They do not copy other company’s business strategy but rather they have their own different and unique strategy to follow. The Virgin Group’s corporate strategy can be characterized as “Making differences and creating uniqueness” in the customer service department from around the world. Virgin Group focuses on creating fun, providing value to the customer’s money and quality to the products. An example of Virgin Group’s competitive advantage is the Virgin Atlantic Airlines. The Virgin Atlantic provides long distant flights.
Hence they have been given enough involvement and authority in decision making. Since Virgin Australia comprise of many different departments, it is also necessary to have organizational bureaucracy in it. But, since Sir Richard Branson has always ensured minimum bureaucracy as much possible since the beginning of the business. So, Virgin group and so thus Virgin Australia has a formal structure but only limited to the top levels of the company and changes to informal as climbing down the
The structure is loose and people-oriented. The employees of the company hold a stake in the success of the business, with the requirement that the company be self-sufficient. While the company carries the Virgin identity, the employee is responsible for the success of the business entity they are employed by. The Virgin Group follows a very complex mixed structure of franchising and keiretsu. A keiretsu is a group of organizations, each of which owns shares in the other organizations in the group, and all of which work together to further the group’s interests.
• Goals, strategies and actions – The business level strategy that Virgin mostly use is the differentiation strategy to try and better develop its brand image and also to capture profit maximization. However, Virgin decentralised its decisions which encourages manager’s environment in which they take personal interest with the outcome of the company as well as the accountability of decisions made. Performance measurement, monitoring and review – Virgin Atlantic uses performance key indicators that highlights on how well the company is doing. However, the latest revenue for the year 2016 it was approximately £92million as it relates to operating profits of £23 million as well as 0.5% increase from previous year (Annual report 2016). Virgin
• Expansion of virgin Group: With the company expanding rapidly and in different areas and sectors, for example: radio, airlines, travel, films, internet, etc., the company loses a lot of its capital assets on investing in these new properties and land. They should rather use this capital asset and invest in their current virgin mobile company and provide them the best operating assets that would be beneficial to them in the long
Virgin Group began its business with a magazine which was named the Student. The next venture was a mail order record company named. Therefore it can be sales that Virgin Company entered the market with a magazine business which was its market penetration strategy and then went on to the next stage which is product development through Virgin Records. With the establishment of its record label the company entered in to new markets. Hence the market development stage was also achieved by the Virgin Group fairly quickly.
The managers have managed the employees to work towards the mission of the company, which is ‘where people love to work’. The employees enjoy going to work The managers in Virgin Atlantic has performed the four management functions well to manage its employees in order to develop the company into a successful brand in the airline
The low average fleet age helps the company to reduce maintenance cost of the aircrafts. Financial performance of the company was not so encouraging in 2011 because of rising fuel price, high value of Australian dollar and environmental disaster. Nevertheless, the company has been successful over the past few years and future stance is favorable. Some of the key success factors of Virgin Australia are heap flights to major destinations, best quality, innovativeness, good flying records, strong brand image etc. However, the company has been unsuccessful to draw attention of the corporate customers
If it is not of his innovate ideas of expanding his company in the air field, the Virgin Atlantic Airways would not have been operated . Being an open-minded person who applies innovation on himself and tries to influence his employees to be creative, the leadership style of Branson has utilized his workers' talent and contribute good will to the organization (Messina, 2006). Branson gives them freedom to be creative and workers attain outstanding results in return. The following example is consistent with the thoughts of Messina. Simon Draper is Branson's South African cousin, and more than that, he is a famous representative of the Virgin record.
Fortunately, this company can rectify the problems that their competitions have encountered and identify how to pacify their shortcomings prior to launch within the United States. Therefore, Virgin Mobile needs to identify their internal strengths and weaknesses as well as their external opportunities and threats through a SWOT analysis. • Strengths: Their established mobile phone platform in other countries offers an insight on what to avoid and pursue in certain target markets. In addition, their mobile virtual network operator (MVNO) directly attributes to their ability to cut total costs of their offer wings. The abundance of pricing options is also a strength in a sense that it offers different avenues the company can embark upon.