Read the two items below – these will help you develop the skill of application. Virgin loses West Coast mainline franchise Since the privatisation of British Rail the UK Government’s role in the running of the railways is to provide strategic direction. They franchise the running of the UK’s passenger train services to train operating companies of which there are 16, including Virgin Trains. When Virgin lost the West Coast mainline franchise Richard Branson issued a press release that included
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1) What is the corporate rationale of the Virgin Group? Corporate rational is the way in which a corporate parent envisages the way that it can add value to its strategic business units. The Virgin Group sees itself as a restructurer; this means that it has low central costs due to relatively small corporate center, with fairly minimal involvement at business level. However they vary from the portfolio managers because they also set about trying to identify restructuring opportunities within their
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Virgin Mobile USA: Pricing for the Very First Time - CASE STUDY Kiran Chimmiri Virgin is a U.K-based company led by Sir Richard Branson and is one of the three most recognized brands in Britain. Dan Schulman has been appointed CEO of the Virgin Mobile USA and is now trying to determine what pricing strategy would be most efficient in attracting and sustaining customers in the USA. There are several other decisions which also need to be made, such as unique features Virgin mobile can offer to differentiate
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Strategic Management case 3: Virgin Professor Fereira, 2011-2012 Sanne Adriaensens 159111512 1. Virgin Who? WHO? WHAT? WHERE? HOW? Sir Richard Branson, founder of Virgin (1970) and entrepreneur Travel, leisure, mobile phones, entertainment retailing and personal finance Britain Getting the business out of the public level by turning it back into the private level of ownership and handle the principles of the ‘Keiretsu’ concept (a structure of loosely linked autonomous units run by
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from either the public or voluntary sector and outline the techniques used within both business’s. The companies I will be choosing will be Virgin from the private sector and the NHS from the public sector. Growth strategies The Ansoff Growth matrix is another marketing planning tool that helps a business determine its product and market growth strategy. Virgin have used growth strategies such as ansoffs matrix as they have concentrated hugely on market penetration because they are very competitive
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quality, innovation and sense of competitive challenge is what Virgin stands for and its aim is to look for opportunities, which provides a better offer for its customers. That’s what drives Virgin Mobile USA to focus on youth market targeting customers between the ages of 15 and 29, which is a group that hasn’t been targeted as much by major cell phone providers. Virgin Mobile has proposed a 50-50 joint venture with Sprint, in which Virgin Mobile would buy minutes from Sprint as needed. Overall, this
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Virgin Mobile 1. Given Virgin Mobile’s target market (14 to 24-yeard-olds, how should it structure its pricing? The case lays out three pricing options. Which option would you choose and why? In designing your pricing plan, be as specific as possible with respect to the various elements under considerations (e.g. contracts, the size of the subsidies, hidden fees, average per-minute charges, etc.) 2. How confident are you that the plan you have designed will be profitable? Provide evidence
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Q.1 Given Virgin Mobile's target market 914 to 24-year-olds), how should it structure its pricing? The case lays out three pricing options. Which option would you choose and why? In designing your pricing plan, be as specific as possible with respect to the various elements under considerations (e.g., contracts, the size of subsidies, hidden fees, average per-minute charges, etc.). I will recommend third pricing strategy, which is to come up with a completely new plan, since we are trying to target
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Virgin Mobile USA is a brand extension of Virgin, a U.K.-based company founded by Sir Richard Branson. The company led by CEO Dan Schulman was founded under Virgin's mission statement which stated "we believe in making a difference. In our customer's eyes, Virgin stands for value, for money, quality, innovation, fun and a sense of competitive challenge... we look for opportunities where we can offer something better, fresher, and more valuable, and we seize them. We often move into areas where the
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Problem Statement Virgin Mobile is launching its services in USA in the summer of 2002. It has to decide on its pricing strategy that would attract and retain subscribers. Situation Analysis Customer: The target consumer group is youth aged between 15 and 29 years. Penetration in this segment is significantly lower and the growth rate is projected to be robust in the coming years. Most of them have a history of poor credit quality, no credit cards and no facility to pass credit checks. The revenue
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