SWOT Analysis of Virgin Media

Part 1 – SWOT Analysis

Virgin Media

Virgin Media is an advanced new media company that was formed as a consequence of a amalgamation between NTL and Telewest and so a re-branding as Virgin Media. Its chief strength lies in the stigmatization and the invention that the name Virgin offers. Internally, Virgin Media is the lone company in the United Kingdom that offers all four of the chief media services, i.e. digital telecasting, broadband, fixed line telephone and nomadic phone bundles. The ability to offer these merchandises all together in one package is the alone merchandising point of Virgin Media and clearly sets the company apart from its rivals.

In offering these combined services, the company has significant economic systems of graduated table as it is able to unite many of its generic functions such as disposal and finance, therefore leting the company to monetary value more competitively for the benefit of its clients. Due to its perceived prima trade name name in the media, Virgin Media has managed to procure an on-going contract with Sky, widening further still its inclusive offering to its clients.

Technical ability and substructure are besides two of the cardinal internal strengths of the company, which have been exploited to bring forth a market taking place.

Despite this, the company does hold some internal failings that need to be managed. The amalgamation between NTL and Telewest is still comparatively new and there are cultural clangs between the two manners and the emerging Virgin manner. In recent old ages, there have been several redundancies and outsourcing of client services, in an effort to convey down costs.

This has resulted in a grade of unsettled behavior and deficiency of trueness from staff. Due to the size and complexness of the turning administration, there are likely to be ongoing struggles which will necessitate to be managed if this cultural displacement is non to impact on the client experience.

Externally, the chances and menaces confronting Virgin Media are of all time altering. The media sector is developing an exceptionally fast gait, ensuing in both chances and menaces for companies such as Virgin Media. Opportunities are widely available for Virgin Media, preponderantly in offering value added services such as on-line gambling or more dependable broadband connexions. Bundling these media services together, as Virgin Media has already done, offers yet farther chances within the media sector, in footings of hold oning greater market portion. Consumers like simple, one-stop shopping when it comes to the media options available ; this is something that Virgin Media can go on to work, peculiarly now that it has signed an understanding with Sky.

Menaces to Virgin Media semen from other similar media companies such as Orange or BT who remain as big participants in the market. In peculiar, Virgin Media is rumoured to hold troubles with its substructure dependability, which could potentially let rivals such as BT to increase market portion. The media sector as a whole is highly fast moving ; hence, the chief menace is that Virgin Media may neglect to maintain gait, therefore losing its client base to another more advanced company.

Sir Robert McAlpine

Sir Robert McAlpine is one of the longest established building companies in the United Kingdom. The company started trading in 1869 and now employs a sum of 1,500 people, bring forthing a turnover of ?1.1 billion. Sir Robert Mc Alpine covers a broad scope of technology and building undertakings such as petrochemical, power coevals, oil and gas production, pharmaceutical, chemical, excavation, H2O and atomic industries.

One of Sir Robert McAlpine’s cardinal strengths is the deepness of experience that the company can offer clients. It operates in a extremely proficient sector which is non peculiarly monetary value sensitive, but however does necessitate proficient excellence. Entering the heavy building industry is hard for new companies ; hence, the long standing name that Sir Robert Mc Alpine has developed is one of its primary strengths.

Due to the company’s superb and strong repute in the building industry, Sir Robert McAlpine has been involved in some of the highest profile edifices in the United Kingdom, such as the Millennium Dome, the Eden Project and the Emirates Stadium. It has late signed an understanding to construct the Olympic Stadium for the London 2012 Olympic Games.

Due to the continued enlargement of the company, there is a possible failing in footings of geographical disparity of the work force. Sharing information and proficient expertness is cardinal to the development of a company such as Sir Robert McAlpine. In add-on, holding a spread out work force is a possible barrier to this development. The undertakings that the company works on are by and large long term, binding up a big sum of labor and finance, before the undertaking is complete. Whilst payment strategies will take this into history, such long term planning can ensue in short term hard currency flow troubles.

