Case Study Virgin - futurethink.comfuturethink.com/wp-content/uploads/2017/03/cs_virgin-1.pdf · Being a Virgin Virgin is a company that strives to do everything— everything—differently

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Case StudyVirgin


Case StudyVirgin

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Innovation. Like a Virgin.

Many organizations dedicate time specifically to innovation. Some organizations—and their leaders—dedicate their existence to it. Virgin is one of those organizations.

What began as a mail-order record company in the 1970s has grown to become one of the most diverse, irreverent, and innovative companies in the world. Led by the charismatic vision of Founder Sir Richard Branson, Virgin Group invests in and builds companies that not only redefine the customer experience, but also reshape entire industries.

As Sir Richard Branson begins to explore licensing the Virgin name beyond ventures that Virgin Group controls, the partnership opportunities are vast. In 2016, ventures include launching Virgin hotel properties, cruise ships, and sporting events.

In 2015, the Virgin Red application was debuted to bring together this growing family of brands and their customers. The app unifies Virgin customers on one plaftorm and increases the percentage of customers using more than one Virgin service.

From comic books to cola, from air travel to space travel, Virgin dives into a wide range of business sectors and tells you to expect the unexpected—in a good way.

But what enables Virgin to innovate over and over again? What drives its culture and makes innovation part of the everyday? Read on to discover some of Virgin’s secrets and learn how you can apply them to your organization.


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The Four Innovation Capabilitiesfuturethink’s Innovation Case Studies are designed to provide insights on today’s leading innovators. Information about each of the companies we feature covers the four key innovation capabilities: Strategy, Ideas, Process, and Climate.

Set a foundation that defines innovation objectives and mobilizes your efforts. The notion of “serendipitous innovation” is dangerously outdated. The secret to success lies in crafting an action-oriented strategy. It means setting a vision for your company to follow and viewing innovation as an expected result, not a lucky one. Innovation should be handled like any business initiative: with an eye on growth, results, and profit.

Think differently to develop original ideas that drive business value. In today’s economy, the ability to continually fuel innovation is what separates winning organizations from the rest. Idea generation should be managed, purposeful, and clearly linked to business objectives. Leading innovators succeed by balancing out-of-the-box thinking with sound management principles.

Create a streamlined and flexible approach to shepherd innovative ideas to market. The reality in every organization is that money is limited. To make sure you’re spending effectively, you must have a streamlined process for innovation. A good process will help to consistently identify your best projects and enable you to move them forward more efficiently.

Build a thriving work environment that drives innovation across your organization. We live in a world where the new replaces the old very quickly. Only organizations that keep pace with the shifting marketplace will be able to stay ahead. So how do the best companies adapt? They cultivate a climate in which employees are encouraged to innovate in a continuous and consistent manner. The companies that stay ahead have made innovation part of their DNA.

futurethink analysts develop case studies by drawing from a mix of extensive research, by conducting organizational and customer interviews (where possible), and by experiencing first-hand interactions with the organization. We want to thank those individuals who contributed to this case study and provided the information found herein, which made the Virgin story so fascinating.

We hope the information contained on the pages that follow offers insights and inspiration for innovation in your organization.


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Being a Virgin

Virgin is a company that strives to do everything—everything—differently.

In 1968, the foundations for the Virgin empire were just beginning to take shape. The young Richard Branson, a dyslexic teenager who’d never been a particularly good student himself, left school to pursue his first venture: a magazine called Student. At 20, he founded Virgin Mail Order to sell records. The next year, the first Virgin Record Shop opened in London. According to The Ultimate Competitive Advantage: Secrets of Continually Developing a More Profitable Business Model, by Donald Mitchell and Carol Coles, “He picked the name while talking to some friends, noting that ‘since we’re complete virgins at business, let’s call it just that: ‘Virgin.’”i

Redefining an industry’s entire way of doing business became standard practice for Virgin. In 1984, Branson sought to transform long-distance air travel by launching Virgin Atlantic Airways. He offered distinct features, such as limo service and luxurious clubs for business travelers, and free electronic entertainment for the economy class, all with the aim of making travel appealing rather than a drudgery.

Of course this upset the entrenched leader, British Airways, and intense competition almost grounded the airline permanently. Branson had to sell Virgin Records to EMI in order to keep Virgin Atlantic afloat. But with a model like Virgin’s—always innovating, coming up with new ideas, never afraid of change—and a leader like Branson, the ultimate success of Virgin Atlantic was a sign that the world was full of products and services just waiting to be improved upon with the right amount of innovation and irreverence.

