VIRGINRICHARD BRANSON AND THE VIRGIN GROUP OF COMPANIES IN 2007
VIRGINCASE STUDY
THE TEAM
MILENA BANASZEK
MONTY KHAN
CHRISTOPHER PEAT
LINDA RICHARDS
FIRAT UCER
VIRGINRICHARD BRANSON AND THE VIRGIN GROUP OF COMPANIES IN 2007
QUESTION THREE
“What criteria should Branson apply in deciding what new diversification to pursue?”
VIRGINRICHARD BRANSON AND THE VIRGIN GROUP OF COMPANIES IN 2007
CONTENTS
Overview of Virgin Virgin’s beliefs Diversified companies Operational differences Operational Focus Resources and Capabilities Competitive advantage Virgin added value Focus of diversification Virgin checklist Conclusion
VIRGINRICHARD BRANSON AND THE VIRGIN GROUP OF COMPANIES IN 2007
OVERVIEW OF VIRGIN
Started by Richard Branson
Leading entrepreneurial brand with 200+ companies
Operates in a range of markets across 29 countries
Complex Infrastructure
Innovation in Industries
Dubbed ‘Consumers Champion’
OVERVIEW OF VIRGIN
VIRGIN’S BELIEFS
DIVERSIFIED COMPANIES
OPERATIONAL DIFFERENCES
OPERATIONAL FOCUS
RESOURCES & CAPABILITIES
COMPETITIVE ADVANTAGE
VIRGIN ADDED VALUE
FOCUS OF DIVERSIFICATION
VIRGIN CHECKLIST
CONCLUSION
“over 200
companies”
VIRGINRICHARD BRANSON AND THE VIRGIN GROUP OF COMPANIES IN 2007
VIRGIN’S BELIEFS
Value for Money
Good Quality
Brilliant Customer Service
Innovative
Competitively Challenging
Fun
OVERVIEW OF VIRGIN
VIRGIN’S BELIEFS
DIVERSIFIED COMPANIES
OPERATIONAL DIFFERENCES
OPERATIONAL FOCUS
RESOURCES & CAPABILITIES
COMPETITIVE ADVANTAGE
VIRGIN ADDED VALUE
FOCUS OF DIVERSIFICATION
VIRGIN CHECKLIST
CONCLUSION
“consumers
champion”
VIRGINRICHARD BRANSON AND THE VIRGIN GROUP OF COMPANIES IN 2007
DIVERSIFIED COMPANY RANGE
Main focus ‘related diversified’ ranges:
– Travel & Tourism– Leisure and Pleasure– Telecoms & Media– Shopping– Social & Environment– Financial
+ other smaller operations
Share Management, expertise, and funding
OVERVIEW OF VIRGIN
VIRGIN’S BELIEFS
DIVERSIFIED COMPANIES
OPERATIONAL DIFFERENCES
OPERATIONAL FOCUS
RESOURCES & CAPABILITIES
COMPETITIVE ADVANTAGE
VIRGIN ADDED VALUE
FOCUS OF DIVERSIFICATION
VIRGIN CHECKLIST
CONCLUSION
“end user
services”
VIRGINRICHARD BRANSON AND THE VIRGIN GROUP OF COMPANIES IN 2007
OPERATIONAL DIFFERENCES
Virgin aim to:
Seek new opportunities & Innovation within industries
Build’s businesses, doesn’t buy
Operate as Individual smaller companies
Complex Virgin network
Build business around people
Give back to the consumer and society
Strong CSR inline with core business
OVERVIEW OF VIRGIN
VIRGIN’S BELIEFS
DIVERSIFIED COMPANIES
OPERATIONAL DIFFERENCES
OPERATIONAL FOCUS
RESOURCES & CAPABILITIES
COMPETITIVE ADVANTAGE
VIRGIN ADDED VALUE
FOCUS OF DIVERSIFICATION
VIRGIN CHECKLIST
CONCLUSION
“entrepreneuria
l
spirit ”
VIRGINRICHARD BRANSON AND THE VIRGIN GROUP OF COMPANIES IN 2007
OPERATIONAL FOCUS
OVERVIEW OF VIRGIN
VIRGIN’S BELIEFS
DIVERSIFIED COMPANIES
OPERATIONAL DIFFERENCES
OPERATIONAL FOCUS
RESOURCES & CAPABILITIES
COMPETITIVE ADVANTAGE
VIRGIN ADDED VALUE
FOCUS OF DIVERSIFICATION
VIRGIN CHECKLIST
CONCLUSION
DIFFERENTIATION FOCUSED
DIFFERENTIATION
INCREASED PRICE
/ STANDARD
VALUE
INCREASED PRICE
/ LOW VALUE
LOW VALUE /
STANDARD PRICE
LOW PRICE / LOW
ADDED VALUE
LOW PRICE
HYBRID
“increased
value”
VIRGINRICHARD BRANSON AND THE VIRGIN GROUP OF COMPANIES IN 2007
RESOURCES & CAPABILITIES
Resources
– Brand– Finances– Innovation– Staff
