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Virgin was found by Richard Branson and found in 1970, they have grown to become the largest private companies in the UK, 200 branded companies worldwide. Virgin has started with the entertainment industry then using the unrelated diversification strategy, enter into the travel/holiday industry and further into banking industry. According to the principle of Branson, He believes in the value of careful brand enhancement and the benefits of transferring this brand image across a diverse portfolio. (p260Therefore, we believe that Virgin Group should move further into the banking industry. This is because the success it gains in its previous experience in the strategy they selected has provided them with a sustainable competitive advantage to enter into a new industry. We will first analyse the diversification strategy of Virgin Group. In value creation, we will show Virgin has applied value-adding activities by Coaching and facilitating, and Providing central services and resources. Virgin uses the parental developer in parenting. Even though Virgin has a lot of revenue, some Virgin’s companies are not successful and not meet the standard Virgin would like to see. This come from Virgin made up of a lot of individuals companies and there are no consolidated accounts this will be analyzed by the Parenting matrix to determine financial investment and divestment.

Diversification

The virgin group comprises an assorted mix of business, which currently has more than 200 branded companies worldwide. All of the company businesses are in different fields, mainly the Media Company and passenger Service Company such as the Virgin Trains and Virgin airlines. As of these companies are under The Virgin Group, they would probably have some strategic relationships between them.

On the whole, Virgin group applies the conglomerate (or unrelated) diversification which takes Virgin Group move beyond its existing markets and its existing products when there are...