The Virgin Group is one of the UK's largest private companies. Conceived in 1970 by Sir Richard Branson, the Virgin Group has gone on to grow very successful businesses in sectors ranging from mobile telephony, to transportation, travel, financial services, leisure, music, holidays, publishing and retailing. Virgin has created more than 200 branded companies worldwide, employing approximately 50,000 people, in 29 countries. Revenues around the world in 2006 exceeded £10 billion. A research held by HPI in February – April 2007 has shown that the UK public vote Virgin as their most admired brand. (Virgin Group, 2009)
This report provides an analysis and evaluation of Virgin Group main values, competitive advantages, business environment and strategic development and suggests new strategic and implementation plan for Virgin Media & Telecommunications division.
The report covers five main points. The first and the third parts of the report review Virgin Group mission and vision statements, its main values and core competences and suggest steps to create competitive advantages. It shows that Virgin’s unique culture and corporate structure are the key terms that create its competitive advantages. The second part of the report provides an analysis of the company’s business environment and makes examples of external environment impact on the company’s operations. For analyzing business environment PEST and SWOT strategic models were applied. The forth and the firth parts of the report analyze strategic development of Virgin Group and suggest new strategies and implementation plan for Virgin Media & Telecommunications. To suggest new strategic development for Virgin Media the company’s services portfolio was evaluated applying BCG growth/share matrix.
The report finds that the company’s position in entertainment and telecommunications market except mobile services is rather strong due to correct strategy choosing and implementation. To sustain this position the company should invest in further development of its cable and content services segment and outsource mobile services which are included into package offers.
Question 1: State the mission/vision of Virgin Group and briefly explain Virgin’s ethical, cultural, environmental and social current standpoints.
1.1. Virgin Group Mission Statement
According to Pearce (1982) the mission statement is a broadly defined but enduring statement of purpose that distinguishes the organization from others of its type and identifies the scope of its operations in product or service and market terms. Campbell (1991) states that successful mission statement should contain the following elements linked tightly together: purpose (why the company exists, for the benefit of shareholders, stakeholders and higher ideal), strategy (the competitive position and distinctive competence), values (employees’ personal values and what the company believes in), policies and behavioral standards (the policies and behavioral patterns that underpin the distinctive competence and the value system).
Virgin Group mission statement sounds as:
To be the consumer champion, by delivering brand values, which are: value for money, good quality, brilliant customer service, innovative, competitively challenging and fun. To deliver a quality service by empowering employees and to facilitate and monitor customer feedback for continuous improvement of the customer's experience through innovation. To develop products and services that make the customer’s life easier. (Virgin Group, 2009)
1.2. Virgin Group Vision Statement
A vision statement is a declaration of the desired future state at which a company hopes to arrive, essentially the strategic aim of the company. It is the imaginative picture of the future state of affairs a company wishes to achieve. (12Manage, 2009)
Virgin vision can be described by words of Richard Branson (1998) ‘We are planning a global presence in...