Business Case Analysis for Virgin Group Essay Example | Topics and Well Written Essays - 2500 words

Business Case Analysis for Virgin Group - Essay Example The history and milestones of Virgin Group (Virgin) is a portrait of how companies make strategic decisions in response to change. In a lot of situation, we can see the company's management altering the course of the business operations. However, it is notable that all the changes in Virgin is in direct response to new opportunities and threats. This report will look at the major strategic changes at Virgin Group as well as their respective motives and impact. The first section will give a brief description of Virgin. In order to fully evaluate the scenarios where strategic changes are made, this paper will draw insights from the different theories and principles in strategic management. The use to these tools and techniques is expected to give an accurate account of how the company comes up with its various decisions. The paper will conclude with its findings. The origins of Virgin Group can be directly traced to the Richard Branson's foremost business endeavor in 1968, the Student Magazine. In its pursuit of saving the magazine from financial crisis, Branson ventured into selling music records which were then significantly overpriced. From this humble beginning, the company has risen to integrate 24 businesses (as of 2000) where the major lines are Virgin Travel, Virgin Atlanta, Virgin Entertainment, Virgin Holidays, Virgin Retail, Virgin Express Holdings, Virgin Direct, Virgin Direct Personal Finance, Virgin Rail, V2 Music, and Virgin Net. How the company which started as a mail order operation venture into these diverse business operations is a direct result of the strategic changes that Virgin has decided to embark in. The firm had really explored uncharted waters as it recognizes various business opportunities in other markets. The first decision which signaled the company's willingness to go into other business lines was its move to establish Virgin Retail from its mail order operation. 3.0 From Mail to Retail In 1971, the company was pressured to seek a new way of distributing its products. This dilemma was triggered by the national postal strike which plagued the whole nation. It can be seen that this event significantly threatened the firm into bankruptcy. Recognizing that Virgin needs a distribution system apart from mail ordering, Branson opted to establish a physical distribution system. Virgin rented space where clients can visit and buy records. In this decision, the company exposed itself into new challenges. It should be noted that in terms of marketing, mail order operation only requires tailoring significant strategies for the three Ps-product, promotion, and price. The creation of distribution outlet necessitates a strategic decision on the other P which is place. Basic marketing tells us that in order to efficiently market a product, companies should strike a balance among the different factors in the marketing mix. Thus, the place where Virgin's customers pick up their favorite records should compliment the products sold, the promotion launched, and the price charged for the products. The case stated how Virgin designed the distribution outlet in order for it to be appealing to its target market: "True to the