Report: Analyzing Virgin Media's Global Competitive Environment

This report provides a detailed analysis of Virgin Media's global competitive environment. It begins with an executive summary and an introduction, followed by an external analysis of the industry, examining political, economic, social, technological, legal, and environmental (PESTLE) factors. The report then delves into the internal environment, assessing core competencies, resources, capabilities, and skills. It utilizes models like VRIN analysis to evaluate competitive advantages. The report also explores Virgin Media's value chain and its impact on the company's performance. The analysis covers the telecommunications and mass media industry, focusing on factors such as market share, subscriber base, and innovative marketing strategies. The report highlights challenges related to technological advancements, government regulations, and competition, concluding with an overview of Virgin Media's strengths and weaknesses in the global market.

GLOBAL COMPETITIVE
ENVIRONMENT

Table of Contents
EXECUTIVE SUMMARY ............................................................................................................1
INTRODUCTION ..........................................................................................................................1
1 External Analysis of the industry .......................................................................................2
2. Internal Environment analysis:...........................................................................................5
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................8

EXECUTIVE SUMMARY
The report global competitive environment is the challenges given to the organisation
form their innovation in the upcoming business. Nowadays the global competitiveness have been
increased in drastic way. some of the organisation are not able to compete with the other
organisation. Due to the availability of the new products in the market consumer became easily
shift to the other competitor. The internal external environment of the virgin media covered
some marketing models and according to that the decision will be made on the basis of their core
competencies. Virgin media have some strength and weakness which need to change some
structure of the organisation.
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INTRODUCTION
Global Competitive Environment:
The global competitive environment is to compete with the business associated in the
globally. Compete means not to make business with them. Some parameter will be considered in
the global competitive environment such as economic of scale and global policy related to the
environment. It is the environment of other nations compete with another nations in for the
organisational growth and development (Nelson, 2013). Some are the major challenges have to
face by the organisation due to the global competitive in terms of new trend and other market
situation will in front of the existing organisation.
Aim of the report: The key aim of this report is “ To analyse the impact of internal and external
environment of Virgin Media on global competitive environment.
Objectives:
 To analyse of the internal environment of the organisation.
 To analyse of external environment of the organisation.
 To analyse the internal and external environment of the virgin media.
Virgin media is the telecommunication and mass media of industry in which they deal in
the digital television, broad band internet, fixed line telephone and mobile telephony. It is the
British media organisation which give their services in the United Kingdom. It is the subsidiary
organisation of the liberty global plc. Chairman of the organisation John c. Malone and the CEO
Tom Mock ridge are handle this organisation since 2006. Virgin media have total 14004
employees in their organisation. The market share of the virgin media has 20% share only the
broad band market in comparison with other competitor. But they have enough subscriber in
which their good will is commendable. The innovative marketing strategic special their
advertisement to attract the costumer in a different way. They are also part of the same
controversies which bring their market share down in recent years.
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1 External Analysis of the industry
For the every organisation success the industry will play the major role. Virgin media is
the part of the media industry and the most monopoly industry is the media in which the entry is
not easy and exist can't make any huge impact on the other competitor. It is all about the
customer dependable business. The analysis of the industry has two part the internal and the
external environment in which the global competitive environment can be understand clearly.
(A) External analysis:
To every organisation the industry external factor can be the impact on the virgin media
in which the analysis can be done through the various models. As the virgin is the media
company the intervention of the government on the media will be depend on their way doing
business. The content they show to the views will be mater. As per the analysis of report,
political challenges are faced by the virgin media impact on operation of their organisation. They
expended their working in other countries in which the issue of licensing from government is the
major challenges in front of them. They also provide the different services such Internet in the
United Kingdom. As the virgin is the media is the organisation from the media industry. In the
industry there few organisations who provide rival to the business firm (Kunnanatt, 2011). Pestle
analysis evaluation also indicates that due to the inflation in the nation, virgin media is facing
issue of downward growth in the market. Virgin media is also offering high ratio of employment
which impacts the income status of citizens in UK. In which the high price of other services
make their services at higher price and the directs impact on the consumer which bring the low
consumer purchase power. Social values also need to be referred by the Virgin Media in order to
have sustainability. It has been noticed that Virgin media focuses on the corporate social
responsibility to meet needs of social factors. In this respect, virgin media do some betterment of
the social welfare developmental events and other charity works to make the organisational
contribution towards the society.
