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Strategic Directions for Virgin Mobile

University: UK College of Business and Computing

  • Unit No: 5
  • Level: Undergraduate/College
  • Pages: 4 / Words 1062
  • Paper Type: Assignment
  • Course Code: K/508/0574
  • Downloads: 729
Question :

Mobile telecommunication sector has seen rapid growth and this factor can be held responsible for extensive competition in the industry. Their are more than five major companies in telecommunication industry of UK.

  • Explain how Virgin mobile get influenced by external environment.
  • Assess strengths and weaknesses of Virgin mobile.
  • Analyse existing competition in telecommunication industry of UK.
  • Use Bowmans strategy clock model for finding available strategic directions for Virgin mobile.
Answer :
Organization Selected : Virgin mobile


The trend of globalisation has changed every growing industry in this current scenario. The mobile telecommunication sector is one of the most rapidly growing industries, which are being affected by the trends of globalisation. As the market is growing for telecommunication sector, the competition in the market for acquiring more number of the customer base is also growing faster. However, the competition is not only seen in the national market but also when it comes to telecommunication the competition is being International. In this situation, the different telecommunication organisation of all over the world is implementing their different strategy for the growth and development of their organisation. However, this strategy is referred to some unique tactical and strategic decisions which are made by this organisation for developing competitive advantage in the targeted market. In this study, the diversity of strategies which are implemented by Virgin mobile for the development and improving the competitive advantage will be explained.


Sir Richard Branson is the founder of Virgin mobile which is part of the virgin group Limited. However, this organization is considered under the first mobile network operator which start working under a joint venture with T mobile in the year of 1999 in the United Kingdom. Therefore it can be said that the organization did not use their network but using long-term contract with T-Mobile for their existing mobile service (Johnson, 2016).

To understand the impact of the micro-environment in the organizational skills by which the employee satisfaction is usually affected. For understanding the demand of the market from this organization, the analysis of micro-environment and Ansoff matrix will be done

i) Pestle analysis of Virgin mobile

Political factors: the political elements of United Kingdom are imposed by the government of this country which is associated with intervention in the organisational work. The political factors of this country are affecting the services and products promotion of the organisation with subsidies and also with traffic and tax policy environmental law and trade restrictions create the stability of the organisational work. The organisation Virgin mobile is being influenced by the political initiatives of the United Kingdom on the telecommunication industry. The organisation has developed their 3G network with his associated with the promotion of the government for using the technology of T-Mobile (Fletcher et al. 2017).

Economic factors: The inflation rate of the country and the income of the customer's exchange rate at the environmental factors which are affecting the Virgin mobile. From 1999 to 2003 the organisation has developed a maximum number of subscribers. However by the introduction of the prepaid segment the traffic structure of this organisation Virgin mobile has changed. The use of prepaid segment has changed the entire structure and also result which cause a loss of many valuable customers of Virgin mobile.

Social factors: The social factor of the business environment of Virgin mobile it has been seen that the safety of the customers, increasing population and career attitude are positively impacting the business. Virgin mobile has developed the outlook of their products by understanding the social trend, colour pattern and the choice of the young generation. By using this strategy, the organisation is focusing on the employee satisfaction factor for achieving their organisation objective. By using this strategy, the organisation is focusing on the employee satisfaction factor for achieving their organisation objective.

Technological factors: The total change of the organisation product and services of Virgin mobile is related to the technological advancement.

ii) Ansoff matrix of Virgin mobile

The Russian American and shop have developed the Ansoff matrix in the year of 1957. This matrix is used for developing strategic planning, and by using this metric the UK based organization, Virgin mobile can develop their strategic planning which is being executed by the marketing department and senior managers for their future development process.

Market penetration:

The Virgin organisation mobile uses this market penetration process to understand the market share and also for launching new variety of their existing products. By developing market penetration, the organisation can easily develop promotional and advertising strategy. By using this strategy, the organisation was able to capture market share from the Rival BT in the broadband services (Bakshi, 2014).

Product development: For this strategy, the organisation has launched the new product for their existing customers. For improving the earning of the organisation or for the current portfolio the organisation has developed more than 100 Mbps services of broadband.

Market development: the market development strategy is unique because the expansion of the organisation in the new market for their existing product is the process. In addition to that, the organisation Virgin mobile has launched their broadband services for especially the existing network of Virgin mobile are being used for they are operational services for capturing the market share of BT (Scholes, 2015).

Diversification: The use of differentiation strategy is one of the best approach used by Virgin mobile for increasing the intensity of the competitive market the organisation has used the differentiation strategy which is also helpful for reducing different organisational risk.

From the analysis of microenvironment, it can be said that the work of supplier and customer are being affected by the political factors. The organisation Virgin mobile has introduced new Strategies for satisfying their customers and enhancing their revenue. The greener policy has also affected the services of this organisation. The inflation rate, unemployment rate and exchange rate are narrow down the organisational structure. The impact of technological and social factors are also affecting the revenue of the organisation and shifting the organisational services by using technological advancement like online transactions. In addition to that, the environmental analysis has shown that the contribution of this organisation in the environment is changing depending on the situations (Olsonv et al. 2018). Finally, it can be said that the legal factors of this country are insulting the liability compensation related to the services and products of the organisation and therefore the organisation can provide a better quality of services like free talk time and cheaper rate.

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