Report on Virgin Media's Business Environment, IT and Innovation

This report provides a comprehensive analysis of Virgin Media's business environment, encompassing both internal and external factors. It begins with an introduction to Virgin Media, a leading telecommunications company, and identifies its current business strategy, which emphasizes sustainable growth and digital innovation. The report then delves into the company's product and service offerings, followed by a detailed competitive analysis using Porter's Five Forces, highlighting the high degree of rivalry and the impact of new entrants, suppliers, and buyers. Furthermore, the report examines the company's value chain, identifying primary activities like marketing and sales, and services, along with supportive activities such as human resource management and technology development. An evaluation of Virgin Media's strengths and weaknesses is also included, emphasizing customer satisfaction and automation. Finally, the report discusses how Virgin Media deploys IT and leverages innovative ideas to improve business processes and enhance its competitive positioning within the dynamic telecommunications industry.

Report for internal and
external business environment
to the Virgin Media

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Introduction to the chosen organisation......................................................................................1
Identify current business strategy................................................................................................1
Briefly discuss products and services of your chosen enterprise................................................2
Analysis competitive environment of the chosen business with applying Porter's 5 forces
analysis........................................................................................................................................2
Analysis two primary and two supportive activities with Porter's value chain...........................4
Evaluate strength and weaknesses of the chosen business..........................................................5
Build on the understanding gained by these activities and summarise reflect on how business
deploy IT and use innovative ideas to improve business processes to enhance competitive
positioning...................................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Information technology allow businesses to make better decisions that based on solid
market research. In addition to this, customer relationship management systems assists enterprise
to understand customer behaviour as well. Furthermore, technology is important to create effect
on the business operations (Pearlson, Saunders and Galletta, 2016).
Present study based on Virgin Media which is telecommunication enterprise and provider
of specialising in different kinds of services to businesses. The company considers different
types of products and services in UK to offer television, internet, mobile phone, telephone
services, etc.
For gaining insight knowledge of the information, it covers introduction of the enterprise
to assess current business strategy. Furthermore, with applying Porter's 5 forces strategy to
analysis competitive environment. Moreover, strength and weaknesses has been identifying of
the selected business. At last, it helps to build on understanding to gained by different activities
that reflect on how business deploy IT with innovative ideas to improve business processes.
MAIN BODY
Introduction to the chosen organisation
Introduction of business: Virgin Media is a British company that provides telephone,
television and internet services in the UK. It's headquarter exist in Hook, Hampshire. It is
telecommunication provider that helps to specialising in different services. It is first
telecommunication provider in all over the world (Fuller, Valacich and Schneider, 2017). Hence,
it is committed with support for nationwide network with UK government to underpin Public
Services Network. This enterprise is awarded in UK to maintain security with network. The
company is continuously expanded their operations and functions to taking advantages and
acquired local cable franchises. For operational excellence, it is successfully developed to attain
overall targets and effectiveness.
Identify current business strategy
Current business strategy: In order to deliver vision with using digital, there are several
good things happen and the chosen business focused on two pillars such as Growing responsibly
and sustainably. Technology has major impact on way to live and work to get best from it.
Vision is also developed as talented people to prove that it makes good things for people,
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businesses and communities across the UK and Ireland. Growing responsibly and sustainably
also successfully helps to extend network with 4 million additional premises. Expansion also
connect more people to ultrafast broadband which helps to increase more than 6000 jobs.
Products and operations also successfully develop that highly engaged workforce to represent
diversity of customers and communities. Furthermore, sustainability improve to focus on each
new product that helps to increase more profitability and effectiveness. Network, name and
knowledge help people to discover positive power of digital technology and take more ideas that
are needed most (Laudon and Laudon, 2015).
Briefly discuss products and services of your chosen enterprise
Products and services of the chosen business: In the country, there are several products
and services provided by Virgin Media. In this regard, digital television broadband internet fixed
with line services provided by the company. Along with this, there are several products exists in
which the chosen business is dealing such as TV, phone, broadband, etc. There are different
types of certain packages and bundle which helps to capture large area of market to develop
desired results at workplace (Bruckman, Below and Matias, 2018). In September 2010, the
chosen enterprise launched big red internet which is dedicated to different types of business
internet services. From 2011, the company deals in mobile broadband network Ltd to provide
UK's first synchronous Ethernet mobile. With respect to expanding 3G and 4G network
requirements connectivity develop as 1Gigabit.
