Marketing Strategies and Business Planning

The assignment discusses various marketing strategies used by companies to achieve business success. It highlights the importance of differentiation and focused differentiation in the telecom industry, using Virgin Group as an example. The document also explores the concept of brand extension, its advantages and disadvantages, and how it can impact a company's reputation. Additionally, it provides insights into business planning, including setting goals, objectives, and strategies to achieve them.

BUSINESS STRATEGY
Contents

INTRODUCTION..........................................................................................................................4
TASK 1............................................................................................................................................4
P1 the impact and influence of the Macro environment on Virgin and its business strategies...4
TASK 2............................................................................................................................................7
P2 Assessment of Virgin Internal Environment and Capabilities...............................................7
TASK 3............................................................................................................................................9
P3 Analysis of competitiveness of telecommunication sector of UK through porter five forces9
Model...........................................................................................................................................9
TASK 4..........................................................................................................................................11
P4 Strategic Direction and Options of the available for Virgin.................................................11
CONCLUSION..............................................................................................................................13
REFERNCES.................................................................................................................................14

INTRODUCTION
Business strategy is defined a firm high level planning and reaching of the specific
business objectives that strategies that is main lead role of business growth and strong financial
execution. Business techniques and strategy is the essential part of development any business
association. Business technique is very important of any organization because that is the manner
and ability of the company. Business techniques and strategy is make any of the organization
higher level and reputed brand. So it means manner and ability is the main tools of the
organization because that is the main body of specialise procedure or method in any specific
field. Business strategy is very important and correct form of methodology. VIRGIN is a mobile
operating service company that is operating in the United Kingdom and subsidiary virgin media
that is world first mobile virtual network operator company. The company was launched by
virgin group in 1999. So virgin is type of subsidiary and mobile phone industry and there
founder Richard Branson and there head quarter is Wales, United Kingdom and now almost
1700 employees working in and there revenue 563 million. So virgin provides mobile packages
as well as mobile internet services through their retail stores (Garcia-Castro and Aguilera, 2014).
This report will have a detailed discussion about business strategy followed by the company for
the purpose of operating its business effectively and efficiently at the marketplace.
TASK 1
P1 the impact and influence of the Macro environment on Virgin and its business strategies
Macro environment is overall working of company and influence of the making decisions
as well as business strategy of a company. Virgin is a big company; virgin is the part of virgin
group. That is founded by Richard Branson it is very essential part of the macro environment in
operates and provide services. The purpose of identify possible opportunities and threats for
growth of the company that is control of outside of the organisation. The result of analysis will
directly impact of the any company so macro environment is pestle analysis that is analysing of
virgin company and there services of pestle analysis frame work. Regularly increased profit of
virgin mobile and there services Macro analysis of environment through PESTLE etc.
PESTLE Analysis of Virgin
Political

Political factor is one of the major full scale factor that is very essential part of create new
working business in any nation. Its refer to policies that is governed by government and political
parties, political group parties in economy product and services and government want to promote
the tax policies, environmental, and some subsidies and VIRGIN focussed on the prepaid and
internet customers, it enjoying benefit of the mobile subsidies and there services they are provide
in different package of the talk time and internet offers like one month, there month, and one
year’s etc. according to this company was want to gain profit and provide good services in
effective and efficient way political factors influenced the telecom industry like 3g and g services
and other bid of the industry, government and political group promoted new technology and
products. Because according to political factor mobile were playing a big role of election and
others. Virgin is big mobile phones company so in 2002 was best year for the telecom industry
that year really proved great success (Ghezzi, Cortimiglia and Frank, 2015). The impact of
Political changes has a direct impact on the workings of Virgin Group, The company is
implementing various rules and regulations that will abide with the changed political rules and
regulations.
Economical
Macro-economic analysis is identify the major movement of market situation, inflation,
and income of consumers that is major impact on the company and there operations. Inflation
and demand would be higher result of the company basically telecom industry growth time is
1999 to 2003 then in market a large number of subscribers use of the mobile phone and land line
then increased 50 million subscriber in 2003 so increasing large number of subscribers in the
industry virgin mobile group is enjoying success in minimum period. Virgin providing packages
there services in simple structure and that is m marginally cheaper than other telecom companies
in United Kingdom telecom industry providing huge number of employment in the service sector
and contribute to high industry growth.
Social
Social factor is the analysis of macroeconomic and environment that is identifies the
country and social values like norms, belief, and behaviour it is effect of the organisation and
social and cultural factors such as growth, age and good attitudes etc. there was increased and
focus on the technology and role in society. So in technology mobile phone is huge role in this
industry mobile phone is new section in the society telecom industry offering new packages and

