Business Strategy Report: Analysis of Virgin Media Telecommunication

This report provides a comprehensive analysis of Virgin Media's business strategy within the telecommunications sector. It begins with an introduction to business strategy and an overview of Virgin Media, a British telecommunications company. The report then delves into the influence of the external environment on Virgin Media, utilizing PESTLE analysis to examine political, economic, social, technological, legal, and environmental factors. A stakeholder analysis is also conducted to identify and evaluate key stakeholders. The subsequent section focuses on Virgin Media's internal environment, employing the resource-based view and VRIO model to assess the company's capabilities and competitive advantages. A SWOT analysis further evaluates the company's strengths, weaknesses, opportunities, and threats. The report concludes with a discussion of the outcomes of Porter's Five Forces model, providing insights into the competitive landscape and strategic implications for Virgin Media.

Business Strategy -
Telecommunication Sector

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK1.............................................................................................................................................3
Influence of environment on Virgin Media.................................................................................3
TASK2.............................................................................................................................................6
Internal environment and their capabilities for Virgin Media.....................................................6
TASK3.............................................................................................................................................8
Outcomes of Porter's Five Force Model......................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................10

INTRODUCTION
Business strategy is a method of business which is use by the organization for attract the
consumers, competing successfully in competitive market, marking company performance
stronger and for achieving the goal and target of an organization. Business strategies are also
beneficial clarity, focus and direction for business. With the help of business strategies, business
can better understand the current business environment and achieve long term business goals.
Virgin Media is British organization which provides telecommunication services such as
telephone, television and internet services in UK. The company headquarters is established in
Hook, Hampshire. The company is established in 2006 by the John C. Malone. In this study will
describe about the influence of environment on Virgin Media and also represent vision, mission
and objectives of Virgin Media. The report will also include the internal environment and their
capabilities for Virgin Media. The report will also explain about evaluating and apply outcomes
of Porter's five force model. In the end of this report will conclude the interpreting strategic
directions.
TASK1
Influence of environment on Virgin Media
VISION: Company vision to provide highly attractive communication services at the lowest
price.
MISSION: The mission of Virgin Media is amking persons life easy and comfortable.
OBJECTIVE:
 The company objective is for medium to long term target.
 Company design long strategy for organization growth.
PESTLE analysis: Pestle analysis a method which is use by the marketers or an organization for
evaluating and monitoring the macro environment components that influence and impact the on
company (Rastogi and Trivedi, 2016). The main components which are use in pestle as follows:
Political factors: Political environment means political and government conditions of a country.
Political forces are applied at every country, and they are very much responsible for affecting
business environment. Political stability of a country leads to economic stability and that is
responsible for better sales and the profit of an organization. Political factors are also impacted
and influencing the strategic decision and tactical conditions of Virgin Media (Zahari and Romli,
2019). Just because Virgin Media operate a various countries and each and every country

political stability, condition, laws and rules are different. Virgin Media sales their products in
different country that is impacted by the government attitude towards the foreign brand. The
political condition of a country also impact the supply chain of Virgin Media. Therefore, the
decisions and the tactical action, management of an organization have to design as per the
government rules and norms. If a country, political conditions stable than company can don't face
any kind of problem at the time of import and export.
Economical factors: Economic factors also play significant roles in the business climate or
environment. The situation of economical condition of country and the world decide that how
much revenue and profit will earn by the business. Virgin Media company is also impacted by
the economic condition of the market, but the management team of organization design and
shape the price of their products as per the people capabilities (Rastogi and Trivedi, 2016).
Those price strategies give chances to people to buy or purchases Virgin Media products also it
will manage company buy and sale process. Economic conditions such as recession, tax and
interest rates, low, policies extra are impacted the Virgin Media business environment also the
strategic decision and the tactical action.
Social factors: Social factors are those components, which are make impact and influence by the
person or individual attitude, lifestyles, personality, their belief and values. These factors are
impacted a business very deeply. For these it is important for an organization to learn about local
market before going for international market (Akter and et.al., 2016). For Virgin Media it is
important to learn about the social condition of a country, the age group of society, their interest,
belief and values. This awareness is helping an organization for surviving long time. If Virgin
Media have detail knowledge about their local market than they are efficiently sales their product
in market and customers also show their interest. But company policies and norms are differed
from the society, company products and service hurt the society people believe and values than it
will be directly impacted on the Virgin Media productivity and company can't survive in local
market.
Technological factors: Technological factors is very important nowadays. At every level of
business such as marketing. Finance, sales etc. at all level technologies are use. Virgin Media is
also used various modern technology for telecommunication services in market. Company also
use modern technology for designing the new communication strategies (Zahari and Romli,
2019). But if in condition, Virgin Media not adopt the latest technology for enhancements their

