Virgin Mobile: SWOT Analysis: Virgin Mobile

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SWOT Analysis To start with Virgin Mobile follows an approach in marketing that targets customers who are preferably young, dynamic and enthusiastic. And in order to lure its customers into buying the company’s product the company provides certain features that are very efficient and attractive in the market when compared to its competitors. Strength: • Cost Leadership: To begin with the company aims to be a low cost operator in the industry. It offers its customers with low acquisition costs as there is no fixed cost in infrastructure needed. The company also provides recharge coupons that can be used anytime without having the hassle of getting expired during a certain period of duration. Also, lower messaging rates and Virgin Handset with…show more content…
Most of them being its target market. However, people who are not interest in music – a way virgin mobile uses to advertise itself, they will not pay attention to the company’s ads, thus many may not know about the benefits the firms plans to offer. To attract new market and cater to them, Virgin mobile should opt a new strategy that would segment the market and prioritize it. And then later positions its products and offering across the same to enhance its value proposition. • Expansion of virgin Group: With the company expanding rapidly and in different areas and sectors, for example: radio, airlines, travel, films, internet, etc., the company loses a lot of its capital assets on investing in these new properties and land. They should rather use this capital asset and invest in their current virgin mobile company and provide them the best operating assets that would be beneficial to them in the long…show more content…
Other than this internet telephony is a serious threat to Virgin mobile industry. It has been estimated that many telecom industry loses millions of dollars due to internet calling. This is so as people would rather increase their internet usage and pay few dollars more rather than paying the monthly fee to the telecom industry. They will not have to worry about the other add on services that the company usually offers to the client’s example: telemarketing calls, void calls etc. • Government regulations: Another major threat to virgin mobile can be change in government regulations domestically and globally. This can usually impose extra duties and taxes on services and telecom regulation. Also, if the government were to change regulations due to inflation or deflation, interest rates also increase which would make it harder for companies to fund or take loans and might even cause them to increase prices to cope with the changes in economy. Other than this, globally, tariffs and cultural differences can act as a problem for the

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