The business assignment help article highlighted the diversification strategy of the Virgin Group back in 1984. Virgin Group’s founder, Richard Branson is one of the most successful businessmen in the world. Back in 1984, the Virgin group established the Virgin Atlantic Airline business. At that time, the most successful business of Virgin was the music venture. Virgin Records was very prevalent at that time, and there was a huge demand for Virgin music products. Branson also made the plan to launch Virgin Atlantic during the same year. Virgin’s directors got perplexed as that why Branson is interested in an Airline business at a time when his music business had touched the skies of success.
Branson chartered a plane when he found his flight canceled to the Virgin Islands. He sold the tickets of that plane to the passengers who had also faced delays in their plans due to the canceled flight. Branson sold them each seat in the chartered plane for $29 each. The plan of Branson was creative, and he attracts he was determined to launch his Airline. The brands established by Branson are the depiction of his creative ideas and business insight. He was passionate about his businesses. Branson proved to be a successful entrepreneur at a time when people did not even know about the business demands. The author and strategic advisor of Virgin Atlantic, James Clear also endorsed the ideas of Branson.
He explained that the time was right to create diversification in the products and services of Virgin. The panel session with Branson also impressed Clear. Clear got an idea that Branson is a risk-taker and he knew how to manage the portfolio of its businesses. The attitude of Branson towards the diversification strategy motivated Clear. In fact, the diversification strategy is adopted by major brands in the world such as the Easy Group, Google, and Amazon. The Easy Group had the primary business of Airlines. However, the company also owned several hotels and gyms in London too. Amazon has proved a threat to Apple and Google. The Amazon devices are in competition with the products of apple.
Google has also diversified its products to give tough competition to Apple and Amazon. The approach of diversification is strategized by the companies, keeping in view the analysis of the market. The contemporary business world is competitive, and the diversification strategy needs to be developed with the help of available resources. The diversification approach is dependent on several factors. Therefore, no one can say that the diversification approach is always a success for the business. There are several examples of brands that failed to diversify their products, and even their core businesses are also disturbed due to the diversification approach. For instance, Snapchat recently changed its online payment method to Snapcash. However, the strategy was marred by failure and also threatened the business of Snapchat (Enterprise, 2018).
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Enterprise, I. (2018, 03 30). Richard Branson: The King Of Strategic Diversification. Retrieved from Innovation Enterprise: https://channels.theinnovationenterprise.com/articles/richard-branson-the-king-of-strategic-diversification
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