Today, Virgin doesn’t call itself a global conglomerate; rather, it positions itself as “a leading branded venture capital organization.” The Virgin Group has launched more than 400 branded companies worldwide across sectors: communications, transportation, travel, financial services, leisure, music, publishing, fitness, retailing, and more. Virgin employs about 50,000 people in 50 countries and net worth across its 80 active brands is estimated at $8 billion.ii


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The Business of Business Model InnovationBranson and the Virgin Group are experts at business model innovation based on emerging cultural trends. They’re almost like a financial new product development group. Armed with a venture-capitalist mindset, entrepreneurial spirit, and customer-driven perspective, Virgin Group has been successful across an incredibly wide range of industries—none of which are particularly easy to break into, and all of which were in need of a shake-up when Virgin decided to jump in.

All the markets in which Virgin operates tend to have a few things in common: they are typically markets where the customer has been ripped off or under-served, where there is confusion, and/or where the competition is complacent.

Though Branson has famously claimed not to do financial analysis before a new venture, they do have an appropriately Virgin-style approach: 1) see an industry that hasn’t been improved for some time; 2) turn it on its head by offering something that shocks the competition, delights the customer, and awakens the industry; and 3) do it all over again.

While Virgin’s businesses are quite diverse, when deciding if and how they can fit within a new industry, Branson focuses on simplicity. To be effective and directed, he states that his teams should be able to define the business challenge they’re addressing in just a few words. He calls this the “pub sentence rule”: “If you’re waiting at the bar to be served and a bartender asks, ‘What’s the point of Virgin X?,’ you should be able to answer in a brief sentence.”iii

But what begins as a simple or wild idea (“Let’s be the world’s first commercial space travel company”), extends into a deep analysis and ends with a detailed plan for how to launch a new venture with a significant chance of success.

As outlined on Virgin.com, when evaluating new opportunities, Virgin reviews the landscape and puts themselves in the customers’ shoes to see what could make their experience better. They ask fundamental questions, such as:

• Is this an opportunity for restructuring a market and creating competitive advantage?

• What are the competitors doing?

• Is the customer confused or badly served?

• Is this an opportunity for building the Virgin brand? How?

• Can we add value? Will it interact with our other businesses?

• Is there an appropriate trade-off between risk and reward?iv

These and other questions are asked not just of the team in charge of investigating the new venture, but of other experts across the Virgin Group family. After a new venture is launched, Virgin depends on several elements for success: “the power of the Virgin name, Richard Branson’s personal reputation, an unrivalled network of external partners, the Virgin management style, [and] the way talent is empowered to flourish within the group.”v

Since Virgin preserves the financial base of their core businesses in travel, entertainment, and lifestyle areas, they’re able to exercise some risk while they explore new territory. The senior investment team, tasked with spotting and selecting new investments, are required to meet Branson’s financial criteria: 35%+ internal rate of return for startups, and 25%+ for projects requesting follow-on funding. By keeping this core business stable, the permeant investment team can pursue some adventurous ventures.vi


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Organizational Culture Beats Structure

To traditional organizational consultants and analysts alike, Virgin’s management style and corporate structure can be a bit of an enigma. When it comes to growing and running a multinational conglomerate, much of what they do can seem to go against the grain of “corporate best practices.” But in fact, much of Virgin’s success can be attributed to the company’s speedy approach and lack of organizational structure. By cutting down on red tape (less layers, no bureaucracy, a small board), Virgin is incredibly nimble despite its huge size—and it works. Instead the company focuses on sustaining a positive organizational culture.vii

Richard Branson made a splash when he announced that he’d no longer track employee’s vacation time. Inspired by the policy of streaming video leader Netflix, and how their lack of vacation policy lead to increased morale, productivity, and creativity, he implemented the “non-policy” in the US and UK offices of the parent company. This means employees can take off whenever they want and for however long they want. No one needs to ask their manager for permission or track their vacation days. It is up to the employee to decide if they are 100% comfortable that they and their team are up to date on every project, and that their absence would not damage the business. Branson gives paid materity and paternity leave for those who had worked at Virgin Management in the UK and Geneva for over four years. Those with less than two years receive 25 percent of their salary.viii

Each company within the Virgin Group operates independently but has the benefit of the full Virgin family as a support system. If one company needs help solving a problem, ideas can come in from like-minded cohorts all around the globe.ix Often the companies are set up as joint ventures with other partners, so they all have different shareholders and boards. Virgin strongly believes that its shared ideas, values, interests, and goals are a key driver of its sustained success in unproven areas.

Rethinking, Reinventing, and Revolutionizing Everything

At Virgin, speed matters. They have earned a reputation for building businesses almost overnight. Virgin accomplishes this by leveraging what they know best, and figuring out the rest as they go. It sometimes needs only the seed of an entrepreneurial idea that nobody else would take a chance on, but Virgin has the fertile fields in which to plant them. Virgin is known for music, air travel, mobile phone service, and so much more. But a look at some of its more eccentric businesses underscores how Virgin innovates in unexpected ways.