Capabilities
– Management & Marketing– Increasing global presence– Industry Links– Identify Virgin ‘fits’
OVERVIEW OF VIRGIN
VIRGIN’S BELIEFS
DIVERSIFIED COMPANIES
OPERATIONAL DIFFERENCES
OPERATIONAL FOCUS
RESOURCES & CAPABILITIES
COMPETITIVE ADVANTAGE
VIRGIN ADDED VALUE
FOCUS OF DIVERSIFICATION
VIRGIN CHECKLIST
CONCLUSION
“end user
services”
VIRGINRICHARD BRANSON AND THE VIRGIN GROUP OF COMPANIES IN 2007
COMPETITIVE ADVANTAGE
VALUE
– Customer Focused– Deliver superior quality– Reasonable pricing
RARE
– Risk taking– Strong Leadership
IMATIBILITY
– Richard Branson at the core– Company values
ORGANISATION
– Well organised– Motivated through culture and
OVERVIEW OF VIRGIN
VIRGIN’S BELIEFS
DIVERSIFIED COMPANIES
OPERATIONAL DIFFERENCES
OPERATIONAL FOCUS
RESOURCES & CAPABILITIES
COMPETITIVE ADVANTAGE
VIRGIN ADDED VALUE
FOCUS OF DIVERSIFICATION
VIRGIN CHECKLIST
CONCLUSION
VIRGINRICHARD BRANSON AND THE VIRGIN GROUP OF COMPANIES IN 2007
VIRGIN ADDED VALUE
Brand Value
Shared labour resource pool
Internal capital market
Stretch and Resource Leverage
OVERVIEW OF VIRGIN
VIRGIN’S BELIEFS
DIVERSIFIED COMPANIES
OPERATIONAL DIFFERENCES
OPERATIONAL FOCUS
RESOURCES & CAPABILITIES
COMPETITIVE ADVANTAGE
VIRGIN ADDED VALUE
FOCUS OF DIVERSIFICATION
VIRGIN CHECKLIST
CONCLUSION
“strong
transferable
capabilities”
VIRGINRICHARD BRANSON AND THE VIRGIN GROUP OF COMPANIES IN 2007
FOCUS OF DIVERSIFICATION
OVERVIEW OF VIRGIN
VIRGIN’S BELIEFS
DIVERSIFIED COMPANIES
OPERATIONAL DIFFERENCES
OPERATIONAL FOCUS
RESOURCES & CAPABILITIES
COMPETITIVE ADVANTAGE
VIRGIN ADDED VALUE
FOCUS OF DIVERSIFICATION
VIRGIN CHECKLIST
CONCLUSION
Existing Products New Products
Existing Markets
Market Penetration
Product Development
New Markets Market Development
Diversification
Ansoff’s Matrix
“seeking
new products
and markets”
VIRGINRICHARD BRANSON AND THE VIRGIN GROUP OF COMPANIES IN 2007
VIRGIN CHECKLIST
Adds ‘Virgin’ value to the end user and community
Preferred business start-up’s
Results in end sale to customer
Benefit from Virgin’s management
Opportunity for Innovation in constrained industries
Inline with brand, supports consumer
OVERVIEW OF VIRGIN
VIRGIN’S BELIEFS
DIVERSIFIED COMPANIES
OPERATIONAL DIFFERENCES
OPERATIONAL FOCUS
RESOURCES & CAPABILITIES
COMPETITIVE ADVANTAGE
VIRGIN ADDED VALUE
FOCUS OF DIVERSIFICATION
VIRGIN CHECKLIST
CONCLUSION
“would it
benefit fro
m
Virgin”
VIRGINRICHARD BRANSON AND THE VIRGIN GROUP OF COMPANIES IN 2007
CONCLUSION
Continued diversification could lead to:– Dilution of brand– Management problems– Reduced competitive advantage
Strategic Diversification should lead to:– Increased Profit– Shared Value– Competitive Advantage
Aim to innovate in open markets, and concentrate in current markets to attain economies of scope
OVERVIEW OF VIRGIN
VIRGIN’S BELIEFS
DIVERSIFIED COMPANIES
OPERATIONAL DIFFERENCES
OPERATIONAL FOCUS
RESOURCES & CAPABILITIES
COMPETITIVE ADVANTAGE
VIRGIN ADDED VALUE
FOCUS OF DIVERSIFICATION
VIRGIN CHECKLIST
CONCLUSION
VIRGINRICHARD BRANSON AND THE VIRGIN GROUP OF COMPANIES IN 2007
BIBLIOGRAPHY
www.virgin.com
www.virginunite.com
Virgin Case Study
Contemporary Strategy Analysis, Grant R M
The Challenge of Strategic Management, Arevuo M“many Virg
in
sources”
VIRGINRICHARD BRANSON AND THE VIRGIN GROUP OF COMPANIES IN 2007
QUESTIONS
?“thank you
for your
time”