Virgin Mobile USA (2006)

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Virgin Mobile USA (2006)

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Abstract

When Dan Schulman agreed to become the CEO of Virgin Mobile USA in 2001 he knew the extent of work he had ahead of him. With over 200 companies in many areas, the Virgin Group is diverse with many successes and failures. When he took on this post, his main purpose was to make the Virgin Mobile USA and Virgin Music successful and to avoid, at all costs, a failure like the Virgin Cola.

The telecommunications market is very specific and difficult maneuver. So, before trying to handle it Virgin Mobile USA must not only analyze the specific U.S. market for telephones but also analyze their own history in the sector of mobile telephones to understand the impact of its image and to know its strengths and weaknesses. With this preparation, Virgin Mobile USA will have the best strategy to penetrate the U.S. market.
After studying the specific market of mobile telephones in the U.S., we will focus on the niche market on which Virgin Mobile seeks to position itself. Finally, we will present what we consider to be the best strategy to expand in the U.S. market, mainly in terms of pricing.

Initially, we study the specificity of the U.S. market through documentation in order to better understand the challenges it will provide us with.

A mature market: Based on the research, we see that in 2001, the U.S market is a mature market in terms of the mobile telephone system. With over 130 million subscribers, it seems that the Americans did not wait to shift to Virgin mobile phones.

Tags: Virgin Group, Virgin Mobile USA, mobile telephony market in USA

Introduction
Strategic decisions of Michelin
1. Positioning of the company
2. Targeting strategy
3. What strategies of Michelin differ from other brands of tires?
Internal analysis
1. Innovation, quality, productivity
2. Segmentation
3. Information system
External analysis
1. Micro-environment: Partners of Michelin
2. Competitive analysis
Conclusion

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Extract

[...] If the plan is made in order to simplify the life of the consumer. Subscribers often get lost and do not know how to choose a package that suit his specific needs but even in such a case, a fixed or standard package reassures him even if it does not suit him. Moreover, it would be a shame to not provide a customer something that he is not accustomed to as he could be a regular source of income for Virgin Mobile. [...]

[...] So, before trying to handle it Virgin Mobile USA must not only analyze the specific U.S. market for telephones but also analyze their own history in the sector of mobile telephones to understand the impact of its image and to know its strengths and weaknesses. With this preparation, Virgin Mobile USA will have the best strategy to penetrate the U.S. market. After studying the specific market of mobile telephones in the U.S., we will focus on the niche market on which Virgin Mobile seeks to position itself. [...]

[...] The average consumption of Americans is 417 minutes per month which adds up to a bill of $ 52 on average. But the customers between the ages of 15 and 29 do not consume as much and this will significantly reduce profits. In fact, the reason why the other companies have not targeted them is probably because they are a market segment of consumers who have no money. This is an important point to consider because the company will spend an average of $370 to win over a new customer. [...]

[...] market, mainly in terms of pricing. The phone market in the United States: Initially, we study the specificity of the U.S. market through documentation in order to better understand the challenges it will provide us with. A mature market: Based on the research, we see that in 2001, the U.S market is a mature market in terms of the mobile telephone system. With over 130 million subscribers, it seems that the Americans did not wait to shift to Virgin mobile phones. [...]

[...] Virgin Mobile does not have the reputation of its competitors in the field of telecommunications and, although it hopes that lower prices will attract new customers, it is very likely that its competitors will respond by also announcing decreased prices. By offering lower prices than those that consumers already pay, Virgin would be deprived of income. This strategy can serve as a fallback if a competitor lowers its prices. Virgin Mobile already has distribution costs that are lower than its competitors and this should not offset the costs generated by the network so that when the time comes, it is able to lower its rates. [...]

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