SWOT

STRENGTHS
 VIRGIN GROUP.- The Brand is associated with excelent service and having the
consumers interests at heart.
 First MVNO (mobile virtual network operator).- The company didnt own or
operate base station infrastructure. VM needed less capital. The company
didn´t have to invest in network hardware.
 Economies of scale.- Costs are reduced by increasing the number of users.
 Virgin brand targeted the ‘youthful’. - This niche was little explored.
 Loyalty.- Reduce turnover rates through brand loyalty.
 Service.- Easy to sell, buy and use.
 Low cost. - Generates a solid base of profitability.
 Culture Virgin.- Treating employees well makes them give their maximum.
Support levels and exceptional service quality. Customer Centric.

WEAKNESS
 Sensitivity.- Highly sensitive to market fluctuations.
 Suppliers. - High dependence on service providers and mobile pones.
 Innovation.- In the technology can´t innovate.

OPPORTUNITIES
 Corporate.- Very cost effective but very expensive.
 Alliance Media.- NTL-TELEWEST (The most important operator of media)
wants associate with a Mobile operator.
 Virgin Group.- Reinforce the benefits of group
 Mobile Market.- The market is growing, in March included 24.5 million new
users.

THREATS
 Technological advances.- T-Mobile will take 3 months to provide new
technologies.
 Competition.- Greater number of competitors.
 Contract.- At the end of the contract with T-Mobile will increase the fees or not
renew the contract. Other operators do not provide the network service.
 Price War.- Fresh, EasyMobile 62.6% cheaper than Virgin Mobile.