1. Sprint Nextel Corporation Analysis and Recommendation
Group 3
Mahsa Mirbod, Thanh Trinh, Atsuko Guise, Stephen Davis, Trey LaFranchi

2. Agenda Sprint's Current Situation Our Strategic Focus
Financial Analysis
SWOT Analysis
Resources & Capabilities
Value Chain Analysis
Recommendations
Questions

3. Sprint's Current Situation
Weak financials
Declining subscriber base
Strong competition
In the process of being acquired by SoftBank
Pursuing the purchase of all remaining shares of Clearwire

4. Our Strategic Focus
How should Sprint utilize its newly acquired assets from both the SoftBank and Clearwire acquisitions?
What actions can Sprint take to ensure a smooth and successful transition to the new ownership?

5. Direct Competitor Comparison
Financials
Direct Competitor Comparison
Sprint
Industry
Market Cap
21.19B
1.53B
Qtrly Rev Growth
0.01
0.22
Revenue
35.40B
1.26B
Gross Margin
0.42
0.41
EBITDA
5.32B
303.21M
Operating Margin
0.02
0.10
Net Income
-4.11B
N/A
EPS
-1.37
0.07
P/E
16.84
PEG
-1.60
1.24
P/S
0.60
1.04

6. Sprint vs. Industry Leaders
Financials
Sprint vs. Industry Leaders
Statistics
Industry leader
Sprint
S Rank
Market Cap
91.89B
21.19B
67/242
PEG
6.80
-1.60
55/242
Revenue Growth
N/A
0.70%
103/242
Long-term Growth Rate
55.84% 5%
54/242
Return on Equity
399.81%
-48.12%
181/242

7. Financials Sprint Nextel AT&T Verizon Deutsche Telekom
Cost of Goods Sold
58.96
43.33
39.91
39.85
Operating Profit Margin
(5.10)
10.20
18.13
7.51
Sprint Nextel
AT&T
Verizon
Deutsche Telekom
Inventory Turnover
19.73
49.65
45.89
21.17
Inventories Days Held
18.50
7.35
7.95
17.24

8. SWOT Analysis Strengths Significant market position
"Simply Everything" plan
Superior customer service
iPhone launch
Weaknesses
Late-mover in term of handset offerings
Sprint's WiMax lags behind others' LTE
High amount of Debt
Low Market Share
Decline in subscriber base
Opportunities
Merging with SoftBank
Net Vision Deployment
Small business solutions (Sprint Biz 360)
Threats
Market saturation
Spectrum scarcity
Competitors' handset offerings
Clearwire's losses leads to further impairments

9. Sprint Resources and Capabilities

10. Sprint Resources and Capabilities

11. Value Chain Analysis Key to Success
Primary Activities: Improve Logistic Management
Supporting Functions: Collaboration with the business partners

12. Recommendations
Use newly acquired wireless spectrum from ClearWire to bump up cell and WiFi connectivity.
Leverage the ClearWire acquisition in the final negotiations with SoftBank.

13. Dealing with SoftBank
Do not overhaul current management, use trained Sprint University employees.
- Bring in consultants while forming cooperative teams.
Focus on R&D, with new SoftBank investments
Keep true to vision and mission. Open mind to SoftBank ideas.

14. Thank you for your attention!
Questions?