Virgin Galactic is the world’s first “spaceline” (get it?). Having conquered the airline industry, Branson now wants to go beyond worldly travel to provide travel that is, well, out of this world. Virgin Galactic is focused on dropping costs for sub-orbital space travel. It will offer consumers the “groundbreaking opportunity to become one of the first ever non-professional astronauts.”x

Virgin Galactic has more than 700 bookings and deposits of $250,000 to hold RSVPs for SpaceShipTwo. SpaceShipTwo was launched for its first rocket powered flight in 2013, becoming the first commercial vehicle to break the speed of sound.xi In 2014, SpaceShipTwo crashed during a test flight, killing one pilot. Virgin engineers have worked tirelessly since then to prepare a second SpaceShipTwo, ready for testing in 2016. The spaceship is designed to bring six passengers up into suborbital space before bringing them back to Earth. Eventually, Virgin hopes to have a fleet of these space planes, allowing passengers to experience weightlessness and see Earth from above. The date of the inaugural flight, with Branson and his family, is not yet finalized.xii


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In 2019, Virgin Galactic’s LauncherOne will perform 39 satellite launches in conjuction with OneWeb Ltd. Together they will build a global communications system that will enable affordable broadband around the world, including areas unserved or underserved by terrestrial providers. Virgin is excited to make positive change back on earth.xiii

In addition to the space tourism angle, Virgin Galactic sees its mission as critically important in a global context due to the belief that “in the future, mankind will have to make better use of ‘off-planet’ resources” as the population explodes and the earth’s resources decline.Championing bold ideas such as “space-based solar power, space-based server farms, transcontinental passenger and freight travel via space,” Virgin is again dreaming big and going after ideas that might seem downright ridiculous to more conservative businesses.

Virgin Wines. “Life’s too short for boring wine!” its website declares. It offers affordable, good wines available in a variety of ways: single purchase, mixed case, via a WineBank membership, or auction. For a consumer, the experience of buying wine can often be fraught with pretense and mystery. Virgin wines are made by passionate boutique winemakers and are priced the same as mass-produced wines in supermarkets—“Wines that break the norm without breaking the bank.”xiv

Virgin Money. Finance may seem like a strange industry for Virgin. It’s not quite as much “fun” as wine, for example, and how does irreverence build trust among consumers? Launched in 1995, Virgin Money is another success that cuts to the heart of the Virgin brand: giving the customer a better deal.xv

Offering everything from credit cards and mortgages to insurance and pensions, Virgin Money serves over four

million customers. Over the years it has racked up an impressive list of awards, including being named “Best Credit Card Provider” several times by various consumer and industry groups.xvi

Virgin Atlantic. Many are familiar with the in-flight perks offered by Virgin Atlantic, from private security check (no waiting in line at the airport) to sleep suits for overnight flights.xvii The company has devoted over $5 million to redesign its economy cabin service using 3-D modelling and rapid prototyping. Across its fleet of 38 planes, those tweaks (and others in first class) make for an estimated savings of $15 million a year and a 2,600-ton cut in carbon emissions.xviii In 2014, the company had employees pilot Google Glass technology to enhance and quicken service for upper class passengers. Outside of their product innovations, the airline develops innovations in sustainability.

Virgin Atlantic made headlines flying the first-ever commercial aircraft on a biofuel blend. More of a statement than a final solution, the company sought to demonstrate its commitment to finding an alternative to traditional fuels.xix

In 2015, Virgin hosted “proving” flights in New Zealand and China for the low-carbon fuel they’ve been developing with research partner, LanzaTech. These fuels are scheduled to be implemented in 2016. Virgin Atlantic is making it clear that it aims to be a leader in sustainable aviation. The airline has made progress in partnering with air-traffic control groups to develop more efficient flight routes, and recycling old crew uniforms into mattress stuffing.xx In March 2017, A321neo airplanes will join the airbus fleet, offering up to 20 percent fuel savings - the equivalent of cutting 5,000 tons of CO2 emissions per year.xxi Other ambitious goals include carbon neutral growth by 2020 and reducing CO2 emissions in half by 2050.xxii


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Virgin Earth Challenge. Virgin announced one of the biggest science prizes in history with its Virgin Earth Challenge. The competition seeks solutions on how to permanently remove greenhouse gases from the atmosphere, with $25 million awarded to the winner.xxiii With judges like Al Gore and Richard Branson, it makes it one of the most high-profiled prizes that exists today. There are currently 11 finalists but because of the demanding criteria, the winner is yet to be announced.xxiv

Virgin Irreverence: Rethinking the Barf Bag. It’s apparent that Virgin isn’t shy about jumping on new, perhaps wacky, opportunities. The Design for Chunks program is the perfect example of seizing an opportunity that started externally and making the most of it for the benefit of your brand. And yes, it involves vomit.

