What resources does the firm have and how can they be used for its competitive advantage?…
VIRGIN MOBILE USA – ‘FIRST PRICE’ STRATEGY (An analysis of the Pricing Decision alternatives that Virgin has to undertake to create an alternate customer segment and monetize their buying power)VIRGIN XTRAS – OVERVIEWThe Virgin Mobile USA service involved content, features and entertainment, called “Virgin Xtras”.Collaboration with MTV networks as it was the most recognized youth brands in the country and unparalleled reach forthe under-30 market segment: Exclusive, multiyear content and marketing agreement. MTV network to deliver music, games and other MTV-, VH1-, and Nickelodeon based content to Virgin Mobile subscribers. Subscribers would have access to MTV- branded accessories and phones, graphics, ring tones, text alerts and voice mails. Promotional airtime on MTV’s channels and website. Virgin mobile subscribers to vote for their favorite videos on a few MTV shows.Other Virgin Mobile services that aimed to appeal to the youth market, generate additional usage and create loyaltywere: Text Messaging Online Real- Time Billing Rescue Ring Wake- Up Call Ring Tones Fun Clips The Hit List Music Messenger MoviesTraditional Channel Virgin’s ChannelServices sold at own proprietary retail outlets, kiosks in Services sold where youth shop especially consumermalls, high-end electronic stores, speciality stores etc. electronic goods in stores like Target, Sam Goody music stores, Best Buy.High-touch sales people who were paid high sales Products packaged in consumer electronics packaging, placedcommission to ensure hands-on service. on a bright red clamshell, which gave it visibility and no salesperson was required.Cost per handset from Nokia, Motorola, Samsung etc. - Cost per handset from Kyocera- $60-$100. Lesser subsidy$150-$300. Entailed substantial subsidy from the entailed by the company.handset makers, a component of acquisition cost.Distributors’ industry avg. Commission- $100/phone Distributors commission- $30/phone.The…
Verizon Communications Inc. (Verizon, or the Company , is one of the world’s leading providers of communications services. The domestic wireless business, operating as Verizon Wireless,…
Resources and capabilities we identified as providing competencies for Tata are its skilled workforce, brand equity, the entrepreneurial spirit and strong corporate culture, the capability to create synergies between units, and Ratan Tata’s strong relationship with the Indian Prime Minister. The following table analyzes Tata’s resources and capabilities and their implications on the company’s competitiveness and economic performance.…
Divorce rates have increased rapidly since the 1960s from 27000 in the UK in 1961 to 167000 by 2005. There are many reasons for this increase, for example decreased stigma of divorce, secularisation, more rights for women, rising expectations, and acts put in place by the government making it easier for a couple to obtain a divorce.…
- “Virgin is about doing things that really work, not just looking the parts. We are passionate about running our businesses as well as we can, which means treating our customers with respects, giving them good value and high quality and making the whole process as much fun as it can be.”—Richard Branson, Chairman…
It is important for every business to clearly understand how resources and capabilities affect firm performance. As Grant (2005) defined, resources are the productive assets owned by the firm and capabilities are what the firm can do. In fact, companies that have sustainable competitive advances have been developed and exploited based on their internal resources and capabilities. Furthermore, they have successfully exploited external environment. In this essay, I will explore the topic area of ‘Resources & Capabilities’ with regards to a UK’s fashion group; the prominent designer label, Burberry GRP. In particular, the research will focus on the Strategic Business Unit of Burberry; understanding and explaining how they utilize the resources and competencies to achieve a competitive advantage. In order to do this, this paper will address on theory based from work in the areas of the ‘Resource-Based View’ and ‘Resources and Capabilities’ as well as using theoretical frameworks to give a holistic view of the strategic issues Burberry.…
Hoopes, d, Madsen, T & Walker, G. ‘Guest Editors Introduction to the Special Issue: Why is there a Resourced-Based View? Toward a Theory of Competitive Advantage.’ Strategic Management Journal, Vol. 24, No. 10, pp 889-902. (2003)…
It was identified that Virgin Blue currently lacks a sustainable competitive advantage and is facing two…
Virgin Holdings Ltd is an expert in the domestic and international travel industry. Previously known as Virgin Blue, and came to the Australian market in year 2000. Virgin is part of Virgin Group consisting of 400 other companies and founded by Richard Branson. At fiscal year end June 2012, flights operated reached 162,817 and 19,468,929 people were carried to 52 destinations. Revenue is $4,175 million with 5,300 employees. Virgin operates globally but domestic operations are the main income stream. Product line for short haul and long haul international flights as well as domestic include saver lite, saver, flexi, premium saver, premium, business saver, business.…
