Analysis of Virgin Media's Market Position and Strategy

This assignment provides an in-depth analysis of Virgin Media's market position, including a SWOT analysis, a review of the company's unique selling proposition, and an examination of its pricing strategy. The report also discusses the importance of developing a strong competitive strategy and implementing a Bowman strategy to achieve business goals.

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Analysing impact and influence of macro environment factors on Virgin Media and its
decision making..........................................................................................................................1
TASK 2............................................................................................................................................4
P2 Strengths and Weaknesses of Virgin Media and their capabilities, structure and skill set....4
TASK 3............................................................................................................................................6
P.3 Porter's five force model.......................................................................................................6
TASK 4............................................................................................................................................8
P4 Applying scope of hypotheses, idea and models to decipher key getting ready for Virgin
Media ..........................................................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Business strategy is a process to focus on their goals and targets that are used in the
Telecommunication Company. It will analyse the whole business concept related on their factors.
They main objective of this business strategies is to plan their new ideas and see which ones are
useful for the company benefits. It is the best approach to identify weakness and strengths of
Virgin Media. In UK, it is the fastest growing company that is expanding their business all over
the world. These companies are generating revenue of approx. 3.8 billion in 2017. There are
some strong competitors of this Virgin media company such as Vodafone, Everything
Everywhere and British Telecom etc. In Virgin Media, the internet and data are the biggest
industry in which the customers are interacting with other people and communicate with through
their mobile phones, tablets, laptops etc.
TASK 1
P1. Analysing the impact and influence of macro environment factors on Virgin Media and its
decision making :
Virgin media is a very popular company that provides services to customers and it is a
network service provider company established in Britain with their HQ in Hook, Hampshire and
sell their product in UK and Ireland. They generate 4.1 billion revenue every year and was
founded in 2006. This company will provide services such as broadband, mobile phone and Wi-
Fi services. There are some competitive companies like EE, Vodafone and other UK firms.
Ansoff Growth matrix model is used to analyse the company’s internal and external factors that
has some impact in the Virgin media strategies. This company signed a deal with Sir Richard
Branson that is playing an important role in the Virgin media business strategy.
I) PESTLE Analysis Model
There are many factors that are influenced with the Pestle Analysis in the
telecommunication industry. These factors are as follows:
Political Factor: There are some challenging issues that are arising and the government provides
the idea to handle them from one person to another. There are some basic things that are used in
the internet and broadband services. They are also used as a career purpose to solve the problem
regarding jobs as people upload their resume on the internet. They provide high internet services.
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Economical Factor: It can offer very expensive rates, Tax and interest that are totally affected to
the Virgin media telecommunication industry. In rural areas, it is very high rate for the resources
and tower that are provided by the government. The new technology is explored in the market so
that it is the main factor for growth and development. Internet and social networking platforms
are used in the business marketing. They create their own pages and advertisements on the
internet and digital marketing can play an important role in the whole business process. Most of
the companies almost always hire those types of people who resolve the problem and provides
the customer services and can handle their campaigns.
Social Factor: It is a very important factor in the Telecommunication industry because every
person is using internet and mobile services. The customer will directly interact with their friends
and colleagues through the internet package. Sometimes, they face issues related to the products,
purchase information etc.
Technological Factor: The technology has been expanding in the whole business process and
these companies provide the advanced features like voicemail, ultrafast unlimited fibre
broadband, tv bundles etc. and they are also promoting their useful techniques. Most of the
people are interested to use this kind of services. The Virgin Company will provide strong
developments in the computer industry, mobile phones and tv media boxes.
Legal Factor: The legislation problem impacted the virgin company. These issues affected the
Virgin Media industry. It is a very challenging part of the Virgin media and the market has been
expanding their branches all over world. The company will enhance their productivity through
this factor while increasing their growth. With the help of these techniques, many goals are
fulfilled by the company. The main objective of this company to increase their product in the
market and can earn more profit.
Environmental Factor: It is very important factor that can play an important role in a
telecommunication organization. Virgin media has a role to provide the services to customer and
the customer are interacting to other people anywhere in the world. It is a very dynamic feature
to control the level of quality. It is a very challenging part of this company to provide the
services also keeping in mind the climate change and global warming. Sometimes, heavy rain
may affect the network and connection are lost and this directly affects the company
profitability.
