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Competition
• USA mobile communication industry : Cingular, Verizon,
Alltel, Sprint, AT&T competes nationally in addition to
other regional providers.
Options at hand : Go with
the Flow
Status Quo Pricing
Simplest price strategy
Profit will be higher because middle man can be cut out
(high commission sales staff)
Primary competitive aspect will be differentiated
applications (MTV) and superior customer service
Consider offering better off peak hours and fewer
hidden fees
Consider alternative advertising to promote
product
Can Virgin survive in an already saturated industry
with this strategy?
Options at hand : Price
Below
Penetration Pricing - adopt similar structure as current
industry leaders, but price below competition
Keep contracts (buckets of minutes) and volume discounts, but
attract customers concerned about price differential
Better for targeting a mass market; Virgin is focusing on a niche
• Is– Consider
post paid the way to go?
prepaid service (customers purchase number of minutes/airtime in advance), could
mean high churn rates
– Cost may be higher or lower per minute than competitors
• Concentrate on :
– Quality of service
– Lower cost for first time buyers
The Focus continues…
• Avoid technology trends
– Ideas to become the coolest phone in the market
– Realize what customer wants