Virgin Airline Case Study

5166 words - 21 pages

EXECUTIVE SUMMARYVirgin began in the 1970s with a student magazine and small mail order record company. Virgin's growth since then has not only been impressively fast, it's also been based on developing good ideas through excellent management principles, rather than on acquisition.Virgin looks opportunities where we can offer something better, fresher and more valuable, and seize them. Besides, Virgin often moves into areas where the customers have traditionally received a poor deal, where the competition is complacent. In addition, with their growing e-commerce activities, they look to deliver 'old' products and services in new ways. Virgin's are pro-active and quick to act, often leaving bigger and more cumbersome organizations in virgin's wake.Virgin known as third most recognized brand in Britain, now becoming the first global brand name of the 21st century. Virgin involved in planes, trains, finance, soft drinks, music, mobile phones, holidays, cars, wines, publishing, bridal wear and a lot. What tie all these businesses together are the values of their brand and the attitude of virgin's employees. Virgin created over 200 companies worldwide, employing over 25,000 people. Their total revenues around the world in 1999 exceeded US$5 billion.Virgin's companies are part of a family rather than a hierarchy. They are empowered to run their own affairs, yet other companies help one another, and solutions to problems come from all kinds of sources. In a sense, virgins are a community, with shared ideas, values, interests, and goals. The proof of their success is real and tangible.In this report, Virgin Group is being analyzed in three aspects: General Environment, Industry Analysis and Value Chain Analysis. Besides that, this report also discussing diversification strategy, its relation with its stakeholders and the overstretching of Virgin brand name in Virgin Group.GENERAL ENVIRONMENT: VIRGIN'S GROUPThe general environment is composed of dimensions in the broader society that influences an industry and the firms within it. These dimensions comprise of six environmental segments: demographic, economic, political / legal, socio-cultural, technological and global. However non of any firm's or organizations can only understand and gather information regarding their general environments and its implications for the selection and implementation of the appropriate strategies.Most firm face external environments that is highly turbulent, complex and global. For Virgin itself, may face external environment difficulties in understanding and to predict their general environment because they were in different industry. In addition, different industries may lead to different risks. In order to increase their understanding of the general environment, company like Virgin engaged in a process called external environmental analysis. The continuous process includes four activities: scanning, monitoring, forecasting and assessing. Those analyzing the external...

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