business, than it will impacted the company production process, marketing process and
customers base. That will also responsible for creating new competition in market. The
technological factors are also responsible for influencing the tactical action and strategic decision
of company. Because, management have design policies and procedures as per new technology.
Legal factors: Legal factors are those components, which are design and shape by the powerful
authorities and the government. Government designs these laws for betterment of the business,
their employees and for the customer. Legal factors are includes laws such as health and safety
act 1974, anti- discrimination act 2019, minimum wage act 1998 etc. Legal laws are always been
threatened for big and for huge business (Akter and et.al., 2016). Government designs those laws
and act, and company have to follow them. Virgin Media is impacted by the legal laws of the
government, because Virgin Media has faced some cases of tipping over and death in the past in
their furniture business. So, it is very important for Virgin Media management that not happen
these types of activity in business.
Environmental factors: Environment factors earlier introduce and Virgin Media focus these
factors very efficiently. The environmental factor reduce the brand's operation cost and also
enhance and make strong image of the business (Zahari and Romli, 2019). Virgin Media actively
participated in CSR actively and donate a billion for renovation of energy and helps the poor
nations. Just because actively participation in environment welfare activities Virgin Media
become a strong brand. But if Virgin Media not participate in this activity than company not be
able top caret a good image in front of country.
Stakeholder analysis: Stakeholder analysis a method for evaluating the stakeholder
identification and for examine their needs (Cuppen, 2016). It is the important part of stakeholder
management. The method use at the time of preparing for projects to find out the attitude of
stakeholder. It can be done once or on the regular bases.
Satisfy stakeholder Work with stakeholder
Investors,
Customers,
Board member and Government
CEO,
Top management,
Analysist
Monitor stakeholder Inform stakeholder
Employees, Colleagues,

Suppliers Team members,
Employers
Satisfy stakeholder: The very first step of these model, management of Virgin Media have to
satisfy the basic needs and requirements of their stakeholder such as investors, customer, board
members and the government. If company take any new action it is required that, management
must involve and consider them than took any action forward (Cuppen, 2016). If company
management not follow those terms than those stakeholders not satisfied and that will impacted
the environment of firm.
Work with stakeholder: The next step of this model is work with the stakeholder. In these step
Virgin Media management have to work with their stakeholder such as CEO, top management,
analysist. Because they are mange all the task and duties of company. If they have no idea about
new policies than it will impacted the environment of Virgin Media.
Monitor stakeholder: The another important step of Virgin Media management is monitor their
stakeholder. The team Virgin Media examine all the activities of their stakeholder such as
employees task performance efficiency and the suppliers duties.
Inform stakeholder: In the next step team Virgin Media have to inform about their new policies
and procedures to the colleagues, team members and employers. Because without informing
them task not efficiently perform (Paletto, Hamunen and De Meo, 2015). Also, if they have no
idea about the new project it will also influence the climate and improve the conditions of
disputes.
So, with the help of these strategies will evaluate that how external or micro environment is
impacted the environment of Virgin Media.
TASK2
Internal environment and their capabilities for Virgin Media
Resource based view: Resource based view method is implies on two resources i.e. tangible and
intangible. To know the capabilities of the organization these resources can be classified in the
bases of VRIO model.
VRIO model: VRIO model is use by an organization for evaluating the firm capabilities, their
strength and weakness. These model include four important aspects such as valuable, rare,
imitability and the organizable.

Valuable: It means all the resources and assets are valuable for the organization. Those
resources make organization strong to surviving in the market. Virgin Media also a strong brand
and company resources are also valuable for providing them capabilities to survive in
competitive market (Lopes and et.al., 2018). If the company resources are valuable than they
provide them strength and capabilities, but in case Virgin Media resources are not valuable than
it is weakness for firm and be the reason for competitive disadvantages. Also, it is very important
for Virgin Media to long term survive in the market, constantly examine their resources for
continuous changes in internal and external environment.
Rare: Rare means only be acquired by one or few firms are considered rare. These resources
provide company temporary competitive advantage. Or other hand if more than few companies
have the some resources than it leads to competitive parity (Min and et.al., 2016). If Virgin
Media resources are rarer than they are provided company to strength to survive in market and
also make company capable enough. Rare resources of Virgin Media give a different image in
the market and also leads the new business opportunity, market to the Virgin Media.
Imitable: Imitability means those resources, power and assets of company that can be theft by
other company. Such as company product price, relatable packaging, product and service
delivering concepts etc. If Virgin Media resources are imitable than it will create the temporary
competitive advantage for firm. It is less risky concept. If Virgin Media resources are theft by
other company than it will increase the chances of competition in the market and organization
have to design for improving their capabilities and strength against the competitors.
Organizable: Organizable are those things which are company can use for exploit the full
competitive potential. It includes, the suppliers which can a company use for their own benefits.
But Virgin Media resources are very rare and also the market is also strong presence and brand
recognition, which help Virgin Media for successful deals in other countries.
Name of Resourc Valuable Rare Imitable Organizable
Research and development Yes Yes Yes
Wi-Fi Internet access Yes Yes
Logo name Yes Yes
Technical equipments Yes Yes Yes Yes