Virgin partnered with designer Oz Dean to showcase art from around the world on a most unusual medium—the airplane sickness bag. Prior to partnering with Virgin, Dean had created an online contest called Design for Chunks, asking artists from around the world to come up with designs for the standard plain white bags, and continued the contest for several years.xxv

Virgin got wind of the project and decided to sponsor it, promising to feature the top 20 designs on sick bags on flights for six months to be viewed by about two million passengers.xxvi The campaign was so successful that it had to be terminated after only three months, due to passengers walking around the plane and taking all of the bags as collector’s items.xxvii The project is inactive but showcased designs are still featured on www.designforchunks.com.

Virgin, the Employee Benefit Provider. Seeing an opportunity to tackle the work-life benefit challenge many employers face, as well as offer preventive health solutions to employees, Virgin decided to enter the employee benefits industry with its own innovative solution that uses behavior change principles of gaming mechanics to improve outcomes. Virgin Pulse provides programs built around technology that empowers Americans to take greater control of their own well-being. Virgin Pulse programs actually pay employees to get active.xxviii

Members track and report their physical activity on the Web, using a set of tools that also employ social-networking tactics. Employees can integrate their existing applications and devices with the Pulse program, including MyFitnessPal and Fitbit, or can use Virgin’s tracker device, Max.xxix When they meet goals such as exercise targets or lowering blood pressure, members receive rewards in the form of gift cards, cash, or reductions in health premiums—up to $2,500 from some companies using the program.xxx

This approach engages approximately 40 percent of employees at participating companies. Organizations that use programs like Virgin Pulse see benefits such as reduced medical costs and increased levels of employee productivity and satisfaction.xxxi In 2012, the company reported record reoccurring revenues from clients who have continued with the program. Businesses report an average of $3.50 savings in medical costs for every dollar invested in the Pulse program.

“Virgin Atlantic deserves huge praise for recognizing the value of these kinds of creative forums. With this project we have combined an alternative medium with an established online art exhibition, creating a gallery in the sky.”

—Oz Dean,

Started Design for Chunks


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Virgin Unite for Change. Virgin Unite is the charitable, nonprofit arm of the Virgin Group companies. Its self-stated goal is to “unite great people and entrepreneurial ideas, reinventing how we live and work to help make people’s lives better.”xxxii The group focuses on two areas.

• Incubating New Global Leadership Models. This includes initiatives such as The Elders, a group of 10 visionary leaders who work to help humanity, founded by Nelson Mandela, Peter Gabriel, and Sir Richard Branson. Virgin Unite also hosts “Connection Trips,” which are life-enhancing journeys that bring business leaders to far-away places where entrepreneurial communities are driving change. In 2015, the Connection Trip was in South Africa, where Richard hosted a five-night conference for young entrepreneurs and gave them a tour of his private game reserve which borders Kruger National Park.xxxiii

• Mobilizing Business Action. This includes programs such as The Branson Centre of Entrepreneurship, which seeks to offer skills and resources to aspiring entrepreneurs the world over. Another program is the B Team, a group of global business leaders who champion solutions for making capitalism a driving force for social, environmental, and economic benefit. They are working to challenge world leaders to commit to a global goal of net-zero greenhouse gas emissions by 2050.xxxiv

Values-Driven Innovation Virgin is quite clear about who they are. Look no further than its website: “Virgin stands for value for money, quality, innovation, fun, and a sense of competitive challenge.”xxxv But how do these values go beyond being just a statement on paper and become believable in the real world?

How does values-driven innovation work? In two ways.

1. By empowering employees to ignite these values in little and big ways.

2. By relentlessly acting on customer feedback to continually improve and truly innovate the customer’s experience.

Sir Richard Branson established Virgin’s values at the outset and they still define what Virgin is all about. While most companies have a set of brand values, few organizations are able to truly embody them to the fullest extent.

At Virgin, they empower and reward teams that deliver on these promises.

• Value for Money: For Virgin, that’s about offering more for your money, not cutting corners. It’s every Virgin company’s magic tool.

• Good Quality: Going that little bit further in everything they do.

• Brilliant Customer Service: This means delivering amazing customer service, inside and out. Treating one another with respect and empathy is at the heart of every Virgin company.

• Innovative and Challenging: Supporting creativity and challenging convention and freedom is a huge part of what it means to be Virgin.

• Fun: More than any other element, fun is the secret of Virgin’s success.

