Current Strategy And Presume Its Future Strategies Marketing Essay

AIM: The primary aim of this course work is to find the strategy of our chosen company employs for it development for the last 15-25 years and evaluate the current strategy and suppose its future strategies. Evaluating all the strategies of an organization which helped because of its development.

Introduction: Virgin group was founded by Richard Branson. Virgin group first started with a magazine called student. This started in 70's and received huge recognition in public areas. Then he opened a virgin recording studio. In 80's virgin company went on to international popularity. He then started virgin Atlantic airways in 84. Inside the same season he began a 24 hour music route that was a grand success. Virgin inserted in all kind of business by 90's. There will vary companies under virgin group like virgin mobile, virgin airways, virgin getaways, virgin trains, cars, catalogs etc.

Virgin group is the main one of the most notable companies UK. In rest of the countries its giving a tough competition to others. Virgin has another type of strategy in approach to the customers and it always been successful in attracting the clients. Group produces different products and has entered into different areas in a very short time. Virgin has the benefit of its brand in the market as it is a business where almost all of the folks are wary about the business products.

Development: Richard Branson's career as business man commenced when he was at institution at age seventeen. He started out a newspaper called 'scholar' in 1968 that was a huge success and then he still left school without completion. This magazine directed to many students and it was filled up with whole lot of articles which are of help to students. Then he began a recording studio. This offered him enthusiasm to enter into new business and today virgin is the topmost company of UK and it is a respected company in many countries. Until now virgin has broadened to many businesses making its presence feel in mobile, airlines, trains, books, CD's, cosmetics, funding, hotels etc. All these companies set up well in their respective firms and seduced many customers towards virgin products.

Strategy of the company: Virgin's first and apparent learning resource is the chairman Richard Branson that made the company to top position. Richard Branson's style and charismatic manner that attracts many people towards virgin group. Subsequently virgin people are the primary source of the business's success. Virgin has a distinctive brand recognition in various businesses that is difficult to other companies to reproduce.

Virgin has many amounts of companies under its shadow. The management of virgin group has independence expressing their views regarding company's ongoing business and innovate new strategies for the business development. Virgin's management is heavily depends on the marketplace analysis and the client requirements as each goes into customer shoes and understand his needs and provide more better. Virgin has creative employees to serve the company better and it offers 25000 employees all around the globe.

Richard Branson adopted a policy along with his managers and prompted their own creativeness for initiative ideas so professionals would feel more sensible and ownership and tries to make a change in the company strategy and make it to run on success and profits. Management recruited carefully only some determined individuals who has the competitive aspect and good teamwork abilities and chairman Richard Branson has selected because they are of his image in characteristics.

Brand Strategy: Brand name or brand strategy is a process of appealing to customers to buy a fresh product of its brand where brand has already got market value. Virgin has a great brand value in UK and all the products which can be produced are sold under its brand. Branding allows a customer to buy repeatedly the merchandise and it makes a loyal distributor and the client is also satisfied. Branding significantly less than one name means more accountable to the dealer and dependable to supplier to supply the best products.

Selling the products under one brand doesn't need more advert costs and it gets good response in the beginning as the brand is familiar in the market and there are many quantity trusted customers to it already. There are even some hazards to this brand strategy, if the product fails to draw in the clients then it could place the brand into difficult position and it degrades the image of the brand.

Virgin has a great brand value in the market that uses its name label for those its products in advertising and produces in to the market. Virgin has many products in various areas under its brand name like in travel and tourism it has virgin travels, trips etc. in leisure they have games, spa etc. In interpersonal welfare and environment it offers green fund, virgin globe etc. In beverages it includes virgin wines, soft drinks etc. In multimedia it offers virgin radio, music channels, mobiles, broadband, telecommunications etc. With each one of these it has some products like catalogs, cloths, and financing and health loan company. All its products has only 1 brand name and they are sold on virgin name for its brand value and good reputation.

In virgin it offers two types of products, they are simply differentiated as convenience products no requested products which have different types of customers and demand. In convenience products catalogs, cosmetics, mobiles can be found where all these products are convenient to buy for any type of customers. The products are bought frequently, immediately and with minimum affordable costs. The next type of products is not a wanted products like extra terrestrial trips where people doesn't know about it or doesn't show curiosity about it. Virgin created an offer to visit space to its customers. Due to its cost and hazards many were not interested to make use of the offer.

Virgin feels in fewer prices in differentiated products where certain degree of customers desires quality of products. Branson has were able to satisfy the customers with quality services and his products through out the earth. Virgin brand mainly focused on customers like teenagers who like progressive, quality, fun loving products.