The technological updated can bring the virgin media in the loss. Due to the change's in the
internet serves the virgin media may face issue because it might be possible they are using the
old system. Such aspect force company to change their system updated with huge burden on
their cost of that serves. Also, change in the technology impact on the consumer bring the high
price of the other services of the virgin media. Sue to change in the technology the automation
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take pace in the Virgin media may help to save the time in their operations. Sometime the
consumer have the complainants regarding the content showing on the television is not
appropriate for the citizens but the rating points will give the more business. For such monitoring
the laws are the important. Also, some rules and regulation have been made for the media
organisation involve the huge risk if once it will be forbidden by anyone. Virgin media as they
have different business of optical fibre in which high range of the cable have to be implemented
on the grounds that may be the cause to the environment. It has been evaluated that Virgin media
need to mke their laws and regulation in such a way that it do not harm any other person or
community. Other than that they need to follow all the rules and regulation made by the
government and that have very great impact over the performance of venture because they have
to work according to sone rukes and regulation which have bound them to expand their business.
The issues the network have been solved from the different towers which cause the spread the
radiation in the environment due to such radiation the major diseases to the society can damage
to the nation's environment. Everyone has the same product but the only difference is the
delivering the service to the consumer. The most important stakeholder of the virgin media in
the suppliers and the buyers. The influence on both of the stakeholder may be high with high
competition in the industry. They try to give better services than the other organisation. Also, the
virgin media have more effect on their Internet users in which the new plans will be given buy
the new entrants will be affordable for covering the market (Hoffman, 2000). From this, it has
been analysed that venture is trying to give innovative services to the customers and with the
help of their innovative products and services they are able to gain competitive advantage. Bit
some new organisation that are entering in the market have high impact over the venture;s
performance. So the new entrant make huge impact on the virgin media business. Once the
service will be affected the consumer can shift to the competitor because they are able to manage
the suppliers to give better cost. Virgin need to improve on their services and they have the other
products but the substitution in this industry is not possible.
2. Internal Environment analysis:
To every organisation the internal environment of the business will bring the major
changes and it has huge impact on the organisation environment. The internal analysis can be
done with core competences, VRIN analysis and competitiveness.
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Core competences of the virgin media:
 Resources: The resource are the most common core competence for the any
organisation. Because the resources which they are used of their production is the
important for the organisation operation management. The inventory used by the
organisation, the kinds of different software used to make the better productivity
in the organisation, also the most important factor is the human resource or the
manpower in their organisation (Elg,2008). It is the key strength or the
weaknesses for their organisation. The lack of resources means the organisation
not able to sustain in the market. This all the resource have major roles in the
virgin media organisation. The capabilities in the manpower bring the efficiently
productivity. It has been analysed that their resources are very effective which
helps the organisation to produce qualitative goods and services, thus, it helps
them to cater the needs and wants of the customers.
 Competences: The competencies are the major factor for the organisational
success. The virgin media have more than 14000 employees in their organisation.
The product they offer to the costumers is also the competences for the virgin
media. The price of the products is also the competences for the virgin media.
The overall market shares covered by them is also the major factor in their core
competences. The location of the virgin media is also the key factor from the
competences. Strong Management of the virgin media can bring better outcomes
for the organisation. The global competitiveness can be measures on the basis of
competences. Employees of the venture are highly effective and efficient, they are
served proper training so that they can boost up their motivation and work in
effective way.
 Skill advantages: if the organisation have the skills manpower than the chance of
the productivity will be increased and the outcome for the organisation will be
better. Skills with the virgin media human resource have the capability to get
possible outcomes for the organisation (Chang, 2009). The most technical skills
are have the advantages to the virgin media organisation in which they can get the
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better result and implementation of the services can be faster due to skill
advantage of the human resource in the organisation. It is significant for business
firm to have effective consideration of diverse values so that better competitive
advantage can be gained. By having a number of benefits the market share and
sustainability can be advanced. In addition to this, it can be said that by having
focus on work standard's improvement the key valuation can be advanced. It also
assists in better advancement of market position. Based on the VRIN analysis and
the bench marking, there are several competencies that bring the competitive
advantages Virgin Media. Along with this, it has been witnessed that application
of leadership and management practice is also beneficial because it leads business
to impressive level of success.