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2) Ansoff growth vector matrix
These strategies are defined by the development of company and other competitor
companies are operating on it. These types of model analysis the specific product and their
services. They will control the whole business planning to identify the requirement of a specific
product.
It is the best approach to understand the need of the customers from a product and to
produce customer satisfaction with the product that you are putting on the market. They are using
new products and provide services to the customers and they can be gaining a lot of profit of it.
They will determine the strength of product and can be making a new idea for the extra
productivity.
Illustration 1: Ansoff's matrix
[Source: Ansoff’s matrix. 2018]
§
New product approaches: The objective of this company is to identify the new product demand
in the market. They are launching a new product and already they will be busy making another
product to replace the one they already put out there and a best example will be there continuing
improvement of their tv media boxes. The product-based strategies are used by Virgin Media
that launches new products in the market. Most peoples are attracted to the new products and can
increase their demand day by day because of new technology. The company will always update
the need of customer in online, broadband and tv bundles.
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Existing Product approaches: The Virgin media introduced a new featured adding in the
existing product. The company are putting some efforts to adding the special type of features in
the mobile phones like new chat application, social media network etc. they are changing some
attribute and adding new ideas in their product. The Virgin media are using the new method to
explore their product in the market such as digital marketing, advertising etc. these companies
are launches new technology and can be used in their Wi-Fi and broad band services. The
customers are attracted by the new features and can purchase the new features of the products.
New product in market: This is the new strategy in the company and that is to launch a new item
in the market and the Virgin media can expand their product and provide the best services to the
customers. Sometimes, a new market is different for the company which can lead to an increase
in their productivity. Virgin media is a company that can sell their products in the UK and
Ireland. Virgin media is utilising the business strategy (Prior, and Schaich, 20015.). This is a
popular company that has expanded and are selling their product all over the world. In the digital
market, new items are already available and new trends are changed with different time periods
so that it is very useful for the customer to provide the effective quality of product.
M1 Critically analysing the macro environment and determines The Virgin Media strategic
management decisions
These factors are affecting the macro environment and that would be affecting the
environmental and technological areas in the Virgin Media. They are decided to launch their new
product on the right time and it will analyse the requirement of the new products in the market.
The most important thing to understand is the need of the customer and then analyse the whole
business strategie that are affecting their business process. This is the best approach to
identifying the important factor that can damage their productivity.
TASK 2
P2 Strengths and Weaknesses of Virgin Media and their capabilities, structure and skill set.
These companies are planning the management activity and managing the quality of the
whole business process. The organization is very popular and earn a lot of profitability in the
market so that it can extend their business in all over the world. The internal and external factor
performing a functionality to spreading their capability in the market. The organization should be
identifying their values which can be used in all the strategies in the business planning. The
internal factors to control the whole internal system in the company can increase their capability
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towards the company growth (Daft, Murphy and Willmott, 2010.). It is important to focus on that
powerful strategies that help the sales and marketing. There are some models that play an
important role and that is VRIO and SWOT. These models are capable to analyse the whole
business planning and determines the value of products.
Strengths:
This is the important thing of any organization to know about their strength so that they
increase their revenue and profitability. Virgin Media uses their resources and utilising them in a
proper way for the company growth. Virgin media provides high speed internet services and
their networks are available in all areas. They are giving a lot of services like Fixed telephone
line, USB TV media boxes that can be used for TV. This is the ideal company because they also
provide loyalty towards the customer and they return that loyalty by trusting the company.
Weakness:
The greatest weakness of Virgin Media is to not enough promotion of their product in the
market and there is some lack of digital marketing. The performance of company was very slow
in the past and not providing that much quality of product, for example in 2009, the company
was having 676 million less than the 864 million in 2008. They can affect the whole business.
They are not putting their effort to resolve the issues and cannot be aware about the customers
needs and their satisfaction.
There are some capabilities and skill of Virgin Media:
1. Value of product: the value of product is very important because it analysis the whole
product, the details and can remove the threats by putting them into a scenario. Virgin
media is that company that explores their capabilities and manages their resources in a
proper manner. In this way, identifying which factors are useful for the company growth
and what strategies are helpful for the product development.
