Strategic Analysis of the Virgin Group: Internal and External Factors

This report provides a strategic analysis of the Virgin Group, founded by Richard Branson. It begins with an overview of the company, its diverse business lines, global presence, and core sectors. The analysis then delves into the internal and external factors impacting the Virgin Group, including its values, rare capabilities, and the challenges posed by globalization, deregulation, and digitalization. Furthermore, the report examines the company's strategic rationale, focusing on its consumer-centric approach and competitive advantages. The report also assesses Richard Branson's strategic approach, emphasizing the recruitment of innovative individuals, financial organization, and performance. Overall, the report offers insights into the Virgin Group's business model, strategic decisions, and its ability to gain a competitive edge in the market.

Overview of the Virgin GroupOverview of the Virgin Group
 Founder: Mr Richard Branson
 Its first company started in Year 1971
 Consist of over 60 business lines
 Serving more than 53 million customers worldwide.
 Creation of more than 300 branded companies worldwide
 Employing around 69,000 people in 35 countries
 Global revenues exceeded £16.6 billion (and growing)

Its five core sectors:Its five core sectors:
Travel & Leisure Telecoms & Media
Financial ServicesMusic & Entertainment
Health & Wellness.

Portfolio of Virgin GroupPortfolio of Virgin Group

The Top 12 Virgin CompaniesThe Top 12 Virgin Companies

Management OrganisationManagement Organisation
Culture of the Virgin GroupCulture of the Virgin Group
 A flat hierarchical structure; Eliminate management hierarchy
 Decentralization of power; employees have the power to make decisions
independently
 An informal environment promoting better relations among the employer
and the employees, with strong belief system and values
 The Culture of Richard Branson himself.

Behaviours of the Virgin GroupBehaviours of the Virgin Group
Key Description
Supportive Togetherness of people and the readiness to help each other
Respectful Honest, responsible and trustworthy team
Proud Work productively and take pride in the work being done, along
with having fun
Adventurous Curiosity to explore new ideas, find innovative solutions and not
afraid to learn
Passionate Flexible, energetic and strive to exceed expectations.
Creative Deriving smart ways to make positive changes that challenge
the status quo

Question 1: Internal and external factors that
has affected the Virgin Group
 Value- Virgin Group is engaged in providing the loyalty and royalty to their consumers. They
create most innovative and creative products so that the customers are been attracted. The
Structure of the company in layers that neutralize threats and generate money through interest.
The Greenfield Investments has make virgin capable of managing new opportunities leading to
competitive advantage.
 Rare- The Virgin Group has the rare ability to share the interest of their value to the
stakeholders. Also they are engaged in providing the unique consumer service, so that the
consumers be loyal to their brands. They are also engaged in providing the quality service to
their customers.

CONTINUE…
Imitability- Virgin Group culture has been linked with the
core competence. The company with its unique products is also
gaining competitive advantage. Also the company also made
their planning’s in which they are always ready for the
obstacles and challenges.
Non Substitutability- Virgin Group has the most advantage
that their brand has no substitute and consumers are loyal
towards them.

Other external factors affecting
Virgin Group
Globalization- As all the companies are extending globally, Virgin
Group also have the threat because of it. The company can face
high amount of competition as many new firms can enter the
market. The threat to the firm is high in this.
De-regulation- The threat is high as many laws and regulations are
been made in the region that promote free regulation. This can
affect the profitability aspects of the Virgin Group.
Digitalization- Virgin Group also have to made use of advancing
technology, so that they can gain competitive advantage because of
it.

Question 2: The usage of consistent strategy in
the major investments and the approach used
Critical assessment of Richard Branson strategy
Richard Branson in his company Virgin Group has recruited or hired innovative and
creative people who are most talented in their filed.
This strategy has assisted the company in gaining competitive advantage. The
company has empowered, recruit and train the workers to perform better.

Financial organization and
performance
The business carried out by the Virgin Group is ring
faced.
Firm has also sacrificed the short profit for the long
term growth. Most of the firms that are linked with
Virgin Group are not traded publicly, thus they are
financed by internal equity.