Business Strategy Analysis Virgin Group

Yingzi Dong Xiange Liu
Huan Wang

Introduction Virgin is the managing company for the branded private investment group, which had interests ranging from transportation, financial services, health and leisure, and media and telecom to space travel. Virgin’s founder Richard Branson,started the Virgin group in the 1970s, with Branson and Murphy had decided in 2005 that Virgin would focus on two additional pillars of growth: health& wellness, and financial service.In the past, Virgin had generally financed its expansion by selling equity in its operating companies,then, Murphy contemplated the group’s strategy for the next decade.

Business Strategy

Virgin Group’s corporate strategy is change due to the whole financial situation. At the beginning, Virgin Group is a branded private investment group and seeking an internal rate of return of 30% or more on investments per year. And the initial strategy includes,

1) The founder of Virgin Richard Branson is enthusiastic about his career. The ideas for new investments can came from various people, such as Richard and his meeting friends, entrepreneurs or colleagues. Also, once Richard got a new idea, he is very opportunistic and will spend one day to convoke his team and investment advisory board to strive for the new opportunities.
2) The Virgin Group enters many new business in partnership with other entrepreneurs or companies to share the capital costs and the risks but also to acquire industry expertise have majority stakes in new