Construction, as a whole, is undergoing a hard clip. It is threatened by the deficiency of available undertakings, intending that every company has to work that spot harder to pull the moneymaking contracts. Most big contracts are offered either by the authorities or by transnational companies which require that certain standards are met. Failure to run into these standards can ensue in the loss of a contract, even if the company is apparently the best for the function.

Cost force per unit areas are immense on a company such as Sir Robert McAlpine and, in this context, attention demands to be taken to guarantee that all staff are being used to their entire capacity. Furthermore, proficient expertness of the cardinal persons is at the bosom of the concern and any staff losingss could potentially be black for the company, peculiarly if these cardinal forces were encouraged to fall in a rival house.

However, Sir Robert Mc Alpine has a market taking repute and, as such, it can offer on some of the most esteemed undertakings available. Where standards in relation to size or expertness are used in the choice procedure, Sir Robert McAlpine will about ever perform good in comparing to its rivals.

It is the size and history of the company that presents both the chief chances, every bit good as the menaces that it is presently sing.

Amstrad PLC

Amstrad is one of the original media and information engineering companies and was founded in its original signifier, in 1968. Alan Sugar founded the company and is still the pull offing manager of the company, 40 old ages on. Over the old ages, Amstrad has had to alter its merchandise mix but has retained a solid place in the market topographic point, as a whole. The company employs merely 85 people but produces gross of ?91 million, demoing the grade of efficiency that this company enjoys.

Amstrad’s chief internal strength is mostly its ability to stay at the head of the electronics market. Back in the early 1970s, Alan Sugar started to develop one of the first of all time home personal computing machines. This was radical and, although other companies shortly entered the market, Amstrad had gained the repute as being at the head of new developments ; a repute that has offered important market strength, over the old ages.

Another considerable strength for the company has been the consistence of the leading in the signifier of Sir Alan Sugar. Known for his frequently direct direction manner, he has led the company for the full continuance and this grade of consistence allows the company to maximize market chances, every bit shortly as they appear.

Despite the current place of strength that Amstrad holds within the electronics market, it has some built-in failings. As the electronics sector is traveling really rapidly, it is every bit easy for the offerings to go out-of-date, rapidly. Any perceptual experience of being outdated is improbably damaging to a company such as Amstrad, as was experienced during the 1990s when its personal computing machine scope was quickly overtaken in footings of public presentation by rivals.

Opportunities are everlastingly being developed in the electronics market. Presently, the chance in the market is in portable media and this has been exploited to the full by the coup d’etat of Amstrad by BSkyB. It has besides led to the stepping down of Sir Alan Sugar as Chairman, although he still remains involved in the company. Customers are acute to buy one-stop media merchandises and the confederation with BSkyB is a clear effort to work this type of client tendency. By come ining into this amalgamation, Amstrad has ensured that it retains a strong market place, while besides extenuating its somewhat outmoded repute by partnering with a company at the cutting border of engineering.

A amalgamation of this type, nevertheless, is besides a potentially baleful clip for the company. Different civilizations in footings of staff and besides direction squads will doubtless do a grade of clash. There will besides be a pressing demand to pull off costs in such as manner that ensures the merged company is able to stay competitory. Customers are going progressively cost witting and this will be a critical country of focal point for the freshly merged company. Similarly, the company is under changeless menace from lower cost rivals who may hold fewer operating expenses to postulate with.

Part 2 – Case Study

Virgin Media

Key Reasons for Virgin Media ‘s Success:

Menaces and Problems Virgin Media May Face in the Future:

Sir Robert McAlpine

Key Reasons for Sir Robert McAlpine ‘s Success:

Menaces and Problems Sir Robert Mc Alpine May Face in the Future:

Amstrad PLC

Key Reasons for Amstrad PLC ‘s Success:

Menaces and Problems Amstrad PLC May Face in the Future: