virgin group diversification
<> In return, the increase in the number of airlines that serve the UK market has affected Virgins profitability. The challenge of changing consumer perception which faces Virgin Trains U.S.A., Americas first high-speed rail, can be met through cross-promotion with Virgin Voyages and Virgin Hotels, and a seamless physical-digital phygital integration of infrastructure (Carey, 2019; Nemtanu & Marinov, 2019). Dawes, J. Chen, S. (2019). However, the critiques of Ansoff Matrix regarding the importance of strategic commonalities over market commonalities are validated in a globalised world as distinctions between related and unrelated markets shrink, and the relatedness between Virgins shared tasks becomes apparent (Markowitz, 1952; Dawes, 2018; Ansoff, 1957; Markides & Williamson, 1994). Higham, J., Ellis, E., Maclaurin, J. Innovation in Marketing. KEYWORDS: Virgin Group, capabilities, Key Strengths, and Diversification Introduction: Nowadays, Virgin is employing more than 50,000 people (Virgin, 2012), and created approximately 300 branded companies in 25 different countries. Halligan, L., Lyons, G. (2018). Alexander, K. (2019). Journal of Business Research, 57(7), 787-794. Management decision, 39(9), 761-766. (n.d.). Physical Evidence Paperless, cashless, branchless banking will give way to newer concepts, of Caf Branch, and Smart Branch technologies like banker tablet, interactive teller machine, video conferencing rooms, service terminals, teller cash recycler, robot host (Dallerup et al., 2018). Innovation, a dynamic capability, is recognised as Virgins core competency (Tucker, 2001; Lindgardt et al., 2009; Kim & Maubourge, 1997). Paradoxically, much literature points towards both an appreciation of Virgins unstructured organisation, and a need for restructuring (Vries, 1999; Grant 2016). Organizational Dynamics, 26(3), 7-21. Gee, J. Test Track for New Tech. Long Range Planning, 51(3), 480-494. 78-83. Virgin Group Strategic Development 1 of 26 Virgin Group Strategic Development Apr. Bayuk, J., Altobello, A. Retrieved from http://www.trb.org/Publications/Blurbs/177505.aspx. Innovative Trends In Retail Banking. Wang, W., Ferguson, M. E., Hu, S., & Souza, G. C. (2013). Singapore: World Scientific. Retrieved from https://ssrn.com/abstract=3130530 or http://dx.doi.org/10.2139/ssrn.3130530. BusinessEssay. Virgin Group Success Businesses Key Strengths and Diversification Baxter, G. (2019). endobj Retrieved from https://business-essay.com/virgin-groups-successful-strategic-management/, BusinessEssay. (2018). (2001). Raftery, J. Virgin Group. A New Work Order in an eco-friendly digital economy will demand and yield innovative business models (Gee, 2018; Bocken et al., 2019; Westerlund et al., 2014). Altman, W. (2009, February 3). The Virgin Group has been an investor in the space sector for more than a decade. Of all the sectors, Virgins contribution is probably the weakest in entertainment films, music, games, casino, books etc. Accenture. Retrieved from https://hbr.org/2004/07/value-innovation-the-strategic-logic-of-high-growth. Third, is an intangible resource intellectual capital, or knowledge, or sector expertise aided by Bransons vision and the support of an incredible team (Branson, 2017). ITU News. (1994) Diversification (Ansoff, 1984). 1, no. Unrelated diversification involves entering an entirely new industry that lacks any important similarities with the firm's existing industry or industries, and is often accomplished through a merger or acquisition. (n.d.) Retrieved from https://www.virgin.com/virgingroup/company/venture. Virgin Group's Successful Strategic Management. Discover more of the businesses that the Virgin Group has invested in. Sadq, ZM 2016, Virgin group success business: diversification, and key strengths, Account and Financial Management Journal, vol. Havard Business Review, (1). Virgin Media joins forces with the Tameside Digital Infrastructure Cooperative. (2022, December 13). Galloway, Kapasi, and Wimalasena (2019) argue that this multinationals primary competitive advantage lies in its brand name, which is difficult to reproduce. Value innovation. Related Diversification, Core Competencies and Corporate Performance. Boje, D., & Smith, R. (2010). Retrieved from https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&cad=rja&uact=8&ved=2ahUKEwj72u3ekc_hAhWHLI8KHVYAA0sQFjABegQIBhAC&url=https%3A%2F%2Fwww.sustainableaviation.co.uk%2Fwp-content%2Fuploads%2F2018%2F06%2FSA-SAF-Roadmap-FINAL-24-Nov-2.pdf&usg=AOvVaw0P5zOEdonruE1gb0IBe9NX. (2022) 'Virgin Group's Successful Strategic Management'. The conglomerate should also come up with a novel strategy that allows it to operate both autonomously and to partner with other companies. Branson family in key sectors. (2019). Tucker, R. B. As the spaceline for Earth, we aim to . (2019). Branson, R. (2019, January 