Carphone Warehouse 2012 Annual Report Download - page 28

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Carphone Warehouse Group plc Annual Report 201224
RISK MITIGATION
Virgin Mobile France has its own risk management process,
whichmonitors the main risks facing thebusiness. Thetable
below summarises the most material risksidentified, and the
waysin which the business seeks tomitigatethem.
RISK MANAGEMENT
VIRGIN MOBILE FRANCE
CONSUMER ENVIRONMENT
Consumer confidence in France remains relatively low,
whichmay affect the level of customer spending and the
ability of the business to acquire new customers.
The business is focused on improving the quality
ofitsproposition through a wider product and service
offering,increased distribution channels and ongoing
branddevelopment.
DEPENDENCE ON KEY SUPPLIERS
The business is reliant on third parties for the provision
ofitsnetwork infrastructure.
Virgin Mobile France has a strong relationship with its
keysuppliers, and its increasing scale helps to improve
itscommercial position. The business has developed a Full
MVNO infrastructure to reduce dependencyand improve
flexibility over time.
COMPETITION
The entry of a new MNO has substantially increased competition
in the market. This may adversely affect the business’ ability
to recruit and retain customers and its revenues and margins.
The business continues to invest in the quality of its proposition,
brand and distribution channels to try to improve its scale and
competitive position.
OPERATIONS
The business is reliant on internal and external IT systems
which could fail or be unable to keep pace with the needs
ofthe business.
The launch of the Full MVNO infrastructure and quad‑play
proposition place further reliance on these IT systems.
A significant investment has been made over recent years
inthe IT infrastructure of the business, supported by evolving
business continuity plans.