The Virgin Group is a group of subsidiaries whose activities are centerd around the leisure sector, in line with the image of a dynamic, innovative and charismatic president Richard Branson. Sir Richard Branson is the head of a business empire that includes 250 companies in 23 countries, most located off-shore, secret-accounting and has approximately 25,000 employees. (His fortune is estimated to be at 1.5 billion euros.)
Virgin is a conglomerate of variable geometry, driven by an exceptional brand, endorsed by an unusual and charismatic boss, Richard Branson.
This conglomerate leads the group through numerous acquisitions, resales and times in order to develop elsewhere. Thus, it can be said that Richard Branson wants to sell his business at the best price and the best time.
The Virgin empire does not hesitate to dispose of peripheral activities to be redeployed into new areas. This dynamism is accompanied by some risk-taking.
Virgin is characterized by a rather successful diversification of the sectors considered difficult. Virgin's strategy is to be grafted on growing markets such as emerging markets or newly deregulated markets.
The example of Virgin Trains can be cited, which takes advantage of the opening to competition of rail transport market in Britain.
From a financial point of view, Virgin is a holding company, that is to say, a holding company, which has no commercial activity but which manages investments. This conglomerate is comprised of a myriad offamily trusts registered in the Channel Islands for tax reasons and who control a group financially fragile. The independent nature, opaqueand flexible mode of operation has long been a key asset divestiture and development.
The group pursues a logic of recovery or the creation of industrial activity. It offers opportunities in stagnant markets by applying a young and innovative look.
Despite its large size the Virgin Group should receive only very few synergies. What is the relationship between Virgin and Cosmetic Virgain Rail? In addition Virgin Group acts as a risk capital and not looking at any cost synergies and does not act as a manager synergies.
However this policy is, with few exceptions, full of success. Virgin is called an association and joint venture by large groups that offer money in exchange of know-how of the brand.
Despite its tremendous growth Virgin Group has some weak points as financial difficulties, problems with the image, in the generic brand and despite his legendary charisma Richard Branson himself can be considered a point to watch. To overcome these financial difficulties Virgin Group should use the external financing by opening its capital, but also by consolidating certain financial activities.
About the brand itself, Virgin should focus on the heart of a trade or risk a failure that would affect the whole group (and the image as a whole).
Virgin is first of all a flexible internal organization, that is to say, based on a light hierarchy , leaving much room for autonomy and responsibility to its stakeholders. Proximity leaders / staff, community perceptions and attitudes are essential values conveyed by the company.
Tags: Virgin Group, Richard Branson, business diagnosis, strategy analysis
[...] STRENGTHS WEAKNESSES High awareness (among the 25 most - No traditional attributes of a recognizable brands in Europe) multinational company Coordination: partners - Cannot talk about the group Financial activities isolated (company accounts) from each other - Opaque group structure Conglomerate, non-traded - Autonomy of the units Involvement of employees - Split into two entities depending Skills in public relations and on the size of the subsidiary marketing - Control by remote headquarters Experience in Entrepreneurship - Exhibition of Branson media Best offer by competitors at lower prices -Initial public offering for a range of activities Comments Strengths The company uses partners, enabling it to limit the risks associated with investing. [...]
[...] In the case of development in mobile, Virgin has only used its expertise in brand development, and its youthful image is based on existing operators, who brought them their networks and expertise. This is a method that has paid off in this sector since Virgin, thanks to some innovations in the UK, such as prepaid cards or payment by the minute without a subscription. This group won the trophy for the best mobile operator. However, this technique is based on a different logic, a logic of competence on the part of the group. [...]
[...] This classic impacts: loss of market share, and reputation. Virgin Group's foray into a large number of sectors on a global scale and the problem of dilution of the brand. Difficulties with respect to Branson itself: Although Branson is successful (for now) in whatever he does, he is immune to failure, which would reflect on the Virgin Group. Also being very charismatic with respect to media, the case of a failure would be even more important and would be multiplied for Virgin Group. [...]
[...] Despite its tremendous growth Virgin Group has some weaknesses such as financial difficulties, problems with its brand and generic image despite the legendary charisma of Branson, and this can itself be considered a point to watch. To overcome these financial difficulties Virgin Group should use the external financing medium by opening its capital, and also consolidate certain financial activities. About the brand itself, Virgin should focus on the heart of a business not to risk a failure that would affect the whole group (at the image). [...]
[...] The synergies between the subsidiaries are so rare that each entity is independent to avoid financial risk in case of financial problems (or other) of each.However, there are links between certain SBU as: Virgin Travel Virgin Vs Rail: Virgin Holidays and Virgin Rail may have synergies in reservation systems, for example. Virgin Travel Virgin Vs Hotels: Ditto from Virgin Holidays and Virgin Hotels for Reservation System. Also the fact to carry passengers can drain them in hotels in the same group. [...]
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