Corporate Rationale: Virgin brand was within 1970 by Richard Branson starting with a magazine. It entered into many businesses from then onwards. Virgin brand has almost 200 businesses having came into in all commercial fields getting together with the clients. Virgin's group concentrate on is to enter in as many as fields of business with low priced and increase its brand in every fields. They aimed to provide better quality services in all sectors they inserted and contend with other companies.

Small companies in several countries are using virgin brand because of their promotion and they're using virgin brand reputation. Even virgin is accepting this type of business and they're parenting for many business process in different countries. In this manner virgin is enjoying popularity with small scale companies and large companies partnerships and growing their brand value to different countries. Richard Branson created a 5 point formulation in which 4 out of 5 must be achieved by the new project before starting. With a solid support from consumers virgin can enter into any market effectively and make its impression on that market. The unique virgin culture allows it to go to new market segments and run the business successfully.

Corporate Structure: The composition of virgin group is different than others as the financial information is not clear for this business. Since it is an exclusive company and it offers different fields and various organizations and there are no accurate accounts, so financial structure of the company and its income and business statements are not available plainly. Branson advised that the group is loosely linked to each other and they are self managed under one brand name. Branson also said that virgin is a group of private companies and not general population limited company so it must focus on benefit of shareholders, stakeholders and financiers. The advantage of this is the company targets only on the permanent profits.

Virgin group is principally controlled by Richard and his trusted employees who are working for him since twenty years. In head office there are 30 people working and he has given them independence to work and enhance the company's financial structure and he is there and then take care of big discounts and last strategy.

The main strategy of the virgin is to work in different areas of business under one brand. Virgin has decentralized the organizational structure and decision making allows the managers to find out about business tactics and while avoiding large offer decision to the chairman. Virgin allows small companies to place its brand name as it gets international acknowledgement and it could help company to promote very easily. With this virgin can enjoy both the large scale and small range company's profits and globally recognition.

Virgin has a centralized unit to look all its business strategies and take care of all the companies under one table at the head office. An individual website www. virgin. com allows users to gain access to all its products and services. It has a internet business strategy which has coordination between all the firms and they work according to the strategies from the head office. Whenever a customer enters into virgin website they can usage of all the products of virgin which are under one portal of course, if he uses any product then he becomes a member of virgin family and he can use other services like mobile, telecommunication, banking, travel, internet needs, traveling, entertainment etc. Within this it profits more number of customers like virgin mobile gets customers from virgin rail records, virgin travel gets records from other virgin companies and so forth. In this manner other mobile companies cant get contact with rail customers or travel companies cannot contact for some unrelated company customers because they are mysterious to them, but in virgin it have all sorts of customers and it can get in contact with all customers who are under them which would help them boost the sales of there products.

Strategic Human relationships: All of the companies in virgin run focusing on towards a 'five pillar' empire system that Richard was wanting to create. Corresponding to Richard five pillars and heart and soul of his business are travel, leisure, cell phones, entertainment retailing and personal fund. Virgin wants to say to all or any its customers by using prefix called fun, progressive, daring.

It is already said that the key strategy of virgin is Sir Richard Branson. The Britain people can immediately identify the Sir Richard Branson name and his companies. That is the main mental strategy Richard has got and he positively participates in all marketing and advertising activities. This is why for the expansion of virgin empire and all the companies show interest to keep a joint venture with virgin group. There is a great demand for virgin and the example because of this is in fact for the virgin immediate affair investment was 15 million. However the AMP limited the key international fund group original investment was 450 million and it was 50-50 jv.

All business in the virgin group sacrificed short term profits to gain long term growth and used an individual level business strategy of decision making method. Managers are given liberty to make decisions separately for the progress and feel exactly like of ownership and the worthiness that any administrator would feel. The resources and finance issues are not distributed between companies of course, if any company became too big another company would take its place.

Management: Branson has considered few candidates who are having innovative ideas and are happy to start home based business with a solid desire to conquer their competition. Richard Branson has added his own design of management style and included positively all the employees and asked for advices to help expand serving customers better. Employees were positively involved in behaving with there principles and there performance was responsible. Human source of information management was in charge to keep people to the bonus items and profit posting exactly where possible they get marketing promotions.

The virgin group as a small business head had the following factors where they value these.

Understanding of marketplaces: Virgin's management has a good experience in figuring out the market situation. It is there skills and business strategy which helped the business to accomplish a lot of success in all business areas they joined.

Brand name which overcame obstacles to entry: The virgin brand name is the Britain's favorite brand and it is a respectable brand far away.

Joint ventures: virgin technique of success is joint projects and they maintained limited investment in services and got benefits from this in market.

Freedom to managers: management is not constrained and the business helps in innovation and promotes shared partnership and responsibilities.

Innovation: Virgin's staff has people who have succeeded in their professions and the group invites many people who spend money on new enhancements and differentiate.

All these ground breaking ideas made virgin in top position and they have applied within business and received huge success to their credit. For instance virgin mobiles have collaboration with other telecommunication teams and they provided offers such as less regular rentals and cheaper pre-paid offers in every the places they joined. In UK virgin doesn't operate its own network but it earned best wireless honor in UK.

PEST evaluation of virgin: PEST means Political the existing and potential pressure from political gatherings and their decisions. Economic stands for the financial situation of the world or local market. Sociological stands for the changes of the contemporary society and their impacts on the business. Technological means changes in technologies and emerging systems. Regarding virgin group PEST analysis are given below

Political factors

Virgin rail is jogging under solitary brand as it includes partnership with stagecoach. Virgin has 51% share and stagecoach has 49% share in the market.

Virgin practices all the guidelines and regulations of the country it is employed in and it gives all fees and makes policies in line with the government guidelines.

Virgin is Britain's most trusted company and they have great deal of customer pursuing to its products and has a great impact and bonding romantic relationship with the people of this country.

The politics interference in virgin group is regarding financial concerns as the reports are not clear because of its partnerships numerous companies.

Economic factors

To virgin most of the companies are running with partnerships and they are putting and then some extent of money and they grow their business.

The global recession has whole lot of affect on its company, like shutting down or getting rid of careers may have direct effect on its business strategy.

Operation levels are increased and taking particular attention to the competitive services regarding to customers.

Fluctuations in the neighborhood and international market show the direct impact on the business's business strategy and could transform it into deficits.

Sociological factors

The sociable responsibility of providing good quality services to its customers is its first concern. The company has a mission to give remarkable services to all its customers based on the economic conditions of the client.

Environmental concerns are increasing day by day. So company launched its first bio-diesel train earlier than all the companies in Europe.

Virgin has poor punctuality services that ought to be taken health care and satisfy the customers by addressing promptly.

Virgin mobile has offered different offers to its customers in line with the sociable conditions of the country's situation.

Technological factors

Virgin is one company which always will try to revise its software or its complex knowledge and provide to its customers to a maximum magnitude.

Virgin rail has always made changes in its technology or in its quality to its customers and made the trains run punctually without the technical problems.

Virgin group always updates in providing internet services and solutions in it as wireless technology.

Company regulations also change based on the pattern and interest of the clients.

These are factors impacting on the virgin group in its political, economical, sociable and technical factors.

SWOT examination of virgin group

SWOT evaluation discuss about the strengths, weakness, opportunities and threats of the company. These classify the factors impacting on the financial or business dealings that have an impact on the company. SWOT examination are clearly explained below


Brand name: Virgin has a solid brand in countries like UK, USA, and Australia. Name of its brand is enough to market any product and make it grand success on the market. Products via virgin may survive on the market very easily and they can get good reputation and promotion without making more advertisements.

Different types of syndication: Virgin has two different types of distribution models. First is to market the products in shops and the second reason is to sell through online. Customers can use any of these services matching to there comfortable levels. Both these distribution items are maintained by virgin group.

Various processes to export: Virgin has different methods of vehicles facilities to export its products. It has airfields and two big seaports close to it for exporting its product.

It specialists: It offers highly skilled software pros who use great commitment to provide the very best quality of service to its customers.

High budget: Virgin group has enough money to get into any kind of business which is earning huge earnings every year because of its products which is increasing to different countries every year.


Loose guidance: As virgin is a group of different companies and each field has its managers, the guidance of the business is now hard for anybody and control is out of hand sometimes.

Communication gap: There's a lot of communication difference between each company. Only the web site to method of the business is same however the communication between different areas of business is very weak.

Bad travelling: There is a bad transportation center and there is absolutely no punctuality in trains and other general public travelling facilities where all these are affecting the business progress.

Outdated machinery: Some of the virgin products use obsolete machines and these cause a great trouble to the clients and employees in it. For example virgin rails still need to update its version of trains and make it faster.