Analysis competitive environment of the chosen business with applying Porter's 5 forces analysis
In order to assess competitive business environment of Virgin Media, it can be stated that
it is communication based industry that contain major part of the companies. It is one of the top
and largest media company that offer broadband, mobile telephone services, television services
and land line telephone services with fibre optic cable (Huh, Cho and Kim, 2017). There are
more than 13,320 staff members in UK. It is the first company which offers TV, broadband,
mobile, landlines, etc. Following are different elements of Porter's five forces that can be
successfully applied in the selected business. Furthermore, it is rapidly growing communication
industry that helps to take technological innovations and improvements to deal with customer
expectations and preferences. The degree of rivalry (High): It is first component which determining to consider
company's strategy and movement towards profitability. It is also helpful to gain more
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success with measurement of competition level with same products and services. It is also
refers to the same line products competition which also offer same product and services
as Virgin Media offering to ultimate customers. In case of the chose business, in UK
there are several rivals exists such as BT, Vodafone, O2, etc. There is extreme level of
competition which create impact on the chosen business. The selected business is an
established and well known brand which offers all types of communication services from
one place to large scale. With the help of building sustainable differentiation, rivalry
among different business can be reduce. Furthermore, building certain scale in Virgin
Media also assists to collaborate to compete with small market. Threat of new entrants (Moderate): In the market, threat of new entrants is
telecommunication brings innovations, new ways to do several things. As a result, it put
pressure on Virgin Media with setting lower pricing strategy. In addition to this, it is also
reducing costs, providing value propositions to customers so that the chosen business can
face competition easily (Nguyen, Newby and Macaulay, 2015). The selected enterprise
need to manage all challenges building safeguards with its competitive edge. In this
consideration, with innovating new products and services several customers can be
attracted at workplace. As a result, building economies of scale helps to set lower and
fixed cost per unit. New entrants are less likely to enter in dynamic industry to set
standards regularly. It significantly reduces window of extraordinary profits for new
firms. Bargaining power of suppliers (Low): In the UK market, Virgin Media buy raw material
from several suppliers. Therefore, they have dominant position to decrease margin from
the enterprise and earn more within the market. Powerful suppliers in telecommunication
industry use their negotiating power to extract higher prices from the firms. As a result, it
creates overall impact of higher bargaining power with low overall profitability of the
selected business. In respect to building with efficient supply chain, bargaining power of
suppliers can be diminish in the selected enterprise. Developing dedicated suppliers also
depends on the firm so that companies develop their operations and functions with less
bargaining power (Bruckman, Below and Matias, 2018). Bargaining power of buyers (High): Buyers are always demanding a lot. As a result,
they want to buy the best offerings that are available with paying of minimum price as
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possible. It also put pressure on Virgin Media to gain more profitability in long run
consideration. The chosen business has smaller and powerful customer base so that
higher bargaining power of customers seek with increasing discounts and offers to
develop higher their ability (Pearlson, Saunders and Galletta, 2016). There are several
ways to tackle bargaining power of buyers. With the help of building large base of
customers. It assists in two ways so that it reduce bargaining power of buyers which
increases opportunities to the firm. As a result, it streamlines sales and production
process. Along with this rapidly innovating of new products also assists to seek with
discounts and offering established products in which there is limit of bargaining power of
buyers. Defection in new products is also leads with existing customers with its
competitors.
 Threat of substitute (Moderate): When new products and services meets with similar
customers demand in different aspects, Virgin Media suffers in terms of its profitability.
As a result, it drives with substitute so that threat of substitute products and services is
also high. Furthermore, it is offers value proposition that is uniquely different from
present offering in the industry (Huh, Cho and Kim, 2017). In the selected business,
services are being oriented instead of products. With the help of understanding core need
of the customers, it can be stated that what customer is buying. As per increasing
switching cost for the customers, the selected business can reduce threat of substitute
from their products and services. In this regard, it can be stated that threat of substitute
products and services is moderate.
Analysis two primary and two supportive activities with Porter's value chain
In order to consider Porter's value chain analysis, it can be stated that there are number of
activities consider that effect to demonstrate system and outcomes in appropriate manner. It
includes primary and supportive activities (Lee, Lanting and Rojdamrongratana, 2017). Primary
activities have immediate effect on the production, maintenance, sales and support for products
and services that supplied by Virgin Media. These activities consist following elements:
Primary activities Marketing and sales: In the selected business, all processes related to put products and
services in market that include managing and generate customer relationship. Guiding
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principles are also setting oneself apart from the competition which create several
advantages for Virgin Media.
 Services: In services of Virgin Media includes all activities that helps to maintain value
of products and services to customers. Therefore, it builds relationship and it is based on
procurement of different kinds of goods and services (Bruckman, Below and Matias,
2018). Service profit channel is also alternative model which specifically designed for
service management and organisational growth.
