Jeff Kagan: How Sprint Will Succeed

Jeff Kagan  |

The world’s eyes are now on Sprint (S) . They have a new CEO and Softbank (SFTBY) is their new majority owner. The questions that the media, investors and workers are asking me are simple… will Sprint succeed going forward, what will it look like, and how should we measure their success? Let’s take a closer look and try to answer those questions and more.

To answer these questions, is it important to realize that Sprint is changing. That means a new owner Masayoshi Son of Softbank, a new CEO Marcelo Claure, and new strategies for growth going forward.

That means we can no longer look at Sprint’s history for help. Going forward we must measure Sprint based on where they are now and how well they change, expand and grow.

While things look a bit confusing at Sprint right now, the new CEO Marcelo Claure and majority owner Masayoshi Son, CEO of Softbankseem to have a solid growth plan. And this plan is continually evolving.

What they have to do next is two things. One, make it happen and two, communicate well with investors, workers, customers and competitors. Everyone is watching very closely and evaluating Sprint. This is a critical time in their history and they have to get it right from the start.

Making it happen and making sure the marketplace understands Sprint success going forward is key. The US marketplace has cut off many companies and executives at the knees if they didn’t understand this key principle.

So it’s vital to make sure investors, workers and customers are included and all on the same team as the company. That will create a very important bond and avenue for growth going forward. These groups can be helpful for Sprint’s growth going forward if they understand the path and the goal.

Just look what Apple (AAPL) does as an example of success in this area. Every company faces the same challenges, but some rise to the top, quarter after quarter.

The Sprint Renaissance

This is Sprint’s first opportunity in a long time to create a new brand and image going forward.

The new brand and shiny image is key to success going forward. This is a new chance to let the marketplace fall in love with the new Sprint story. The Sprint Renaissance.

Good emotion from workers, investors and customers often surprisingly plays one of the most important roles in a company’s success going forward.

Think of Sprint as a caterpillar going into a cocoon last summer. Now it is getting ready to come out as a butterfly. We don’t know what to expect yet, but this is a unique opportunity to recreate the Sprint image and brand in the minds of the marketplace.

Sprint rebuilt their entire network. Now they must rebuild and freshen up their brand. Doing this well is key to Sprint success going forward. Sprint needs friends in the marketplace. This is a perfect new opportunity for them to do just that.

I think it’s important to give Sprint some slack. A honeymoon period.

After all they not only have a new CEO and new owner, Softbank, but they are also rebuilding their entire network and promise to come out as a brand new kind of wireless company.

We must give the new Sprint the chance to finish this process so it can emerge and claim it’s new place in the growing and changing industry.

You see it’s not just Sprint that is changing. It’s also all competitors in the entire wireless industry. There are many examples I can give you, but just look at what is happening recently. (AMZN) has jumped into the smartphone market with their Fire Phone. The Fire Phone is not a direct competitor to the Apple iPhone, Google (GOOG) Android or Samsung (SSNLF) Galaxy, but is an important part of the Amazon marketing mix.

Instead this is a device that will help sell more stuff from their web site. So this Fire Phone doesn’t actually have win against Apple and Samsung to be a winner. As long as it makes more successful by selling more stuff, it will be a winner.

AT&T (T) is very successfully re-pricing their line of phones and services. They are also moving into many new areas like the automotive industry, healthcare, retail, home security and automation and many more.

T-Mobile is changing who they are and how they compete over the last year as well. They are once again growing. They are not moving into all these new areas like their competitors, but they are growing and that is making their investors happy.

Verizon Wireless (VZ) is not changing so quickly, but they never do. They are always dragged kicking and screaming toward new wireless opportunities and I am sure they will do the same thing now.

Sprint Looking Forward

So what will Sprint look like going forward? That’s the question their new CEO must answer. He must get the marketplace behind Sprint rooting for their success. That’s key.

I think Sprint will continue to be a provider of wireless services, but their customers will be very happy with the quality and reliability and speed of the new network. That’s what Masayoshi Son CEO of Softbank has been promising for quite a while.

I also think Sprint will move into new areas of growth which should be very innovative. However we’ll have to wait until new CEO Marcelo Claure and Masayoshi Son starts to roll them out.

Waiting is always the toughest part. But as long as they offer a good quality product with lots of innovation, and as long as they communicate well with the marketplace, I think Sprint has an excellent chance to see rapid growth going forward.

Just look at T-Mobile as an example. About a year and a half ago T-Mobile was crashing and burning. With a new CEO and new thinking they have very quickly turned that boat around.

The same success can transform Sprint just as quickly. This is what I see as Sprint’s future based on what I have heard over this last year.

There is so much more to say about the New Sprint, but let’s just keep our eyes on them and we’ll talk some more in coming weeks.

For now let’s just give Sprint the time it needs to complete it’s transformation and come out of the cocoon as a beautiful new butterfly.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to:


Symbol Name Price Change % Volume
AAPL Apple Inc. 168.49 -6.23 -3.57 42,303,509 Trade
S Sprint Corporation 6.01 -0.12 -1.96 13,121,102 Trade
AMZN Inc. 1,629.13 -70.06 -4.12 7,578,040 Trade
VZ Verizon Communications Inc. 57.68 -0.40 -0.69 16,948,198 Trade
GOOG Alphabet Inc. 1,036.58 -32.15 -3.01 2,101,724 Trade
T AT&T Inc. 30.14 -0.39 -1.28 37,474,553 Trade
PNP.RT:CX2 Pinetree Capital Ltd. Rights n/a n/a n/a n/a


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