Virgin Mobile UK
1. Virgin Mobile UK primary target is prepaid customers between the ages of 18-35 years. These are individuals that use mobile phones for communication purposes. The focus is directed to these demographics considering that it’s an age group that is underserved by the regular telecom operators resulting from their low credit score (Anderson, & Kupp, 2008). Furthermore, the company is planning to establish its product comprising of with service offerings that emphases on value-added services.
- The success enjoyed by Virgin Mobile UK is culminated in its capability to leverage on an existing customer base to gain access to more customers at a reduced cost. The company has customers who can access its products from approximately 6 thousand retail shops in the UK market and get access to company products either through the internet or using cell phones. On the other hand, the company has managed to penetrate the Australian and American markets with plans set to join the Canadian market as well (Anderson, & Kupp, 2008). Another essential strategy is to provide products that are fully-fledged affordably. The company has not introduced the subscription services, and customers are expected to pay for the actual utilization of its services. Virgin Mobile aims to improve its existing services instead of introducing new services into the market. All these set policies have enabled the company to have a huge pool of customers in the UK in that it’s one of the fastest developing mobile providers.
3. The mobile technology market is an increasingly volatile environment; this can be attributed to a rapid transformation in technology. As a result, Virgin mobile dependency on its legacy and reputation to deal with customer’s necessities may not be workable in the long term. This implies that the company has to modify its orientation from strongly focusing on providing solely what customer needs to ensure that it aligns itself to a technology-oriented strategy. This calls for increased emphasis on the need for innovation, considering that its customer preferences tend to align with the changes in the predominant technology or as technology changes. They can consider adopting the strategy of outsourcing business procedures that can link well with partners and suppliers. Furthermore, the existence of various contractors makes it possible for the company to retort consequently to market changes and hence to allow it to locate and hire skilled workers.
Part B
Based on Porter’s Five Forces outlook, Virgin Mobile is a subject to a noteworthy threat considering the amount of competition within the mobile networks industry. A high level of competition lowers the amount of profits created by the prevailing firms. This is a condition that does not encourage new firms to enter the industry (Anderson & Kupp, 2008). The issue of Threats from substitutes stands to be significant, considering that there are numerous firms like the emergence of Tesco and Easy Mobile, which puts comparatively comparable services in the market. Considering that the number of service providers are many in this industry leave customers with an increasing level of bargaining power. Finally, the fact that rivalry is high in Virgin Mobile must put it into consideration as well.
The notable core competencies that Virgin mobile has the capability to influence the existing customer base and gain access to even more at a reduced cost as compared to its competitors. Another core competency is based on the company’s capability to lower its rates through brand loyalty, outstanding customer service, and increased post-pay retention over prepay. Above all, the primary competency is founded on the creation of new revenue policies that are enhanced by penetrating the market segments, which is also increased through leveraging new-fangled distribution channels with precise value propositions.
The company’s strengths are significant economies of scale in that it has been able to combine numerous services, thus increasing its customer base and revenue generation. The company also mirrors an exceptional distribution network that comprises of more than six thousand sales outlets (Anderson, & Kupp, 2008). All of these have well-organized structures that assist in increasing access to the market. Some of the notable weakness revolves within internal managerial uncertainty linked with rapid expansion. Its opportunities comprises of intense competitive condition that offers virgin mobile brand a niche to position itself as a sturdy and a value leader. The notable threats are from new entrants into this market, which is likely to poses increased competition, especially if they manage to develop novel, innovative operations and services.
Virgin Mobile mission is focused towards offering a specific group of customers or users with mobile network services founded on these customers interests. On the other hand, its vision is to ensure that the company remains a leader within this industry, particularly in the UK. Finally, the goals and objectives seem to be aligned well with the prospect of fortifying a more extensive customer base by providing service at affordable prices.
Reference
Anderson, J., & Kupp, M. (2008). Virgin Mobile UK. ESMT-TiasNimbas Case Study.