...Attn: Virgin Mobile The Virgin Conglomerate is known globally for disrupting industries with innovative practices. It is a highly diversified company with many different business entities operating in various, unrelated industries. Today, Virgin Mobile is on the brink of green-flagging a new cable business designed to solve some of the problems that have long afflicted cellular companies. In essence, Virgin Mobile strives to transform an industry by targeting a younger demographic. Their target market consist of 15-29 year olds since they are believed to be a growing market. However, large companies tend to shy away from this segment since they often have poor credit quality. Considering all the factors involved with entering a new market, a SWOT analysis and Porter’s 5 forces model will analyze the industry’s attractiveness. Porter’s 5 force model effectively assess all factors which include: threat of new entrants, threat of substitutes, bargaining power of customers, bargaining power of suppliers, and rivalry among existing competitors. The threat of new entrants will be rather low since other organizations in the industry have already established their claims on most of the market share. Therefore, Virgin Mobile must assess the barriers to entry to ensure a competitive advantage can be maintained over other rivals. Moreover, mobile phones have become a necessity for everyday life, so these devices cannot be easily replaced, which lessens the threat of substitutes. In...
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...Situation Analysis Virgin, a U.K.-based company, has been one of the top recognized brands in the U.K. with a brand identity that encompasses value, innovation and fun. This allows for the firm to play in numerous industries, everything from aviation to mobile phones. When assessing new market entry, Virgin typically moves into industries where the customer is less than satisfied and the incumbents are complacent. In the U.K., Virgin has been incredibly successful in the firm’s venture into the mobile phone provider industry and is looking to continue the success abroad in the established U.S. mobile phone provider market. The mobile phone provider market in the U.S. is currently a very saturated market with six strong national incumbents and a series of regional providers. That said, it is also a market that is currently neglecting the consumers aged 15 – 29 due to the high cost to attract the consumer, the proportion of individuals in this segment that cannot pass credit checks needed for the traditional voice plans, and the hesitation of pre-pay plan options. Virgin plans on entering the U.S. market through targeting these consumers (age 15-29). The firm has a solid marketing plan which is tailored specifically to appeal to these consumers, including VirginXtras (a focus on exclusive content through the non-traditional phone services such as text messaging, ring tones, music, etc), special packaging and point of purchase, advertising spends targeted specifically at the...
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...Issues Virgin, a U.K.-based company is one of the top three most recognized brands in Britain. Virgin’s cellular operations in the U.K. had signed up approximately 2.5 million customers in just three years. The company had a history of brand extensions and one of these extensions is the launch of their wireless phone services in the USA called "Virgin Mobile". The key issue for Virgin Mobile is to select a pricing strategy that will both attract and retain subscribers. There are three options for pricing that are under consideration. Dan Schulman, CEO of the Virgin Mobile USA is trying to determine which pricing strategy would be most efficient in attracting and sustaining youth market in the USA. Other factors such as unique features that Virgin Mobile can offer in order to differentiate from the competitors, their marketing strategy and Life Time value (LTV) of the customers and customer retention also need to be part of the decision making criteria. SWOT Analysis Virgin Mobile draws its strengths from the vast experience that the parent company has in the UK market. With a 50-50 joint venture with Sprint, Virgin Mobile has setup MVNO model which has low fixed costs as well as low operation and maintenance requirements. Virgin Xtras is a value added proposition that would appeal to the young customers. The strategic agreement with MTV to deliver entertainment functions as well as the cooperation with Target, Sam Goody music stores and Best Buy, will help Virgin Mobile in marketing...
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...Executive summary Virgin Australia is a well known Industry Airline all through the world. In this report I will explain about an analysis of Virgin's present position and to focus the conduct of the industry regarding whether it is performing above or beneath desire. On the foundation of this analysis, suggestions are suggested to help the organization with answers for help to avoid failure if such circumstance was to happen. The report is structure as takes after: In the first area I will give a short foundation of the organization and how it got to be so outstanding. At that point the analysis of Virgin's macro-environment and current strategy and circumstance will be given to support with giving the perfect suggestions to the organization. The objective of this report is to furnish Virgin with important proposals that can help or enhance their current circumstance so they can perform above desire. Introduction Strategic management Strategic management comprises of the examination, choices, and activities an association embraces keeping in mind the end goal to make and support preferences. This definition catches principle component that go to main field of strategic management. The strategic management of an association involves three progressing procedures: analysis, choices, and activities. In order that strategic management is an interest with the analysis of strategic objectives (vision, mission, and goals) alongside the examination of the inside...
