Case Analysis: Virgin Mobile USA: Pricing for the Very First Time April 14, 2012 History As part of the Sprint prepaid brands, Virgin Mobile USA is a mobile phone service that offers Android-powered smartphones and pre-paid web access phone service. Virgin Mobile-branded phones are widely available in over 40,000 stores nationwide, including Target, Walmart, Best Buy and Radioshack. Virgin Mobile USA’s service is based on a non-contract basis, offering a freedom of service to their customers compared to other major-brand mobile phone service (Business Wire, 2012). Virgin Mobile USA is the leader of no-contract mobile service since its debut in the U.S. market in 2001. Their leading promotional feature includes their Unlimited Web, …show more content…
The expectation was met through the offering of the mobile service at an affordable price range without an obligation. Provider GAP 2 The second Provider Gap, The Service Design and Standards Gap, is finding the middle ground, or understanding, of the customers’ expectations and meeting that with service quality specifications that employees can execute (Zeithaml et al, 2009). Virgin Mobile USA had to be able to provide uninterrupted phone service and tangible items that provided recognition of their brand to customers. Their phone service should be reviewed and compared with competitors’ services to ensure relevancy of their services to potential customers. The physical evidence includes their selection of phones and objects that represent the Virgin Mobile brand. Virgin Mobile USA would need to keep up with the available mobile technologies, including service speed and the geography of service. Contracts with appropriate phone devices that would support these technologies would maintain the brand’s presence. In addition, the offering of customer service should be promoted and provided as customer-driven service. Solution. Virgin Mobile USA needs to evaluate their suppliers of the mobile phones to ensure these devices are both physically appealing and have the capacity for the services that would be used
Velocity Cellular Services is a company that sells wireless services and products based on the Global System for Mobile Communications (GSM) standard. Under the GSM standard, an activation card is necessary for every subscriber. The company is promoting Power Starterpack, a prepaid phone service plan to existing wireless subscribers. Each subscriber of this plan will get a new activation card and a nonrefundable prepaid fee of $200. The $200 prepaid voucher
Customer service has to be above par if the business wants to keep a customer. Verizon Wireless has gone through leaps and bounds to try and stay ahead of the game, but in the last ranking, J.D. Power placed the company as third behind T-Mobile and AT&T in its customer care index rankings (2015). Verizon Wireless, as a technology service provider, should have plans to overcome any issues that may arise. Unfortunately, the company has done a poor job in using technology to fix problems customers may encounter. Verizon Wireless needs a push in the right direction if it wants to maintain customers and grow the business to an
The Gaps Model of Service Quality was originally developed for application in the financial service sector. The model was
Mobile is most useful invention of the science and technology which has helped the world to stay connected. Verizon wireless is the largest mobile network operator in the United State with its head office based in Basking Ridge, New Jersey. Verizon wireless is the most reliable and largest wireless communication service provider providing services such as voice, messaging and 3G data product with total customer base of more than 110 million. Verizon wireless is a trade name which is used by Cellco Partnership Inc. in U.S.
The purpose of this report was to provide a strategic evaluation of the company Virgin Australia. The report begins by conducting a strategic analysis of Virgin, including an analysis of the external environment and an internal analysis of competitive strengths and weaknesses. The report then identifies the strategic direction and objectives of Virgin Australia, including the vision, mission, strategic objectives and stakeholders of the company. The report moves on to explore strategic choices of Virgin Australia by identifying the key broad business level and
“We always keep on pace with the demand of our end customers, delight them through continuing maintain a close relationship between manufacturing, ongoing Research and Development as well as working closely with supply chain and outsourcing partners, to provide cost-effective, high-quality Smart phone, wireless devices and software to our customers, internationally. Constant Training and Development program and strong culture practices are held to motivate the employees, also, to ensure infinite innovation and creation come out from them. Most importantly, offer attractive
In the proposal for Option 3, we significantly decreased our costs, allowing Virgin to slightly lower the price while maintaining a high margin. Because Virgin can buy its handsets at a cheaper basis than their competitors, they can lower the relative handset subsidy while still offering the handset to customers at $50, which is lower than the industry average. Furthermore, “other charges” (hidden fees) will be reduced from $12 to $5, eliminating all fees except taxes and those necessary for operation. We will be able to reduce the cost/minute to $0.18 and will add unlimited text messages for $5 - no on-peak, off-peak times or overage costs. This factor will help Verizon tap into the younger markets by offering straightforward plans at a slightly lower cost, flexibility in contracts, with the benefits of hip apps included in the service. Customer lifetime value would reach $926.90 for those with contracts, $274.29 for those without contracts; and breakeven would be reduced to 5 months.
It is anticipated that by implementing the decisions as suggested the company will be able to adequately enter the US mobile phone service market by targeting the youth market and sufficiently attract and sustain new subscribers.
Virgin Australia is Australia’s second largest domestic airline, commenced in operations back in 2000 as a low-cost carrier (LCC) and has successfully survived in the market. Major shareholders include Air New Zealand, Singapore Airline and Etihad Airways. The airline rebranded in 2011 as a part of their 5-year turnaround
Virgin Mobile targets the 14 to 24-year-olds market. The case lays out three pricing options. Which option would you choose and why?
Virgin Mobile, a MVNO is planning to launch its services in USA. It’s target is underserved Demographics of 15-29 years as this age group is underserved by the regular telecom operators due to their low credit score ( Under 18 demographic cannot go for contract). They are planning to launch their product with service offerings that focuses on value added services.
Virgin Atlantic is clearly the cash cow of the Virgin Empire but we have undertaken a
Virgin Group LTD is a British venture capital conglomerate that has been around since 1970. Virgin encompasses over 400 different companies located in many industries such as: financial services, transport, food and drink, media and telecommunications. Headquartered in London, this British corporation has come a very long way since it’s birth in 1970. One of the main reasons for the companies success is because of its founder; Sir Richard Branson.
In this following report I will discuss the phone industry and analysed it in great detail. I will analysis the market structure and try and understand why the mobile industry falls to heavily oligopoly structure. I will highlight all the structures, however I will discuss in detail how, for example Vodafone can be incorporated in the porter’s five forces method to show how the mobile industry has devolved over the years and to understand if consumers are driven by the actual technology of the phone but if it driven more by style.
There are three options to price the new Virgin Mobile line in the US. The first option involves setting prices at the same level as the competition. The benefit of this option is the ease of implementation, but the drawback is the lack of differentiation. Virgin Mobile will not be setting itself apart from other companies, by