a. What made Virgin’s strategy successful and how does it compare with that of S
ID: 447789 • Letter: A
Question
a. What made Virgin’s strategy successful and how does it compare with that of Sony and Matsushita?
The move by the Virgin Group into the field of airline operation, financial services and railways from music, video and record distribution was, and remains, successful; but to do if required extensive research, projections, expertise acquisition and market understanding on the part of what was hitherto essentially a chain of shops. The group perceived that it had certain assets of which it could take advantage as it moved into other areas a large customer base, strong UK image, reputation for quality and public confidence.Explanation / Answer
Well, I think the core area that actually made Virgin a success was that of its previously build brand image from it's basic business functioning. This made Virgin a class a part from those who were already operating in the market before Virgin came in.
Virgin already had a huge customer following that made it easier for the very company to make a mark in other ventures too. With the following of all the principles mentioned here, the company made a huge impact on mostly every industry it entered.
Virgin made huge investments in many industries like airlines, cosmetics, telecommunications and railways to name a few. But, it got the most in the airlines as well as telecommunications business. Both these really made virgin a class apart from its close competitors. Virgin made big profits from these two specified business ventures which made the difference.
When compared to sony and matsushita panasonic, Virgin exceled due to it's very approach and the vision of undertaking the business. Both the other two brands remained into their comfort zone, that is stayed in the manufacturing of electronic goods and related. But, on the other hand Virgin did what made it different from the rest of it's competitors.
Virgin diversified it's business from simply being a record seller to running trains, flying airplanes and becoming a major telecom giant. Virgin did it all, and with some hitches, it came out as a winner that too in a much bigger way.
The key was diversification, for the company of Virgin.
Regards.
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