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...Study:-Virgin Mobile USA: Pricing for the very first time Introduction: Virgin Mobile Company led by Branson, is a British-base company. Dan Schulman was chosen as CEO in 2001. He was trying to find a niche market in US for virgin mobile. US market was under-served and dissatisfy with existing Carriers. Youth were ignored and no carrier had capitalized on this segment. The company entered in a 50-50 joint venture with US-based Sprint in which Virgin will use Sprint network for US services. The goal of the US Virgin mobile was to have one million subscribers by 2002 and 3 million by year four. Virgin mobile was planning to adopt pre-paid system instead of contract. It was intended to serve those that are unable to have credit cards yet. Virgin mobile had to fight many shortcomings that were endemic in the industry. They preferred to introduce new features that will attract youth to use their services. Therefore, they were worried about pricing their services that should be attractive for the consumers, profitable for the company itself, and not rise the reaction of the rivals. 1. Do you agree with Virgin Mobiles target market selection? What are the risks associated with targeting this segment? Indeed yes, the saturated nature of the wireless communication industry in U.S. made it very difficult for the new brands to enter the market. However the (15-29) market segment is yet remained untouched by the big players. If the youth segment remains the main focus for Virgin, the15-29...
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...Composition Of Virgins Portfolio Marketing Essay The Virgin Group is a multi national corporation with a hugely diversified business portfolio. This essay examines how the Virgin Groups corporate strategy has allowed it to sustain competitive advantage. The first area that is covered is the composition of Virgins portfolio, namely what businesses Virgin is in and what is the logic of their portfolio. Within the composition section it puts forward two models that help to show why Virgin has chosen particular avenues for achieving growth and sustaining competitive advantage. The Core Competence Theory and Parenting Concept are then reviewed critically in regard to Virgin. Porters three tests are then related to the Virgin Group. Next the co-ordination of Virgins portfolio is addressed, how Virgin has managed its portfolio in its quest for growth and a sustained competitive advantage. Within the composition section of the essay is the issue of control versus the co-operation of Virgin and its business units. It then handles the four concepts of corporate strategy and how Virgin can and has used them to add value to its business units. The link between Virgins Corporate and Marketing strategy is then discussed before the other side of the argument is considered, looking at how Virgins corporate strategy destroyed rather than added value. Finally having synthesised the various diverse elements the essay concludes by using the knowledge gained to raise questions for Virgin about their...
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...THE VIRGIN GROUP CASE STUDY QUESTION 1: What examples does the case give of links between Branson’s strategy for Virgin and the environment in which it operates? The Virgin Group Ltd is a group of separately run British companies with the Virgin brand under the leadership of English celebrity business tycoon Sir Richard Branson. The core business areas are travel, entertainment and lifestyle, among others. Richard Branson’s strategy comes from his deepest inner beliefs; “in principle there were no product or service boundries limiting a brand name, provided it was associated with quality products/services on offer” The corporate strategy of the Virgin Group is to operate like ‘a venture capital firm based on the Virgin brand.’ This strategy involves non-related diversification at the individual business unit level. Meanwhile, synergies are created from hierarchical relationships and the interaction of the corporate head office with individual business units. By leveraging on the Virgin Brand which has established prominence in the minds of consumers, Virgin is able to enter new business areas with a bang and shake up existing orders. The unique Virgin culture also allows Virgin to break into new markets and execute its ventures very effectively. Virgin’s corporate strategy is best described in the Virgin Charter – the individual businesses are focused and develop as autonomous enterprises under a single unified brand name. This decentralization...
