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Virgin mobile

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The UK’s mobile market is also expected to face high competition from other telecom companies in other countries within Europe due to the deregulation in the EU front. Te company has made predictions that the political factors in the telecom industry in UK are expected to favor the company in the upcoming years. I turn, teir customer base will increase significantly increasing the turnover of customers. Vrgin company has proven to be the most formidable and dynamic company in the telecom industry in UK (BBC, 2003). Eonomic Factors: inflation in UK led to the rise in demands for wages from staff members.

A a result, te cost of Virgin Mobile increased reducing its profit margin. O the other hand, te gradual increase in demand for goods and services resulted from increasing the disposable income of most of the UK residents. Tis applies to Virgin Mobile and is evident from the growing sales of the company over the last decade or so. Te UK’s telecom industry experienced an increased level of growth in the period between 1999 and this period there was an increased number of mobile phone subscribers from 15 Million in 1999 to 50 million in 2003 (Ofcom, 2014).

Tis provided the company with an opportunity to target a specific customer base. A a result, Vrgin Mobile benefited from this increase in the base of customers over that specific time period (Virgin Media, 2010). Tus, oer the years, Vrgin Mobile had the opportunity to tap into the market of pre pay customers. This offered them with simplified tariff structures that are relatively cheaper than ones by its rival companies in the same time period.

Tlecom industry in UK employed a large number of labor force that significantly increased the confidence of customers. Tis led to the growth of this industry. Therefore, Vrgin mobile successfully attracted and retained most of their potential customers thus increasing their profit margin (MBD, 2011). Eident from the graph above, te inflation rate has increased since 1999. Tus, te cost of production and provision of services has become very expensive. Tis has in turn heightened the demand for hikes by working officials.

Terefore, te increased level of disposable income has increased the purchasing power of most residents in UK. Tis was mostly evident during the period between 2003 and 2010, wich recorded a substantial increase in the overall number of mobile phone subscribers. ...

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