can set limits as to what they are willing to pay and demand certain levels of service but ultimately their bargaining power is reflected in the competitive prices and options offered between the wireless companies.  
Force Strength: Medium

Threat of Substitution

At this point in time there is no substitute for internet/WIFI and/or mobile access.  Until there is an alternative to this method of communication the threat of substitution is limited to a nearing obsolete form of data exchange such as wired telephone and print.
Force Strength: Low

Bargaining Power of Suppliers

In order for T-Mobile to stay in the market, the suppliers it must deal with offer specialized technology such as mobile devices and communication network access hardware. The number of suppliers offering this level of technology is limited making their negotiation position more powerful.
Force Strength: Strong

Threat of New Entrants

T-Mobile is in mobile/wireless industry which is more centralized with few companies. New entrants need a great deal of capital to start-up in order to secure telecommunication tower rights . The wireless industry also has lobbyists to influence government regulation in order to make it difficult for any new entrants.
Force Strength: Low

Rivalry

Although there are several rival companies within the wireless industry, T-Mobile offers all plan options including no contract for bargain customers. Customers also have an option to upgrade their phone for every six months  to keep up with new technology.  This pricing structure has kept the rivalry strength down.
Force Strength: Medium