Market Entry Strategies Case Study

Virgin Mobile’s Entry Strategies in India

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Abstract:

Virgin Mobile, which had significant presence in countries like UK, US, Australia and Canada, as a mobile virtual network operator (MVNO), decided to enter one of the world's fastest growing telecom markets in India in 2008. As the Indian regulations did not permit MVNOs, the company decided to make its entry as an exclusive franchisee and tied up with Tata Teleservices. Virgin Mobile decided to focus on the niche youth market as India had the highest population of young people falling between the age group of 15-30. Besides intense competition, addressing the demand dynamics of the youth in India was the major challenge for Virgin Mobile. The case details the regulatory and competitive issues in the Indian telecom industry and the entry strategies Virgin pursued to make its mark in the Indian telecom sector.

Pedagogical Objectives:

• To structural analysis of Indian telecom industry and regulations.
• To entry strategies of a late entrant.
• To challenges and opportunities for a late entrant in the industry.

Keywords :  Virgin Mobile; Global expansion strategies; Tata Teleservices; Niche segment; Global System for Mobile Communications (GSM); Code Division Multiple Access (CDMA); Mobile virtual network operator; Reliance Communications; Bharti Airtel; Indian Cellular; Market entry strategies; Localisation strategies; Industry analysis; Competitive advantage

Contents : 
Indian Telecom Industry
Virgin Mobile: A Global Player
Virgin’s Entry Strategies in India
Average Revenue Per User in India
Call Charges in Various Countries Per Minute
Indian Telecom Industry Network
A Note on Spectrum