2. Rarity in product: This is a unique feature that they are adding in a product. This feature
increases the importance of products and also increases their values. The Virgin media
include their features in their product such as TV, broadband services and other product.
This is important part for increasing the skill and their capability of products.
3. Imitability: In these features, the company will use unique resources for the product
development. They are offering a quality of product in the television system and
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smartphones and they provide the best services to the customer and Virgin Media
company are trying to give an effective network.
M3 Devising appropriate strategies to improve competitive edge and market position of your
chosen company:
The Virgin media company can be focused on their models that are helping to increase
their productivity in the market. These models are to analyse the whole strategies, planning and
the need of customers. It also improving the competition between the market level and other
firms. The objective to determine the need of customer and can be provide the best services to
the customers. In this analysis, they improve the profit rate in market and are also sharing some
improved details in the marketplace. This affects the whole telecommunication industry and all
the firms. In UK, the market strategies are different from other country. They are making a plan
in a correct way from the initial point to provide the best and effective services in the market.
TASK 3
P.3 Porter's five force model
Organisations are used to such kind of model that is helping them introduce products in
the market or expand the organisations. Porter's Five Force model is used in respect to
implement which strategies would be serving most the organization or whole sector and business
enterprise to draw out to what degree factors like that of rivalry, made-to-order, suppliers,
supplementary and other new entrants into securities industry would be touching the gainfulness
of the organisation (Daft, 2018). At first companionship should be distinguishing what are the
component that could putt an emphasis on their market stock certificate and then listing out ways
to rigging and handle them all. So, the organisation is to be focused on five force model such as
on internal as well as external factors. With the help of such factors, increasing their profit and
productivity of the organisation.
It is a great assistance to manage the work and change some condition, which gives a
positive impact to the overall development. So downstairs are mentioned the 5 forces of Porter
which are enclosed into a model revealing the telecommunication sphere of the UK that are a
declaration and that any organization must consider them. Some factor are as follows:
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Rivalry:
Rivalry is between two or more companies providing the same types of product. Rivalry
affects the result of an organisation. Organisations make plans to surmount rivalry but there is a
big difference between having in mind a strategy and actually executing this strategy. The
understanding behind rivalry between two companies are sizeable by numbers that a firm has in
a market. Virgin media also faces rivalry which increases competitors in a market. There are so
many company’s which are supplying the same kind of services in an activity at the same terms
as virgin media which have an effect on the profits of the establishment (Lehmann, 2015). If the
damage of commodity is high than customers are agitated to some other establishment. So virgin
media must put their commodity at a down cost. In present scenario of UK telecommunication
sector, Virgin Media faced stiff competition with other telecommunication companies like BT,
Vodafone, Giff-Gaff, O2, etc. In order to sustain in the competitive environment it is essential
for the management of Virgin Media to devise precise strategies and implement it appropriately.
There is the issue of costs that will decide the increase of number of customer, for
example when the price high and on the other side the price is lower, the high price has a
negative impact on the customer that can always choose to go to the better deal. As a result, an
organisation must put their merchandise at low monetary value (Miller, 2014). High cost of
merchandise can be the origin of rivalry. Market growing is also the rational motive of
competition because the virgin media wants to grow fast by pulling custommers through their
offers but some telecom institution try to add as well to their marketplace size.
 Threats of substitution: In this context, the focus is on the same type of products served
by other organisations in the market. It has a given negative impact on an organisation
and reduces the number of customers. Second-string of merchandise makes loss of
establishment because the establishment tries to retain their consumers by selling their
merchandise at low border prices and that makes a loss for the institution. So customers
are comparing the product and choose the best one at the right price. An organisation is
always focussing to bring some new technology and introduce it to the customers so that
they can increase their market share. Virgin Media have low threats of substitution. With
increase in social media applications like Whatsapp, Viber, etc. free calling facilities are
available to users. Though it has not used by users in great number thus management of
Virgin Media has low threats of substitution.
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 Bargaining power of customers: Negotiation is a powerful tool of a client and is
becoming a phenomenon of bargain by which they put steady pressure on a company.
