Sunday, September 8, 2019

Explaining And Defending The Assigned Option Assignment

Explaining And Defending The Assigned Option - Assignment Example I believe the pricing option that I have chosen will be profitable for Virgin Mobile. Virgin Mobile Company will enter the market matching with prices offered by their competitors.   Ã‚  I also believe that their modern channel strategy and VirginXtras they will differentiate their products that will offer them a competitive gain in their target market. Given that the market is flooded, it is appropriate to let these features retain their product distinct and not saturate the population with totally new prices that may be difficult to understand.   Moreover, by matching competition and maintain their phones as post-paid, they can keep a low roil rate of 2 percent (McGovrn, 2015).   The rate will give Virgin Mobile the greatest chance of becoming even more profitable. If they opt for below competition option, they will create an entirely new price that might turn out to be risky. They may risk complicating a saturated market and raising churn rates. â€Å"Clone the industry Pri ces† options will be more profitable as it requires a small advertising budget. They can put their packaging so that they can pass their message to their customers without using salespersons. By using this option, their profits can be increased since there are reduced expenses for hiring salespeople.  Virgin Mobiles anticipates using approximately 60 million dollars less on advertisement compared to their competitors.  

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