Business Strategy in Virgin Mobile (PDF)

BUSINESS
STRATEGY OF
VIRGIN MOBILE
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Table of Contents
INTRODUCTION ........................................................................................3
ANALYSING THE IMPACT AND INFLUENCE OF THE MACRO
ENVIRONMENT..........................................................................................4
i) Pestle analysis of Virgin mobile...........................................................4
ii) Ansoff matrix of Virgin mobile.............................................................6
TASK 2........................................................................................................9
INTERNAL ENVIRONMENT AND ORGANISATION CAPACITIES............9
i) Strategic capability..............................................................................9
ii) Applying the VRIO model determining the strategic capacity of
Virgin mobile...........................................................................................9
iii) The organisations’ strength and weakness .....................................10
TASK 3......................................................................................................12
Analysis of telecommunication sector......................................................12
TASK 4......................................................................................................16
UNDERSTAND AND INTERPRET STRATEGIC DIRECTION...................16
CONCLUSION...........................................................................................19
REFERENCES...........................................................................................20
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INTRODUCTION
The trend of globalisation has changed every growing industry in this current
scenario. The mobile telecommunication sector is one of the most rapidly growing industries,
which are being affected by the trends of globalisation. As the market is growing for
telecommunication sector, the competition in the market for acquiring more number of the
customer base is also growing faster. However, the competition is not only seen in the
national market but also when it comes to telecommunication the competition is being
International. In this situation, the different telecommunication organisation of all over the
world is implementing their different strategy for the growth and development of their
organisation. However, this strategy is referred to some unique tactical and strategic decisions
which are made by this organisation for developing competitive advantage in the targeted
market. In this study, the diversity of strategies which are implemented by Virgin mobile for
the development and improving the competitive advantage will be explained.
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ANALYSING THE IMPACT AND INFLUENCE OF THE MACRO
ENVIRONMENT
Sir Richard Branson is the founder of Virgin mobile which is part of the virgin group
Limited. However, this organization is considered under the first mobile network operator
which start working under a joint venture with T mobile in the year of 1999 in the United
Kingdom. Therefore it can be said that the organization did not use their network but using
long-term contract with T-Mobile for their existing mobile service (Johnson, 2016).
To understand the impact of the micro-environment in the organizational skills by which the
employee satisfaction is usually affected. For understanding the demand of the market from
this organization, the analysis of micro-environment and Ansoff matrix will be done
i) Pestle analysis of Virgin mobile
Political factors: the political elements of United Kingdom are imposed by the
government of this country which is associated with intervention in the organisational work.
The political factors of this country are affecting the services and products promotion of the
organisation with subsidies and also with traffic and tax policy environmental law and trade
restrictions create the stability of the organisational work. The organisation Virgin mobile is
being influenced by the political initiatives of the United Kingdom on the telecommunication
industry. The organisation has developed their 3G network with his associated with the
promotion of the government for using the technology of T-Mobile (Fletcher et al. 2017).
Economic factors: The inflation rate of the country and the income of the customer's
exchange rate at the environmental factors which are affecting the Virgin mobile. From 1999
to 2003 the organisation has developed a maximum number of subscribers. However by the
introduction of the prepaid segment the traffic structure of this organisation Virgin mobile has
changed. The use of prepaid segment has changed the entire structure and also result which
cause a loss of many valuable customers of Virgin mobile.
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