« Cas Virgin »
Corporate rationale of Virgin as a group of companies
Establish the brand as a global name • With the aim of shaking up « institutionalised » markets • Be seen as a familyrather than a hierarchical company The company goes into industries they know nothing about and “immerse themselves”. • In cases of joints venture Provide the brand and partners the capitals• Threat of negative perception of the brand as a whole if a customer unsatisfied with a product Brand research indicates that people who had a bad experience with a particular Virgin company will bewilling to use other Virgin products or services
Presence of a dominant logic in the strategies of Virgin businesses?
of no unity concerning different companies part of thegroup • Virgin= 63 business for instance:
• But the unity around the brand is seen by customers as : « fun » « innovative » « daring » and « successful » The ultimate goal of Virgin is thus to:• « establish the brand as a major global name » Moreover Virgin is seeking of opportunities in « institutionalised markets »
is therole of Richard Branson in the Virgin Group strategy
The image of Virgin Branson conveys a good image of Virgin thanks to his personality .That is what, Virgin looks like a fun , innovative ,daring and successful company . He manages to enhance the brand image of the company by joining his personal values in the business strategy (efforts to become more and more « green ») Theconsequences in the business strategy • Virgin is not afraid to jump on opportunities which are global in scope • It has an expectation of reasonable return on investment • There is an strategy of expansion• The importance of the unit in the company's behavior • better relations with its competitors (ex : partnership with the cable company NTL) To conclude Branson has a significant role to...
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