Negotiation power of consumer are advanced when there are so many mutually exclusive
and second-string in their activity and they fulfil the demand and want a share of the
consumers, in fact it is a mathematical process and uniqueness in the way you
merchandise is essential to make a bigger share of the market. The power of bargaining
of consumer is high when the secondary offer a merchandise at low terms and the
consumers want to swich to them (Prior, 2017). Sometimes a customer is loyal with the
brand that they are already with and only select one particular brand, this always helps
increase the market level of an organisation. Customer power greatly affects the decision
making process of Virgin Media. The organisation face high threat of bargaining power
of customers with different alternative organisations providing identical services in the
market of UK.
 Bargaining power of supplier: In this context, only a few members of the market can help
to increase the current market network. Powerfulness of provider is more when the
business persons are few in the marketplace and customers are many but when the
business person are many in social class and the customer few, the company needs to
supply a quality and reliable service so that the customers can go to them. This means
that it will give a negative impact on overall supplier and reduce their profit rates. This
can be transferred property for establishment powerfulness of businessperson is also
delineated as input signal of market provider and can be amalgamate to work with the
unshakable and uncharged high damage for unequalled resource (Dalton, 2016). Vantage
of supplier powerfulness are to property of arrangement transmission channel. Virgin
Media has low threats of supplier power as they have their own supplier which provides
them raw materials and deliver the end products in market.
 Threats of new entry: This factor is also making a huge competition in the market level
and gives a negative impact on similar organisations. This is highly related to making
profit in the company and some changes are made in the market place (Haley, 2017).
New entrants have some obstructions but the commercial enterprises are unobstructed.
Governing policy are also a barrier to new entrants, capital demand, product
discrimination, trade name equity, customers, loyalty to existent firm, etc. Due to stricter
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regulations and rigid policies in UK telecommunication sector, it is difficult to enter and
thus it provides low threat to Virgin Media.
TASK 4
P4 Applying scope of hypotheses, ideas and models to decipher key points into getting Virgin
Media ready
Vital arranging is that procedure which is helping an organization characterize what are
their systems and bearings helping organization to assign their assets in a legitimate way. It is
fundamental for all associations that are working into this industry that they are arranging and
apportioning capital and HR in better and effective ways so that there isn't wastage of any of
them. There are different devices or gadgets which could be utilized by a firm which is then
helping them to detail key arranging like that of SWOT examination, Porters 5 constrain model
and Bowman's methodology clock show (Bowman's Strategy Clock Model, 2018). Every one of
them would break down the vital headings and choices which could be accessible with Virgin
media.
Bowman's Strategy Clock Model:
This model is characterized as that which is utilized by a firm to contrast their items and
benefit and their rivals. Under this three of Major Porter's systems are been expounded so that
these could be utilized into correlation with others into same markets (Peters, 2015). The clock
into this model is considered to as eight conceivable and imperative techniques that are
partitioned into 4 quadrants expressing as cost and saw included esteem. It is constantly
contended that this model does not possess the capacity to give clear instructions thought
regarding the upper hands of any organization or industry as all the 8 sections of this model are
not that clear or exact. However here is the clarification about what the 8 sections of clock
display are and how these could be utilized by Virgin media in expounding Porter's 3 powers
from its model.
Position 1: Low cost and Low included esteem - in this circumstance, where the organization is
having low cost and low esteem included onto their items is ideally not done by them.
Organization like that of Virgin media would not attempt to come into this position where they
are getting low benefits because of a diminished in their cost of items and no esteem included in
administration or items too (Saris-Brandon, 2014). This circumstance would be overcome after
they are putting powerful cost offering volume and drawing in more number of clients.
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Position 2: Low cost - if an organization is working into this segment then they are having low
cost because of their low production cost and keeping their net revenue also low. To conquer this
circumstance Virgin Media ought to expand their business volume which is helping them to
maintain in showcase for a longer term of time. Hence, Virgin if applying that strategy, they are
offering higher volume of items and administration into advertisement, then they could be
increasing effective power into commercial centre. Be that as it may, if an organization does not
possess the capacity to determine this issue then they could be welcoming higher value war into
advertisement which is misfortune to every single other organization of the industry or area and
helpful for just clients.