2). Galloway, Kapasi, and Wimalasena (2019) cite the increase in the cost of fuel as one of the challenges that have impacted the performance of Virgin Atlantic. About us - Polpharma Biologics Lets hope its much clearer and consistent than it is today. It unites companies operating in such sectors of the economy as entertainment, travel, energy, publishing, media, healthcare, food and drink, hospitality, business services, retail, sports, lifestyle, charity, and banking. Redefining Knowledge Management to Deliver Competitive Advantage. The UK has not invested in the modern railway infrastructure, making it difficult for Virgin Rail to offer quality services to its customers. Virgin Atlantics market entry in the 1980s in a good example of this at a time when great customer service was a rare quality in the airline industry, which was instead plagued by cancelled flights, delays and lost baggage. Cond Nast Traveler. Virgin Group Case: Creativity and Innovation - StudyCorgi Biteback Publishing. Performance of impact investing: A value creation approach. However, the recent political developments in Britain, and a clean Brexit, can prevent an imminent national crisis (Theresa May takes, 2019; Halligan & Lyons, 2018). 1-14. Virgin has lost some of its magic and, consequently, the brand name survives on its credentials as a strong global business that creates efficiency and profitability where others fail, rather than something more powerful in peoples minds. 22, no. In return, this has lowered the degree of carbon emission attributed to Virgins aircraft. Cavoli, C., Christie, N., Mindell, J., Titheridge, H. (2015). Virgin is, as we've seen in the previous parts, a well-diversified company. Moreover, the UK government deregulated its air travel, making it possible for many airline companies to operate in this country. (2019, January 16). Lei and Fu (2014) maintain that it is difficult for commuters to avoid the use of private or public means of transport every time they want to travel. Singh, H. (1993). Create a free website or blog at WordPress.com. Hussain, N. (2019, March 11). Diversification is often seen as the last evolution for a company. 1-16. Hyperloop Ones prototype is in line with the futuristic Smart City infrastructure (Pelton & Singh, 2019; TR News, 2018). The contribution of tangible and intangible resources, and capabilities to a firms profitability and market performance. Essay Sample Show More The key to successful unrelated diversification is identifying an industry which has an identifiable area of growth which can deliver the required profit, where the company has internal capabilities that generate a competitive advantage. Buttle, F. (1999). SAGE Publications Limited. In addition, investment in assorted products and services has enabled Virgin Group to diversify its operations and increase profit margin. 12, no. Strategies for Diversification. Pingback: Coca-Cola: Ansoff Matrix | the Marketing Agenda, Pingback: Business Lessons: Richard Branson | the Marketing Agenda, Pingback: Virgin Mobile and Social Media Marketing Yumna.DICE, Pingback: Can the Online Casino Industry Teach Business Longevity? Palgrave Macmillan, Cham. The objective is to guarantee that this corporation does not operate under regulations that are based on a certain philosophy. Even if you missed out on the Concorde, you may soon get a chance to fly in a supersonic airliner. For Virgin group to remain successful, it must stop expanding its portfolio and work on improving the existing businesses. Globalization and advancement in technology have made it easy for many companies to devise superior brands and excellent marketing strategies. They included cheaper prepaid offers, no monthly fees, and no-line rentals that were received well by many customers. Richard Branson How The Virgin Brand Came To Life British Journal of Management, 20, S9-S24. European Journal of Management and Business Economics, 26(2), 252-275. https://doi.org/10.1108/EJMBE-07-2017-015. <>/XObject<>/ExtGState<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI]>>/Annots[23 0 R]/MediaBox[0 0 595.32 841.92]/Contents 24 0 R/Group<>/Tabs/S>> Virgin Group's founder, Richard Branson is one of the most successful businessmen . Strategic Management - Virgin Case Study Free Essay Example - StudyMoose A bank branch for the digital age. Retrieved from https://www.economist.com/leaders/2019/04/04/theresa-may-takes-a-step-in-the-right-direction-on-brexit, TR News. Routledge. It is imperative to acknowledge that this companys success depends on the reputation of each entity. Budd et al. The leadership of this multinational should acknowledge that having a popular brand name is not enough. With this in mind, a case could be argued that Richard Branson is now attempting to revisit the past and recreate a more distinctive image, such as through the publicity generated around the launch of Virgin Galactic, which aims to launch the first commercial spaceflight. Retrieved from https://www.virgin.com/virgin-unite/business-innovation/tearing-up-the-organisational-chart, Terrizzano, A., Pesaresi, S., Coppolecchia, A., Bernabei, C., Trombetta, D., Bonini, C., Martinelli, M. (2018). 