Entrepreneurship Report: Richard Branson's Success and Strategies

This report provides an in-depth analysis of Richard Branson's entrepreneurial journey, exploring his background, key traits, and the development of his business ventures. It examines his early ventures, including the launch of the "Student" magazine and Virgin Records, highlighting his ability to recognize opportunities and develop innovative ideas. The report delves into Branson's entrepreneurial traits, such as risk-taking, creativity, and a focus on employee feedback, and how these traits contributed to his success. It also discusses the competitive advantages gained by the Virgin Group, including low-cost strategies and brand recognition. Furthermore, the report provides recommendations for Branson's future business strategies, such as focusing on Virgin Galactic and developing hypersonic passenger air travel, to maintain his relevance in the business world. The report concludes by emphasizing the impact of Branson's entrepreneurial spirit and his ability to adapt to changing market conditions.

Running head: ENTREPRENEURSHIP
Entrepreneurship
Name of the student
Name of the University
Author note

1ENTREPRENEURSHIP
Table of Contents
Introduction................................................................................................................................2
Background of Richard Branson................................................................................................2
Entrepreneurial Traits.................................................................................................................3
Opportunity recognition and idea development.........................................................................4
Competitive Advantage..............................................................................................................5
Recommendations......................................................................................................................5
Conclusion..................................................................................................................................6
References..................................................................................................................................7

2ENTREPRENEURSHIP
Introduction
Entrepreneurship refers to ability of an individual of developing and running the
business enterprise so that he can make the profit. Entrepreneurial vision can be defined by
the ability of discovery along with risk-taking that can help a company in getting success
within the framework of the competitive landscape. The entrepreneur acts as the source of the
new ideas that can help in bringing new ideas within the market by replacing the old ideas
that were prevent in the market (Parker, 2018, p. 12). Richard Branson was born within
Surrey, England and his innovative projects started within the music industry which later
expanded to various other sectors. This report throws light on the background of the
entrepreneur and his characteristics that have helped him in evolving as a successful
individual. This report discusses about idea development process of the entrepreneur and the
competitive advantage that have been enjoyed his company in relation to the other companies
in the market. This report talks about the future strategies that can be undertaken by the
entrepreneur that can help him in retaining his prominent position in the world.
Background of Richard Branson
Richard Branson was born in the year 1950 and his father used to work as the
barrister. His mother was an adventurous person and it helped in the career advancement of
Richard Branson. Richard had to struggle with problem of dyslexia in his childhood and he
had to face difficulties within the framework of the educational institutions. He almost failed
in all-boys Scaitcliffe School and later on he got transferred to the Stow School which was a
boarding school in Buckinghamshire, England. He started the youth-culture magazine
“Student” after dropping out of school which helped in setting the stage for his
entrepreneurial success. The publication used to run with the help of the students and it sold
around $ 8000 worth of the advertising in the first edition which was launched in the year
1966 (Entrepreneur.com, 2020). He was living within the London commune and he was all
the time surrounded by British music which had a great effect on him. It helped him in
getting the idea of mail-order record company which was known as Virgin which helped in
funding the magazine efforts (Cnbc.com, 2020). The company was able to perform modestly
but it helped him in expanding the business venture and he built the record shop within
Oxford Street in London. The success of the new store helped in the development of his
entrepreneurial passion that helped him in embarking on a successful career at a later time in
life.

3ENTREPRENEURSHIP
The theory of high achievement talks about the fact that the people should have need
for achievement along with affiliation that can help him in evolving as a successful
entrepreneur (Kuratko, 2016, p. 98). It can act as a basis that can help in establishing the
personality of an entrepreneur. Achievement motivation can be said to be crucial for
entrepreneurship as it can pave the path for his economic and social development. This theory
talks about the fact that the entrepreneur’s desire of achieving success in their effort as they
want to gain dominance that can be instrumental in creating their influence among people.
The entrepreneurial spirit present in Richard Branson made him sign musical groups to
Virgin Records Label which made him famous in the society (Theguardian.com, 2020). He
signed various renowned artists like Culture Club along with Rolling Stones which made
Virgin Music a remarkable record company in the world. The entrepreneurship spirit in
Richard Branson had been manifested by the fact that Virgin Group was able to expand in 35
countries across the world.
Entrepreneurial Traits
There were entrepreneurial traits present in Richard Branson that helped him in
strengthening his position in the world of business. His philosophy was that in the event of
earning money he invests it in the new ventures that aids in the expansion of his business
empire. Virgin Group launched Virgin Mobile in the year 1999 and in the year 2007 he was
instrumental in the creation of Virgin Money that have helped in expanding his business.
Richard Branson believed in a new approach which he made use of for the purpose of
running his business. He had the business ethos of taking into consideration feedback from
the staff that can aid him in the running of his business (Alvarez and Barney, 2017, p. 89). He
had a strong personality and he wanted to build business from scratch by understanding art of
the delegation. The resource based theories talks about the fact that entrepreneurs need the
resources that can help in running their business. The efforts of the entrepreneur should be
combined with different kinds of resources like time, money along with labour that can help
in the successful running of his business (Read et al., 2016, p. 34). He used to make the
investment in the innovative business that can aid in the expansion of his business. It helped
him in gaining the capital that ensured the growth of his business. He was eager to extend the
help to the people so that it can help in running his individual business and he was at the
same time willing to move back so that it can empower the other people. He believed in the
fact that the company should be set up in such a manner that it had the capability of running
without his help. He was willing to take the risks and he used to set up the unconventional

