Virgin Mobile UK Market Entry Analysis
Strategy - Essay Virgin Mobile UK Market Entry Analysis Future Challenges for Virgin Mobile Post-entry performance: Subscriber growth o Fastest subscriber growth of any UK operator achieve 500,000 subscribers in less than one year and 1m subscribers in 18 months o Compared to other UK operators time taken to acquire 500,000 subscribers: BT Cellnet (mmO2) over 5 years, Vodafone over 4 years, One2One (T-Mobile) 3 years and Orange 2 years o Exhibits to show charts on operator subscriber numbers and market shares o Strong customer acquisition while competitors face falling new connections i. ... capturing a large % of new wireless market can this be interpreted as evidence that Virgin enticed non-users to enter the wireless market value creation? o Exhibit on net subscriber additions for Q1 2003 Capturing customer value o Virgin has highest average revenue per user for PREPAY customers in the UK o Exhibit on monthly prepay ARPU Q2 2003 Virgins actions changed the consumer wireless industry landscape Lowered barriers to entry and increased rivalry o Conventional view that player needed huge capital investment AND government licence to enter mobile market discarded o It is now a brand game as wireless devices become products of mass consumption, brand plays an ever increasing role in securing market share o A rush of imitators trying to leverage their own brand power FT mobile, Carphonewarehouse/Fresh, Man.