The Virgin Group

surface-to-air missile Yates-Smith Student ID 000292201 CASE STUDY 6 THE perfect(a) GROUP 1. The incorporated rationale of the staring(a) company is to re-ignite static industries, with fresh ideas and developments, thus offering the consumer differentiation. variegation is an passing important attribute of virginals rationale. Their SBUs break Virgins scope and therefore its real commercialises and products. Virgin uses the ideology of the corporate parent to conduct structure and guidance to its various business units, which in turn adds value due to the effective, disciplined cuddle that the rationale provides. . There are plastered strategical relationships between businesses at heart the Virgin portfolio, these lie in economies of scope. This term refers to the notion that the Virgin groups project synergy amongst its SBUs, therefore utilizing free standing perceptible and intangible resources in order to fully grip and fulfill a particular new purlieu or groce ry. This adds value to a new market whilst ensuring resources are not wasted.An example within Virgin would be their research 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 ambitiousness and ideology which is ascertained via the strength of the Virgin brand. virtuoso aspect of Virgins Corporate parenting is the ideology of envisioning. Virgin provides strategic intent by laying certain ideologies for its SBUs to follow. This provides discipline and strong methodologies for the units to adhere too. other element of value adding via Virgins parenthood can be explained using the BCG matrix. The Virgin groups portfolio shows racy market share and strong egression within their markets. These positive denotations enable management to visualize the dominance of concurrent markets and ensure growth is fully realized. 4. The superior threat that the Virgin brand may sound associate d 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 immersion of their diversification and therefore ensuring consumers are not undermined and verity is retained. Another issue is that of waning portfolio and growth which is hypersensitive 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 to lavishness resources and market share. 1