Virgin Mobile Essay

951 Words Dec 15th, 2007 4 Pages
Porter's Five Forces

• Supplier Power - Weak o Lots of cell phone providers, therefore companies like Kyocera lower prices to contract with service providers.

• Buyer Power – Strong o Current cell phone service providers are numerous, which allows for many options for buyers.

• Barriers to Entry – Weak o There is nothing that will prevent Virgin from competing to an untapped market.

• Threat of Substitutes – Weak o There are very few substitutes available that offer mobile and immediate communication. Alternative like pagers are outdated & this target market cannot afford sophisticated PDA service.

• Degree of Rivalry – Strong o Competitors have brand recognition in the US and have the majority of the market share.
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Currently the top providers operate to benefit themselves and not the consumer with high prices and limited features for the money. Consumers have various choices as far as provider, but no company has differentiated themselves to benefit the consumer's pocket.

Product
Virgin Mobile USA, Inc. provides wireless communication using leased network space. They provide pre-paid services, pay-as-you-go plans, and no commitment payment options. In addition to wireless service, they provide data features like text messaging, games, graphics, text groups, and entertainment applications.

Price
Pricing for Virgin Mobile is focused on being the low cost provider of cell phone service. Pricing low will enable them to meet he demands of the younger consumers who have limited income streams.

Place
Virgin Mobile will sell directly to consumers through retail companies such as Wal-Mart, Target, Sam Goody, Circuit City Media Play, Best Buy, and Virgin Mega stores. The idea is to remain accessible to youth and be in the areas where they shop the most. Promotion
Virgin Mobile's target market is young adults from the ages of 14-34. Capitalizing on the trendy hand devices and data features. They also list quirky ads driven and young adults on specific television channels as well as certain magazine or online publications. They focus on their customer needs which are low prices, no contracts, and more

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