4ENTREPRENEURSHIP
business plans so that it can take his business further. He believed in the aspect of creativity
and he wanted to give full freedom to the workers so that they are able to work on the basis of
their capabilities and skillsets without any kind of outside interference. He wanted to give
free rein to the ideas and opinions of his subordinates so that it can help his business in
catapulting to power within the competitive business world.
Opportunity recognition and idea development
Richard Branson believed in the fact that an individual should take the advantage of
his opportunities that can help him in excelling in his field. The business environment is
complex and competitive and an individual should be prepared that can help in utilising the
opportunity to the fullest extent (Baker and Welter, 2020, p. 24). An individual should have
the right kind of mindset that can help him in locating the opportunities that can aid in the
success of his business. Richard Branson engaged himself in the hard work that helped him in
deriving the advantage from the opportunities. Richard Branson had the capability of
recognising the opportunities that helped him in surviving in the competitive business world.
The opportunity based theory talks about the fact that entrepreneurs should be able to grab
the opportunities that can help them in winning the confidence of consumers (Storey, 2016, p.
83). This theory lays stress on the fact that entrepreneurs should seek opportunities that can
augment growth of his ventures. He provided radical different service from the competitors
that helped him in excelling himself in the business world. Virgin Atlantic was the first
company which was offering premium economy and in-seat entertainment so that it can help
the company in getting an edge above the competitors. He had the risk-taking mentality that
helped him in building his company and taking advantage of the opportunities that came in
his way. He had the restlessness in him that have helped him in being at the right place in
right time that have helped him in getting success. He was willing to take risks and Virgin
Australia Airlines was started after he had a casual conversation with one of his employees.
Chief Financial Officer of the European carrier wanted to resign so that he could move back
to the home country of Australia and live with his family (Theguardian.com, 2020). It was
around the same time that Brett Godfrey who was a Virgin employee related to Branson
about idea of the low-cost airline in Australia. Branson grasped the idea of the employee and
he was provided with the detailed plan that helped in the creation of Virgin Australia. The
idea put forth by the employees were accepted by Richard Branson that aided in the
sustainability of his business. The idea development process of the entrepreneur is on the
basis of advancements taking place in the modern age that helped him in attaining success.

5ENTREPRENEURSHIP
He believed in the fact that technology should be embraced that can create the way for
innovation in the business.
Competitive Advantage
The competitive advantage has been gained by Virgin Group among the competitors
as it have been instrumental in providing the services to the consumers on the basis of
demands of consumers. The company have sustained the strategy of low cost that have
helped the company in creating difference in the lives of the people. The company adopts
strategy of the corporate parenting that have built the reputation of the business. The new
business where the firm enters acquires brand name along with management style of Virgin
Group that have helped the company in gaining competitive advantage. It have built
extensive network of the relationships which have made the other companies approach them
for the purpose of starting a new business. Virgin Group had been active in building the
travel-related business. Survival based theory of strategic management talks about the fact
that organizations should be able to adapt themselves to the competitive environment that can
aid in the survival of the companies (Rothaermel, 2016, p. 36). It states that the organization
should evolve the strategies on the basis of the environment and current conditions in the
market that can take care of sustainability of company. The Virgin Group launched the new
ventures that helped in leveraging recognition of Virgin brand which enabled the business in
getting competitive advantage.
The company was able to acquire Euro Belgian Airlines for a sum of 38 million
pound that helped in bringing success for his company. Virgin Rail Group was formed in the
year 1997 after the acquisition of two rail lines which was part of privatization of the British
rail. It helped Branson in securing 4 billion pound in relation to private sector financing that
later on aided in the introduction of the high-speed tilting trains (Brenes, Ciravegna and
Woodside, 2017, p. 22). Virgin Group have brought about a difference in the lives of the
people and it have balanced profit with needs of the communities which have provided the
company with competitive advantage. Richard Branson have also laid attention on space-
tourism venture and he have entered into a partnership with that of Scaled Composites which
have aided in the formation of The Spaceship Company. The project was able to take a great
leap forward with the successful launching of Spaceship Two.

