Evaluation of the strategies undertaken by Virgin Group during the 1980s and 1990s under the leadership of Richard Branson

Essay by joanabeckUniversity, Bachelor'sC+, April 2005

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1(a). SWOT analysis for the Virgin Group in the late 1990s


Core competences analysis has revealed about the Virgin Groups' strengths (see appendix 1,p.15; core competences analysis). The management of external linkages provided funds to support businesses cash hungry and the management of internal linkages critically underpin the organisation's competitive advantage. ( see appendix 1,p.15; managing linkages). The strategy applied by Virgin prevented the company from loosing businesses.

Some activities have been retained and developed even if there were not currently profitable, but they were associated with necessary skills and capabilities which match the firm's vision and goals ( see the appendix1; the aim of Virgin Communications).

The sales of Virgin Music business for which Virgin was best associated with in order to support the airline business seemed to be a very brave move. However, it turned out to be worthy as Virgin Atlantic is the core business within the group and is a major force in the international airline business.

The company's strength is also sustained in intangible asset associated with Branson's management style and self - publishing. Unrelated diversification achieved by the company with help of alliances and joint ventures with other companies helped to exploit Virgin's brand.

It is worthy to emphasise, Branson's belief in the organic growth rather than acquisitions. This approach can be perceived as the company's strength. Using this form of diversification, Virgin moved into computer software, film distribution and radio broadcast. Virgin's organic growth has been possible due to the development of held skills, knowledge and assets that sustain the most valuable core compentences of Virgin ( see appendix 1,p.15).

Ability of Virgin to raise money through externally funded growth such as equity investments is another company's strength. Shared ownership provided both a financial...