Supportive activities Human resource management: In Virgin Media, human resource management includes
support activities which develop workforce within the enterprise as it is key element.
There are several activities of recruiting staff, training and coaching of staff which
compensating and retaining for ascertained desired level of results (Demirezen, Kumar
and Shetty, 2016).
 Technology development: Furthermore, technology development relate with
development of products and services in the business in internal and external aspect.
There are several examples of technology development such as IT, technological
innovations and improvements for new products that are based on technologies. These
activities help to create value with using innovation and optimisation (Avgerou and
Walsham, 2017).
Evaluate strength and weaknesses of the chosen business
Virgin Media is one of the leading firm in telecommunication industry which has several
strengths and enable it to thrive in the market place. These strengths not helps to protect market
share in existing place but also assists to penetrate the market.
Strength: High level of customer satisfactions: The chosen company considered their operations
with dedicated customer relationship management. As a result, it helps to accomplish
high level of satisfaction of customers in Virgin Media. It helps to develop good brand
equity among potential customers (Pearlson, Saunders and Galletta, 2016). Automation of activities brought consistency: Automation of activities brought
consistency of quality in Virgin Media products that enable to scale up & down as per
customer demand and market conditions.
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 Successful track of records with integrate complimentary: In order to successfully track
records of integrating complimentary firms with mergers & acquisitions. It has
successfully integrated different number of technology in the business which streamline
operations and build reliable supply chain (Olson-Buchanan, Boswell and Morgan,
2016). Superb performance in new markets: Virgin Media built expertise at entering new
market and make success in the business. Expansion also assists to build new revenue
stream and diversify economic cycle risks in the market and operate in it. Successful track record of developing new products: The selected business also lead
with successful track of records that helps to develop new products in the market. As a
result, it helps to contain desired level of results (Huh, Cho and Kim, 2017). Reliable suppliers: Virgin Media has strong base of reliable supplier of raw material
which enable to overcome and supply chain in systematic manner. Highly skilled workforce with successful training and learning programs: With the help
of skilled workforce and successful training, it can be stated that Virgin Media investing
huge resources in training and developing. As a result, in a workforce, highly skills and
motivated people can accomplish objectives to attain more desired level of results. Strong dealer community: Furthermore, in the chosen business strong dealer community
culture built among distributor & dealers. Hence, dealers can easily promote company's
product and invest more in training and sales team. Therefore, it helps to set extract
maximum benefits from different products (Fuller, Valacich and Schneider, 2017).
Weaknesses:
 The chosen company has not effective and good demand for forecasting and leading with
higher rate of missed opportunities. It is one of the main reason due to which inventory is
high compare to its competitors so that Virgin Media is not very good at demand.
 There are more gaps in product range that sold by company. This is lack of choice that
can give to new competitors and foothold in the market (DeLone and McLean, 2016).
 Financial planning is not done properly and efficiently. This is because, current asset
ratio and liquid asset ratio suggest that the company is using more cash which present in
the business.
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 Investment in research and development is one of the fastest growing players. As a result,
Virgin Media spending more in it. It has not been able to compete and leading with
players in terms of innovation. It has also come across looking forward.
 There is more investment required in new technologies so that it integrates processes
across the board. Investment in technologies is not at par with vision of the business
(Sandoval-Almazán, Luna-Reyes and Picazo-Vela, 2017).
Build on the understanding gained by these activities and summarise reflect on how business
deploy IT and use innovative ideas to improve business processes to enhance competitive
positioning
The value chain of Virgin group which determines activities that can be apart to show further in
depth identification of activities of group. The value chain present difference between primary
and supportive activities. The primary activities involve high quality product and services,
inbound logistics. Supportive actions includes technology development, human resource
management (Eason, 2014). For gaining these activities, company must have deployed the
information technology and utilise innovation ideas to improve business process.
The Virgin group distribute in these activities in different ways such as information
interaction, usages and strategic differentiator. In this context, company needs to linked with
information technology appropriately for gaining the primary and supportive activities of
business. With the help of IT, company easily marketing and sales of products and services,
giving the appropriate training and development to employees. Information technology help to
increase sales and making profits of business. These are included in primary activities of group.
With the help of IT, company create innovation in product and services for improving and
enhancing the feedback of consumers.
Therefore, Virgin group easily to develop the digital technology for creating the new
chances that is Megastores that will have power to increase prices of firm (Nguyen, Newby and
Macaulay, 2015). They have also various websites through deploy information technology which
help to offer various facilities to their consumers, fulfilling their requirement and expectation
towards the company. These are involved in supportive activities of group.