Position 3: Hybrid (Moderate cost and direct separation) - this is a major and a most imperative
circumstance into the life of an organization on which they are offering low estimated items and
administration yet then additionally at higher esteem included. This implies they are giving a
considerable measure of things to their clients that too on low value this is pulling in an ever
increasing number of clients towards the organization (Bowman's Strategy Clock Model, 2018).
On the off chance that Virgin Media is joining this technique then it is conceivable that they are
giving rebates to clients and keeping up their quality on same time.
Position 4: Differentiation - this is building up that item or administration which is giving the
organization uniqueness and drawing in more clients to purchase their products. When Virgin
Media created TV, Broadband and Fixed phone line which is their USP they were at separation
organization (Haley and Boje, 2014). At this organization, marketing and brand esteem would be
imperative variables which are assumed parts so they could enable their clients to pick them over
others in the same commercial centre.
Position 5: Focused separation - this is both having higher incentive with the higher cost of
those results and would make an organization which could be viewed to as having renowned
results which have not been moderate for all clients. This kind of items must be incorporated into
item portfolio now and again when organization is doing great in showcase and should likewise
incorporate up client reliability with commercial centre (Peters, 2015). All organizations which
are receiving this kind of system is working profoundly focused on business sectors and
increasing high edges of benefits.
Position 6: Increased cost and standard item - this is the time when an organization without
expanding their estimation of items or any new kind of highlight are simply raising their cost of
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items and administration into showcase. Yet, the amount to increment ought to be deliberately
done as this could be prompting diminished in their base of client if expanded in cost isn't as
indicated by clients. If Virgin media is raising their items cost and not expanding any component
or not advancing at that point, there could be space of market disappointment.
Position 7: High cost and low esteem this is done when organization is having restraining
infrastructure into advertisement and there is nobody else who is offering a similar kind of item
in showcase (Dalton, 2016). On the off chance that the organization is in imposing business
model then they could be having high value which could likewise be giving low estimation of
items to clients and, after it’s all said and done they would purchase items.
Position 8: Low esteem and standard cost at this stage any organization can have loss of their
piece of the overall industry or losing up their clients from current market. Virgin media on the
off chance that they are giving low estimation of items and that too at standard value then this
would be risk for them.
CONCLUSION
From the above section which is including mobile telecommunication companies of UK
and companies like that of Virgin Media and its market position have been analysed within this.
Virgin Media should be concentrating on how they could be able to develop more upon their
unique selling proposition so that they are able to gain a higher amount of customers. Virgin
mobile must be enabling Bowmen strategy in order to incorporate their goals and objectives
which are set so that they could achieve it. As per the above report, this is focused on increasing
the number of customer, when price is not high, on the other side, high price is a given negative
and would impact the customers. In order to make that happen, an organisation has to put their
merchandise at low monetary value. High cost of merchandise can be the origin of rivalry.
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REFERENCES
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Lehmann, J 2015. Biochar for environmental management: science, technology and
implementation. Routledge.
Miller, D 2014. Strategy from the inside out: Building capability-creating
organizations. California Management Review, 44(3), pp.37-54.
Prior, R.L 2017. Standardized methods for the determination of antioxidant capacity and
phenolics in foods and dietary supplements. Journal of agricultural and food chemistry, 53(10),
pp.4290-4302.
Dalton, C., 2016. Brilliant Strategy for Business: How to plan, implement and evaluate strategy
at any level of management. Pearson UK.
Haley, U.C 2017. Storytelling the internationalization of the multinational enterprise. Journal of
International Business Studies. 45(9). pp.1115-1132.
Peters, J.D., 2015. The marvelous clouds: Toward a philosophy of elemental media. University
of Chicago Press.
Saris-Brandon, B.L., 2014. Senses and sensibility: a human-centred branding strategy (Doctoral
dissertation, Auckland University of Technology).
Online:
Bowman Strategy Clock. 2018. Accessed through:
<https://www.toolshero.com/strategy/bowman-strategy-clock/ >.
Ansoff’s matrix. 2018. Accessed though:
<http://www.connectwisdom.com/wp-content/uploads/2014/10/Ansoffs-matrix.pdf>.
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