Virgin Media Competition
Now Viewing Virgin Media's competition in: Telecommunication Services (primary)
Call Preparation Questions
Customers, Marketing, Pricing, Competition
What kinds of customers does the company serve? - Typical customers include large and small businesses, retail customers, government, and other telecom companies.
How large is the company's market area? - While most telecom providers are local or regional businesses, large companies have a national or even international presence.
How many customers does the company have? - With most costs fixed, profitability depends on having a growing number of customers.
How does the company market its services? - Many companies use heavy media advertising and have deals with mass merchants for in-store sales.
Competitive Landscape
Demand is driven by technological innovation and by growth in business activity and consumer spending. The profitability of individual companies depends on efficient operations and good marketing. Large companies have big economies of scale in providing a highly automated service to large numbers of customers, and have the financial resources required to build and maintain large networks. Smaller companies can compete effectively in small markets or by providing specialty services. Due to a large degree of automation, average revenue per employee is a high at about $500,000.
Business Challenges
CRITICAL ISSUES
Industry Depends Highly on Regulatory Decisions - The FCC regulates the interstate activities of telecom providers, including pricing and operations, while state public utility commissions (PUCs) regulate similar matters at the state level. Regulations affect most strategic decisions of telecom companies. Although the industry is moving toward deregulation and greater competition, pricing is likely to remain regulated.
Demand Affected by Economic Growth - Demand for telecom services is affected by economic conditions, mainly because business customers provide a large portion of industry revenue. Consumers are also income-sensitive to the expensive new services telecom and cable providers offer. As a result, large telecom and cable companies had relatively flat revenue during the late 2000s recession.
Industries Where Virgin Media Competes
- Telecommunications Services
- Cable & Satellite Services
- Cable TV System Operators(primary)
- Data Services
- Fixed-line Voice Services Providers
- Cable & Satellite Services
- Media