Raw materials Yes Yes Yes
Brand name Yes Yes
Company patent Yes Yes
Money Yes Yes Yes Yes
This resource are valuable and rare for Virgin Media company. These resources can be imitable
or organizable by other company.
SWOT analysis: SWOT analysis is a technique for evaluating any organization strength,
weakness opportunity and the threat (Gürel and Tat, 2017). By the swot analysis a firm can
examine their capabilities and their weaken area. With the help of swot analysis, management
also examine the capabilities and capacities of Virgin Media.
Strength Weakness
 Vision
 Clear concept
 Difficulty in control standards.
Opportunity Threat
 Business expansion.
 Launching new telecommunication
products as per market trends.
 Imitability
Strength: The biggest strength of Virgin Media is their vision. The clear vision of company
increase the value of their customers in the market (Gürel and Tat, 2017). Also, the another
strength of company is their clear concept. The clear concept translates all the services that can
be built strong relation with the consumers.
Weakness: The weak point of Virgin Media is difficulty to control standards across location.
Just because Virgin Media deals in various countries, and Virgin Media high and large scale
business it difficult to control standards. For this company establish uniform quality across its
goods and services range and at all location.
Opportunity: The big opportunity for Virgin Media is the business expansion in new market.
Company can expand their business in various countries because every country use

communication strategies. Also, the another opportunity for Virgin Media, is they can launch
new telecommunication products as per market trends.
Threat: The threat for Virgin Media is imitability. The Virgin Media low cost business concept
has been copied or imitated by the competitors. For this company design new policies for stay
ahead form competitors. So, it is the threat for Virgin Media than its resources next time is not
copied by rivals in market.
TASK3
Outcomes of Porter's Five Force Model
Bargaining power of suppliers: The bargaining power of Virgin Media suppliers is low and
company can easily switch with one supplier to another suppliers. In this case the full power of
suppliers in hand of Virgin Media company (Lüttgens and Diener, 2016). Because company
produce various resources from by their own side, so the company not need that if supplier
increase the price of their raw materials. Or if any case suppliers increase their price than it is
loss for suppliers because company is in power, and they are shift to another suppliers.
Bargaining power of buyers: Bargaining power of buyers is inconsiderable in case of Virgin
Media, as a strong organization they hold some important advantage which is help Virgin Media
for focusing upon the consumers by attracting and retaining them. Because most of the buyers
demand that low the cost, also improve the quality of products etc. and various company perform
as per the buyers. But in case all the power with Virgin Media (Zhao and et.al., 2016). Because
Virgin Media provide high quality of communication services which is not expected by any other
company and also the price of product is nor much high. So, the in that case the power in hand of
Virgin Media.
Threat from substitute products: Virgin Media has no threat from company substitute or the
threat is low. Virgin Media manufacture products are unique and have various quality that no one
provide in the market. Also, the Virgin Media image is now become a brand in market and the
consumers show trust on organization. Virgin Media produce and provide various types
products under one roof. Competitors also wants to supply these type of communication services
in market, but they are not reach at the level of Virgin Media.
Threat from new entrants: The threat from new entrant for Virgin Media is low to moderate.
New companies enter into the furniture market, but they are not able to impact the Virgin Media
business (Zhao and et.al., 2016). If new company enter the market, it will take time and also take