Virgin looks for people who embody these values, and new employees must demonstrate a “passion for new ideas,” “make creativity apparent,” and show “a track record of thinking differently.” Virgin describes its people as “honest, cheeky, questioning, amusing, disruptive, intelligent and restless,” and they believe that by having these character traits, creativity and innovation will come hand in hand.xxxvi

In an Entrepreneur magazine interview, Branson spoke about how Virgin finds its people.” We find great leaders everywhere: working hard inside our company, executing entrepreneurial changes in large corporations, and even selling auto supplies from the backs of their cars.”xxxvii


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Virgin likes to promote from within as much as possible to reward those with passion, creativity, and determination. They also hire entrepreneurs as they have values that Virgin seeks—energy, excitement, and grit. Virgin encourages employees to pursue their own ideas, and this gives their ambitious new hires the feeling that they can make a genuine impact to the overall organization.xxxviii

When hiring senior leadership roles, what Virgin looks for beyond all else is whether a person listens to employees. By having this trait, it shows that a leader is open to change and can empower employees to make decisions and be comfortable with voicing ideas.

Innovation Ignited From the TopWhen you think of Virgin, invariably the first thing that comes to mind is its charismatic founder, Sir Richard Branson. Since starting the company as a mail-order record service, his success is well-documented in articles, books, and university courses around the globe.

Part entrepreneur, part adrenaline junkie, Branson is known to embrace business and his personal life with a sense of adventure. He has attempted to break many world records (succeeding in some cases), usually involving boating or hot-air balloon travel. In 1986 his boat, Virgin Atlantic Challenger II, crossed the Atlantic Ocean in the fastest ever recorded time. In 2012, Branson broke the record for the oldest person to kite-surf the English Channel, and in 2014 he broke the record for most people riding a kitesurf board. He also holds the record for the richest presenter of a reality television show and most followers on LinkedIn. Branson continually tries to break records in both his personal and business life.xxxix

His adventurous and bold personality also translates into how he approaches business. Many Virgin businesses have started “out of frustration” with industries that have not been changes for a long time. He is not afraid to launch products or services that entirely rethink how things are done. He says, “We always enter markets where the leaders are not doing a great job, so we can go in and disrupt them by offering better quality services.”xl

However, Branson doesn’t want great businesses to be restricted to just his own company. His book Screw Business as Usual, celebrates more than 100 innovative businesses that are doing good for people and the planet. Branson wants “transformational entrepreneurship” to increase in the world so that social entrepreneurs help solve the world’s most pressing problems. It’s Branson’s belief that success doesn’t lie in how much money he has got or how much his company makes: “You’ve got to go make a real difference in people’s lives if you’re going to be successful.”xli It is this philosophy and approach that has inspired innovation beyond Virgin and into the world.

Embracing Experimentation: Failure Can Drive Future SuccessWhile record-breaking attempts and PR stunts are part of the Virgin/Branson showmanship, Virgin and its founder are the first to admit that not everything they do is a winner. One example was Virgin Oceanic, debuted in 2011, for commerical and scientific submarine voyages. This venture was meant to send a submarine to the deepest points of the world’s five oceans. It was shut down in 2014, citing the need for better technology with increased safety features.

Virgin believes unsuccessful attempts are just another step in the business process, using the knowledge gained from them as a stepping-stone to success. Branson said in an interview, “Starting new ventures takes a ‘screw it, let’s do it’ attitude and finding the right partners to help us achieve the unthinkable… However, business is also about knowing when to change tack.”xlii


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Successul innovators need to be able to adapt quickly, either changing strategy or closing an endeavor. Virgin often indulges in many development experiments, testing multiple new ideas at once. The group’s large size and stable revenue streams allow for this wide experimentation. Between 70 and 80 percent of the group’s revenues come from a few core businesses, while the remaining 20–30 percent comes from countless smaller ventures that may become the next big thing.

Taking risks is meant to be part of business as usual at Virgin. To encourage this as part of the culture, Branson’s successors recognize the hard work of talented, creative, innovative employees. “It is so important to celebrate those individuals—the entrepreneurs, the rock stars of their industries—that work hard and deliver, even in the face of what others see as impossible.”xliii

Where Does Innovation Come From?

At Virgin, the answer is: everywhere. Due to its strong brand and reputation for “irreverence with quality,” Virgin’s customers tend to be trendsetters. And according to Virgin, these customers tend to be very opinionated, ready to tell them exactly what they’re doing wrong—or right. Virgin leverages this brand interaction to its advantage. The company has even created a section on their website for anyone in the world to submit the next big idea for the Virgin brand.

Employees are another big source of innovation. They’re the ones observing customers and getting a lot of ideas. In fact, when Branson was CEO he gave all employees his home and mobile phone numbers and ensures that their ideas get a response. That’s actually how the now-defunct Virgin Brides came about: a Virgin employee

struggling with all of the details in planning her own wedding came up with the idea. Branson promoted her and provided the funding, and he even wore a wedding gown for the launch of the business. At one point it was Europe’s largest bridal shop.

