reasons for failure of virgin mobiles

8/10/2019 Reasons for failure of Virgin Mobiles

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Through Renovation

HarshitaSrivatava

CharuSharma

Karishma

SinghPresent before youDetailed Analysis of failure of

and strategies to bring it back to race.


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Virgin mobile is a wireless communication brandused by eight independent brand-licensees

worldwide. Virgin Mobile wireless entity is typically a

partnership between Richard Branson's VirginGroup and an existing mobile network operator.

It launched its brand in India in March 2008. It is primarily a MVNO company, and retail

distribution is only a part of the overall strategy.


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Virgin, a leading branded venture capital organization, is one of the

worlds most recognized and respected brands. Conceived in 1970 by

Sir Richard Branson, the virgin group has gone on to grow very

successful businesses in sectors ranging from mobile telephony, to

transportation ,travel, financial services,leisure,music,holidays ,

publishing and retailing. Virgin has created more than 200 branded

companies worldwide employing approximately 50000 people in 29

countries. TTSL which is the second largest CDMA operator with 22million customers,will sell the youth based mobile service under the

brand name of virgin mobile.


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The basic reason for the failure of Virgin Mobilewas that it chose wrong operator -it made entry

into India partnering TTSL in March, 2008.Thattime TTSL was offering mobile services only onCDMA as Tata Indicom . Tata Indicom has nocircles where it is positioned 1st or 2nd or 3rd as

per subscriber base.


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USER RATIO


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Virgin Mobile chose wrong technology CDMA while it targets youth population.

CDMA is not a preferred technology for youthas to be a Virgin one need to get a CDMAhandset. Virgin did not introduce any greatCDMA handset which can attract youths.

Virgin Mobile Internet plans are not reallycheap, often hidden with daily rentals.


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Virgins foray into data card market neverworks because TTSL never wanted to givecompetition to its own Photon+. No cheap

tariff for youth certainly gives a thumbs down!


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Interestingly Virgin strategy is followed byTata Docomo which is GSM wing of TTSL, Tata

Docomo with its catchy TVC, presence onsocial sites and exceptional 1p/sec tariff madea overwhelmed entry.

Smartpaid concept of Virgin is now placed inTata Indicom as Smart Postpaid.


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Following Virgin GSM launch on TataDocomosnetwork Ranbeer Kapoor andGenelia were roped as Brand Ambassador

Now he is on the TVC for Tata Docomo.


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And.

Do you feel theres any chance that

Virgin 3G can ever roll out Tata

Docomo 3G network ???!!!!!


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Some of the flaws which we have witnessedpractically with virgin is that it has a very poornetwork provider

Even the customer care service is not sufficientenough to meet the demands of people.

Often we get to hear the busy or notreachable tone...

Tarrifs and data packs were too costly for anaverage customer to afford it.


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Firstly it should give up its hope to flourish inthe CDMA Industry.

The question still remains that How come

CDMA reliance established its empire?So, the answer to this is that Reliance is already awell settled and renowed name in itself.

For virgin to compete with any of these , the first

and foremost thing it will have to do is establishan independent industry , gaining attention ofcommon masses and prove itself trustworthy.


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Instead of collabrating with TTSL or any othercompany , it should establish its independentnetwork system in India also as is the case in

other countries. The advertisements should be made user

friendly.

Random and vague advertisements should beavoided. Most of them go above rhe head of acommon man.


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As style is need of Today .. Virgin shouldmake more durable as well as attractive andstylish phones.

As in India , potential customers are youngsters .So , phones must be attractive and have smartfeatures.

These qualities are necessary to cope up withthe leading companies like samsung , Nokia ,Apple.


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More to come in coming

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