new innovation in this industry People around the world is using telecommunication as a tool to
communicate with each other, the language, cultural etc. Therefore the opportunities for Virgin.
Technological
Technological factor is a track of changes in the application of technology in the industry
with the rapid of technology and services and any industry changing their strategy and
development so technologies can have a direct impact on the industry like cost reduced, improve
quality, and new innovations. Advancement is very beneficial for the industry and consumers
also (Lundan, 2012). Virgin Group has Implemented new Technological policies for the business
growth. These includes effective development of Research and development centre of the
organisation so that consumers can be served in an effective as well as efficient manner.
Legal
Legal factor is monitor of macro environment according to operates there factors are
related to the all factors included pestle. Example improve of the all over factors and like
improving economic factor and legal forces so according to this health and safety low was
enforcing in act 2004 so prevented of use mobile phone while driving. And that time increase
sale of Bluetooth device for hands free legal factor mostly effect of the consumers so health
safety is very important . Due to Brexit, there are various legal complications that has taken place
and it has become more important to follow the legal procedures in an effective as well as
efficient way. Virgin Group is consistently changing its various aspects of legal procedures and
thus is framing right kind of policies for effectively dealing with any legal and structural
changes.
Ansoff Matrix of Virgin
Ansoff Matrix is growth matrix that is created by Ansoff. The matrix is way of grow of
the business by existing product and new products in the market and how make new strategy for
business methodology regarding items and market It is easy to utilize and exceptionally powerful
in driving clear vital reasoning around development. That matrix is help companies to decide the
how is the course and action should be taken and given procedures. This matrix is four strategy.
Market Penetration (Present market with present product): Virgin is believes in increasing
market and growth penetration when a company enter in market with existing / new product then
best way is achieving their goals and gaining y the competitors consumer that is part of market

share. And other way is convincing new client and non-client to use of more product and
services with some promotions like advertising (Lusch and Vargo, 2014). Market development (New Market with Current product): according to this type of
business strategy the company will aim to enter into new markets but with the same
product line. New market and existing products that is established product strategy is earn
more revenue for the firms in the market place. Product development (Present Market with New Product): existing market and new
market, a firm with a market for their products on the strategy developing same product
and same market when a company develop a new product that is gain new customers
(McGrath, 2013).
Diversification (New market with New Product): Virgin telecommunications are major
example of new product created by the virgin group of United Kingdom that company is entering
new market. Existing product and new product is development is effect of the market. Company
is completely new kind of product to grab consumers. This strategy is usually adopted by
companies when it wants to diversify and grow beyond current markets (Neugebauer, Figge and
Hahn, 2016).
TASK 2
P2 Assessment of Virgin Internal Environment and Capabilities
This is imperative that compose sort of examination and inside condition and general
business development. An organization can outline there business and methodologies
successfully and effectively. That would know about their different sorts of qualities and in
addition shortcomings.
Meaning of Strategic Capabilities
Strategic capability is an important tool that is remaining financially and growing of the
presence of competitors and market. Strategic capability referred to the business and their ability.
Strategic capability is uses in strategies, focus on the organization assets and their position. It
will be able to make business strategies in future. Virgin is founded by Richard Branson that is
Multinational Corporation. Virgin is future sustainable company that is depending on the
identification and capability of assets. Organization basically defines strategic market, potential

