Virgin Group Business Model

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Virgin group is a private company, it was founded in 1970 as mail order record business and then evolves in music publishing and retailing. The company is owned by Branson in 1986 the company was putted on the stock exchange with 250 million as turnover. Branson was tired of public obligation and from the rules governing public limited companies and from making reports to shareholder since it is expensive and time consuming and this make the share price to fall. All these results lead Branson to take the business back into private ownership and the shares return into the original offer price, that make the company value 240 million. And these make the company to grow fast more profitable. Virgin group profile was virgin Atlantic, which developed to become a main force in international airline business, virgin group includes over 200 business from financial serves , railway, mega stores, soft drink cosmetic and condoms. Innovation is the creation of new idea to the products, processes and any other activities in a firm that gives more value and this value give the firm better reputation and value which lead it to be more competitive and gain higher profits, and also benefits the consumer. Product innovation is the idea of producing new product, or vital qualitative change in a exciting…show more content…
Peter Drucker talk about the importance of innovation and entrepreneurship and wrote about it in the mid 1980s and due to that the USA increase the employment power and hire more than 10 million more people, since the economy development and growth is based in entrepreneurially motivation and innovative business culture, so virgin group depend in that term, in incorporating innovative idea in business and the need of their employees to learn about the disciplines of innovation and entrepreneurship. And due to that peter drucker became the teacher of Branson the leadership of the first innovation of virgin
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