Virgin Mobile Usa: Pricing for the Very First Time [Case Study]

Virgin Mobile targets the 14 to 24-year-olds market. The case lays out three pricing options. Which option would you choose and why?

The industry I’ve selected is the cellular phone service industry. This industry’s market structure is an oligopoly, meaning that a few large firms control the market. Four main firms, T-Mobile, AT&T, Sprint, and Verizon dominate the cell phone service industry. Although the four firms compete against one another, they typically avoid price competition in order to avoid price wars that decrease profits for all. Instead, they use other tactics, such as advertising and improved customer service to gain a higher demand in the market. Price wars occur due to the interdependence of firms involved in an oligopolistic market structure. A decision made by one firm to increase or decrease prices will lead to a fluctuation of the demand curve for the

Richard Branson, the founder of Virgin Group has been a household name in the United Kingdom for over twenty years. He is well respected in the business world. He is the founder of the Virgin Group, which is known for many different things such as cell phones, record labels, airlines and many more. “Branson is also known for his unique character and leadership styles, one who is not afraid to take risks, and believes that people are the foundation to his company's success. If I were to first characterize his leadership style I would say he is definitely a democratic leader. He truly feels that getting other peoples input and listening to what

Virgin Atlantic is clearly the cash cow of the Virgin Empire but we have undertaken a

Virgin Mobile needs not only an effective but profitable pricing strategy that will set the company apart from the competition. With goals to have 1 million total subscribers by the end of the first year and 3 million by year 4, Virgin Mobile has some high expectations with a limited budget. As a company, Virgin Mobile wants to implement a pricing strategy that will attract and retain customers, especially in a target market that has been underserved in the past.

The generation of talking face-to-face is slowly fading away, and the technology era is going to keep on growing. One of the most widely used technology services known today is the cellular phone industry. According to the Pew Research Center’s website, 90% of American adults own a cell phone. Of that 90%, the smartphone ownership is at 64% (2013). Verizon Wireless, along with the other major carriers, T-Mobile, Sprint, and AT&T, have taken this data and comprised a growing industry where competition arises from all angles. These companies have battled one another on pricing, plans, and customer service for many years in order to stay on top. Unfortunately, these are major factors in whether or not a customer will choose the particular company over another.

Sir Richard Charles Nicholas Branson was born July 18th, 1950, in Surrey, England. He struggled in school and eventually dropped out at the age of 16. He started his first business after dropping out from school. In 1972, he founded Virgin as a mail order record retailer, and shortly afterwards he opened a record shop in London. This kick-started his Virgin brand globally, With more than 400 companies in over 30 countries, with different business ventures from alcoholic beverages to financial services, including airlines Virgin Atlantic and Virgin America, as well as wireless company Virgin Mobile. In addition, it includes international health club Virgin Active.

The wireless industry is extremely competitive and customers are looking to make the best bang for their buck. This is why Cricket Wireless also has an adaptive culture. “Leaders and followers in adaptive cultures care about customers and the internal alignment of people with processes to meet external demands. They value quick and decisive responses, risk taking, creativity, and innovation, while keeping the best interests and integrity of the organization in mind” (Weiss, 2015). My company has proven to take risks and at times, we drop the prices of phones to meet customer demands before the competition does. Wireless carriers lose out on money with new customers, which is the risk they take by lowering the price of handsets. If new customers receive great service and they enjoy their experience, then they are more likely to continue service with our organization. The company will then make a profit off of

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.

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

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

     In today’s telecommunication market there is a lot of competition by industry giants such as Sprint,

8. Threat of New Entrants: “There are a number of low-cost carriers (LCCs) in the domestic market and the Company competes with LCCs over a very large part of its network.”

Perhaps one of the most difficult managerial decisions in the 21st century is the decision to make a decision. Analysis paralysis, endless meetings, and corporate structure have made it painstakingly difficult to come to any real conclusions. So when the Chief Financial Officer, Bruce Berman, of Bloomindale’s was tasked with decision to implement ProfitLogic’s Pricing Optimization (PO) system, he called upon Daniel Gabbay, an analyst in the finance division, to make sense of the numbers and guide his decision making process. Berman was considering implementing a PO system to quantify the markdown

The most important inputs are craft and technology, aviation fuel, and skilled labour. Due to the reasons of political and economic, the fuel price is subjected to fluctuate. Also, the technology suppliers and craft suppliers are very limited and Virgin brands solely relies upon the supplier for them to supply very fast and aircraft that is well designed and fast. Boeing and Airbus are the two leading manufacturing aircraft that supply Virgin. The Virgin Group is constantly being technologically developed by suppliers with its touchscreen seat back entertainment, Wi-Fi accessibility, health club maintenance, cutting edge smart phones, and new space