From 1968 to 2007, Richard Branson leads the Virgin group to become a conglomerate of more than 200 companies with business in music, airlines, rail transport, soft drinks, radio broadcasting and etc. (Grant 2005a:309) The Virgin Group followed many other companies during the 1950 to1980 period in adopting diversification as a mean for corporate growth. The boom of unrelated diversification of the early 1960s and 1970s was halted abruptly however by the failure of many large diversified companies (Grant 2005b:447). The simple action of bringing various businesses together under a single ownership itself was clearly not sufficient in creating shareholder value. The following years …show more content…
The Background Information of the Coca-Cola Company
The Coca-Cola Company is the world's largest nonalcoholic beverage company, figuring four of the world's top-five soft-drink brands: Coca-Cola, Diet Coke, Sprite and Fanta. Started off as a company producing the famous coca-cola soft drink, the company then diversified through over 400 soft drinks, juices, teas, coffees, waters, sports and energy drinks and operations in over 200 countries (coca-cola website). As with many consumer goods companies, the Coca-Cola Company’s brand is its more vital asset. Customers don’t buy a product, they buy a brand. The value of leading consumer brand companies is an embodiment of identity and lifestyle, and not always a guarantee of quality. The soft drink can be replicated, but the image which goes with the Coca-Cola’s brand cannot. (Grant, 2004:289).
The success of the Coca-Cola Company was a result of a combined strategy of brand