Dec 17, 2014
By Sarah Moore
In an effort to rejuvenate Sprint’s sales and bring a different perspective to its business model, new CEO Marcelo Claure has taken bold steps to shift its workforce. This has included considerable layoffs, including top-ranking company officers.
Among the outgoing are head of enterprise Matt Carter, senior VP of communications and corporate responsibility Bill White, and Chief Marketing Officer Jeff Hallock, all of whom will leave by spring 2015 assuming adequate replacements are found. Other shifts will include outside hires as well as internal promotions, in an effort to realign the company to its new focus.
And what might that be? Claure has stated that one of the most important steps Sprint can take to turn things around is to add to its customer base. Although it is one of the top four carriers in the country, according to Latin Post, it is consistently battling with T-Mobile for the no. 3 spot and is so far behind the top two carriers (AT&T and Verizon) that it presents scant competition to them.
Gaining some of this heretofore out-of-reach market share will not be easy, Claure concedes, but he has detailed plans on how to accomplish his goals. For one thing, he plans to increase the footprint (the area Sprint covers, and consequently where service reaches) as well as reinvent Sprint’s outdated image. Moreover, he hopes to draw in new customers.
A main focus of this effort will be the Latino population. “”We must capitalize on the changing demographics of the nation to win in the wireless market,” the CEO reportedly wrote in an internal memo, according tore/code. Considering that there are about 54 million Latinos living in the United States comprising 17 percent of the nation’s population, according to the CDC, this is no small market.
Claure also intends to widen his approach beyond the Latino segment, targeting the multicultural market as a whole. Other target markets include postpaid, prepaid and enterprise markets.
His plans for Sprint additionally center on some major changes in the business model. In addition to disruptive pricing (selling plans with greater value for lower prices than competitors) and major cost-cutting measures, Claure intends to offer unlimited data. With a 2012 report highlighting Latinos’ propensity for using mobile devices, this is bound to be appealing to that market.
Overall, Claure’s bold plans are bound to shake up Sprint and the wireless industry as a whole.