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Virgin Mobile USA

834 Words4 Pages

Diagnosis and Analysis Dan Schulman has been appointed as CEO for Virgin Mobile USA, a new extension of the U.K. based company. Virgin, known for its motley of brand extensions, is seeking to penetrate the mobile phone market in the United States. At the moment, Virgin was known for its successful penetration in the U.K. cellular market. Unlike their competitors, Virgin strategy was to be a mobile virtual network operator (MVNO), meaning that they leased network space from other firms. Seeking to duplicate this success with this plan, Virgin Mobile USA partnered with Sprint, coming to the agreement that if Sprint allowed Virgin Mobile USA to use their networks, Virgin would purchase minutes from them. The mobile market at this time was heavily saturated with many cellular providers and overcrowded. When analyzing their markets, Virgin was able to recognize that their competitors were not targeting the 15- 29 year old segment. Unlike other consumers, the 15-29 year old segment was infrequent with their cellular use and seen as not profitable to mobile providers. Companies wanted to spend their money on acquiring customers they know would use their services. Unlike the typical business employee who used their phone …show more content…

To differentiate themselves, Virgin Mobile will be able to market that while they are priced similarly to competitors they offer more advantages such as their app partnerships, no hidden fees and great service. The pros of this option are that it will be easy to implement in the market since their can copy their competitor's strategy while advertising their advantages. However it will be difficult for Virgin Mobile to penetrate the market without some price discount. Without a discount, Virgin will have a hard time marketing to low income consumers and will end up reducing the amount of consumers that can purchase their

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