Competitive Advantage Case Study

Virgin in 2006: Managing Brand Extensions

OR

Abstract:
The case covers Virgin’s brand extension strategies across the globe. In 2004, the $8.1 billion Virgin Group is a diversified group of over 200 privately held companies. It has been involved in more brand extensions than any other major brand in the past 20 years. Founder promoter Richard Branson has extended the Virgin brand to diverse and distinct businesses such as airline, cola, mobile phone, retail chain, financial services, cars, and trains, amongst others. According to analysts, the resulting portfolio of different corporate entities breaks every established strategic guideline for brand extension. The case enables students to discuss the brand extension strategies adopted by Virgin and the role played by Branson, evaluate Virgin’s business model with reference to core brand values, management practices, factors contributing to its failures or success and the financial ramification of its strategy; and discuss the future prospects of Virgin’s brand extension, its new foray’s and the future role of its promoter.

Pedagogical Objectives:

• Understand the dynamics of the Virgin Group
• Discuss the brand extension strategies adopted by Virgin and the role played by Richard Branson, its promoter
• Evaluate Virgin’s business model with reference to core brand values, management practices, factors contributing to its failures or success and the financial ramification of its strategy
• Discuss the future prospects of Virgin’s brand extension, its new foray’s and the future role of its promoter –Branson.

Keywords : Virgin Atlantic; Virgin retail; Virgin Rail; Virgin Direct; Virgin Lightships; Stagecoach Group; T-Mobile network; Core Competency & Competitive Advantage Case Study; Virgin Mobile; NTL-Telewest; Virgin Cola