Virgin group companies even far apart from each other are like one big family that is constant in the delivery of its brand message and the values it stands for. Each company is empowered to run their individual affairs but they do help one another to seek solutions and advancement. Their cohesion across states and countries reinforce their image and inspire trust among consumers.…
– If managed effectively, existing core competencies can help sustain the competitive advantage indefinitely. – When expectations of future resource value turn out to be accurate and can be repeated, then a sustained competitive advantage is realized. • Intangible assets add great value to a firm because: – A firm's reputation and brand equity are accumulated quickly and can be leveraged easily. – Tangible assets require a high degree of capital; intangible assets do not. – A firm's culture, knowledge, and intellectual property take time to develop and are generally difficult to imitate.…
VeriFone often refers to itself as the “industry leader in secure electronic payment technology”. This bold statement is one that they can make based not only on the number of units they have installed in locations around the world, but also on the technology that stands behind their products. VeriFone is well known for its POS products. POS is an abbreviation for point of sale or point of service. As defined by WikiPedia, “this can mean a retail shop, a checkout counter in a shop, or a variable location where a transaction occurs in this type of environment. Additionally, point of sale sometimes refers to the electronic cash register system being used in an establishment. Points of sale systems’ are usually used in restaurants, hotels, stadiums, casinos, as well as retail environments. If something can be sold, it can be sold where a point of sale system is in use”. Adding to the convenience of being able to accept payment for good and/or services in any location, is also the comfort in knowing the transaction will be handled quickly and securely. VeriFone’s product lines include point of sale, merchant-operated, consumer-facing and self-service payment systems for multiple industries. These industries include financial, retail, hospitality, petroleum, and government and healthcare markets.…
RICHARD BRANSON’S VIRGIN GROUP —Problems— Although certainly notorious, Richard Branson’s Virgin Group has experienced several problems. In the short-term, brand overextension has become a threat since the company has entered multiple markets. Brand overextension leads to damaging the comprehensive Virgin brand. Since the Virgin brand itself is the company’s greatest asset, protecting the brand image is critical. The Virgin brand image has a connotation of value and lifestyle. Due to many joint ventures, licenses, and alliances with other companies, the objective of the “Virgin experience” could be destroyed. Furthermore, as Virgin becomes more global and more adaptive to individual cultures, the customer experience will certainly vary, again leading to brand overextension. For example, although the United Kingdom may condone Virgin’s racy and edgy advertisements, other parts of the world, as our group testifies, views such material quite explicit and even shocking. Thus, while Virgin enters different markets, negative impacts can arise, hindering Virgin’s brand. A second short-term problem is Virgin’s financial information that is fragmented, hard to locate, and even interpret. With the company’s different alliances and joint ventures, questions about the financial health of the Virgin group were being asked. Thus after examination, Virgin faced financial challenges that led to negative cash flow. This was mainly due to the Branson’s approach of stand-alone basis where the most profitable company’s revenues financed new market entrances. Despite some profitable areas of Virgin, many did not generate cash. Therefore, as Virgin grows, a more systematic approach must be implemented to create synergies between businesses. Long-term problems also exist for Virgin. First is Branson’s close affiliation to Virgin. What happens if the public tire of his exploits? What will happen to Virgin when Branson…
The Virgin Group is one of Britain’s biggest and successful empires in the 21st century. The company has successfully incorporated a great number of diverse industries under the Virgin brand. This includes travel, mobile, financial services, leisure, cosmetics, retail, and music businesses. Virgin has been able to dominate the British market and has therefore continued to rapidly expand into other regions such as the United States, Canada and Australia. The enterprise was founded by Sir Richard Branson in 1970 as a simple mail-order record retailer and has grown into one of the most prosperous business empires in the business world.…