and growth of the organization. VIRGIN focusing on its services, facilities and quality
management etc.
VRIO Framework of Virgin
Vrio system is the instrument of utilized of inward assets and capacities to discover that
can be wellspring of upper hands that is comprehend the wellspring of intensity firms are
utilizing a few devices to examine doormen five powers display, inside BCG grid and esteem
chain investigation circumstance some such devices break down the organizations and inner
assets is vrio examination that device was produced by Barney, J.B, (1991). His firm and upper
hands. As per him, assets is most profitable imitable there unique edge work was called VRIN.
Barney has presented VRIO structure that was change of VRIN demonstrate. We remain for
important that is the first framework of add resources and opportunity that answer is yes and
valuable resources are also valuable the help of increase customer value of the organization
(Ritchie, 2013). It is important to regularly review of the resources and changing internal or
external valuable, rare is stand for resources that can be acquired of the considered rare and
valuable competitive advantage and the other word, few companies have same resources or
capability in similar way that lead costly to imitate that is if other firms does not have imitate and
reasonable substitute of the price (Laudon and Traver, 2013).
Capital Access
Virgin UK has able to get essential capital from its parent company Virgin is a very
easiest and effective way. Virgin investment team is focus on your telecom and media and their
financial services there aim is to deliver long term capital through investment sector. Virgin s
strong network and that group is also focus on technology and economy sector.
Network Capability
The United Kingdom telecom market, is one of the largest market in Europe. There major
characterized is in competition in mobile network and broadband mobile and broadband entered
in comfortably behind of the average time relatively low prices and high customers in this
sectors company has focused on their network capabilities which has resulted in higher speed
and excellent services network capabilities has a great investment in telecom sector.
Brand Equity
Brand is a name of design, value of product that’s beneficial functions. Brand name is
given to product prefer to as a brand equity rand equity is the form of point of view of the

investors manufactures, customers and retailers according to recent survey of time magazine,
Virgin has a most valuable brand in the world. Virgin UK division has been able to benefit a lot
of from this Brand value (Muduli, 2012).
Assets and in
addition
Capabilities
Valuable Rare Costly to
imitate
Organised
to avail.
Impact of the
overall
competitive
advantage
Telecom LIcense YES: The available
Telecom License of
the company is
quite valuable and
can not be
obtained easily by
any firm.
NO: THE
license is not
rare as such
but is difficult
to obtain by a
firm easily.
YES YES Realised
competitive
advantages for
the company.
System
Capability
YES: The
company's system
capability is quite
valuable and
allows company to
differentiate itself
in an effective as
well as efficient
manner from other
competitors.
NO: It is not
rare and can
be obtained
by any big
organisation
easily.
NO YES irregular
competitive
advantage
Brand Equity YES: The Brand
Equity of Virgin is
also high which
enalbes it to draw
large number of
customers.
NO: There are
various other
telecom group
as well that
operates in
UK, thus it is
YES YES A sustainable
competitive
advantage and
beneficial.

not rare as
such.
Internal Strength and Weakness of Virgin
There are various strengths as well as weaknesses of the company which can be place
down as follows:
Strengths
 Virgin mobile is providing service globally.
 Virgin mobile operation has breath across countries like UK, South Africa France, and
UAE etc.
 It has partnership with main telecom companies in worldwide and Strong Network
Infrastructure.
 Good service centre, features, and packages etc.
Weakness
 Minimum Research and development
 Operational issues in some countries (Bharadwaj and et.al., 2013).
 Limited brand awareness of the other brand in global level.
Virgin is able to do business through effective value creation and proper customer
research. The company is having a great advatage because itn does not lack any capital resources
and is able to grow as well as prosper through effective strategies by the management.
TASK 3
P3 Analysis of competitiveness of telecommunication sector of UK through porter five forces
Model
Porter five powers demonstrate is capable device to break down the focused quality of
any organization or industry. The investigation of telecom industry of United Kingdom can be
made through this instrument and is as per the following:
Threat of New Entrant
According to five forces model the factor of new entrants that is analyse of the new
entrants and competitive environments in any industry there is many barriers to enter the industry
like hard rules and regulations, high capital investments and knowledge. Porter five forces model

