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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.
Approximate Word count = 646
Approximate Pages = 2.6
(250 words per page double spaced)
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