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Pestle Analysis of Virgin Media

   

Added on  2021-01-01

14 Pages4169 Words422 Views
VIRGIN MEDIA0

Table of ContentsIntroduction.................................................................................................................................................2Background..................................................................................................................................................2Part 1...........................................................................................................................................................2Pestle analysis.........................................................................................................................................2Ansoff’s matrix.........................................................................................................................................3Part 2...........................................................................................................................................................4Strategic abilities.....................................................................................................................................4SWOT analysis.........................................................................................................................................5VRIO.........................................................................................................................................................6Part 3...........................................................................................................................................................6Five force analysis....................................................................................................................................6Part 4...........................................................................................................................................................9Bowman’s Strategic Clock........................................................................................................................9Conclusion.................................................................................................................................................11References.................................................................................................................................................12

IntroductionVirgin Media Limited is a British company which provides multiple services of internet,telephone, televisions in United Kingdom. Since the year 2014 the company is working as asubsidiary of Liberty Global Plc which is another international telecommunications and thetelevisions company which is based on London. The company is also listed at the London StockExchange and NASDAQ Stock Market. The report discusses various parameters of the companyis enable readers to get a comprehensive insight into the situation and the environment of thecompany. Various tools have been made used in the analysis and these are PESTTLE analysis,SWOT analysis, Porter’s Five force analysis, Bowman’s strategy clock model. Towards the endsome of the recommendations are also discussed using which the company can increase itscompetitiveness in the market.BackgroundVirgin is one of the innovative media business which is formed after the combination of Telewest and NTL and then the company was rebranded as Virgin Media. The company has a uniquestrength of innovation and branding. The company is the only company in UK which provides allthe four media services to the people which includes the digital TV services, land lien phones,broadband and the packages of mobile phones (Virgin Media, 2018). The ability with which thecompany offers these all four services in one packages is the USP of the company and this alsosets them apart from their competitors.Part 1Pestle analysisThe PESTLE analysis would help in analyzing the macro environment which surrounds thecompany.Political factors: These have a direct impact on the business operations and some of these includethe legal issues, safety and health laws, government tax policies, stability of the government inUK. The overall situation in UK is very much stable. TRAI exist in UK which has come up withnew rules for the telecom sectors from time to time and they keep amending their directions. Thecountry is very much peaceful and in the future also there seems to be no chance of these.

Economic factors: Then the economic factors of UK also support the growth of the company asthe per capital income of the people is very high and the interest rate in the country is less. Theeconomic condition of the nation is stable. The dominance of youth in the nation is increasingand the economy of the country is boosting. Social: Then social factors also affect the demand of such servicers in the market. The mobilitylevel of people is increasing which has increased the demand. Then remarkable changes aretaking place in the human life style and the perceptions of tradition are changing in the newglobalized world. This way the demand of such services in increasing (GEMSTAR-TV GUIDEINTERNATIONAL INC v VIRGIN MEDIA LTD, 2011). They have to deal with the issue forthe training of the staff.Technological: Many new technological changes are taking place in this industry to whichVirgin Media has also to keep itself updated at all the times. These are related to the changingtechnology, new scientific attitude, government investment, obsolesce rates and many morechanges have forced the company to remain active on this front.Ansoff’s matrixThis matrix was invented in 1957 by Igor Ansoff who is famously known as the father ofStrategic management and this was publishes in HBR. This tells about the market and productchoices which is available to organizations. This acts as a basis for the for the setting of theobjectives of an organization and the four strategies of the company are as follows:Market penetration: This occurs when the organization tried to tap the market with their recentservices and products. The strategy begins with the existing customers of organization and thishelps the companies in increasing its sales. Virgin Media applied the strategy to capture marketshare by launching their broadband services and it also laid stress son the advertisementscampaigns for getting deals from the SKY. Product development: In this the companies develop new products and this helps in developmentof new products. They have developed many products related to their bard band services whichis to improve the portfolio offerings to the company.

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