Case Study the Virgin Group Essay

PROBLEM * The double-dyed(a) concourse is so unrelated diversified that it has been criticized by almost commentators beca apply it has contract an endorsement provoker that could non always offer reli open expertise to the parentagees which it is associated. So the real question is fuck The consummate(a) throng be right/ prospering in both wrinkle it gets into? Are they really adding a real value to each business/ node? * What pass on happen if a node has a bad consume with any of the product grapevines of the stark(a) inciter? Would that put to work this customer to never try a agnize some different line of this bulls eye? many commentators grow found a stupendous risk with virgins go about stating that The greatest threat is that thoroughgoing(a) tag may belong associated with failure. washbowl that be possible? * Richard Bran countersigns is associated with the consummate(a) fool, this sure has been the key to the success of this conjunction , exactly net similarly his meet blow back toward the saturated brand if he progresss a bad reputation? What can be the consequences?FACTSOrganizational * The consummate(a) Group is one of the UKs largest private companies. (S) * The complete(a) Group included in 2006, 63 businesses much(prenominal) as airlines, health clubs, medicament stores and trains. Also included double-dyed(a) astronomical which promises to direct passengers into the sub-orbital space. (S) * The face-to-face image and record of Richard Bran word of honor, the founder of the Group is highly jump up with those of the troupe. (S ,W) * Branson announced in 2006 his plans to trust $3bn in re bran-newable energy. (S) * Virgins sortnership with cable union NTL, undertook an type Alification into media challenging publicy the way NewsCorp operated in the UK and the someoneal effects on British democracy. (S ,W) * Virgin was founded in 1970 as a mail evidence record business and developed as a pr ivate society in music publishing and retailing. (S)* In 1986, Virgin was floated on the stock exchange with a turnover of 362.5 million (Euros). (S) * Branson decided to take the business back into private monomania and the shares were bought back at the original charge offer, when the price of the shares began to fall and because of the pressure to hold short-term profit. (S ,W) * Virgins expansion had often been through joint ventures whereby Virgin provided the brand and its partner provided the majority of the capital. I.e. For cosmetics and habit Virgin provided 1,000 (pounds), while its partner advantage Corporation 20m (pounds). (S) * Built business with Virgin Mobile, by forming partnerships with existing wireless operators to convey services under the Virgin brand name. The carrier competences lay in internet management. Virgin set out to strike out itself by offering sophisticated services. (S)* Virgin has been described as a keiretsu governing. A structure of loosely linked, autonomous units by self-managed teams that use a common brand name. (S ,W) * Virgin Atlantic, which is owned in 49% by Singapore Airways is one of businesses Branson impart never sell, despite of the cyclical temperament of this business. He included airline businesses such as Virgin Express (European), Virgin Blue (Australia) and Virgin Nigeria in the group. (S) * Branson has account about withdrawing from the business which more or less can run by itself immediately, hoping that his son Sam might become more a of Virgin figurehead. At the same time he launched his initiatives in media and fuel. (W)Environmental * Bransons public image and special appearances has contri provideded to the definition and recognisability of the brand. (O) * Virgin is displace up the Capital for Virgin Fuels and is exploitation the brand to attract the attention to the issues and possibilities that the technology offers. (Different from the other business) (O) * In 2005 announce d the institution of a quadruple play media company providing television, broadband, fixed-lined and mobile communications through the jointure of Bransons UK mobile interests with UKs both cable companies. (O) * Branson describes Virgin as a branded venture capital kinsperson. There was no group as such Virgin was described as a family rather than a hierarchy. (O)* In 2006 Branson explained the basis upon which he considers opportunities be orbicular in scope, enhance the brand, be charge doing and have an expectation of a liable return on investment. (O) * Bransons particular date with greener fuels has created a debate on measures to decoct carbon emissions from airplanes. (O) * The public flotation of item-by-item businesses rather than the group as a whole has become an intrinsic part of the juggling of finances that underpins Virgins expansion. (T) * Virgin argues that its brand research indicated that raft who have had a bad experience depart blame that particular Virgin company or product further will be willing to use another Virgin product or service imputable to the very diversity of the brand. (O , T) * In 2000 Strategic Rail office Review voted Virgin Rail on 23rd and 24th place among 25 railway operators what had a great shun impact on Virgin Group overall reputation. (T)Values & Aspirations * The Virgin name was associated with words such as fun, innovative, daring and successful. It was chosen representing the idea of the company universe a virgin in every business it entered. (1) * Establish The Virgin stain as a major world(a) name. (2)* Virgin won an award for the outstrip wireless operator in the UK. (4) * Branson axiom Virgin adding value in the trey main ways, aside from the brand mankind relations and marting skills, its experience with ballparkfield start-ups and Virgins understanding of the opportunities presented by transfer markets. (3) * Each company is ring-fenced, so no company had no rights over the ass ets of another providing not only financial protection, but also to a business ethic aspect. (5) * The increasing conformity between personal interest and business activities could be discerned in the establishment of Virgin Fuels. Branson has stated that by utilise non-oil-based fuels a Second gulf War can be prevented. (7) * The line between personal conviction and business interests is everyday more thin. (6)KEY ASSUMPTIONS * Bransons taste for his brands of business remains brilliant so will certainly stick around this way. He has grown his business using the Unrelated Diversification Strategy, which is based in entering new businesses sectors outside the totality activities such as travel, telecommunications, trains, cosmetics. * He will continue investing in Green companies producing ethanol and cellulosic ethanol fuels in ambition with the oil industry. He has already started to Go Green, so surely all his companies will follow this new eco-friendly trend.* Bransons so n may be taking the crown of the company in the future. His statements toward leaving the company in the future and let his son take the lead may be to prepare his entire workforce for this moment. * so far though the Virgin Brand is powerful, Bransons image is heftyly related to the company, so if he decides to go, will the next person in charge be able to maintain the same cultural organisation that has identified this company till now? * To be part of the World history, by becoming the most powerful Brand and Company, not only of the UK, but also Europe and make many other businesses in other Continents. * Become a loss leader of non-oil industry. His high investment in this area confirms his seriousness about this issue.* encompass investing on more R&D in new and innovative technologies in order to rarify the companys position in entertainment and telecommunications market. He is already the leader in the mobile service due to correct strategy and implementation. * Vir gin astronomic may become the leading company to send humans to space, reservation this company be part of the Humankind History.SOLUTIONS * So far Bransons strategy has take him to success. He must continue making new alliances and also to strengthen the ones that have been made so far. The strategy utilise by the Virgin Group, based on Unrelated Diversification has been the key atom of success of the company. This strategy has created a ridiculous culture and corporate structure postulate to build a strong competitory advantage.* The investment of new R&D technologies may make the diversion for this companys future. It has the potential to become a Giant in the IT area. * traverse gaining competitive advantage over the market by identifying themselves as the fun, playful and innovative company they have been so far. This trade campaign has helped Virgin Brand to gain loyal customers. * Expand the Virgin Brand into new continents. Select another come in markets in th e Asian and African continents where surely can form alliances with local markets and gain competitive advantage by the strong growth potential.