When Branson was once interviewed by a journalist, he realized interviews are also an opportunity to come up with new ideas as you’re constantly being questioned on your beliefs. He took this concept quite literally when a journalist asked whether Virgin would ever go into the rail business. Branson realized this was a good idea and hence launched Virgin Trains.xliv

“I keep a notebook in my pocket all the time,” Branson says, “and I really do listen to what people say, even when we’re out in a club at 3 a.m. and someone’s passing on an idea in a drunken slur. Good ideas come from people everywhere, not just in the boardroom.”xlv

South African investment firm, Brait, has bought 80 percent ownership of Virgin Active, a gym brand with locations in UK, South Africa and Austrailia. Virgin had the brand for 16 years, working with co-investors throughout its development. In this next phase, CEO Josh Bayliss says they wanted a like-minded firm in a market with great potential. He says, “We’re continuing to invest in South Africa and the rest of Africa. Look at demographics! Africa is a wonderful opporutunity to invest.” This investment is taking place with other brands, Virgin Atlantic, Virgin Money, and Virgin Mobile (leading seller of pre-paid cards in the country). The company has big plans in the region including an early-stages renewable energy initative.xlvi

“You don’t learn to walk by following the rules. You learn by

doing and falling over.”—Richard Branson, Founder,

lifehack.org


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What’s Next for Virgin?With truly innovative companies, the sky is the limit. But with Virgin Group, the limits extend into the stratosphere.

In 2015, to expand the Virgin brand, and create cross-sell opportunities, the company launched the Virgin Red app. The app attracts users through discounts and competitions from across the group’s companies, and partner companies. The UK loyalty plan is scheduled for rollout in other markets in 2016. The Virgin Group will gain high-level insights from these “data relationships” that will inform marketing efforts, and increase the percentage of customers who use more than one Virgin service.xlvii

As Sir Richard begins to license the Virgin name beyond ventures he controls, the need for the Virgin Red app will magnify. Some new markets include tourism, with the first Virgin Hotel in Chicago in 2015, with New York, Dallas, and Nashville sites already under way. By 2020, Virgin Cruises will be making waves with a rumored unique offering passengers greatly desire, though specifics have yet to be revealed.xlviii Meanwhile, they are pursuing mass participation sporting events under the Virgin Sport brand, hosting a string of marathons and triathalons in 2016.xlix

Inspired by a founder who embraces risk and change, and is equally eager to dive into the business of comics and space travel, this is an organization where the unexpected is expected.

Virgin is continuously looking for opportunities where they can “surprise and delight customers by offering something truly different.”l No matter what industries Virgin will leap into, there is no doubt they will continue to surprise and delight their customers with their fun and innovative approach.


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What Can You Learn from Virgin?Set a foundation that defines innovation objectives and mobilizes your efforts.When deciding to enter a particular industry segment, Virgin asks itself some fundamental questions: Is this an opportunity for restructuring a market and creating competitive advantage? Is the customer confused or badly served? Answers to these questions provide a platform for discussion and decision making around innovation investments. • What types of ideas are you specifically looking for to drive your organizational success?

• How can you think beyond your current market and consider entirely new industries in which you could make a difference?

Think differently to develop original ideas that drive business value. Virgin is a customer-driven organization. Employees are encouraged to “observe and innovate” based on customer behavior.

• How are you observing your customers today?

• How can you involve your customers in your innovation efforts? What mechanisms can you create to continually interact with them and learn their needs?


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Create a streamlined and flexible approach to shepherd innovative ideas to market. Virgin’s organizational structure is designed to empower leaders at the business level to quickly make decisions and get to market faster than the competition. Teams are encouraged to reach out to other businesses to learn from their success and repeat it.

• What workflows do you have in place to move ideas forward?

• What can you do to better streamline processes and get to market faster?

Build a thriving work environment that drives innovation across your organization. At Virgin, innovation is led by example from Sir Richard Branson and throughout the employee ranks. Innovations are not just recognized but celebrated by Branson himself. He ensures that everyone knows he not only wants to hear their ideas, he wants to launch them with great fanfare as well.

• How can you break down some of the hierarchy that so often hinders innovation from being effective and taking off?

• How will you create a climate of innovation that embraces change and welcomes a bit of rebellion to drive success?


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Additional ReadingAnkeny, Jason. “Richard Branson on Building an Empire.” Entrepreneur (19 June 2012).

Branson, Richard. The Virgin Way: Everything I Know about Leadership. Portfolio Hardcover, 2014. Print.

Branson, Richard. The Virgin Way: How to Listen, Learn, Laugh and Lead. Virgin Digital, 2014. Print.

Coppinger, Rob. “Virgin Galactic to Launch New Cargo Plan, Spaceship Design.” Space.com (26 June 2012).

