Virgin targets the entire United States. Mobile is consumed by almost everybody, and profitability requires economies of scale. Virgin therefore, in general, seeks out all customers because it needs to have a base of millions. Within that, however, Virgin should specifically target the heaviest users of mobile, who are the industry's most profitable consumers. These are young people, aged anywhere from 12-30. They are usually students, though older ones will not be. These consumers are heavy data users. They own high end smartphones, and use them for games and videos, both of which consumer substantial amounts of data. These users spend hours per day on their phone, performing various tasks, though making phone calls is usually among the least of their worries (Yume, 2015). These consumers purchase the most expensive plans in order to support their heavy data usage. These consumers would prefer to have simpler plans, rather than the confusing ones currently on offer, and are likely willing to pay more to be able to cease worrying about their usage (Knight, 2014).
The secondary target market will be those on the outside of this demo -- the 30- to 45-year-olds who typically still have fairly high data usage. The tertiary market is basically anybody outside of that bracket, but particularly older people who do have high data usage on their phones, or younger people who for some reason do not...
As an imprint of Sprint, Virgin can focus on a narrower demographic. The service is to provide mobile access. Usually this is done via an array of plans, offering combinations of talk, text and data at different rates. These are based on the usage that each customer will expect to have. In general, a customer will not use all for which they have paid. This makes the more expensive plans more profitable. The economics of the industry suggest that the incremental cost of data is relatively small compared with what the company can charge for it. Thus, the heaviest users are the most profitable. They pay for the high infrastructure cost. The Virgin brand has consistently sought after younger users, by projecting a "hip" image, at least more so than Sprint, which most certainly does not have a cool factor.
Virgin Mobile often is packaged with other deals. Because Virgin is a captive audience of subscribers, the subscribers themselves can become the product, and marketed to businesses seeking this particular demo. Virgin can offer deals to its customers, for example, through a variety of partnerships, all of which generate revenue for Virgin Mobile. In that way, Virgin can monetize its customer base without relying on spam texts in the way that other…
The proposed Virgin Mobile SmartPhone would be priced at the same level as the Palm Centro with additional features including support for Web browsing and support of web-based applications. Rationale The high end of the SmartPhone market provides ample margin opportunities for Virgin Mobile to launch a new model into the mid-range of the market. Palm Centro is defining the low-end of the market with a de-featured SmartPhone that leaves mobile professionals'
Michael Porter (Porter, 2008) b. The Offering The Libertad will be designed as a communications and collaboration platform, making the process of customizing its many features seamless within the production process. From a software standpoint, the foundation of the Libertad will be the Google Android operating system, customized to allow for easy integration of components and functional add-ons. The Google Android operating system is chosen as the basis of the offering
S. government the right to track the statistics of every phone call made in the U.S. And especially in prepaid and pay-as-you-go cell phones vs. consumer privacy is a continued debate. The fact that those looking to do illegal transactions and not have their numbers traced prefer prepaid phones due to their lack of accountability is putting Virgin Mobile USA in an ethical bind. They cannot willingly give up consumer
In addition to gaining a high percentage of the 15-29 segment as defined in the case study, there is the added strategy of being able to take more of the mainstream customers from cellular service providers with bad service, high prices, and complex programs to understand. Presented below are the specific assumptions that illustrate the financial viability of this strategy: Pay-as-you-go is expected to be the fastest growing segment of
Virgin's Organizational Culture Model of the organization Organizational culture is built around three aspects: (1) complexity, (2) formalization, and (3) centralization. Complexity: Complexity depends on the hierarchical structure of the organization, the larger it is generally the more complex it is. Complexity, then, is reduced to three tiers: vertical, horizontal, and geographical. Vertical: The larger the depth of layer the more 'vertical' the organization is. A complex and broad organization, therefore, would generally
Product: Xperia Z1 Twist plus Gear Enrolling a product in the market attracts subsequent challenges that seek to examine its validity. Therefore, it is inopportune that modern companies develop products that will seek to minimize issues related to the incorporation. The impetus behind this approach is in the knowledge that a good product might fail because of implementation because of the ever-increasing incorporation problems. This becomes challenging if the product