Quick Look: Virgin

Virgin is a UK based corporation. Founded in the 1960’s, it has grown, from a primarily record based company, into a multi-national conglomerate with SBU’s ranging from music and video games to airline operations and space travel (Virgin, 2015). This article will focus on growth strategies that have been utilized by the Virgin corporation through the last five years as well as their success or failure within these strategies.

Virgin’s primary approach to growth is an offensive strategy as it enters into new markets with innovative approaches to products and services. Virgin focuses to widen its business operations into multiple market spaces, which allows them to gain access to new customer bases, as this is a primary focus of competing in the international market space (Thompson & Strickland, 2015). Virgin has introduced itself to several markets by entering as a fast follower and it has also signed several mergers and licensing agreements, which have allowed it to claim stake in other various markets (Pisano & Corsi, 2012).

Virgin appears to have taken more of an offensive strategy over the past few years. Virgin has even gone as far as space exploration in its drive to be part of many varying marketplaces. Although Virgin is more of a fast-follower, its take on products and innovations are somewhat unique to Virgin. Virgin is the only company with a founder that has created eight separate companies all valued at a billion dollars or more (Stanger, 2012).

The strategic success of the Virgin corporation, driven by the innovative strength of its founder, Richard Branson, has led the company to the heights it sees today. Besides innovative strength, Virgin has properly leveraged mergers and licensing agreements as alternative entry tools. Its offensive strategy has gained the company entry into a broad range of markets, which has given it risk flexibility and has allowed it to express its innovative spirit successfully.

References

Virgin (2015). About Us. Retrieved from https://www.virgin.com/time-machine

Thompson, A., & Strickland, A. (2015). Crafting and executing strategy: concepts and readings. [VitalSource Bookshelf version].

Pisano, G.P. & Corsi, E. (2012). Virgin Group: Finding New Avenues for Growth (Case Study 612070-PDF-ENG). Massachusetts: Harvard Business Review

Stanger, M. (2012). 18 Tips for success form Richard Branson. Business Insider. Retrieved from https://www.businessinsider.com/18-tips-for-success-from-richard-branson-2012-9