The Virgin Group in 2012

In: Business and Management

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The Virgin Group in 2012

Duarte Lopes Pinto
Gonçalo Silva
Maria Xavier
Miguel Borges

Duarte Lopes Pinto
Gonçalo Silva
Maria Xavier
Miguel Borges

Contemporary Strategy Analysis- Robert M. Grant

Index

I. What common resources and capabilities link the separate Virgin companies? II. Which businesses, if any, should Branson consider divesting?

III. What criteria should Branson apply in deciding what new diversification to pursue?

IV. What changes in the financial structure, organizational structure, and management systems of the Virgin group would you recommend?

V. What are the advantages and disadvantages of having an umbrella name for all companies of the Virgin group?

I. What common resources and capabilities link the separate Virgin companies? The Virgin group, defined as being “a structure of loosely linked, autonomous units run by self-managed teams that use a common brand name”, includes in its portfolio diverse businesses from airlines, health clubs to music stores. They really believe in entering into “industries they know nothing about”. Their expansion strategy is developed through joints ventures, where they actually contribute with their brand image and awareness, having the partners the role to provide the majority of capital and, moreover, the knowledge to be successful in the industry.
The name Virgin became so important worldwide that the number of companies willing to have the group as a partner is increasing, even if what they only have to offer is the importance of the group’s name. During 2011, royalties from licensing the Virgin brand were close to £35 million. The Virgin brand is the group’s greatest single resource common to all group companies. The presence of this huge brand transmits to the consumers: good quality, brilliant costumer service, innovative, fun…...

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