Virgin Group must utilise the digital technology as innovation ideas which help to
improve business processes and enhance the competitive position in the industry.
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 Company must have followed innovation idea like Artificial Intelligences (AI) to
improve business processes and enhance the competitive advantage in the industry.
 With the help of AI, company easily provide the health care services, hospitality services
to the consumers (Jones and et.al., 2014).
 Therefore, customer buy more and more products and services of company which can
help to increase sales and profits of business.
 Also, they take to top position in the industry as compared to their competitors. In this
context, Virgin group easily done their operations such as providing the product and
services to consumers, designing solution, research and development of goods.
 Artificial Intelligences help to provide innovative product and services to consumers for
fulfilling their needs and demand as well as consumers satisfactions (Nguyen, Newby and
Macaulay, 2015).
 With the help of AI, company must have utilized raw material for providing the standard
services and products to customers.
Therefore, Virgin Group must have followed Artificial Intelligence to provide the high
quality products and services to consumers. This help to increase sales and profits of company.
Also, they can generate the revenue as compare to their competitors in the industry (Jones and
et.al., 2014). With the help of innovation, group create opportunity to face competition and take
position in the industry. Through this, Virgin group reduce their weaknesses and threats as well
as explore their strengths of business. This help to achieve the objectives and goals of overall
Virgin Group. With respect to increase competitive positioning in Virgin Media, new
technologies should be applied in the business. With this consideration, several opportunities
with practices successfully develop that can be differentiated in new market. As a result, it
enables to develop and maintain effectiveness (Laudon and Laudon, 2015). Furthermore, it is
also helpful to increase loyal customers at workplace so that great service and lure new
customers with value oriented proposition successfully build at workplace.
CONCLUSION
From the present report, it can be summarised that Virgin Media is one of the biggest
telecommunication business in UK market. It competes with different businesses such as
Vodafone, O2, BT, etc. In this regard, present report includes different types of products and
services that delivered by the selected enterprise in different areas of the world. Therefore, it
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contained broadband services to target different types of customers in the market. There are
several products exists in which company deals to increase productivity such as TV, mobile
phone, etc. Furthermore, it concluded about porter five forces strategy in which different aspects
create impact on the business to focus on its effectiveness. Moreover, it articulated about two
primary and two supportive activities of the enterprise to attain competitive advantages at
workplace.
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REFERENCES
Books and Journals
Avgerou, C. and Walsham, G. eds., 2017. Information Technology in Context: Studies from the
Perspective of Developing Countries: Studies from the Perspective of Developing
Countries. Routledge.
Bruckman, A.S., Below, J.E. and Matias, J.N., 2018, April. Managing Deviant Behavior in
Online Communities III. In Extended Abstracts of the 2018 CHI Conference on Human
Factors in Computing Systems (p. panel02). ACM.
DeLone, W.H. and McLean, E.R., 2016. Information systems success measurement. Foundations
and Trends® in Information Systems. 2(1). pp.1-116.
Demirezen, E.M., Kumar, S. and Shetty, B., 2016. Managing Co-Creation in Information
Technology Projects: A Differential Games Approach. Information Systems Research.
27(3). pp.517-537.
Eason, K. D., 2014. Information technology and organisational change. CRC Press.
Fuller, M.A., Valacich, J.S. and Schneider, C., 2017. Information Systems Project Management:
A Process and Team Approach, Edition 1.1. Prospect Press.
Huh, S., Cho, S. and Kim, S., 2017, February. Managing IoT devices using blockchain platform.
In 2017 19th international conference on advanced communication technology (ICACT)
(pp. 464-467). IEEE.
Jones, S. S. and et.al., 2014. Health information technology: an updated systematic review with a
focus on meaningful use. Annals of internal medicine. 160(1). pp.48-54.
Laudon, K.C. and Laudon, J.P., 2015. Management Information Systems: Managing the Digital
Firm Plus MyMISLab with Pearson eText--Access Card Package. Prentice Hall Press.
Lee, K.W., Lanting, M.C.L. and Rojdamrongratana, M., 2017. Managing customer life cycle
through knowledge management capability: A contextual role of information
technology. Total Quality Management & Business Excellence. 28(13-14). pp.1559-
1583.
Nguyen, T. H., Newby, M. and Macaulay, M. J., 2015. Information technology adoption in small
business: Confirmation of a proposed framework. Journal of Small Business
Management. 53(1). pp.207-227.
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