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... Introduction: Virgin group ltd. Is a British company founded by Richard Branson and Nik Powell. Its associated with the business of travel, entertainment and life style, finance, transport, health care, food and drink, media and telecommunication and have businesses under more than 400 companies. Virgin Group’s date of incorporation is listed as 1989 by companies House, who class it as a holding company, however Virgin’s businesses and trading activities date to 1979s.The brand name ‘Virgin’ aross when Richard Branson and Nik Powell formed a record shop.They consider themselves virgins in business and the select V in the logo as an expressive tick, representing the virgin seal of approval.It’s head office is located in England. a) Mission statement : The company’s vision is to be the shopper victor by delivering brand values , which are: value for money, superior quality, dazzling customer service,pioneering,competitively testing and fun.; to provide a quality service by motivating employees and assist and examin consumer feedback for nonstop enhancement of the customer’s expiriance through improvement;to creat products and services that make the customer life more enjoyable. b) Vision: Virgin vision can be defined by words of Richard Branson . “We are planning a global presence in travel, mobile communications, entertainment retailing and music. We are in exciting markets which are set to benefit considerably from technological...
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...Marketing Plan 9 4.1 Product 9 4.2 Price 9 4.3 Place 10 4.4 Promotion 10 4.5 Features and Benefits 10 5. Conclusion 12 Reference 13 1. Introduction Australian domestic airlines industry has recently had a major change in competitiveness when Virgin Blue entered on the market. Their low cost fares strategy quickly captured 25% of the market share. Analysts have predicted that Virgin Blue would grow to reach a third of the market until next year. The success of the Virgin Blue’s new business model is based on the balance between affordable airfares and company’s profitability. This model leaded to a new consumer behavior, forcing QANTAS to study the new market niche and consequently study the feasibility of opening a new low-cost airlines. The aim of this study is to propose to the creation of a new company for Australian domestic airline called KOALA AIRLINES. Two questions must be answered by the study: first, how will this new airline affect QANTAS business? Second, should we undertake this opportunity? 2. Evaluation Some initial questions are important for understanding the market time with the introduction of a new competing company. How will this opportunity affect your current customers? There is a constant challenge of today's airlines to differentiate themselves by offering better service, greater agility and lower cost. This allows a reduction in the buyers’ bargaining power, since...
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...VIRGIN GROUP Resource: Exploring Corporate Strategy Introduction The Virgin Group is one of the UK's largest private companies, with an annual turnover estimated at £3bn per annum by 2000. Virgin's highest-profile business was Virgin Atlantic, which had developed to be a major force in the international airline business. However, the group spanned over 200 businesses from financial services through to railways; from entertainment mega stores and soft drinks to cosmetics and condoms. (Figure 1 shows the breadth of the group's activities.) Its name was instantly recognizable. Research showed that the Virgin name was associated with words such as 'fun', 'innovative', 'daring' and 'successful'. The personal image and personality of the founder, Richard Branson, were high profile; in British advertisements for Apple Computers, together with Einstein and Gandhi, he was featured as a 'shaper of the 20th century'. Origins and ownership Virgin was founded in 1970 as a mail order record business and developed as a private company in music publishing and retailing. In 1986 the company was floated on the stock exchange with a turnover of £250 million. However, Branson became tired of the public listing obligations. Compliance with the rules governing public limited companies and reporting to shareholders were expensive and time-consuming, and he resented making presentations in the City to people whom, he believed, did not understand the business. The pressure to create short-term profit...
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...Research Case Study Virgin Blue ‘You can’t make a business case that you should be who you are not’ Shayne Connell Student Number: 9809317 Case Study GSBS6010 – Foundations of Marketing Theory Due: 11 March 2010 th Lecturers: Penny Crittall and Joel Goodsir Page 113 Table of Contents 1. Executive Summary………………………………………………………3 2. Situation Analysis a. Identification of case issues………………………………....…. 4 b. Analysis of case issues using marketing theory…...........……5 3. Evaluation of alternative courses of action……………………………. 7 4. Recommendations………………………………………………………..7 5. References………………………………………………………………...9 Page 114 1. Executive Summary This analysis examines Virgin Blue’s strategy to increase share of the business and government travel market. This is the third change of strategic direction for the low cost carrier since 2000. The key issues are the challenge of repositioning the company while maintaining the brand strength of the airline, and continuing to meet the needs of the leisure market while offering value to business travellers. Virgin Blue has targeted the full service market leader, Qantas, by positioning itself as an airline for executives who can avail themselves of ‘Premium Economy’ services. The situation is analysed drawing on International case examples, strategic planning principles and growth strategies to evaluate alternative courses of action. Virgin Blue needs to target the business market in the unique Virgin way to differentiate...
