Strategic Plan Presented By:


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


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.


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.


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


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.


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 walkietalkie service market share from Nextel.


Organizational Analysis


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


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


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


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


Broad Environment Issues


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.


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



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


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


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.


Social Issues

• People are busy and on the move
– Allows customers to communicate freely
without slowing down


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


SWOT
Analysis
Internal Strength:

Internal Weakness

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

•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

External Threat

•Rest of the World
•New Advertisements
•Provide a bigger selection of phone
•3 G technology

•Competition
•Not being the strongest
•A lot of phone models we do not have
•Not enough market share


Strength

•
•
•
•
•

 

                                                 

The first one with Walkie-talkie
Sponsor of Wiston Cup

Best Website Award
Highest Per United Revenue
CEO- Tim Donahue


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


Opportunity

•
•
•

Rest of the World
New Advertisements
Provide a bigger

selection of phones
• 3 G technology


Threat

•
•
•
•

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