Who is responsible? Cellular market build-up greatly reduced people’s need for Iridium’s service. Management did not properly account for the company’s revenue model. Iridium phones were too large and expensive, forcing the company to charge higher prices and compete in areas where cellular was unavailable. They could not compete with cellular service providers.
Synopsis: The CEO of Virgin Mobile USA, Dan Schulam, is faced with the challenge to successfully enter Virgin Mobile into an already saturated cellular market. Mr. Schulam needs to identify a niche in the cellular marketplace and devise a pricing strategy to attract their target segment, consumers between 14 and 24. Schulam must choose one of three pricing strategies to implement that will best allow Virgin Mobile to differentiate itself from competitors and attracts consumers in their teens and twenties to buy from Virgin. 1. The most viable option is the one in which Virgin Mobile adopts a similar pricing structure, but with actual prices below the major carriers.
CLUB IT, PART 2 ANGELA MOSIER XBIS/219 NOVEMBER 18, 2012 INSTRUCTOR – CONCHITA GARNETT After investigating, I have identified three business problems in terms of its resources, supply chain and customers. While Club It’s customers are mostly Net generation and Millennial, whom regularly use mobile technologies, the dial-up internet service is slow and not effective. The service allows connection to the internet via telephone. While dial- up connections are a considerably less expensive alternative to high speed connections, they are very extremely slow. It may appear that Club IT is saving money by not paying for a higher speed connection, it is likely that the savings are not as significant as they may think.
Many consumers where highly interested in owning the technology but was not familiar with the details of how it works. Robert Stephens jumped on the opportunity to capitalize on innovation and the fact that it brings constant change and new problems. 2. What changes in the purchasing patterns of (a) all consumers and (b) women made the acquisition of Geek Squad particularly important for Best Buy? (a) Best Buy had a very high return rate so a full service, house call entity allowed for a decrease of their return rates by 25% - 35%.
A number of other options are also presented: targeting consumers, DIY or developers. Marketing to consumers alone may be ineffective, as they rely heavily on plumbers to select a product. This approach is also expensive, requiring mass media advertisements in an industry where brand awareness is low. While Triton was successful in building awareness, their sales are mainly in cheap electric segment (Exhibit 3). It’s also unknown how long this took to build.
For example, when Apple first released their new product the ‘iPhone’ not too long ago, the technology was one of a kind. Other brands such as Nokia or Sony Ericsson did not have the same level of technology as Apple had at the time, so there were no substitutes for iPhone, and the demand for iPhone became price inelastic. This means that when the price of iPhone increased, the quantity demanded did not drop by very much because it was in such a high demand that people were willing to pay for it. However, nowadays we see other brands such us Nokia and
This can lead to potential employees not giving Yahoo a second look. Yahoo has a high demand for information technicians, while there is a short supply for workers with this degree or experience. The company seems to be losing their employees to more exciting new companies while Yahoo is staying a part of the older internet industry. Internal recruiting
Besides the practical aspects Harris extended his idea towards marketing by having the material be compatible for printing advertisements on. Weaknesses The price of the product is a major source of weakness. 30 dollars for each door guard leaves the target market unclear. The product is too expensive for companies to give away as a promotion item, and seen as too expensive for older cars that already had dents and scratches. The specific market of new cars means less sales.
This segment would be the high users of text messaging, games, internet, and ring-tones. The phone would serve as a multi-media device and not just a telecommunication device. However, financially, it is not extremely attractive considering that most 15 – 18 year olds would need their parents to buy this phone and pay for the monthly service. Most college students rely on their parents for monthly allowances or to help them with the bills. So the target market that can actually afford to pay for the cell phone and the monthly service out of their pockets narrows down to 24-29.
It is a also important to note that strategy of launching iPod and other subsequent new products were very much in synchronization with the ‘Digital Hub’ strategy. Analyzing the industrial environment based on Porter’s 5 force model we get: 1. Intensity of Rivalry: Apple faced competition from other iPod players such as Zune (Microsoft), San Disk, Creative and Samsung. However despite these companies having more or less the same hardware had less than 10% of the market share because of the launch of iTunes. Within the industry the intensity of rivalry was high though Apple was vey ahead of it competitors even when it was charging a premium price which was $50 to $100 higher than the ASP of other iPods.