Virgin Group - Case Study

2141 Words Dec 26th, 2005 9 Pages
1. What are the key strategic questions that the Virgin Group asks when starting a new business venture?
Virgin Group started their new businesses with the keyword: "Enthusiasm". The main question they asked themselves was "What would be the real value that Virgin can add to the customers". So they always (at least according to the case) started to walk ahead for creating unique and valuable position which will meet the needs of the customers. The company tried to look at from customers' side and tried to see the basic needs of the customers. They haven't tried to touch all the customers; however they tried to reveal the competitive advantage of reaching to some clusters. According to Michael Porter's "What is Strategy" article we can
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(except production, they only exist for services) But it is not easy to know all the cultural aspects, the needs of customers on different geographical areas etc. So Virgin's solicitation of business proposal from public all around the world may help them to find out new needs and so new business ventures globally. The ideas of public may be the reflection of what customers really need and how they will be satisfied.
However too many proposals from different places of the world may lead to getting far away from the main focus and think about them. So that they say, they weren't accepting the proposals that are not seriously handled and analyzed. Also too many perfect proposals may lead to failure because Virgin Group may lose the sense of fun and adding value when it follows all the proposals. They should check all the proposals with their ultimate strategy. (I'm sure they are doing that)
On the other hand, assume that a proposal from a creator is too good to innovate about it. Who can guarantee the success? Virgin Group should always think above the frames that the proposal provided. The proposal itself can see the problem in a correct way but can ask the wrong questions and can solve the problem wrongly. The biggest disadvantage of getting proposals may be framing the problems according to the proposals. Virgin Group should deploy a different and new group to assess the problem and the environment to see the ice below the sea.

5. Examine the range
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