Carphone Warehouse 2012 Annual Report Download - page 28
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RISK MITIGATION
Virgin Mobile France has its own risk management process,
whichmonitors the main risks facing thebusiness. Thetable
below summarises the most material risksidentified, and the
waysin which the business seeks tomitigatethem.
RISK MANAGEMENT
VIRGIN MOBILE FRANCE
CONSUMER ENVIRONMENT
Consumer confidence in France remains relatively low,
whichmay affect the level of customer spending and the
ability of the business to acquire new customers.
The business is focused on improving the quality
ofitsproposition through a wider product and service
offering,increased distribution channels and ongoing
branddevelopment.
DEPENDENCE ON KEY SUPPLIERS
The business is reliant on third parties for the provision
ofitsnetwork infrastructure.
Virgin Mobile France has a strong relationship with its
keysuppliers, and its increasing scale helps to improve
itscommercial position. The business has developed a Full
MVNO infrastructure to reduce dependencyand 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
ofthe 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
inthe IT infrastructure of the business, supported by evolving
business continuity plans.