This document provides strategic recommendations for the Virgin group to ensure its growth and international prestige in the future. It discusses the importance of specialization, market study, and coherence of activities to improve the creation of value of its offer. The document also explores the potential of a hybrid generic strategy and the preservation of innovation, humor, and customer orientation as key principles.
Extract
[...] Indeed, the brand is already positioned and Virgin's services are appreciated by its customers, which gives a margin of maneuver that contains little risk for the group. We believe that this strategy could be well received by customers who know the quality of customer service and the constant innovation of the group. Finally, we can imagine a cooperation strategy between the subsidiaries to be eliminated with knowledge transfers, and with the remaining subsidiaries to reduce certain costs. We believe that this strategy of concentrating the group's activities and improving the value of its offer will allow Virgin to ensure its growth in the future, and to continue to be an innovative and customer-oriented leader. [...]
[...] Yet, the group is today faced with a strategic problem as its creator is nearing retirement. Faced with the multiplicity of Virgin brand activities, we can ask ourselves which strategies could be implemented to allow the group to maintain its growth and international prestige. Firstly, it is essential to recall that it is the values of its creator that have allowed the Virgin brand to succeed since its creation. Innovation, humor, and a strong customer orientation are the principles that have made Virgin popular, and we believe they should be preserved in the group's strategic vision. [...]
[...] Secondly, we believe that by focusing on a few key subsidiaries, the group will be able to develop a competitive strategy of sophistication of its offer. We think that the Virgin group can afford to pursue a strategy of sophistication, increasing the value of its offer at a higher price than its competitors. In the past, Virgin has not developed differentiation strategies, preferring to offer a good quality-price ratio and large-scale activities. However, we believe that with a better coherence of its activities, the group could improve the creation of value of its offer by focusing on a specific segment of its customer base. [...]