6ENTREPRENEURSHIP
Recommendations
Richard Branson can take recourse to suitable strategies that can help him in staying a
relevant business figure in the future. He can devote the attention on Virgin Galactic that can
help him in making the profits. The company can offer suborbital flights for the common
people that can usher in a new era of space travel (Reuters.com, 2020). It can help him in
amassing a huge amount of revenue that can help him in getting a large amount of capital for
bringing about the innovation in the business. It can built the potential spaceports in
collaboration with countries like Italy and UAE that can set the stage of success for his
business. Richard Branson can also develop the hypersonic passenger air travel which can cut
the travel times to a dramatic extent across the world. It can aid in the expansion of his
business which can help in increasing the profit margins of company.
Conclusion
Richard Branson believed in making the investments in the new ventures which can
be helpful in expanding his business. He believed in the business ethos of taking feedback
from his subordinates that enabled him in getting new ideas regarding the business. He
believed in taking the risks that can take his business in the forward direction. Virgin Group
provides the superior services at the low cost which have helped them in creating value
before the consumers. It can be recommended that Richard Branson can develop hypersonic
passenger air travel that can bring down travel times and prove to be convenient for the
travellers.

7ENTREPRENEURSHIP
References
Alvarez, S.A. and Barney, J.B., 2017. Resource‐based theory and the entrepreneurial
firm. Strategic entrepreneurship: Creating a new mindset, pp.87-105.
Baker, T. and Welter, F., 2020. Contextualizing Entrepreneurship Theory. Routledge.
Brenes, E.R., Ciravegna, L. and Woodside, A.G., 2017. Taking the Complexity Turn in
Strategic Management Theory and Research. In The Complexity Turn (pp. 21-66). Springer,
Cham.
Cnbc.com, 2020. Billionaire Richard Branson Reveals Why He's Such A Huge Fan Of
Always Saying 'Yes'. [online] CNBC. Available at:
<https://www.cnbc.com/2017/12/18/billionaire-richard-branson-reveals-why-he-always-says-
yes.html> [Accessed 17 April 2020].
Entrepreneur.com, 2020. Richard Branson: How To Spot An Opportunity. [online]
Entrepreneur. Available at: <https://www.entrepreneur.com/article/286404> [Accessed 17
April 2020].
Kuratko, D.F., 2016. Entrepreneurship: Theory, process, and practice. Cengage Learning.
Parker, S.C., 2018. The economics of entrepreneurship. Cambridge University Press.
Read, S., Sarasvathy, S., Dew, N. and Wiltbank, R., 2016. Effectual entrepreneurship. Taylor
& Francis.
Reuters.com, 2020. In First Public Results, Branson's Virgin Galactic Posts $73 Million
Quarterly Loss. [online] U.S. Available at: <https://www.reuters.com/article/us-virgin-
galactic-results/in-first-public-results-bransons-virgin-galactic-posts-73-million-quarterly-
loss-idUSKBN20J2NP> [Accessed 17 April 2020].
Rothaermel, F.T., 2016. Strategic management: concepts (Vol. 2). McGraw-Hill Education.
Storey, D.J. ed., 2016. Entrepreneurship and New Firm: Theory and Policy. Routledge.
Theguardian.com, 2020. Richard Branson's Virgin Galactic Prepares To Go Public. [online]
the Guardian. Available at: <https://www.theguardian.com/science/2019/jul/09/richard-
branson-virgin-galactic-go-public> [Accessed 17 April 2020].

8ENTREPRENEURSHIP
Theguardian.com, 2020. Richard Branson's Virgin Group Has Made £300M From Rail
Franchises. [online] the Guardian. Available at:
<https://www.theguardian.com/business/2019/apr/11/richard-branson-earned-300m-virgin-
rail-franchises> [Accessed 17 April 2020].