Strategic Plan Presented By:

1. Strategic Plan Presented By:

2. Brief History • April 1987Nextel's predecessor—Fleet Call, Inc.—is founded • 1993Fleet Call, Inc. changes name to Nextel Communications, Inc • 1997Nextel 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

3. 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.

4. 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.

5. 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

6. 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.

7. 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 walkie-talkie service market share from Nextel.

8. Organizational Analysis

9. 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

10. 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

11. 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

12. 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

13. Broad Environment Issues

14. 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.

15. 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

16. 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

17. 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

18. 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.

19. Social Issues • People are busy and on the move • Allows customers to communicate freely without slowing down

20. 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

21. SWOT Analysis

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

23. 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

24. Opportunity • Rest of the World • New Advertisements • Provide a bigger selection of phones • 3 G technology

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

26. Strategy Formulation

27. Growth Strategy • Price • Differentiation • Focus

28. Pricing Strategy The prices of our calling plans will be geared toward the competitive nature of our industry.

29. Calling Plans

30. Technology and Service Differentiation • iDEN™ technology • Digital Cellular • Direct Connect ® Service • Nextel Mobile Messaging • Nextel Online®Service

31. Product Innovation • Personalized to customers needs • Java technology-enabled • Enhanced with latest business tools

32. The iBoard • Compiles email • Manages address books and calendars • Java-enabled applications • From a wireless phone and keyboard

33. The Handheld Blackberry • Versatile • Powerful • Portable

34. Nextel Worldwide Our customers will have the freedom to travel the world knowing that our network is continuous in global satellite mode.

35. Focus Target Audiences: • Enterprise • General Business • Vertical Markets

36. Vertical Industry - Computer services    - Construction and building trades    - Education    - Field sales and service    - Financial services    - Government/Public sector    - Healthcare    - Hospitality    - Manufacturing    - Professional services    - Real estate    - Retail    - Transportation and distribution

37. Service Area

38. Nextel’s Market Share

39. Customer ServiceTrouble!!! • Extra Charges • Bad attitude • Never call back after they promised

40. Human Resource Department • Human resource Department will work with line managers as an advisor. • Bring in older workers • More training

41. HR work with line manager • Monitor and find out what exactly went wrong • Serve as an advisor • Avoid turf war between department

42. Older Workers • Bring in experience younger people don’t have • Good communication skills which takes years to develop. • Good sense of Ethics which younger workers have not yet developed. • Loyalty.

43. Training • If necessary, employees will go through the training they need in order to provide excellent customer service. • New workers will work with senior workers for around 6 hours a month in order to improve quicker.

44. Accounting Recommendations • Adopt SFAS No. 142. “Goodwill and Other Intangible Assets”. • Not required to amortize goodwill and intangible assets with indefinite useful lives • FCC Licenses for Spectrum • Capitalize on global market • No International Accounting Standards in place

45. Finance Recommendations • Stay Focused on Mission and Vision because of its value of people • Do not focus on competitor’s plans for generating revenue • Example: Verizon’s Push to Talk Service • Continue to balance disciplined financial management with smart strategic investments

46. Marketing Recommendations • Differentiation in product lines to fit different market segments • Expansion into currently untapped markets • Differentiation from competitors through technological advancement

47. READY. SET. DONE.