Essay - Nextel Communications Inc. - 2004 Healthy Competition Within any Industry...

Nextel Communications Inc. - 2004

***** competition within any industry is a vital element of ensuring that the best quality service reaches the customer at the lowest possible price. In fact, the wireless communication ***** has proven this by continually increasing the ***** and variety of its services while lowering ***** prices for these *****. Cell phone customers now have a huge variety ***** choices to meet every conceivable need. The problem for ********** companies now is that the market is being saturated, and concomitantly, competition is increasingly significant. It is perhaps little wonder then ***** the largest competi*****rs are stooping to actions such as law suits in order to mitigate ***** ***** secure the market share for particular developments. And example of ***** is Nextel Communications, Inc. and its dispute with Verizon over ***** walkie-talkie service.

***** core of the dispute is *****'s accusation that Verizon ***** used false advertis*****g in its campaign and ***** the company has s*****len Nextel's slogan, "Push to Talk." Verizon's new development follows on the heels ***** the walkie-talkie service, and hence Nextel is suspicious of ***** creati*****. The problem ***** that Verizon could w***** the dispute and be allowed to proceed with its plans. This ***** result in substantial competition for Nextel's *****, along with ***** loss of legal fees ***** man hours in ***** ***** dispute.

While it is qu*****e logical ***** Nextel to enter the legal *****, and while ***** ********** grievance appears legitimate, the company might also consider whether ***** fees would not be better applied ***** responding to the rising competition. In an industry ***** is as highly competitive ***** wireless communications, comp*****ies might expect that similar products at ***** ***** will be developed. Law suits for each ***** ***** new ***** ***** be expensive and unwarranted. Ra*****r than spending valuable revenues on these in additi***** to possibly tarnish*****g the company's reputation, the time and resources could more valuably be applied to developing new and more competitive products.

***** high ***** rate in the ********** necessitates fast and numerous new developments. Nextel Communications Inc. can much more valuable spend its time and money by investing in new ideas. Court cases take ***** and energy, while also ***** highly detrimental to the *****ve process. In this way, ********** are incurred not only in terms of legal fees ***** work hours, but also in terms of creativity and new products within the company.

In addition, law suits could ***** a detrimental effect on a ********** reputation. If Nextel were for ***** to lose the case, Verizon receives the right to continue with their product. Potentially, Nextel's reputation could be harmed by its involvement in an apparently petty attempt to corner the ***** on *****ir product. Even if the comp*****y wins, the ***** could be equally damaging in ***** of lost hours as well as ***** and ***** damages.

*****, the company's existing ***** edge is signifi*****t enough to help the company respond to competition products without the ***** of time- and