Essay on The Virgin Group.Doc

6583 Words Apr 25th, 2008 27 Pages

QUESTION 1: What examples does the case give of links between Branson’s strategy for Virgin and the environment in which it operates?

The Virgin Group Ltd is a group of separately run British companies with the Virgin brand under the leadership of English celebrity business tycoon Sir Richard Branson. The core business areas are travel, entertainment and lifestyle, among others.

Richard Branson’s strategy comes from his deepest inner beliefs;

“in principle there were no product or service boundries limiting a brand name, provided it was associated with quality products/services on offer”

The corporate strategy of the Virgin Group is to operate like ‘a venture capital firm based on
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In this manner
Furthermore, Virgin has been able to deal with the potential downsides of autonomy and decentralization. To prevent the breakdown of communication links and individual business units pursuing their own strategies in an uncoordinated fashion (that could potentially be detrimental to the umbrella Virgin brand), the Virgin Charter sets out a management system and internet business strategy that takes advantage of information technology and the digital age to further establish the Virgin brand. A single website,, is where consumers can go to have access to all the Virgin services under one single portal. This is an example of cross-branding, to which has made Richard Branson millions.

This strategy helps to reinforce the corporate parenting strategy and enhance the synergies already derived from the corporate branding of the Virgin Group. By aggregating all the services into a single Virgin portal, the customer is able to access multiple services through a single distribution channel, and is enticed to turn into a ‘Virgin Customer’ where he comes to Virgin for his telecommunications, banking, terrestrial and extra-terrestrial transportation (Virgin Galactic), entertainment and internet service needs. In this way, the disparate Virgin businesses are able to gain from the successes from their corporate siblings –

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