The Virgin Group in 2015 Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

The Virgin Group in 2015 Case Solution

Political:

Virgin always follows the rules and regulations of the government. Virgin pays its taxes on time and along with that Bronson focus to make rules in the company to align the rules of government with the company. As mentioned in the case virgin had a very good and strong image in the market which helped Bronson to keep good relation with the county as well. The only thing which was a problem for virgin was the financial reports because it was not well managed.

Economic:

The major benefit for virgin was its diversification because due to its diversification in the industry, in this case, virgin always needsfewer investments to earn more profits. Country recession or boom have an impact on the virgin company because it affects its business strategies. Each adverse effect in the local market affects the company's profits as well.

Social factors:

The main vision behind the virgin companies was to give quality services to the customers and the company takes this as its social responsibility to meet customer needs. The company also focused on environmental issues and come up with environmentally friendly products.

Technological factors:

Technologically virgin was always updated and following the trends in the industry. Virgin always strives to update the technology to serve its customers like virgin rail re-engineered its technology to make it improve its timings. Virgin group of companies always tried to integrate internet services in the products and services to make it more viable. The company always changed its rules to make it easier for the customers.

Conclusively, to this extent, we can say that the virgin group of companies was a good fit for the external environment because from its first company Branson was moving strategically because the only powerful resource Branson had was his experience and openness to change. He always tracks the changes in the market and knew how to explore the opportunity and how to convert strengths into profits. He not only followed a diversified business model but also diversified its product and service ranges which enabled him to move in the direction of the external environment. Branson entered the market and tried to earn a good reputation and word of mouth to cash it in the future. No doubt this helped him in many cases when it comes to face the external environment of the organization.As mentioned in the case of a virgin is an incubation where the small businesses started to grow and flourish. Branson shared his experience to make team continue the business patterns. External factors like political or economic do affect the virgin companies. Few companies during the boom period became more successful and few companies during the recession period became went into losses and Branson wisely identified those things and shutdown those businesses or sell them out. It was his best quality. So we can say that the virgin group of companies was a good fit with the external environment.

3. How would you summarize Virgin's business model?

Virgin companies were following a diversified business model because in few companies were product-oriented few were service-oriented few were earning through investments. To separately explaining it in the following:

Licensing company Model:

In this model,a virgin was earning through royalties and licensing the Virgin brand. The company was making profits and creating competitive value in the market. No doubt during 2013 company earned royalties of $52 million. The Only problem which this model faced was that virgin was associated with the name of Branson which was very difficult to part both things.

Capital business Model:

Virgin Company initially was focused on the development of new company or product. Another way to earn was to manage the business of others. Branson was managing the ideas of others as well he was working as the manager to convert the idea into a successful business.In this model, company launch a new product and proceed towards the company development. In this model,Branson was focused to hunt opportunities within the country and replicate ideas.

Diversified business model:

Virgin was following the diversification in his business which was somehow the reason behind the success of the business in the industry. Branson always looks for a suitable opportunity to invest in or to offer a new product or service in the market. Virgin company's customers vary in nature because of its diversified business model. Branson was the one who welcomed every business idea and worked as a manager to support that idea...........................

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The Virgin Group in 2015 Harvard Case Solution & Analysis