SWOT analysis Virgin, transport, telephony, satellites, travel, healthcare, record sales, financial aspect, legal aspect
The Virgin Group is a world-class British group owned by billionaire Richard Branson and active in countless areas such as transport, telephony, satellites, travel, healthcare and more.
Virgin was created by Branson and his associates in the 1970s and initially focused on mail-order record sales. The following year, a major postal strike forced Virgin to rethink its model and evolve so as not to die. The entrepreneurs thus opened a store in London in order to offer a physical location, making it possible to bypass delivery difficulties. The success was rapid, and store openings quickly multiplied in the United Kingdom.
[...] Virgin Orbit, for example, is in particular competition from SpaceX, a company of the famous Elon Musk, and the competition is raging. Brand image and related company (risk in case of scandals like Virgin Rail) Virgin plays a huge role in the group's image, dominating the image of the various companies that make it up. This strategy is positive for building the group's brand image but can have perverse effects, especially in the event of difficulty or scandal involving one of the subsidiaries. [...]
[...] A few years ago, the difficulties encountered in the United Kingdom by Virgin Rail had negative consequences on other subsidiaries of the group, which are, however, completely independent. Competition rules Virgin being a juggernaut owned by dozens of different companies, competition is sometimes threatened by its oligopoly in certain markets. Economic situation Finally, most of the products or services marketed by Virgin being related to leisure and, therefore, considered ‘non-essential', they could be questioned or limited by consumers, in a gloomy economic context, where some are experiencing significant financial difficulties, in particular, due to the closure of certain businesses, for example. [...]
[...] The group tries to minimize administrative costs, for lawyers, for example. Nevertheless, it does not skimp on the resources dedicated to customer service, which is often described as proactive, even going beyond customer expectations. This attention and dedication to customers is greatly appreciated and contributes strongly and positively to its brand image as a group. Effective Marketing Virgin's marketing has evolved dramatically over the years to adapt to the needs and wants of its customers and to seize new digital opportunities. [...]
[...] Australian subsidiary in receivership Likewise, Virgin's Australian subsidiary is currently in receivership and could be liquidated soon. C. Opportunities General restructuring The group is carrying out a major restructuring of its activities, which could allow it to increase its productivity and limit its fixed costs, the variable costs being significantly lower than before due to a partially reduced activity. New partnerships or buyouts of competing or complementary companies The economic crisis that accompanies the health crisis could allow Virgin to afford certain competing companies at a lower cost or companies offering activities complementary to its own. [...]
[...] This type of news is not very positive and has a strong impact on Virgin's brand image. CEO Criticised Although considered by many to be a strategist, Branson is also strongly criticized for some of his positions, but also and especially for his tax residence established in a tax haven. The group's legal arrangement and the location of the parent companies in the British Virgin Islands are also often criticized in the media. Some even claim that this could have been one of the reasons for the government's refusal to award support grants to Virgin Atlantic during the application made by Branson in the spring of 2020. [...]
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