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VirginMobileSA
Task 1 – External Environment
Virgin Mobile, a part of Virgin Group Limited, established in United Kingdom by Richard Branson as the first Mobile Virtual Network Operator in 1999. Moreover, Virgin Mobile has a joint venture to sign long-term contracts for using network and infrastructure with T-Mobile and Virgin Group. The company offers mobile to its customers with various services such as sim cards, TV, broadband and cellular phone (Herceg, 2000). In addition, the company focused on niche market and also targeted its customers within the age around 18 to 35 years. Last but not the least, Virgin mobile maintains its competitive advantages by concerning in employee satisfaction that will correspondingly help to improve their services to its customers (Wasserman, 2003).

Nowadays, it is very important things that every business will always evaluate the future trend of the country where the company will run the business to set the overall strategies to overcome the market (Hill, 2013). Additionally, PEST analysis that consisted of political, economic, socio-cultural and Technological condition will be deeply used in this task to analyse the external environments of Virgin Mobile in UK as follow;

Political Factors
There are several policies, which are governed by government that influenced telecom industry. First of all, The UK’s government had supported the use of technology and innovation by using mobile phone as playing big role in the election in 2000 (Coughlan, 2005). It shows that mobile industry has become more significantly important for UK people. Moreover, after the use of 3G network services, the bidding of 4G licenses was created to acquire new airwaves that suitable for extremely fast mobile broadband services. Recently, 4G has been coveraged more than 60 percent of the UK and it will be covered all by the end of 2014 (Ofcom, 2013). Virgin Mobile aimed this advantage by offering 4G services to its customer as well (Khan, 2014). Furthermore, the



References: Anderson, J. 2013, "Health and safety - the language of UK law", Proceedings of the Institution of Civil Engineers, vol. 166, no. 1, pp. 6. BBC (2014). Commons passes emergency data laws despite criticism. Available from: http://www.bbc.co.uk/news/uk-28305309 [Accessed at 18 July 2014] BBC (2014) Barney, J. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, vol. 17, no. 1, pp. 99-120. Coughlen, S. (2005). The first mobile phone election. Available from: http://news.bbc.co.uk/1/hi/uk_politics/vote_2005/frontpage/4457723.stm [Accessed at 18 July 2014] Herceg, T, & Flattery, T 2000, “Virgin prepares for mobilisation”, Brw, 22, 45, p Hill, C.W.L. (2013), International business: competing in the global marketplace, McGraw-Hill Irwin, New York. Inman, P Jenster, P. & Hussey, D. 2001, Company analysis: determining strategic capability, Wiley, Chichester. Khan, F. (2014). Virgin Mobile gives 4G to prepaid customers. Available from: http://www.techradar.com/news/phone-and-communications/virgin-mobile-gives-4g-to-prepaid-customers-1226440 [Accessed at 20 July 2014] Leyden, L Martinez-Lucio, M. 2014, International human resource management: an employment relations perspective, SAGE, Los Angeles. Ofcom (2013). Bidding in 4G auction under way. Available from: http://consumers.ofcom.org.uk/news/bidding-in-4g-auction-under-way/ [Accessed at 20 July 2014] Paris, J Porter, M., (1985). Competitive Advantage, Creating and Sustaining Superior Performance. New York: Free Press. Wight, A. & Ang, S.H. 2009, "Building intangible resources: the stickiness of reputation", Corporate reputation review, vol. 12, no. 1, pp. 21-32. Wilson, I. 1994, "Strategic planning isn 't dead— it changed", Long range planning, vol. 27, no. 4, pp. 12-24. Yuksel, I. 2012, "Developing a multi-criteria decision making model for PESTEL analysis", International Journal of Business and Management, vol. 7, no. 24, pp. 52.

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