• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

SWOT analysis on the Virgin Group.

Extracts from this document...


VIRGIN GROUP SWOT ANALYSIS ON THE VIRGIN GROUP (Refer to appendix 1) "The SWOT process involves a critical assessment of the company's strengths and weaknesses in relation to the markets, which it seeks to serve, and in comparison with the known strengths and weaknesses of competitors". (Strategic Leadership Making corporate plans work by Adrian Davies 1st edition 1991. Woodhead-Faulkner p17) STRENGTHS > The Virgin group has the advantage that they are experienced in two different kinds of distribution. Firstly in stationary trade and secondly in mail ordering. The group is far less integrated than other big groups. This gives Virgin the advantage of higher flexibility. This effect is even more extreme since Virgin has very small strategic Business Units. > The Virgin Group has a strong brand name incorporated by Richard Branson and is experienced in introducing new products in a competitive marketing environment. The strength of the Virgin brand comes from the relationship that customers have with the idea of Virgin as a maverick, irreverent company built on youthful, entrepreneurial principles. > Virgin have very few operational relationships between it's diverse businesses, but all can benefit from the group's corporate flair at brand marketing and entrepreneurial decision making. Virgin's corporate relationships could be worth more. > Branson's leadership style is a unique combination of energy, originality and shrewdness. While providing leadership to his organisation leaves most of the decision making to his professional managers. He has created an environment, which brings out the best in the organisation's people by motivating them and giving them overall sense of direction. The involvement of his employees is very important to Branson. By making his business appear fun he encourages their ability to be creative "If the staff are happy the business will prosper...You should never really criticise your staff. You should always be praising. If you praise somebody they are going to blossom". (Richard Branson and the Virgin Group) ...read more.


Since its start up as Virgin Records, the Virgin Group has retained its original culture and values. Distinctly entrepreneurial, the organisation has no headquarters yet has presided over and managed a period of massive growth and continued profitability. Although the Virgin group had no corporate structure, Branson, senior executives and his advisers did, in effect, form a team that guided strategy, new business development, and overall financial control. A key aspect of this informal integration and control was the Virgin culture. This was defined almost entirely by Branson's own values and management style. It reflected his eccentricity, sense of fun, disrespect for hierarchy and formal authority, commitment to employees and consumers, and belief of hard work and individual responsibility. The group provided the environment in which talented, ambitious people were motivated to do their best and strive for a higher level of performance. While the working environment was informal, anti-corporate, and defined by the pop culture of it's era, expectations were high. Branson expected a high level of commitment, the acceptance of personal responsibility, and long hours when needed. Although seemingly chaotic, with an absence of formal structure and control systems, the business acumen of the Virgin group should not be underestimated for example British Airways made that error. The Virgin group possessed considerable financial and managerial talent, and what Virgin lacked in formal structure was made up for by a strong culture and close personal ties. The Virgin structure was virtually flat, offering short lines of communication and flexible response capability. Employees were given a great deal of responsibility and freedom in order to stimulate ideas generation, initiative, commitment, and fun. The lack of a corporate headquarters and the small size of most of the Virgin operating companies were intended to foster teamwork and a strong entrepreneurial spirit. Branson's approach to his business relationships was that work should be fun and his employees should gain both pleasure and sense of fulfilment from their role in creating enterprises. ...read more.


It helps with business to business transactions. Pop up Ads and access to technology: Due to the wide spread access to the web at work, school and at home Virgin has taken this as a advantage for their marketing approach for example they have used a pop up ads to advertise their diverse products all around the world when and in what form they want. Customers can use the net to book their holidays on line. ENVIRONMENTAL Recycling: In order to be environmentally friendly Virgin can make recyclable bottles and cans which will help them improve their corporate image and improve further their public relations campaigns. Pollution control: The need to become environmentally friendly and cut all forms of pollution have been driven by consumers and pressure groups for example it will be suitable for Virgin to follow this if they don't it can have damaging affect on sales and if they don't accept this change Virgin run the risk of damaging their image and reputation this could have adverse affect on sales. In the Airline business the noise and pollution levels will be checked by the pressure groups. LEGAL Legislation: In the majority of the countries that Virgin operate in there are laws against price fixing amongst businesses there are also different consumer acts in different countries that Virgin will have to follow. In addition there are different regulating authorities for different rules and regulations and Virgin have to be aware of theses otherwise they run the risk of being force out of the market (country) by the government an hence this will affect their core competence which is their brand in terms of bad a reputation and image, this in the long run effect global sales. CULTURAL WEB FOR VIRGIN GROUP "The cultural web is a representation of the taken for granted assumptions, or paradigm, of an organisation and the physical manifestations of the organisation culture". 8 1 ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our University Degree Marketing section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related University Degree Marketing essays

  1. Marketing Plan for Vitaminwater in Hong Kong

    Therefore, in order to reach as much of the target audience as possible, we suggest to place our advertisements through the use of Escalator Crown Panel and the Digital Panel Network of plasma Televisions installed at the MTR stations that covering major commercial areas as mentioned above.

  2. Chapter Notes on Marketing Management by Philip Kotler 10th Edition

    The 9 cells are divided into 3 zones - 3 cells on top left - strong SBUs in which the company should invest and grow 3 diagonal cells - medium in overall effectiveness 3 cells in bottom left - weak SBUs.

  1. An appropriateness of applying PEST analysis, Porter's Five Forces, and Competitive Analysis on WM ...

    cost / best value The Enlarged Group will provide a strong and competitive alternative to the other national grocery retail chains. The Enlarged Group will enjoy: - a strong national position for the combined store portfolio; - two distinctive formats, combining Morrisons' successful retail franchise with Safeway's smaller store expertise;

  2. Greggs plc intend to expand their operations into international markets in order to satisfy ...

    Shared values - A German manager which believes and respects the Gregg's vision and values will be recruited to ensure that they form the nucleus of operations. 7. Skills - These are derivatives of all the other components. 9.8 Expectations As Greggs establish themselves in the German market place,

  1. A critical analysis of Qantas Airways Limited

    If consumer trends continue to move towards lower airfares, Qantas's long-term strategy is for Jetstar to become their main domestic brand, leaving the international market to Qantas, the prestigious brand of the 'flying kangaroo' (Miraudo 2004). Other key elements involved with achieving Qantas's goal to maintain their position as the

  2. Company analysis - Coca Cola Amatil (CCL).

    Adoption of Technology - Coca Cola's use and development of technology is crucial to the entire firm's operations. The technology employed by the company, not only assists Coca Cola in areas of logistics management, (relationships with its bottling partners, suppliers and distributors), ensuring a smooth flow along the value-chain,

  1. LVMH: Strategic Integration and Expanding Brand Dominance in Asia. We will suggest our recommendations ...

    * Diago: Strong dependency Opportunities Threats > New markets in Asia > Strong unions and government intervention ( strong bargaining power of unions limits LVMH actions) * The Perfumes and Cosmetics Strengths Weaknesses > Marketing and RD: > Cooperation with Fashion House: > An important pool of brands in the

  2. Market Analysis - Cement industry in India

    The funding for the project has not been completed due to lack of environmental clearance. The funding plan has a very small portion of equity. Shree Cements Ltd has informed the National Stock Exchange that it has decided to change its accounting year to April-March and accordingly current accounting year

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work