This report will analyze the problem of the massive diversification of virgin group which can lead to a loss of value for the group's image firstly, it will describe the troubles that virgin could face in the future. The virgin group 1) what is the corporate rationale of the virgin group corporate rational is the way in which a corporate parent envisages the way that it can add value to its strategic business units. 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 case study for strategy module at london south bank university (lsbu) advantage virgin added value focus of diversification virgin checklist conclusion. The virgin group the virgin group 1) what is the corporate rationale of the virgin groupcorporate rational is the way in which a corporate parent envisages the way that it can add value to its strategic business units. Virgin strategic management analysis international business report virgin group limited is a united kingdom-based holding company similar to berkshire hathaway in the united states and was incorporated by richard branson in 1989. Virgin group strategic development the first foot in conglomerate diversification 7 virgin's history in 1986 it was floated on the stock exchange however.
Virgin group successfully transfers its marketing core competence across airlines, cosmetics, music, drinks, mobile phones, health clubs, and a number of other businesses virgin follows a(n) diversification corporate strategy. Disadvantage of diversification for the virgin group a feature of the virgin group's diversification strategy that is particularly such as virgin atlantic and if. Competitive advantage from diversification diversification and performance: empirical evidence relatedness in diversification objectives define corporate strategy, describe some of the reasons why firms diversify, identify and describe different types of corporate diversification, and assess the advantages and disadvantages associated with each. Marketing strategies of a product diversified company presented by: delwin kuriyakose (44) jecc 1 2 product diversification • diversification is a corporate strategy to enter into a new market or industry which the business is not currently in, whilst also creating a new product for that new market.
The virgin group decided to take on a related diversification of several firms spread across not related business for a number of years virgin group successfully employ the diversification policy with more than. Global strategy of virgin group 12 april 2008 25 diversification: 251 virgin has penetrated a large number of very diverse advantages of speed, flexibility. Richard branson and the virgin group of companies in 2002 richard branson's 50 th birthday in july 2000 had no discernable effect either on sir richard's energy or the entrepreneurial vigor of his virgin group of companies. On the other virgin follows a diversification strategy which is not related this helps us in giving an idea that the virgin group is a corporation which comes out from its own market and create new opportunities wherever it is possible.
Case study 171 virgin group - diversification and branding the virgin group may be used to illustrate the use of underused competences or resources the essence of the group might be said to be its brand name and it marketing ability. Focus on diversification and product development (new products) virgin mobile example virgin group acquires partners with the same mind set for innovation. Advantages and disadvantages of diversification in relation to the case study advantages control of inputs, leading to continuity and improved quality for instance 1984 and 1985 newscorp acquired twentieth century fox and six television stations of the metromedia broadcasting group in the us. Richard branson's virgin records is an example of successful backward integration as a lone record store, virgin barely kept branson afloat the nutriva group, reached $5 million, and $10.
Boston consulting group (bcg) matrix is a four celled matrix (a 2 2 matrix) developed by bcg, usa it is the most renowned corporate portfolio analysis tool it provides a graphic representation for an organization to examine different businesses in it's portfolio on the basis of their related. Virgin group diversification strategy the core business of virgin operational level strategy and diversification the virgin group disadvantage of.
Richard branson: the king of strategic diversification the virgin boss is the prime example of a diversified success. The virgin group is a typical example of a company that has consistently diversified into new markets it forayed into the credit card industry with virgin money offering competitive credit card rates to customers it diversified into travel and offers holiday packages to holiday goers, it also diversified into the mobile phone market with. Multi-divisional form large firms that wished to expand their diversification and appeal to a wider consumer base japanese, virgin group is both a holding.