Gallo, Carmine. “Richard Branson: If It Can’t Fit on a Back of an Envelope, It’s Rubbish .” Forbes. (22 October 2012).

Gordon, Sarah. “Virgin Group: Brand It Like Branson.” Financial Times. (5 Nov 2014).

Saporito, Bill. “Virgin Finally Hooks Up: Why Richard Branson Cut a Deal with Delta.” Time Magazine (13 December 2012).

Seedhouse, Erik. Virgin Galactic: The First Ten Years. Springer, 2015.

Sloane, Paul. “The Virgin Atlantic Ice Cream Story.” Innovation Excellence (5 October 2012).

Wilson, Mark. “Virgin Atlantic’s New Lobby Conveys Brand Values, WIthout The Brand?” Fast Company (October 2012).

“Virgin America: A Loyalty Program that Elevates Above the Rest.” LoyaltyTab.com (6 August 2012).

Online ReferencesCreating an Irresistible Brand with Social: The Virgin Story: <www.youtube.com/watch?v=neCVduQCbxo>

Entrepreneur, September 16th, 2013. “Richard Branson on the Secret to Virgin’s Sustained Success”

Richard Branson Channel on YouTube: <www.youtube.com/user/richardbranson>

Richard Branson 2015 – Richard Branson ExplainsHis Secret to Success. <https://www.youtube.com/watch?v=35QRRXT80xY>

Richard’s Blog: <www.virgin.com/richard-branson/blog>

Virgin Atlantic: <www.virgin-atlantic.com>

Virgin Atlantic “Flying in the Face of Ordinary”: <www.virgin-atlantic.com/us/en/the-virgin-experience/fitfoo.html>

Virgin Galactic: <www.virgingalactic.com>

Virgin Money: <www.virginmoney.com>

Virgin Pulse: <www.virginpulse.com>

Virgin Unite: <www.virginunite.com>


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ENDNOTESi Mitchell, Donald and Carol Coles. The Ultimate Competitive Advantage: Secrets of Continually Developing a More Profitable Business Model. San Francisco: Berrett-Koehler Publishers, 2003.

ii Gordon, Sarah. “Virgin Group: Brand It Like Branson.” Financial Times. 5 Nov 2014. (29 Dec 2015). http://www.ft.com/cms/s/2/4d4fb05e-64cd-11e4-bb43-00144feabdc0.html#axzz3vkVJBMYy

iii www.innovationspeakers.com/article-details.php?aId=28

iv www.virgin.com/about-us/

v www.virgin.com/about-us/

vi “Driving Growth with Business Model Innovation.” www.bcgperspectives.com (17 Dec. 2014). https://www.bcgperspectives.com/content/articles/growth_innovation_driving_growth_business_model_innovation/

vii www.virgin.com/about-us/

viii “Sir Richard Branson’s New Work Policy of Fully Paid Parental Leave Has a Few Catches.” 11 June 2015. (10 Dec 2015). http://www.news.com.au/finance/work/sir-richard-bransons-new-work-policy-of-fully-paid-parental-leave-has-a-few-catches/news-story/7125a810aefad53b430c56091d80824a

ix www.virgin.com/about-us/

x www.virgin.com/company/virgin-galactic/

xi www.foxnews.com/science/2013/04/29/virgin-galactic-spaceshiptwo-1st-powered-flight.html

xii Plautz, Jessica, and Miriam Kramer. “Richard Branson: Virgin Galactic’s Next Space Plane is Coming in February.” 2 Nov 2015. http://mashable.com/2015/11/02/virgin-galactic-february-spaceshiptwo/#r02GaNKf5GqX

xiii “Creating the World’s Largest Ever Satellite Constellation.” (10 Dec 2015). http://www.virgin.com/richard-branson/creating-the-worlds-largest-ever-satellite-constellation-0

xiv www.virginwines.com

xv www.virgin.com/company/virgin-money-uk/

xvi http://uk.virginmoney.com/virgin/about/trophy-cabinet.jsp

xvii www.virgin-atlantic.com/en/gb/whatsonboard/upperclass/servicesandextras/index.jsp

xviii “The Rise of Silicon Modern.” Wired.com. Conde Nast Digital, (17 Dec. 2014). http://www.wired.com/2014/09/design-package-2014/

xix “Wearable Technology | Virgin Atlantic.” Wearable Technology | Virgin Atlantic. (17 Dec. 2014). http://www.virgin-atlantic.com/gb/en/footer/media-centre/press-releases/google-glass.html

xx Virgin Atlantic Brief Sustainability Report – Autumn 2010

xxi Branson, Richard. “A Commitment to Creating More Sustainable Airlines.” 15 Dec 2015. http://www.virgin.com/richard-branson/a-commitment-to-creating-more-sustainable-airlines