Expand to overseas: Virgin gets the opportunity to extend to overseas and make its market to attain to more customers as it is a familiar product in many countries. Products like mobiles, airlines and press can be prolonged to any country quickly.

Could get better offers: Virgin gets the opportunity to have more discounts from more countries as it will always be ready to expand its business and it is ready to make collaboration with any other company for its progress.

Opportunities of training: There are lots of opportunities for training for fresher and retraining to other individuals in the business. So that company has the opportunity to know more about the business and on what project it is working exactly.

Using high technology goods: It has the possibility to improve itself by improving its technology and use of new systems in different sectors and making customer easy to comprehend about the assistance you offer.


The success of virgin group mainly will depend on the corporate parenting strategy which is led by Richard Branson. It is suffered through its strategies if it goes well on the market and gives competition to other companies.

In the long term Branson must put his succession ideas and strategies for the future performing of business and they require implementing properly to attain the targets of the company.

Virgin has to take care about its strong authority for future years and the implementation of its company procedures and approaches for the long term of the company by controlling all the companies under it carefully.

This is the SWOT research of virgin company showing its strengths, weaknesses, opportunities and threats. If the business control buttons all the above factors properly then it can have long run and it can release any services.

Some issues facing by virgin group

Virgin company was relying highly after the profits created by virgin Atlantis airlines and in 2001 anticipated to deregulation competition in airline industry increased and it brought huge losses to all or any the companies.

Virgin railways faced great deal of critics from the general public review in 2000 for its poor performance and it placed 23rd position out of 25 companies which made to rethink about the continuing future of the company but it regained its lost position in the consecutive years.

Virgin sold some resources for the going of these new and existing businesses. It sold-out virgin cinema halls which can be in UK and Ireland. Sold 49% of virgin Atlantic to Singapore airlines. It had been seeking clients for virgin sunlight and virgin exhibit.

Porter's 5 forces: In porters five makes it discuss about the five factors where in fact the running of a company depends and they're: rivalry, provider power, customer power, risk of substitutes, threat of new entrants.

1) Rivalry: On the market if the rivalry between two companies rises then it would result to zero income. Companies make an effort to get over this and take competitive edge and over their rivals. Rivalry can be caused anticipated to various reasons and their results may reduce prices and sometimes companies need to place special offers to handle the challenges. Rivalry between companies is because of the next reasons

Large volume of organizations: More number of companies produces same product then they be competitive for the sales of there goods to the same customers in a restricted market place and this led to competition between companies.

High fixed costs: If the expense of product is high then customers move to other companies and this would devote trouble so the companies has to put a cost with the very least profit margin.

Market expansion: In this companies make an effort to grow speedily by attracting customers and they make ideas for the expansion of there business. There would be a strong rivalry in this process as all the firms make an effort to increase their market size.

2) Threat of substitutes: In this particular model risk of substitutes refer to the same products producing by other companies and making competition. Within this customers would easily change to another product. So companies have price conflict and look for the low margin profits to appeal to existing and new customers.

3) Buying vitality: This refers to the energy of customers as it is mainly concerned with customers. There are some factors in this as the potential buyers are powerful if the buyers are poor.

Buyers are powerful when the clients are less in concentration compared to market show and he can buy a fair show of result.

Buyers are vulnerable when the companies take over the syndication of products independently or the companies supply circulation of input acquisitions.

4) Supplier electric power: In this particular it discuss about the power of distributor. Suppliers are powerful whenever there are more range of customers or when there are only few suppliers to the company.

Suppliers are weakened when more range of suppliers will there be to supply the products and when the less quantity of purchasers are available in the market.

5) Threat of new entrants: In such a if any new company gets into the market this would make huge competition on the market and new entrant's risk to create more risk as they make an effort to attract the clients and in this technique they give whole lot of offers to the clients. In this it is simple to enter when there is certainly huge demand for just about any product and great deal of distribution stations. It is easy to exit when there are salable resources, low leave costs and independent businesses.

Future of the business: Virgin has a great deal of approaches for its future and Richard Branson is in the process to implement all these strategies. Virgin is likely to enter more different industries of business and also to grow its business to other countries. Virgin is planning to open up new businesses in partnership with any business to enter new business also to other countries. It is planning to type in developing countries and make its draw there giving more offers to all or any types of customers and increase their talk about on the market and their brand value.

Conclusion: Within this we discussed about the strategies followed by the virgin group for its development. The existing strategic position on the market and made pest and SWOT research of the company. Talked about about the porter's five causes which applies to the virgin group and their future ways of broaden their business.

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