Virgin Mobile Case Exercise Study the Virgin Mobile case, and answer the 2 questions below. Three (3) pages maximum in total, including all tables, figures or exhibits. Complete alone, or in groups of no more than 5 persons. 1. Given Virgin Mobile’s target market, how should it structure its pricing? The case lays out three pricing options. Which option would you choose and why? In designing your pricing plan, be as specific as possible with respect to the various elements (e.g., contracts, the size of any subsidies, hidden fees, average per-minute charges, etc.) 2. How confident are you that the plan you have designed will be profitable? Explain, and provide quantitative evidence of the financial viability of your pricing strategy. Use the Customer Lifetime Value approach from the assigned reading. Show your calculation(s) that demonstrate the financial implications of your pricing strategy. [Note expected margins and other info. given in Exhibit 11 of the case.]
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