huge investments to grow in the market for becoming the strong brand and for grab large market
share. So, there is no threat for Virgin Media from the new companies who enter in furniture
market.
Level of competitive rivalry: The competition rivalry is high in UK market baecuse various
companies are available for providing telecommunication services. They are also grab some
share of market. It can be difficult for Virgin Media company.
Ansoff Matrix Model
The model Ansoff matrix is use by an organization for the growth by the existing
products, new products or in the new and existing market. The model includes four possible
segments of product market competition i.e.:
Market penetration: The market penetration strategy is less risky, since it invest many of the
organization present resources and capabilities. In these conditions a company wants to grow but
with the existing products and the services (Scholes, 2015). Organization, is also used this
method for grab large share market and expand their business with the same products and the
same market. In this type of strategy company main target is increasing their market share.
Market development: In this concept firms wants to grow but by the targeting its present
products and new market segments (Schawel and Billing, 2018). That concept can be successful
if firms product is strong and able to survive in new market. Because organization wants to
expand but in the new market which is more risky than market penetration. Company, use this
method for enter in new market with their same products and services.
Product development: Product development, is appropriate if the organization strengths are
related to the consumers rather than the product and services. In this situation company have to
focus upon the development in product for their existing customer base. This concept company
grow with the help of new product and existing market (Schawel and Billing, 2018). Company
can use this method for grow and expand in the same market. Just because organizations is
facing the competition rivalry in the market, then firm can use the product development strategy
for grow in the market. By the using this method company can develop their product and sale in
the existing market.
Diversification: In this concept organization expand or improve their business by the new
products and the new market (Dawes, 2018). It is very risky concept because, in this concept all

things are new such as product and market. Company have no idea about the customers. This
strategy is useful for Company if firm wants to develop something new.
TASK 4
Porter’s generic strategy
Cost leadership – The concept of cost leadership depends upon structure of the industry
including pursuit of economies along with proprietorial technological factors along with
professional raw materials. The procedure of firm must ensure they can achieve and survivor
cost leadership to provide command advantage of industrial range. These focus on accessing
capital needed for production process, effective skills required for effective telecommunication
process along with high level expertise for effective distribution of channels. This practice boost
cutting of prices along with retaliating potential entrances, where they offer low prices to their
effective buyers, along with better insulated powerful suppliers that can help in cutting prices
defending themselves from substitute (Al-Hakim and Hassan, 2016).
Differentiation strategies – The concept focuses on development of new and effective
product that stands unique and valued among customers and other factors that involve in
competition of firm type. The supplies of product increase price as being unique because it
involves scientific research, skilled and developed team for product development along with
helping in maintaining quality of corporate maintain its reputation. The practices of
differentiation involve risks as it limits competition and customers taste. These practices boost
large buyers having less negotiation power due to few alternatives with them. They attain
advantage of passing suppliers with increase customers along with maintaining brand loyalty
keeping them away from their rivals of Virgin Media (Blind, 2016).
Focus strategy – The strategy focuses on narrow segment where they attempt to achieve cost
advantage or either differentiation. The use of focus strategy will enjoy customer loyalty further
discouraging other firms from competition. Virgin Media tend to succeed in focus strategy as
they broad range of furniture in various kid of costs involving in successfully attainment of
market factors. Firms pursue lower volume along with less bargaining with suppliers. Firms
using these practices goes through some targeted strategy. These practices develop core
competencies through entry barrier having large buyers and less alternatives. These practices
defend rivals from competing them in the operations of business (Cecere, Corrocher and
Battaglia, 2015).

In order to understand applying the business strategies within the business environment. It is
important for the management to create the systematic plan for that. Before applying the
strategies of cost leadership. Virgin Media should need to analyse the business situation and
examine the best outcome growth. In order to identify the cost leadership company should prior
to understand the budget. On the other side, to apply the differentiation or applying the new
product within the business can helpful for the management to measure the demand and need of
the customers of Virgin Media from the market. It also helps to measure the growth and effective
management performance in order to get the best growth of market (Czarnecki and Dietze,
2017). Differentiation is the complex process for the management which requires deep
understanding into it which also required to understand the aim of the study and objectives to
analyse the systematic growth. Apart from this, in order to apply the strategies company also
need to develop a plan and proper identification of the external business environment. However,
such planning, organizing and evaluation techniques to better get the productive aim and
objectives in the best possible manner.
Tools and techniques for applying strategies within the management
In order to understand applying the business strategies within the business environment. It is
important for the management to create the systematic plan for that. Before applying the
strategies of cost leadership. Virgin Media should need to analyse the business situation and
examine the best outcome growth. In order to identify the cost leadership company should prior
to understand the budget. On the other side, to apply the differentiation or applying the new
product within the business can helpful for the management to measure the demand and need of
the customers from the market. It also helps to measure the growth and effective management
performance in order to get the best growth of market (David, 2019). Differentiation is the
complex process for the management which requires deep understanding into it which also
required to understand the aim of the study and objectives to analyse the systematic growth.
Apart from this, in order to apply the strategies company also need to develop a plan and proper
identification of the external business environment. However, such planning, organizing and
evaluation techniques to better get the productive aim and objectives in the best possible manner.
CONCLUSION
From the bases of above study it has been concluded that how internal and external
environment will impact the organization environment of Virgin Media. For evaluating this has