Recommendations of Virgin Mobile Uk Case Analysis

Home >> London Business School >> Virgin Mobile Uk >> Recommendations

Recommendations of Virgin Mobile Uk Case Study Help

On the basis of above internal and external analysis of the business together with the examination of different options, the company is advised to consider alternative 3. As alternative 3 would enable the company to expand in worldwide markets without any decrease in its regional profits and any deterioration of its market position. By thinking about Alternative 3, the company could keep its store experience and brand name individuality. It could likewise think about alternative 2 that might enable the company to access the markets without any potential financial investment. The business might pursue alternative 1 which would make it possible for the business to focus on possible worldwide markets rather than the regional markets but as the company is highly dependent on the local markets with 90% of its shops in the United States, there fore pursuing alternative 1 would result in the significant decline in business's profits. The company is recommended to consider alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Virgin Mobile Uk Case Solution Stores

Growth towards worldwide markets through opening new shops in other Europe and Asian countries with closing domestic shops is although a great alternative for increasing the worldwide presence of the business. The closing of domestic stores could highly impact the revenues of the company as above 90% of its stores are situated domestically and closing those shops would eventually decrease the incomes of the firm. Additionally, the company has a long term market position in US which can not be created quickly in the brand-new markets. The option would assist the business to expand in global markets in addition to the elimination of problems raised in its local markets connected to its variety. The pros and Cons for Option 1 are noted below;

Pros:

• Expedition of new global markets.
• Boost in earnings from worldwide markets.
• Removal of issues connected to variety.
• Revenue diversification.
• Action towards being a strong international brand.

Cons:

• Loss of comprehensive incomes from the regional markets.
• Boost in competition.
• Differences in cultures might resulted in a failure of the brand name particularly in Asian nations.
• Low incomes at preliminary levels.
• Increase in marketing expenditures to gain market share.

Alternative-2: Introduction of Click and Recommendations of Virgin Mobile Uk Case Help Stores

Alternative 2 includes the intro of online market places through creating a proper business's site. With the increased patterns towards online shopping, the online stores like Amazon, Alibaba etc. could pose a severe hazard to the marketplace share of business. Furthermore, the competitors are shifting towards click and Recommendations of Virgin Mobile Uk Case Solution shops with Gap introducing Piperline. This shift towards online markets might minimize the incomes for company. In this scenario the business could think about introducing Click and Recommendations of Virgin Mobile Uk Case Help stores. These stores with a low requirement of funds to settle would enable the business to reach global markets, without ending its domestic stores. The advantages and disadvantages of option 2 are provided as follows;

Pros:

• Low investment
• Decreasing competitors danger
• Access to the world markets
• Enlarging consumer base
• Easy to manage
• Big Incomes
• Low Operating Expense
• Easy brand-new market entryway

Cons:

• Threat to the market position
• Removal of brand Individuality
• Removal of the fantastic store experience.
• Risk of decline in elite sales.

Alternative-3: Expansion towards International Markets Without closing Domestic Stores

Another alternative that the company might consider, is to broaden towards the international markets without closing its domestic shops that contributes to the major part of revenues of the company. The pros and cons related to Alternative 3 are provided listed below;

Pros:

• Reducing competitors risk
• Access to the world markets
• Enlarging customer base
• Large Incomes
• Exploration of new worldwide markets.
• Boost in revenue from international markets.
• Profits diversity.
• Action towards being a strong international brand.

Cons:

• Extension of issues associated with diversity.
• Differences in cultures might caused a failure of the brand name especially in Asian countries.
• Low incomes at preliminary levels.
• Boost in marketing expenses to gain market share.



This is sample work and not applicable to real case study. Please place the order on the website to get your own originally done case solution.