is believed in the possibility of developing and competitive industry in UK (San Martin-Reyna
and Duran-Encalada, 2012). According to five forces model there are many competitive
environment that is directly impact of profit and existing organization so there is a high rate
threat of new entrance. In threat of new entrance there is mainly product diversification and
existing organization and other categories like competition development and many threats. Like
control, demand and entry barriers or differentiation of the product and services in any industry.
The danger of new participant inside the telecom business of UK is very vast in view of the way
that there is still great anyway there are a few components which can bring down the degree of
this risk and these are
 Large capital investment wants to setup any telecom business within the industry.
 Economies of scale give benefits to existing players.
 Government barriers, law and policies.
 Proper technology required.
It is also possible that a new organisation may enter the market as a entrant and thus there
may be adverse effects on the positioning of the company in the longer run. Thus it can be said
Virgin Group do gets affected by the entry of a new player within the market.
Bargaining power of Suppliers
As indicated by the dealing energy of providers when providers have a numerous
bartering power. They are apply to weight of the organization and charging of the high costs,
nature of the item and controlling accessibility and conveyance with the five powers system so
comprehend the providers haggling power that can be impact of gainfulness and condition of the
organization (Brewster, 2017). The suppliers of Virgin is various raw material providers like,
Virgin airlines receives aviation turbine fuels from British petroleum on a regular basis and the
competition in the petroleum sector is high, thus the bargaining power of suppliers is quite less.
Competitive Rivalry
It alludes to the opposition among existing organizations. The level of rivalry is very high among
existing organizations. In aggressive industry that is changed economy in new passageway new
innovation is measure substitute of administrations all contenders working least costs and most
extreme administrations in industry for high benefit. Organizations spend huge sum on their
publicizing and advancement spending plans that is an unmistakable indication of the level of
competition the organizations are having in the middle of them. They are spend high capital

spending on Research and improvement there are numerous telecom organizations inside UK
and is having abilities to offer rivalry to each other through different assets.
Threat of substitute
Threat of substitute is a part of porters five forces model when an industry compete with
product or services five forces model is determine the completion in industry like barriers to
entry substitute, bargaining power of suppliers, buyers and many measure threats substitute and
potential give the high performance and make a profit. Substitute is more effective where a
company make a profit substitute can reduce the services and industry facilities there measure
substitute is improve performance and industry products, earning more profit and increase high
competition on the behalf of own industries causing price reduction and quality improvement.
Bargaining power of Buyers
Telecommunication is proper service industry which is intangible there are many
suppliers is the role of many suppliers there is manufacturing of the mobiles there is require for
aluminium tower and hardware requirement is many equipment and software assistance is huge
procedure that is provide software solutions and taking services from the many companies so
bargaining power is suppliers and are whole companies services (Schrader, Freimann and
Seuring, 2012). Telecom license is represent the barrier to enter. Operators has refer the reduce
services and affordable facility number of consumers and buyers of telecom industry is very
huge and scattered and moreover this industry has become a necessity now for people, therefore
buyer’s bargaining power is negligible within the sector, therefore the changing company cost is
very low for customers. The bargaining power of buyers is very less in the telecom sector and
this gives Virging Group a liberty to price its products and services in an effective manner.
TASK 4
P4 Strategic Direction and Options of the available for Virgin
Bowman's Strategy Clock is a model that is using for the analyse marketing and position
of a company compare to the offering of competitors it was founded by cliff bowman and David
Faulkner as an expansion of the three porter generic strategies that is consider competitive, cost,
differentiation advantages
Following can be the eight strategic positions that Virgin can adopt in order to enhance
its competitive position are as follows:

