Virgin, history and analysis. Five forces analysis, SWOT and PEST

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Virgin’s Entry Into The New Millennium

Part One Strategy Analysis

1. History review


Virgin went through the development stage of its founding, with its operations in music producing, issuing and the related fields. During this period, virgin had shown its insight in market opportunities, established its brand, style and market position by a series of unconventional operation acts.

In 1984, Virgin Atlantic was founded. This seemingly risky strategic decision was made after Branson realized the possible threats and positioned better and fresher service VA could provide. Behind this lies Virgin’s business idea of “never let the facts get in the way of a good idea” and providing value-for –money service.


In this period Virgin went through the process of float and management buyout. Meanwhile, it went through entertainment, airway, retailing business through a series of reconstructing such as selling, founding joint venture and launching, among with entertainment and retailing all entered international market successfully. Its airline won good reputation and greeted new developing opportunities in 1991.

Virgin showed its ability to expand as a conglomerate and reconstruct its resource.

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In 1992 the sale of Virgin music was a milestone event in Virgin’s history. It transformed Virgin’s financial situation, provided support for the development of Virgin Atlantic, kept and upgrade V’s brand image.

After that, V came into the period of rapid diversification expansion ___ VA opened up new routes, its retail business was developed overseas, it began to operate in finance in 1995, V Rail was founded, V-Net was formed to enter internet market in 1996, V Express which was renamed from Euro Belgium Airlines floated in 1997 and started flights from Stansted to continental Europe in 1998. ...

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