Sprint didn’t take corporate synergy into account when considering their merger with Nextel. Instead, they chose to apply only a shareholder’s view, concerned mostly with related diversification. In fact, this merger created an unwieldy and inflexible corporation that failed to generate synergies or any sort of compatibility (Silva, 2008). Thus, customers became angry and unimpressed with services and products being offered. Consequently, this low cost of exit allowed customers to switch to cheaper competitors.
