The Virgin Group

Sam Yates-Smith Student ID 000292201 cause STUDY 6 THE VIRGIN GROUP 1. The corporate rationale of the pure conclave is to re-ignite static industries, with fresh ideas and developments, thus offering the consumer differentiation. Diversification is an super important attribute of double-dyed(a)s rationale. Their SBUs improve virginals range and therefore its existing markets and products. Virgin uses the ideology of the corporate parent to supplement structure and guidance to its various business units, which in turn adds hold dear due to the effective, disciplined approach that the rationale provides. . There are received strategic relationships between businesses at heart the Virgin portfolio, these lie in economies of stove. This term refers to the notion that the Virgin groups have synergy amongst its SBUs, therefore utilizing salvage standing tangible and intangible resources in order to fully clutch and fulfill a particular new environment or market. This adds pla ce to a new market whilst ensuring resources are not wasted.An example within Virgin would be their re depend into the global oil market and the search for greener fuels for its airlines. 3. Virgin as a corporate parent adds value to its group via the collective ambition and ideology which is ascertained via the strength of the Virgin brand. cardinal aspect of Virgins Corporate parenting is the ideology of envisioning. Virgin provides strategic end by laying certain ideologies for its SBUs to follow. This provides discipline and weapons-grade methodologies for the units to pose too.Another element of value adding via Virgins parenthood can be explained use the BCG matrix. The Virgin groups portfolio shows high market share and strong growth within their markets. These positive denotations enable management to visualize the potency of concurrent markets and ensure growth is fully realized. 4. The greatest threat that the Virgin brand may become associated with failure (Johnson et al, 2009). This signifies one of the issues facing the Virgin group.The larger the Virgin portfolio gets, the more issues they will face regarding the density of their diversification and therefore ensuring consumers are not undermined and loyalty is retained. Another issue is that of wane portfolio and growth which is susceptible to slowing down. Recognition of Stars (BCG) turning into Dogs is extremely important to ensure the correct visualization is atoned for and that growth is relative to the portfolios strength as a whole and not allowed to become complacent, leading(a) to surplus resources and market share. 1