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xxii Branson, Richard. “A Commitment to Creating More Sustainable Airlines.” 15 Dec 2015. http://www.virgin.com/richard-branson/a-commitment-to-creating-more-sustainable-airlines

xxiii www.virginearth.com

xxiv www.virginearth.com/finalists/

xxv en.wikipedia.org/wiki/Airsickness_bag#Collecting

xxvi www.virginpulse.com

xxvii “Sync ‘Em Up. Clip ‘Em On. Get Going.” Virgin Pulse. (17 Dec. 2014). http://dev.virginpulse.com/why-virgin-pulse/ecosystem

xxviii www.virginpulse.com

xxix www.virginpulse.com

xxx www.virginpulse.com

xxxi www.virginpulse.com

xxxii http://www.virgin.com/unite

xxxiii “Join Richard on a Connection Trip to South Africa - Virgin.com.” Virgin.com. (17 Dec. 2014).

xxxiv “Richard Branson Interview: Virgin Chief on How Age is Moderating his Appetite for Risk-Taking.“ 14 June 2015.(10 Dec 2015). http://www.news.com.au/finance/work/sir-richard-bransons-new-work-policy-of-fully-paid-parental-leave-has-a-few-catches/news-story/7125a810aefad53b430c56091d80824a

xxxv www.virgin.com/about-us/

xxxvi Dyer, Jeff. “The Secret of Innovative Companies: It Isn’t R&D.” Innovation Management (18 April 2013). www.innovationmanagement.se/2013/04/18/the-secret-of-innovative-companies-it-isnt-rd/

xxxvii Branson, Richard. “Richard Branson on Finding Talented People Who Can Grow Your Business.” Entrepreneur (16 December 2013).

xxxviii Martin, Emmie. “The No. 1 Thing Richard Branson Cares About When Hiring.” Business Insider. Business Insider, Inc, 31 Oct. 2014. (17 Dec. 2014). http://www.businessinsider.com/what-richard-branson-looks-for-when-hiring-2014-10.

xxxix “Sir Richard Branson Sets New Record for Most People Riding a Kitesurf Board.” Guinness World Records. 27 Mar. 2014. (17 Dec. 2014). http://www.guinnessworldrecords.com/news/2014/3/video-sir-richard-branson-sets-new-record-for-most-people-riding-a-kitesurf-board-56401/

xl Bradt, George. “Innovation Follow Through.” Prime Genesis (25 May 2013). www.primegenesis.com/blog/2013/05/innovation-follow-through-richard-branson/

xli Vennege, Mary. “Richard Branson: Virgin Entrepreneur” (2009). www.success.com/article/richard-branson-virgin-entrepreneur


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xlii Mendick, Robert. “Sir Richard Branson Quietly Shelves Virgin Submarine Plan.” (Dec 2015). http://www.telegraph.co.uk/news/science/science-news/11291994/Sir-Richard-Branson-quietly-shelves-Virgin-submarine-plan.html

xliii Benner, Katie. “Calling All ‘Jetrosexuals’.”CNN/Money (9 August 2005). money.cnn.com/2005/08/09/news/funny/jetrosexuals/index.htm

xliv Branson, Richard. “Ideas Can Come From Everywhere” (10 December 2013). http://www.virgin.com/richard-branson/ideas-can-come-from-anywhere

xlv Inc. “26 Most Fascinating Entrepreneurs.” Inc (1 April 2005). www.inc.com/magazine/20050401/26-branson.html

xlvi “Virgin Scrambles to Expans in South Africa and the Rest of Africa.” (10 Dec 2015). http://ewn.co.za/Media/2015/11/12/Virgin-scrambles-to-expand-in-SA-and-the-rest-of-Africa

xlvii “Virgin Group Hopes Customers Will Be Seeing Red.” 2 Nov 2015. (10 Dec 2015). http://www.ft.com/cms/s/0/1a86917e-80ba-11e5-8095-ed1a37d1e096.html#axzz3twY3brN6

xlviii “What On Earth, Or In Space, Is Branson Going to Do Now?” 11 Sept 2015. (10 Dec 2015). http://www.afr.com/business/what-on-earth-or-in-space-is-branson-going-to-do-now-20150910-gjjumx

xlix “Virgin Group Hopes Customers Will Be Seeing Red.” 2 Nov 2015. (10 Dec 2015). http://www.ft.com/cms/s/0/1a86917e-80ba-11e5-8095-ed1a37d1e096.html#axzz3twY3brN6

l Branson, Richard. “Richard Branson on the Secret to Virgin’s Sustained Success.” Entrepreneur (16 September 2013).

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Case Study Virgin - futurethink.comfuturethink.com/wp-content/uploads/2017/03/cs_virgin-1.pdf · Being a Virgin Virgin is a company that strives to do everything— everything—differently