logo image

The Virgin Company Essay

The Virgin Company as a parent company does add to the businesses under its umbrella any advantages that accrue to the brand as a whole. The diverse aspect of the Virgin Group allows for more consumer and investor confidence, as the Group does not depend on just one area or industry for its profitability and economic health. In fact, investors are especially aware of the benefits of such a diverse portfolio.

Each company shares in those benefits in more than one way. First of all, from each of these many and various companies that form a part of the group, the capital to be gained is more readily available to any one of the Virgin companies (than to an unaffiliated company) in case financial problems should arise in the future. The Virgin companies that are similar in nature also benefit from economies of scale.

When resources such as raw materials are being sought, purchasing can be done in large quantities that allow each company to increase revenue by reducing marginal cost. Further benefits that accrue to Virgin companies from being affiliated with the Virgin parent include close ties to other companies in a related industry. For example, Virgin Vacations has the ability

Need essay sample on "The Virgin Company"? We will write a custom essay sample specifically for you for only $ 13.90/page

to form partnerships with Virgin Atlantic and in so doing offer cheaper vacation packages to their customers (Virgin, 2007).

In that way, Virgin Atlantic is guaranteed more business while the tour company (Virgin Vacations) can guarantee its customers flexible flights that allow them to take full advantages of the services (for example, by allowing them to extend their stays at the hotels without incurring extra airline fees). Another area in which a company can benefit from being affiliated with the Virgin Group is in its use of the Virgin brand name.

If consumers already trust the brand, they are likely to automatically trust a new company that bears the Virgin name. This effect serves as a method of reducing the time it takes for new companies to establish their names and brands with the consuming public. Thus, the new Virgin-affiliated company starts out with a name that is already known to and trusted by consumers.


Virgin. (2007). “The whole story. ” Virgin. com. Retrieved on January 21, 2007 from http://www. virgin. com/aboutvirgin/allaboutvirgin/thewholestory/default. asp

Can’t wait to take that assignment burden offyour shoulders?

Let us know what it is and we will show you how it can be done!
Sorry, but copying text is forbidden on this website. If you need this or any other sample, please register

Already on Businessays? Login here

No, thanks. I prefer suffering on my own
Sorry, but copying text is forbidden on this website. If you need this or any other sample register now and get a free access to all papers, carefully proofread and edited by our experts.
Sign in / Sign up
No, thanks. I prefer suffering on my own
Not quite the topic you need?
We would be happy to write it
Join and witness the magic
Service Open At All Times
Complete Buyer Protection
Plagiarism-Free Writing

Emily from Businessays

Hi there, would you like to get such a paper? How about receiving a customized one? Check it out https://goo.gl/chNgQy

We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy