Virgin Mobile Usa Analysis
Virgin Mobile USA Analysis
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August 08, 2009
Table of Contents
Table of Contents 2
Introduction 3
Internal Factor Evaluation (IFE Matrix) 4
External Factor Evaluation (EFE Matrix) 5
Porter’s Five Forces 6
Porters Generic Forces 6
Financial Analysis 7
Competitive Profile Matrix 8
The Marketing Mix-The 5 P's 9
Key Issues 10
Boston Consulting Group (BCG Matrix) 11
GE / McKinsey Matrix 12
Space Matrix 14
Recommendations 16
Introduction
Virgin Mobile is a great company that has been successful based in the U.K. The company is well known for its brand extension and was the first company to introduce the Mobile Virtual Network Operator (MVNO) in the U.K., where they leased network space form another firm instead of running a network in-house and as a result avoiding infrastructure and large fixed cost.
The company was well known for its hip and trendy position in the U.K., and catered to the youth market. Although they have had a couple failures in the past including launching the MVNO in Singapore, the company decided to venture into the U.S. Virgin Mobile positions itself to come up with an appealing offer and ensure a run rate of one million subscribers in the first year and three million by the fourth year. Keeping with the brand strategy and philosophy of making a difference, it enters areas, which are not well served which in this case is the age group of 15-29 due to their low frequency of usage and poor credit rating. While targeting this segment lifestyle and psychographics factors are important as usage is inconsistent, and based on school and, vacation periods.
Virgin customers are attracted to the products and services because of the flexible monthly terms, easy to understand pricing structures, stylish handsets offered at affordable prices and relevant mobile data and entertainment content. Virgin offers products and services on a flat per-minute basis and on a monthly basis for specified quantities, or "buckets", of
[pic]
August 08, 2009
Table of Contents
Table of Contents 2
Introduction 3
Internal Factor Evaluation (IFE Matrix) 4
External Factor Evaluation (EFE Matrix) 5
Porter’s Five Forces 6
Porters Generic Forces 6
Financial Analysis 7
Competitive Profile Matrix 8
The Marketing Mix-The 5 P's 9
Key Issues 10
Boston Consulting Group (BCG Matrix) 11
GE / McKinsey Matrix 12
Space Matrix 14
Recommendations 16
Introduction
Virgin Mobile is a great company that has been successful based in the U.K. The company is well known for its brand extension and was the first company to introduce the Mobile Virtual Network Operator (MVNO) in the U.K., where they leased network space form another firm instead of running a network in-house and as a result avoiding infrastructure and large fixed cost.
The company was well known for its hip and trendy position in the U.K., and catered to the youth market. Although they have had a couple failures in the past including launching the MVNO in Singapore, the company decided to venture into the U.S. Virgin Mobile positions itself to come up with an appealing offer and ensure a run rate of one million subscribers in the first year and three million by the fourth year. Keeping with the brand strategy and philosophy of making a difference, it enters areas, which are not well served which in this case is the age group of 15-29 due to their low frequency of usage and poor credit rating. While targeting this segment lifestyle and psychographics factors are important as usage is inconsistent, and based on school and, vacation periods.
Virgin customers are attracted to the products and services because of the flexible monthly terms, easy to understand pricing structures, stylish handsets offered at affordable prices and relevant mobile data and entertainment content. Virgin offers products and services on a flat per-minute basis and on a monthly basis for specified quantities, or "buckets", of