prepare a memorandum in which you conduct a SWOT (Strengths, Weakness, Opportunity, Threat) analysis in order to evaluate Virgin’s marketing and pricing strategy choices.
You work for a sales and pricing consultant who’s been retained by Virgin Mobile. Before the company pulls the trigger and becomes fully-committed to the U.S. market, Virgin Mobile wants your boss to review (i) Virgin Mobile’s decision to enter the U.S. wireless phone service market in the first place, and (ii) Virgin Mobile’s marketing and pricing strategy. In other words, Virgin Mobile is asking your boss to weigh in on the two essential strategy questions posed on pages 113-114 of the textbook: First, “how attractive is the industry?” And second, “how will the firm compete in the industry?” Your boss therefore has asked you to prepare a memorandum in which you do the following: 1. Provide an analysis of the industry applying Porter’s 5-Forces Model. 2. Conduct a SWOT (Strengths, Weakness, Opportunity, Threat) analysis in order to evaluate Virgin’s marketing and pricing strategy choices. 3. Based on your SWOT analysis, provide a recommendation as to which of the three pricing options Virgin should choose, focusing on (1) Virgin’s selection of a target market; (2) Virgin’s pricing structure given its target market selection; and (3) which option is most likely to create a sustainable competitive advantage.
