As a business strategy overall Virgin Group has shown that it will be

As a business strategy overall virgin group has shown

This preview shows page 5 - 7 out of 9 pages.

offerings which subsequently gains attention from current and new consumers. As a business strategy overall, Virgin Group has shown that it will be successful through its continued ventures as it seeks a global presence with long-term growth and not compromising the vision it was founded upon. Business Models and Virgin Group Business Models A business model is at its core the manner in which an organization uses varying methods and projected short and long term plans to achieve growth and obtain revenue. While earning revenue is key for a business’ success, not all business’ operate under the same model, but rather will operate under any one of the varying business models that are available and that best aligns with their mission, vision and goals. Examples of business models are indicative of the following four basic models (Job, A., 2018) – Manufacturer: utilizes raw materials and produces product(s) for sale; such as an automobile company who uses raw material to create vehicles on an assembly line; Distributor: is the facilitator of producing goods and services from another source, similar to a musical artist being under contract with a recording label to produce their artistic flair; Retailer: is an organization that purchases product(s) from a distributor and subsequently sells said product to public consumers; lastly, Franchise: is the manner in which business is expanded via the distribution of goods and services through a licensing relationship with another organization, an example of this is Subway and Pizza Hut restaurants that operate under the regulations of the
Image of page 5
BUSINESS STRATEGY 6 main corporate, but are operated locally by the individual(s) who own the franchise location. Business Model within Virgin Group With a business that has expanding over the years, and with a foot hold in a multitude of areas such as entertainment, health & wellness, technology, travel and more, it is no wonder that it is slightly difficult to identify just one business model of Virgin Group. In as such, dependent upon the nature of the work and area of business, Virgin Group is majorly a procurer of goods and services, which then sells said product to consumers and therefore follows the distributor business model. Virgin Group has shown collaborative efforts in its expansion as it partners with various organizations through private equity, strategic planning and growth of venture capital which has successively allowed the organization to become a top-notch global brand (Virgin, 2018). In a continuation of Branson’s goal of operating a business in the best manner all while treating consumers with respect and providing high quality products at a good value, the Virgin Group contributes to consumers lives by the application of products to suit varying aspects of a customer’s daily life such as mobile service, travel, and entertainment. Two factors are evident in the success of Virgin Group and Branson’s ideology – the recognition of the Virgin brand, as well as, Branson’s own persona within the competitive market of one that is self-made and determined to continue attempting success (Finkle, T.A., 2011).
Image of page 6
Image of page 7

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture