Richard Branson and the Virgin Group of Companies in 2004
Table of Content:
Introduction 3
Business Structure 4
Organizational Structure 4
Financial Structure 6
Acquisition of new Business 7
Business Model Analysis 8
Business Philosophy 8
Basic Strategic Positioning 9
Sample Industry and Company Analysis 11
Virgin Entertainment Group 11
Virgin Airlines 12
Conclusion 14
Introduction
The underlying case study paper depicts the development, nature and profitability of different business units of the Virgin Group of Companies up to the year of 2004. The companies comprised, strongly differ in size, character and industry, all operating under the umbrella of a single brand „Virgin“ founded, owned and represented by the British Richard Branson.
The brand „Virgin“ has been introduced in the early 1970s when Richard Branson, a young and dynamic entrepreneur, founded a mail order records business named “Virgin Records“. Requiring almost no working capital or up-front investment, this was the ideal business to follow Branson’s start-up magazine „Student“ which had already been very successful, gaining great public interest and appealing to values of a youthful target group. The strong entrepreneurial spirit and Branson’s urge to create something new soon made him expand his business successfully to record publishing.
The next business to follow was in the transportation service industry. „Virgin Atlantic Airways“, a cut-price transatlantic airline, was founded in 1984. Of course, entering a new industry made Branson face completely new business challenges of high capital requirement, a high degree of legal regulatory etc.
Fierce competition in the field of aviation during the mid 1980s forced Branson to take his business public in order to raise the capital required. However, feeling his company to be undervalued by the stock markets he grabbed the chance of the 1987 stock market crash to buy those external shares back.
The late 1980s brought further aggressive expansion into
Introduction 3
Business Structure 4
Organizational Structure 4
Financial Structure 6
Acquisition of new Business 7
Business Model Analysis 8
Business Philosophy 8
Basic Strategic Positioning 9
Sample Industry and Company Analysis 11
Virgin Entertainment Group 11
Virgin Airlines 12
Conclusion 14
Introduction
The underlying case study paper depicts the development, nature and profitability of different business units of the Virgin Group of Companies up to the year of 2004. The companies comprised, strongly differ in size, character and industry, all operating under the umbrella of a single brand „Virgin“ founded, owned and represented by the British Richard Branson.
The brand „Virgin“ has been introduced in the early 1970s when Richard Branson, a young and dynamic entrepreneur, founded a mail order records business named “Virgin Records“. Requiring almost no working capital or up-front investment, this was the ideal business to follow Branson’s start-up magazine „Student“ which had already been very successful, gaining great public interest and appealing to values of a youthful target group. The strong entrepreneurial spirit and Branson’s urge to create something new soon made him expand his business successfully to record publishing.
The next business to follow was in the transportation service industry. „Virgin Atlantic Airways“, a cut-price transatlantic airline, was founded in 1984. Of course, entering a new industry made Branson face completely new business challenges of high capital requirement, a high degree of legal regulatory etc.
Fierce competition in the field of aviation during the mid 1980s forced Branson to take his business public in order to raise the capital required. However, feeling his company to be undervalued by the stock markets he grabbed the chance of the 1987 stock market crash to buy those external shares back.
The late 1980s brought further aggressive expansion into