Virgin Mobile Case Presentation

Case: staring(a) Mobile USA 1 Synopsis utter(a) Mobile USA, as a new entrant into the US radio receiver returns market, aimed to acquire one million subscribers in a year. The fraternity chose to focus on a ceding back market: consumers in their teens and twenties. The company also was wondering more or less its pricing scheme: -- Fol downcasting the typical pricing structure in the labor, -- Or adopting a new pricing structure which gets loose of contracts, unknown fees, and bucket plans, and implys pre-paid plans? 2 1 What are the threats to industry gainfulness? 3 Industry Analysis Competitors: displace markets with vi national service providers (AT&T, Cingular, Verizon, etc) -- no single provider backside control more than 25% of the market (Exhibit 1). Buyers: -- The main(prenominal) ingredient with consumers to a higher place 30 has reached maturity with a perceptivity rate of close 50%. -- Penetration into the niche segment with co nsumers aged 15-29 was more low-downer. However, it did non attract many providers wedded that such consumers typically do not have commendation history. -- Buyers do not have much bargaining force but their mirth is low. 4 2 Industry Analysis (Contd) Suppliers: Cell b regulate manufactures collaborate with service providers to bundle phones and service plans.

Distribution behave (outlets, electronic stores, etc) have large bargaining power and typically require for $100 commission per phone. Entrants: Threats from new entrants are low given that the market is very crowded and network person-to-person effects are signi ficant. Substitutes: There are no keen subs! titutes to wireless phone services. Conclusion: the key threats to industry profitability include fierce competition, consumers dissatisfaction on pricing structure, and high client accomplishment costs (roughly $370 including distribution commission, handset subsidy, and advertising). Therefore, the key line for Virgin Mobile is to deal with these three problems. 5 What is the logical system for the industry pricing...If you exigency to get a full essay, order it on our website: BestEssayCheap.com

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