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Virgin Mobile 's Strategic Strategy Essay

Decent Essays

Ring, ring, ring. No that could not possibly be your Virgin Mobile phone ringing. Virgin Mobile has decided to enter the U.S. market, but in that decision lies numerous challenges that must be considered. The cellphone industry has been plagued with high fixed costs, and hidden fees. Despite market oversaturation, the market has failed to penetrate the age group of 15-29. However, Virgin Mobile has the strength of their infrastructure and previous experience to make a reach for the U.S. market share. Although there exist many threats to their goal, for successful globalization to occur, Virgin must meticulously plan out their pricing and marketing efforts. While all three pricing strategies have advantages and disadvantages, Virgin Mobile should implement the third pricing strategy. As Richard Branson says, “A business has to be involving, it has to be fun, and it has to exercise your creative instincts” (Branson). First, to determine Virgin Mobile’s strategy it is important to look at the industry. The cellphone market in U.S. seems to have 50 percentage with 130 million mobile subscribers. The age group from 15-29 years are currently less penetrated than other global markets. Expected growth from this group in the next 5 years (Mcgovern 2,10). The needs of this segment has not been met yet, due to their savvy nature, and the vast hidden fees represented in common carriers. Additionally, due to nature of cell phones as a necessity good, the younger generation will

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