(Doc) Pestle Analysis of Virgin Mobile
Added on 2020-10-22
15 Pages4217 Words240 Views
BUSINESS STRATEGY
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................11. PESTLE model for Virgin Mobile..........................................................................................12.Ansoff's Vector matrix of Virgin Mobile.................................................................................2TASK 2............................................................................................................................................43.Strategic Capability.......................................................................................................................45.VRIO/VION Model.................................................................................................................56.Strength and Weaknesses of Virgin Mobile.............................................................................7TASK 3............................................................................................................................................9Porter's five forces Model of Virgin Mobile...............................................................................9TASK 4..........................................................................................................................................10Bowman’s strategy clock model...............................................................................................10CONCLUSION..............................................................................................................................11REFERENCES..............................................................................................................................12
INTRODUCTIONVirgin Mobile is a well known part of Virgin Group Limited, which was founded by SirRichard Branson. It was known to be first virtual Network operator which is a joint venture ofVirgin groups and T-Mobile. They tried to follow niche marketing and targeted those consumerswhich were between the age group of 18-35 years. They promoted themselves by creatingvarious attractive advertisements and opening attractive outlets. They firstly focused o theprepaid customers and then started including post paid customers also. To evaluate theirperformance company has to perform various analysis such as PESTLE, determination ofstrength and weakness etc. for the macro environment which are discussed in this report.Thisreport has also covered the strategic capabilities of the company which has lead them to sustainin the market economy and helping them to earn profits.. Also the Bowman clock strategy of thecompany has been depicted in which the firm uses the differentiation strategy that has helpedthem to create a sense of different image in the mindset of a customers which provide them abreak even point (Armstrong and et.al., 2015).TASK 11. PESTLE model for Virgin MobilePolitical FactorsThese are policies which are ruled by the government or some political groups in an area.For example, degree of intervening of various political groups in a country's economy, good andservices which governing bodies are promoting, level of subsidiaries provided to different firms,tax policies, tariffs and restrictions in trade ,environmental law and stability of political scenario.Virgin Mobile is focused on the prepaid customers; it has enjoyed benefits related to mobilesubsidies. Many suitable regulations applied by the government have helped to increase theprofitability of company.Economic FactorsIdentification of various movements like interest rates, inflation, disposable income,exchange rates in an economy isidentified through macro-economic analysis, which can have animmense impact. Virgin mobile has already enjoyed the large consumer basin the particularphase of time. They grabbed the opportunity of increasing the customer for the pre pay segment1
by providing them offers such as simplified tariff structure which was cheaper, as compared toother operators in UK.Social factorsMacro social and cultural environment identifies various trends in values in society,beliefs, norms and behaviour. It also considers about its effect on the firm due to societal factorssuch as age distribution , emphasis on safety aspects, rate of population growth , career attitudesetc. GSM mobile set products were having a great sale and it was increasing rapidly which had agreat impact on the mobile handset usage and prevalence related to it.Technological factorsThe analysis in the aspect of technological factor changes the way of application ofcertain technologies in the industry. In the current scenario, there is a tremendous change in thetechnology and industries are changing their strategies accordingly. It has a direct impact on thereduction of cost and has features which are innovative along with certain offerings, resulting inimproving the quality of services. Virgin Mobile is the first company which has provided freevoice mail services to their customer (Cascio, 2018).Legal FactorsThis factor is related to the legal rules and regulation of a nation through which itoperates. Legal factor has the ability to affect consumer law, laws related to competition,employment laws and legislation related to health and safety. These changes can affect theoperations and strategies of Virgin mobile and is considered to be one of the critical factors.These laws shall be predicted earlier so that one can tackle their effects on the company.Environmental factorEnvironmental factor is related with the analysis of climatic al and weather changes. Withany change in the climate due to factors which has a direct or indirect result such as pollutionand global warming. These are regarded as key factors that influence the working of VirginMobile. Virgin mobile has taken certain actions to minimise these impacts of their marketingactivities directly on the surroundings. Activities such as marketing and communication areneeded to be sustainable for achieving great success in economics as well as environmental terms2.Ansoff's Vector matrix of Virgin MobileThe Ansoff matrix defines the strategies which are related to the choices of product andmarket that are available to Virgin Mobile. In markets, it can be related to the customers and2
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