Boston, MA 08/18/2014 (wallstreetpr) – Sprint Corporation (NYSE:S), the No. 3 U.S. largest carrier whose share-price is down more than 47% this year, has big and even serious plans to make itself a business than customers and investors can related to in good terms. The company has a new CEO in the person of Marcelo Claure, replacing Dan Hesse, who almost helped the company to get its hands on rival T-Mobile US Inc (NYSE:TMUS) for about $32 billion.
Shares of Sprint sprinted down 0.35% to close the day at $5.69 on Friday, another day of value bleeding for the shares that have been under pressure in the recent times amid subscriber loss and revenue challenge.
CEO supplies personal email
When Claure held his first meeting with Sprint Corporation (NYSE:S) employees last week, he never stood out as opposed to what Hesse tried to do to help the company become more competitive and interesting to shareholders. As such, besides giving his personal email address to all the employees, Claure endorsed Hesse’s strategies such as network improvement, cost reduction and price cuts to grow the business.
One reason Sprint has been bleeding subscribers concerns network quality, and that is one area that the new CEO hopes to walk the talk. In order to harvest users from rivals T-Mobile US Inc (NYSE:TMUS), Verizon Communications Inc (NYSE:VZ) and AT&T Inc (NYSE:T), Sprints needs to improve its network quality so that it becomes something that U.S. subscribers would be dying to be a part.
Cost-cutting at Sprint Corporation (NYSE:S) was also stressed by Claure at the meeting with the employees. The cost-cutting measures would also involve staff reduction. Although the company has not provided the figure for the number of jobs it wants to eliminate, staff reduction is inevitable.
Price wars and device subsidy
Finally, Sprint Corporation (NYSE:S)’s Claure stressed the issue of growing subscribers and the company intends to take the industry price war to another level as it offers competitive plans on calls, text and data. Even competitive device offerings is being considered, which is why Claure recently met Apple Inc. (NASDAQ:AAPL)’s Tim Cook.