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Case Study the Virgin Group Essays

Satisfactory Essays

THE VIRGIN GROUP

PROBLEM: * The Virgin Group is so unrelated diversified that it has been criticized by some commentators because it has become an "endorsement brand that could not always offer real expertise to the businesses which it is associated". So the real question is "Can The Virgin Group be good/successful in every business it gets into?" "Are they really adding a real value to each business/customer? * What will happen if a customer has a bad experience with any of the product lines of the Virgin Brand? Would that influence this customer to never try again another line of this brand? Some commentators have found a big risk with Virgin's approach stating that: "The greatest threat is that Virgin Brand may become …show more content…

(S ,W) * Virgin's 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 clothing Virgin provided 1,000 (pounds), while its partner Victory Corporation 20m (pounds). (S) * Built business with Virgin Mobile, by forming partnerships with existing wireless operators to sell services under the Virgin brand name. The carrier competences lay in network management. Virgin set out to differentiate itself by offering innovative services. (S) * Virgin has been described as a "keiretsu" organisation. 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 will never sell, despite of the cyclical nature of this business. He included airline businesses such as Virgin Express (European), Virgin Blue (Australia) and Virgin Nigeria in the group. (S) * Branson has reported about withdrawing from the business which more or less can run by itself now, 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: * Branson's public image and special appearances has contributed to the definition and recognisability

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