Arch Wireless, Inc. – Case Solution

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Arch Wireless, Inc. Case Answers

This case solution includes an Excel file with calculations.

Highlights of Arch Wireless, Inc.

Arch Wireless, Inc. is a leading provider of wireless messaging and information services. It was established sometime in 1986. It operates in each of the 50 states of the United States, the U.S. Virgin Islands, Puerto Rico, and Canada.

The company primarily provided numeric and alphanumeric messaging services. Currently, it provides one-way and two-way paging devices.

Analysis of the American Economy in 2001

• The Gross Domestic Product of the country fell at a .4 percent rate after the terrorist attack on 9/11 & there are predictions of a 1% further fall in GDP next year.
• According to the National Bureau of Economic Research (NBER), which is the private, nonprofit, nonpartisan organization charged with determining economic recessions, the U.S. economy was in recession from March 2001 to November 2001.
• Unemployment rose from 4.2% in February 2001 to 5.5% in November 2001. A net of 1.735 million jobs were shed in 2001.

PESTEL Analysis

Political

• The political environment of the USA is stable.
• The government tax policies, laws, and regulations help technology companies to grow and get protection in financial distress.

Economic

• The GDP of the country fell in 2001, which might have a negative impact on the buyer’s purchasing ability.
• The recession will decrease the growth of the wireless telecom sector as people won’t purchase the technology products if income decreases.
• An increase in the unemployment rate will decrease the operational efficiency of companies such as Arch Wireless, Inc.

Social

• The social trend is changing rapidly. People are willing to spend more on products with better features and higher efficiency.

Technological

• Technology is advancing rapidly. Information technology is leading the world into a new era of knowledge economy.

Environmental

• Environmental awareness has increased. The operations of the companies should promote sustainable development.

Legal

• The legal obligations in the USA should be strictly followed by the companies, including Arch Wireless, Inc.

Porter’s 5 Forces of Competitive Position Analysis

Strategy Analysis of Arch Wireless, Inc.

• Providing wireless messaging and information services to subscribers for a monthly servicing fee
• Making growth by acquiring more than 35 other messaging companies
• Financing acquisition with debt
• Incorporating two-way messaging with wireless e-mail and…