A Strategic Analysis of utter(a) Mobile southerly Africa1.Introduction32.Company background33.The blood landscape43.1Porter?s 5 forces43.1.1Competition from substitutes43.1.2Threat of entry53.1.3Industry rivalry53.1.4Bargaining power of buyers63.1.5Bargaining power of suppliers73.2A sixth belligerent force ? complementors74.Resources and capabilities84.1Resources84.1.1Financial Resources84.1.2The perfect(a) Brand94.1.3Technology94.1.4The sodding(a) communications electronic network in South Africa94.1.5Government license94.2Capabilities104.2.1Marketing and Sales104.2.2Leveraging the saturated network104.2.3Buying Power104.2.4Research and development115Analysis of VMSA?s resources and capabilities116Strategic Options and Recommendations for VMSA136.1 Development of own network and infrastructure136.2.1Government Relations146.2.2CellC Buyout146.2 Diversification157Conclusion168References171.IntroductionThe Virgin brand is one of the biggerst global brands in the twenty-first century. This report will analyze Virgin Mobile South Africa?s current and future sources of competitive advantage by examining internal factors such as the company?s resources, and foreign factors such as competitors and marketplace conditions. Recommendations will then be presented to leverage and optimize our resources and best align our capabilities with external opportunities and threats by identifying future optimal strategic options for the South African Group.
2.Company backgroundThe Virgin group world-wide consists of over 200 different companies, employing in wasted of 25,000 people and earning revenues of over US$7 billion per annum.
The Virgin group has become synonymous in business circles with strategic diversification, with Virgin being involved in industries including soft drinks, airlines, trains, cyberspace access, music, mobile phones, wines and even bridal wear.
Founded by Sir Richard Branson in the 1960?s, the Virgin brand is one of the company?s key assets. Branson?s outlandish and alternative approaches to business have become noted (and infamous) in most business circles. He has attempted to shelter and maintain a spirit of entrepreneurship in a large company environment, and continually seeks to challenge established businesses and industries by immersion existing markets in new and innovative ways. Branson?s dodging thus finds a natural complement in the industries that Virgin has entered in South Africa. Most of the industries ? airline, mobile and finance ?...
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