 Low price Value: low price that is no competitive position in the business product will
not be differentiated and customer perceived of low price This is a section particular
alternative and organizations they don't have more often than not contend in this class.
An organization can apply this through cost and little value of successfully offering
volume. Virgin do not compete in this category as the prices of its products and services
are basically high as compared to their competitors (Wang and Verma, 2012). Low Price: business positioning is also the low cost leaders in the market a strategy is
required for cost decreasing is successfully and that is profit rate is very low or this is
associate with economies of scale, but the high volume is generated high profit in the
market A Company is choose this alternative for their items or administrations when it
will be minimum effort. Then the point of a company is work under this system low cost
that is overall income will turn out to the low so company need to high volume. And so,
competition is among businesses with low prices usually Hybrid (Moderate prices and Moderate differentiation): Hybrid is involves of low
prices relative of the competition and product differentiation that aim is a combination of
low prices and product differentiation that can be very effective involved positioning
strategy (Leonidou and et.al., 2015). Differentiation: the aim of differentiation strategy is highest customer level and added
value branding is play good role in strategy and there quality and that is major
differentiation of the product and quality to achieve the high strategy At the point of an
organization make plans such items. Focused Differentiation: according to focused differentiation that strategy aim is product
maximum value prices and customer where customer buy the high added perceived value
rate positioning is adopted high level brands and achieving high target done successfully
and make a maximum profit margins Increased price and Standard product: in some cases an organisation taking a risk for
the expand costs and making good diversifications for development in Product and
services deciding how goods and services in different of success and failures. Pricing
strategy is high strategy standard costing is substitute of actual cost standard costing is
involving the all activities within company reason of standard cost and actual cost.

 High price\ Low value: technique can be carry out or put into market where a single
organization offers the products or services. As a monopolist of the market, according to
this value is based on the prices and there pricing strategy so according to estimated value
of the product or services is Virgin group of UK that suggestion is made high price and
low value in terms of terms and policies. An organisation don't want to be including an
incentive in their item or preliminary arrangement (Smith, 2013).
 Low value\ Standard price: If a company having a low value product, they are sell on its
product and services is lower rate through overall low value of the products it will have
the price value of low, Virgin for that kind of strategy then prices at the same level there
is impact on pricing strategy and market prices.
The Virgin is a big telecom company in UK and thus is having effective customer base
within the region, due to the fact that customer's bargaining power is quite less within the sector,
The company follows the following Two Strategies out of the abovementioned strategies:
Differentiation: The reason for selection of this strategy is because company wants to make a
differentiation within its products as well as services that will enable it to gain more customer
focus and attention in the longer Run.
Focused Differentiation: As a measure ahead, The company is also taking necessary steps to
implement focused differentiation strategy, under which the company will try to offer
differentiated telecom services to selected consumer region. This will enable company to save its
cost and at the same time gain competitive advantage.
CONCLUSION
In this way, this report is the knowledge of rand extension in various ways. It is also
established in unique identity and challenges in the business world. Now companies are more
brand extension in order to many advantages in the market many companies are failure. The
company rand extension is highlight the success and failure. A company create different
effective and positive customers for the favourable product and services. According to the
market companies are many operations to capture of the market the purpose of high profit and
customers satisfaction. So product range is totally different from their competitors and targeting
strategies for the company in the market. Business system is an Essential bit of any business. It
sets purposes, course, objectives or setting of the target affiliation and whether plots controls to
achieve the set goals and targets. PESTLE article and SWOT examination which is the

association to study inside characteristics and with outer along these lines, that implies ease in
little corporate It is vital to recollect the effect of these parts on the association and it's working
so a proactive and in addition improved approach towards these factors can be associated over
timeframe. In the present time of rivalry it is extremely pivotal that correct sort of approaches
and business procedures are surrounded to hold and increment the client base of association for
the keeping up of benefit and development so that is break down the potential future.

REFERNCES
Books and Journals