1. Strategic Plan Presented By:

2. Brief History April 1987 Nextel's predecessor—Fleet Call, Inc.—is founded 1993 Fleet Call, Inc. changes name to Nextel Communications, Inc 1997 Nextel introduces the Nextel National Network and announces no roaming fees for customers traveling on the network—a first in the wireless industry 2004 Nextel and Verizon trying to settle dispute over walkie-talkie service each has to offer

3. Vision The company’s vision is to make Nextel the first telecommunications company that draws customers because of – not despite – the quality of both our network and our customer service.

4. Mission Statement Our business is wireless communications. Our mission is actually to help people talk less and do more. Wireless products and services that help doers get it done, instantly, anywhere. Our mission is to provide high quality, integrated wireless service that maximizes customer and investor value.

5. Guiding Principles Strive for 100% customer satisfaction Strive for 100% partner satisfaction Achieve targeted revenue growth with a low cost structure Achieve win-win results through the power of teamwork Work smart while remaining humble

6. Company Overview Nextel is a Fortune 200 company based in Reston, Virginia. Nextel is traded on the NASDQ National Market under the symbol NXTL. It employs approximately 18,000 workers in the U.S. We recognizes that people are the company’s biggest asset. Diversity and inclusion is our commitment. We work hard to create a working environment where all employees, customers, suppliers, and community partners feel welcome, valued, and respected regardless of their background. Nextel has recently become an International company with service in Mexico, Canada, and Latin America.

7. Statement of the Problem Nextel recently battled with Verizon over its walkie-talkie service. Walkie-talkie is a service that allows phones to send voice messages to each other instantaneously. Nextel and Verizon have been in court trying to settle a dispute over Verizon’s announcement of “Push to Talk”. Verizon’s “Push to Talk” service is a copy of Nextel’s Direct Connect walkie-talkie service, which is its major chief competitive advantage. Nextel is accusing Verizon of stealing the slogan “Push to Talk” and of false advertising. Verizon has counter sued, saying that the idea was theirs first and that it is in fact Nextel that stole the idea. If Verizon succeeds, it could potentially take some of the walkie-talkie service market share from Nextel.

8. Organizational Analysis

9. What do we do? leading provider of fully integrated wireless communication services largest guaranteed all-digital wireless network in the country only nationwide network with 99.5% uptime cover thousands of communities across the United States Nextel and Nextel Partners, Inc. serve 297 of the top 300 U.S. markets

10. How do we survive? competitive advantage determines the survival ability of the company Nextel’s chief competitive advantage is its Direct Connect walkie-talkie service being threatened by Verizon’s “Push to Talk” which provides a similar approach to Nextel’s Direct Connect feature is key among competitors’ initiatives to copy and improve upon

11. How to stay in the game. walkie-talkie feature has helped Nextel to attract high-value customers Nextel is the current leader in Average Revenue per user lower plan prices or expand coverage areas to remain competitive must react effectively to penetration of its market to remain the leader in this type of service

12. Strategic Partnerships & Alliances Nextel offers technology and services differentiation Strategic partnerships and alliances helps provide end-to- end solutions Nextel’s goal is to provide each of its customers solutions tailored to their specific needs Provides services for corporations, education, public safety, and most importantly the public sector Complex systems integration Enterprise applications development & support Hardware manufacturing & support Motorola, IBM, Trimble, NASCAR

13. Broad Environment Issues

14. Legal and Governmental Issues Federal Communications Commission (FCC) –Independent United States government agency, directly responsible to Congress –Responsible for implementing the competitive bidding authority for spectrum auctions, given to the Commission by the 1993 Omnibus Budget Reconciliation Act.

15. Legal and Governmental Issues What is spectrum? –Spectrum is defined as the distribution of wavelengths and frequencies. Why is it important to the wireless industry? –Valuable asset in wireless communications –Determines the frequency levels that maintain signal strength and speed of connectivity

16. Legal and Governmental Issues Frivolous lawsuits –Ownership of overcrowded airwaves have increased –Class action lawsuits have been filed on the basis of health issues such as cancer caused by wireless device –Claims that rate structures assesses federal program cost recovery fees on monthly customer bills are misleading and unlawful

17. Legal and Governmental Issues FCC designates a range of 800 MHz and 900 MHz to cellular wireless 800 range of spectrum is shared with police, fire, and ambulance systems Limits growth and strategy plans

18. Social Issues Concerns about health risks associated with wireless equipment may reduce the demand for our services. –Alleged to pose health risks including cancer due to radio frequency emissions from these devices.

