Case Study the Virgin Group Essay

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Pages: 6


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
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(Different from the other business) (O) * In 2005 announced the establishment of a "quadruple play" media company providing television, broadband, fixed-lined and mobile communications through the merger of Branson's UK mobile interests with UK's two cable companies. (O) * Branson describes Virgin as "a branded venture capital house". There was no "group" as such; Virgin was described as a family rather than a hierarchy. (O) * In 2006 Branson explained the basis upon which he considers opportunities: be global in scope, enhance the brand, be worth doing and have an expectation of a reasonable return on investment. (O) * Branson's engagement with "greener" fuels has created a debate on measures to reduce carbon emissions from airplanes. (O) * The public flotation of individual businesses rather than the group as a whole has become an intrinsic part of the "juggling" of finances that underpins Virgin's expansion. (T) * Virgin argues that its brand research indicated that people who have had a bad experience will blame that particular Virgin company or product but will be willing to use another Virgin product or service due to the very diversity of the brand. (O , T) * In 2000 Strategic Rail Authority Review voted Virgin Rail on 23rd and 24th place among 25 railway operators what had a great negative impact on Virgin Group overall reputation. (T)

Values &