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...Introduction Virgin Atlantic is a British airline company that is majority-owned by Sir Richard Branson’s Virgin group 51%. The remaining 49% is owned by Singapore Airlines. The airline was established in 1984 and is the second largest long-haul airline in the UK and the third largest European carrier over the North Atlantic. Their route network also includes destinations in US, Caribbean, Far East, India and Africa. Virgin Atlantic is valued at a minimum of 1.225 billion euro. Their fleet is consist of more than 26 Boeing 747s and Airbuses. Virgin Atlantic is known for challenging the industry, championing the customer, improving the service and repeatedly won the best airline awards. They are pioneers in the airline industry it’s a “long list of firsts include being the first airline to have individual TVs in all classes, to provide child safety seats, to offer a super economy service, to have no smoking flights, to have drive-thru check-in, to have an arrivals lounge, to allow mobile connectivity and SMS texting on board, the first to have at-seat podcasting and, most recently, the first to fly one of its planes using biofuels” (innovationleaders.org PROFILE: VIRGIN ATLANTIC 2007). Micro environment analysis Customer behavior analysis Who are Virgin Atlantic´s customers? Virgin Atlantic attracts customers who appreciate and value customer care in terms of a combination of service elements and attributes. Virgin Atlantic operates a two class system: Upper Class and...
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...Agri-Business, and Information Technology. While ITC is an outstanding market leader in its traditional businesses of Cigarettes, Hotels, Paperboards, Packaging and AgriExports, it is rapidly gaining market share even in its nascent businesses of Packaged Foods & Confectionery, Branded Apparel, Personal Care and Stationery. TELECOM SECTOR INTRODUCTION: The Indian telecom industry is the fastest growing industry with an addition of 9- 10 million monthly subscribers. The Indian telecommunications network with over 995.9 Million subscribers is second largest network in the world after China. Major players in this sector are BSNL, MTNL, Airtel, Vodafone, BPL, Tata, Idea, etc. Buyer power and threat of rivalry is very high in Indian Telecom Sector. Telecom Industry Sectors From holistic point of view telecom industry can be divided to four sub-sets. The major forces in Indian telecom industry are Service providers. All major telecom equipment suppliers have their R&D centres in India. In last 5 years, global giants in mobile devices have set up their manufacturing facitilities in India EXISTING RIVALRY IN INDIAN TELECOM INDUSTRY There are three types of players in telecom services: • • • State owned companies (BSNL and MTNL) Private Indian owned companies (Reliance Infocomm, Tata Teleservices, Shyam ( Southern India) Foreign invested companies (Vodafone, Aircel, Bharti Tele-Ventures, Escotel, Siestema Idea Cellular, BPL Mobile, Spice Communications) Wireless Segment (GSM, CDMA & FWP(FIXED...
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...Technology Assumption ..................................................................................................... 4 Report Scope ............................................................................................................................ 4 Report Structure ....................................................................................................................... 4 Chapter 1 UK Broadband Industry.................................................................................................. 6 Current Technologies ................................................................................................................ 6 Current Market & Key Competitors ............................................................................................ 7 Future Market .......................................................................................................................... 8 Race Online 2012 .................................................................................................................. 9 Chapter 2 Porter’s Five Forces – Threat of New Entrants............................................................... 10 Product Differentiation...
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...diversification c) Reasons for Diversification d) Types of diversification strategies e) GOAL of diversification f) RISK of diversification g) Corporate diversification of TATA group h) List of diversification of TATA group i)CONCLUSION Introduction Diversification is a form of corporate strategy for a company. It seeks to increase profitability through greater sales volume obtained from new products and new markets. Diversification can occur either at the business unit level or at the corporate level. At the business unit level, it is most likely to expand into a new segment of an industry that the business is already in. At the corporate level, it is generally via investing in a promising business outside of the scope of the existing business unit. Diversification is part of the four main growth strategies defined by the Product/Market Ansoff matrix:[1] [pic] Ansoff pointed out that a diversification strategy stands apart from the other three strategies. The first three strategies are usually pursued with the same technical, financial, and merchandising resources used for the original product line, whereas diversification usually...
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