Virgin Mobile Usa Analysis

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Virgin Mobile USA Analysis

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August 08, 2009

Table of Contents

Table of Contents2
Introduction3
Internal Factor Evaluation (IFE Matrix)4
External Factor Evaluation (EFE Matrix)5
Porter’s Five Forces6
Porters Generic Forces6
Financial Analysis7
Competitive Profile Matrix8
The Marketing Mix-The 5 P's9
Key Issues10
Boston Consulting Group (BCG Matrix)11
GE / McKinsey Matrix12
Space Matrix14
Recommendations16

Introduction

Virgin Mobile is a great company that has been successful based in the U.K. The company is well known for its brand extension and was the first company to introduce the Mobile Virtual Network Operator (MVNO) in the U.K., where they leased network space form another firm instead of running a network in-house and as a result avoiding infrastructure and large fixed cost. The company was well known for its hip and trendy position in the U.K., and catered to the youth market. Although they have had a couple failures in the past including launching the MVNO in Singapore, the company decided to venture into the U.S. Virgin Mobile positions itself to come up with an appealing offer and ensure a run rate of one million subscribers in the first year and three million by the fourth year. Keeping with the brand strategy and philosophy of making a difference, it enters areas, which are not well served which in this case is the age group of 15-29 due to their low frequency of usage and poor credit rating. While targeting this segment lifestyle and psychographics factors are important as usage is inconsistent, and based on school and, vacation periods. Virgin customers are attracted to the products and services because of the flexible monthly terms, easy to understand pricing structures, stylish handsets offered at affordable prices and relevant mobile data and entertainment content. Virgin offers products and services on a flat per-minute basis and on a monthly basis for specified quantities, or "buckets", of minutes purchased in advance in each case, without requiring customers to enter into long-term contracts or commitments (Virgin Mobile USA).

Internal Factor Evaluation (IFE Matrix)

|Internal Factor Evaluation | |Matrix (IFE Matrix) | |CRITICAL SUCCESS FACTORS |Weight |Rating |Weighted Score | |What are those factors in the internal environment which are critical to the future success of the |Relative |How well has the firm, | < 2.50 = the firm and | |organization? |Importance of that|or its strategies, |its strategies are not | |Does management have control over them? (The answer should be yes) |factor in the |responded to the |capitalizing on | | |firm's industry |factor? |opportunities or avoiding| | |0=Not Important; |1 = poor response |threats. | | |1=Very Important |2 = average response |> 2.50 = the firm, and/or| | |or Critical |3 = above average |its strategies, is/are | |...
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