19. Social Issues People are busy and on the move –Allows customers to communicate freely without slowing down

20. Economic Issues Recent decline in economy has began to slow the demand for wireless technology Technology is always changing causing overhead costs to increase Stiff competition

21. SWOT Analysis Internal Strength: The first one with Walkie-talkie Sponsor of Wiston Cup Best Website Award Highest Per United Revenue CEO- Tim Donahue Internal Weakness Not enough Advertisement(Not creative) Walkie talkie is restricted Walkie-talkie is not useful with the it is in a long run Too small of a market we have External Opportunity Rest of the World New Advertisements Provide a bigger selection of phone 3 G technology External Threat Competition Not being the strongest A lot of phone models we do not have Not enough market share

22. Strength The first one with Walkie-talkie Sponsor of Wiston Cup Best Website Award Highest Per United Revenue CEO- Tim Donahue

23. Weakness Not well Known Not enough Advertisement(Not creative) Walkie talkie is restricted Walkie-talkie is not useful with the it is in a long run Too small of a market we have

24. Opportunity Rest of the World New Advertisements Provide a bigger selection of phones 3 G technology

25. Threat Competition Complains about customer service A lot of phone models we do not have Not enough market share

26. Strategy Formulation

27. Growth Strategy Price Differentiation Focus

28. Pricing Strategy The prices of our calling plans will be geared toward the competitive nature of our industry.

29. Calling Plans Nextel National Power Plans PlanMonthly fee Anytime Minutes Night and Weekend Minutes Long Distance Direct Connect Nextel National Power 500 $45.99500UnlimitedIncludedUnlimited Nextel National Power 800 $55.99800UnlimitedIncludedUnlimited

30. Technology and Service Differentiation iDEN™ technology Digital Cellular Direct Connect ® Service Nextel Mobile Messaging Nextel Online ® Service

31. Product Innovation Personalized to customers needs Java technology- enabled Enhanced with latest business tools

32. The iBoard Compiles email Manages address books and calendars Java-enabled applications From a wireless phone and keyboard

33. The Handheld Blackberry Versatile Powerful Portable

34. Nextel Worldwide Our customers will have the freedom to travel the world knowing that our network is continuous in global satellite mode.

35. Focus Target Audiences:  Enterprise  General Business  Vertical Markets

36. Vertical Industry - Computer services - Construction and building trades - Education - Field sales and service - Financial services - Government/Public sector - Healthcare - Hospitality - Manufacturing - Professional services - Real estate - Retail - Transportation and distribution

37. Service Area

38. Nextel’s Market Share

39. Customer Service Trouble!!! Extra Charges Bad attitude Never call back after they promised

40. Human Resource Department Human resource Department will work with line managers as an advisor. Bring in older workers More training

41. HR work with line manager Monitor and find out what exactly went wrong Serve as an advisor Avoid turf war between department

42. Older Workers Bring in experience younger people don’t have Good communication skills which takes years to develop. Good sense of Ethics which younger workers have not yet developed. Loyalty.

43. Training If necessary, employees will go through the training they need in order to provide excellent customer service. New workers will work with senior workers for around 6 hours a month in order to improve quicker.

44. Accounting Recommendations Adopt SFAS No. 142. “Goodwill and Other Intangible Assets”. –Not required to amortize goodwill and intangible assets with indefinite useful lives FCC Licenses for Spectrum Capitalize on global market No International Accounting Standards in place

45. Finance Recommendations Stay Focused on Mission and Vision because of its value of people Do not focus on competitor’s plans for generating revenue –Example: Verizon’s Push to Talk Service Continue to balance disciplined financial management with smart strategic investments

46. Marketing Recommendations Differentiation in product lines to fit different market segments Expansion into currently untapped markets Differentiation from competitors through technological advancement

47. READY. SET. DONE.