5, pp. The Critical Infrastructure and Software Needed to Build a Smart City. Yu, Chen, and Chiang (2017) declare that public confidence is a sensitive issue, and firms should protect it at all costs. Corporate Cultures and Global Brands, 193-208. Virgin Media. Associating with like-minded businesses enables Virgin to instill the culture of innovation in all its new ventures, thereby guaranteeing their success. Behravesh, N. (2019, January 4). It must abolish the ring-fenced policy, which prevents profitable businesses from bailing out those that are not doing well. [Blog post]. The Virgin Group invests in renewable projects with high growth potential underpinned by established technologies, which can drive positive change. Virgin Group is a Competing For The Future. 1234-1244. Earle, R. (2018, August 20). Since Britain announced its intentions to leave the European Union (EU), this company has lost many customers, particularly in the airline business. Uggla, H 2015, Aligning brand portfolio strategy with business strategy, IUP Journal of Brand Management, vol. Making Connections. Kets de Vries, M. F. R. 1998. 1 Broaden the diversification base. This is due to the Virgin Group partaking in what's known as 'unrelated diversification' - the fifth strategy in Ansoff's Matrix. It underlines the reason why Branson continues to diversify his business portfolio under the name Virgin. Berghfer and Lucey (2014) allege that Virgin Atlantic has been unable to leverage technology effectively in its booking system. Virgin Groups: Diversification. Retrieved from https://www.finextra.com/newsarticle/33194/open-banking-year-one-insights-from-the-cma9-and-more, Our Purpose and Values. Virgin Group Diversification - New York Essays The Virgin Group: Vertical Hierarchical Organization Report For Virgin Groups, diversification is used in its strategic development. Virgin Group Strategic Development - SlideShare Research in International Business and Finance, 47, 31-39. December 13, 2022. https://business-essay.com/virgin-groups-successful-strategic-management/. Corporate Strategy : Diversification Introduction The Virgin Group is one of Britain's biggest and successful empires in the 21st century. The fact that Virgin exemplifies an institutionalised permanent risk is partly due to its success in unrelated diversification (Halpern & Graham, 2018; Rothacher, 2004). Journal of marketing management, 14(8), 963-996. Virgin Atlantic, an airline subsidiary of the Virgin Group, was compelled to lower its flight charges following a similar move by rival companies, including Qatar Airways, American Airlines, and the Fly Emirates. Western, S. (2019). Case Study Virgin Atlantic Diversification - 824 Words | Cram Open Banking: living up to the hype?. It is considered to be one of the most worlds respected brand name and venture capital. (2019, 28 March). Finally, the capabilities of delivering a peerless customer service make Virgin a consumer champion (Upshaw & Taylor, 2013; Kim & Mauborgne 2004; Weinstein, 2012). Halal, WE 2015, Business strategy for technology revolution: competing at the edge of creative destruction, Journal of the Knowledge Economy, vol. Retrieved from https://doi.org/10.1108/EUM0000000004587, Open Banking year one: Insights from the CMA9 and more. Technology Innovation Management Review, 5-14. <>stream Sustainable business model experimentation by understanding ecologies of business models. .wordads-ad-wrapper {display:none;font: normal 11px Arial, sans-serif;letter-spacing: 1px;text-decoration: none;width: 100%;margin: 25px auto;padding: 0;}.wordads-ad-title {margin-bottom: 5px;}.wordads-ad-controls {margin-top: 5px;text-align: right;}.wordads-ad-controls span {cursor: pointer;}.wordads-ad {width: fit-content;margin: 0 auto;}. CAPA (2019, January 16). IGI Global. Its impact investments in sustainability, entrepreneurship, gender equality, diversity are in line with an increasing global consciousness (How Virgin Money, n.d.; How Virgin Holidays, n.d.; Viviani & Maurel, 2019). Znasz kogo, kto moe by zainteresowany? Virgin Group - Law Essays - LawAspect.com Forming alliances with other companies have enabled Virgin Group to grow its business portfolio and mitigate risks. The corporate rationale of the Virgin group is to re-entering the inactive industries with brand new ideas and developments and offer the consumer different products. Lecture Notes in Mobility. For many years, the biggest share of this conglomerates profit has originated from the airline business.
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