The virgin group business strategy

This management style makes Virgin Travel capable of growing organically and supports external growth throughout all of Virgin Group as well. On the The virgin group business strategy hand it sends out a contradictory signal to consumers.

Virgin also analyzes its load factors to implement its rigorous price-cutting activities.


Virgin is a venture company, so we believe that it eventually needs to divest companies it acquires to be successful. Buyer power is high in the Virgin Group. For example, Virgin Active in South Africa, the leading health club chain, is challenged to think of 10 improvements for every new club built.

If Virgin feels confident that they can provide more value in that market, then they enter that market through a variety of ways. Thus many businesses outside the Virgin Group have shown their interest through joint ventures. This shall aid towards providing a better picture of the health and wealth of the empire.

This fact was capitalised on; in British advertisements for Apple Computers. The first of these issues is easing into the American market and creating brand recognition here.

Leading substitutes include innovative products such as iPhones, Blackberries, Times Warner Productions, and Google products.

Virgin corporate strategy, Case Study

Since Virgin Travel is such a young airline business, its fleet of Boeing and Airbus jets is relatively new.

By proving such freedom, managers would inevitably feel more of a sense of responsibility, ownership and would try their up most to make a success of it. Socio-politically, Virgin Travel has to be aware of the enormous safety regulations that each country enforces.

Virgin corporate strategy, Case Study

His understandings lead him to believe that sacrificing short-term profits for long-term growth was the way the business should be geared. The Virgin has group diversified into businesses.

By doing so they could mitigate switching costs for buyers and offer top of the line phones with prepaid non-contractual agreements. If the RBV is important and relevant, then it could clearly be argued that the spread of business opportunities was far too wide — even allowing for the common use of the Virgin brand name and logo.

Virgin faces an array of different smartphones, tablets, laptops, online video services, airline industries, and home computers.

It was also of importance for candidates to be able to share values and to work effectively as team players. It also has the effect of transferring all the marketing and promotional endeavours up to the present for that specific venture respectively.

Was the company wise to spend so much time investing in so many new product areas? In addition to its financial resources, Virgin Travel has intangible resources.

As a venture capitalist, Virgin has more opportunities for innovation and profit maximization in accordance to its high rivalry in many business sectors.

However, Virgins location in California provides it with substantial access to raw materials. The brand name Virgin symbolizes the company being a virgin in every business they enter into and creates their actions to enter into different market segments. The accessibility to more capital, knowledge, and skills yields an exceedingly differentiated brand name.

Being the sole general partner of this operating partnership, Virgin gained more control to yield growth.

NEW Strategic Management Case plus Case Answer – Emergent Strategy at the Virgin Group

Their innovation led them to promote unique services that shock-up the market. Most airlines would have to work long and hard to reverse the images they have in the eyes of airline travelers.

Of course, we are not suggesting it divests from every holding, but only the ones that have reached their potential or are floundering in the market.

Being such a highly diverse company, Virgin also has to take into account the level to which they are diversified. K, as well as parts of Europe. Consumer spending can be tough to control though.


The Virgin has group diversified into businesses. Deregulation increased the competition in the market place. Chart We find it interesting that in this time frame divestitures were more than double the number of acquisitions. Virgin does a lot of things in the travel, entertainment air, travel, and space travel industry to music entertainment from its record stores and radio stations.

That is, they each have their own business model and offer different services for different customers in different cities; however, they work together as needed. Virgin does a lot of things in the travel, entertainment air, travel, and space travel industry to music entertainment from its record stores and radio stations.

Virgin ranked 23 rd and 24 th out of 25 operators, was ample reason for Sir Richard Branson to feel a stake go through his reputation.

Corporate Rationale The Virgin Group comprises of an assorted mix of businesses.Virgin Group chair Richard Branson. Gareth Cattermole/Getty Richard Branson founded his first business, Student magazine, after dropping out of high school at age In later years, the company moved into a variety of business ventures – from Virgin Bride and Virgin Cola to Virgin Trains and Virgin Mobile telephones – see Table In terms of its strategy, Virgin Group claims to examine business oppor-tunities carefully, seeking an opportunity for ‘restructuring the market and creating competitive advantage’.

Virgin Growth Music In the group expanded their business by establishing Virgin Records America, seeking a new, larger market. Travel: Deregulation of the railways provided Virgin with the opportunity to form Virgin Rail.

Deregulation in Australia and Nigeria allowed Virgin to set up other low-cost Airlines. 9. Global Strategy of Virgin Group 12 April The Virgin brand is the Group’s greatest single asset. Virgin’s role is to be the consumer champion, and Virgin does this by delivering to Virgin’s brand values.

As evidenced by a survey of 2, UK adults by HPI Research, Virgin is viewed as that country’s most admired brand. The Virgin Group tries to create and grow relationships with directors, managers and pilots within Virgin Galactic and all the business in the Virgin Group strategically targeted towards travel, leisure, mobile phones, entertainment retailing and personal finance.

Virgin is intent on “changing business for good” and redefining the relationship between staff, customers, communities, environment and shareholders. Virgin Money’s purpose of “making everybody better off”, a novel concept in banking, is a good example of this.

The virgin group business strategy
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