 Value chain: the value chain model gives the exact idea about the process behind
the finished goods in the hands of the consumer to add value for them. Each every
organisation have the same strategic that have to give value to the consumer in
terms of better product availability to them. The inventory and the other
management is the primary activities of the organisation. Support activities of the
virgin media is to procurement of the other resources and the become the day
trader in less than a day. The value of the consumer come from the end product
and their services but the broad band makes their value in the other stages. Also,
the competitor bring virgin media cover the market share which leads to down
their value. The products are also the major factor in term of their value. It has
been evaluated from the value chain organisation are effective in their primary as
well as supportive sources, they value chain is very fluent where no hurdles come
in between their operations.
 Tangible resources : the resources which can be touched, felt and seen. The
development of the firm can take place by increasing the performance of the
employees. With the experience of operating in industry has a large number of
plant, equipments, machinery, inventory. The tangible resources give sthe
innovative ideas and the facilities to the company like virgin. It helps in
supporting pump. It has been analyses from their tangible resources that their
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employees are effective and efficient and their services are having great quality.
These both factors helps the venture to cater needs and wants of the customers.
Manufacturers in training, Research and Development, new infrastructure and technology
which is called Centre of Excellence. The company also has all-in-on EPICOR Enterprise
Resource Planning (ERP) which is an information system supporting the company in running
business such as expanding into new market, managing customer relationships.
 Total Quality Management (TQM)
The company has focused on the excellence of the all the products and services of the
organisation ' Virgin ' that are valuable and important to its customer. The company is focusing
on TQM which comprises of the seven principles with the continuous improvements and six
sigma.
 Knowledge Management
Due to the importance of knowledge in management decision making, knowledge is
known as a significant intangible resource of an organization. It can be said that knowledge
management is considered as intangible value of With the support of tangible resources such as
EPICOR systems, people are able to share knowledge easily. Having effective knowledge
management, also delivers right knowledge to right people.
 Corporate intellectual property
Operating in the industry for over 200 years, virgin has a great deal of patents of
techniques and processes that the company has developed when they build and manufacture
pumps for tough environment.
VRIN Analysis:
The VRIN model determine the actual resources available with organisation for
sustainable development competitiveness:
 Value: The value will be depend in terms of their cost and benefits and other resource for
the organisation to compete with the other firms. The organisation are focusing on the
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sustainable development with proper utilising the resource and also some practice which
can be harm to their value with such resources. The resource are depend on the condition
of the organisation in which they have to utilised for the goodwill of the organisation.
The resource can the manpower which can the skill and the employee can also the value
for the organisation. The virgin media has already the high tech resource but they're not
able use effectively. For the virgin media the value is depend on their employees.
 Rare: virgin media is not able fulfil the commitment in the some services. this can be the
rareness in the organisation resources in terms of services (Beer, 2010). virgin media is
also having the better products but not the able to skill the needs of the costumer and they
are also giving poor services that shows the rareness is not in the serves but they are able
giving their best to the costumer. They've been also come with new services which they
are bale give best commitment and some of the part customer already use their services.
 Inimitable: Virgin media is not able to imitate their position made in the market. The
strong brand have the better imitable sources in the market in which they ar able to do the
sustainable development in then market and the global competitiveness can be achieve
thought their position.
 Non substitute: The resources which are used for the television that are not used for the
broad band but the advertisement to the virgin media can be done through the other
resources. This industry don't have the substitute product because each and every one
have the same products with them and they have to take some decision regarding the no
substitute. They are not able get better substitute product in their organisations.
CONCLUSION
From the report global competitive environment is the major challenges for the virgin
organisation. In which political and economic factor influence the organisation decision and also
the core competence can be easily helpful to analysis the organisational situational. The
resources with the virgin makes the perfect combination for their strength and the skill
advantages of the virgin media can be improvised the services of the organisation. Virgin media
actual position of the competitor can be analysis through the five force model in which the
competitor in the media industry bring their position stable in the market by the better services
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provide to the costumer. However the VRIN model can be useful for the virgin media to
determine their actual resources with them in organisation. The rareness is the most important
factor of the virgin media bring the services infective and the commitment from the virgin media
have fulfilled to the consumer.
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REFERENCES
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Marketing Review. 25(5). pp.504 – 519.
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