Virgin Group Company Essay Example | Topics and Well Written Essays - 2750 words

Virgin Group Company - Essay ExampleThe Virgin Group is considered to be star of the worlds Superbrands, receiving regular industry-generated rewards and accolades for establishment of a successful art model built on effective marketing promotion. Maintaining presence in the United States, the United Kingdom and Australia, this multi-national organization maintains significant brand recall and recognition worldwide that gives it many new market entry advantages for foreign carry investment. A Virgin Group Company, Virgin Galactic, was founded in 2004 under the premise of providing space touristry to consumers whilst also advancing aerospace knowledge through a business model that supports space-based research. Virgin Galactic is before long working under a multitude of partnerships with reputable agencies such as NASA to develop space-faring tourism vehicles slotted for launch in 2013. The companys founder, Sir Richard Branson, is currently doling out zillions of Pounds to lice nse Virgin Galactic products and services, attempting market entry in the United States for this revolutionary and innovative brand support by Virgin Group superbrand status. This report highlights the impact of globalisation in this new market, the competitive advantages gained through this new business model, and provides a critical military rank of market entry strategy developed by Virgin Group and Richard Branson. 2. The dynamics of Virgin Galactic Virgin Galactic is still in the culture and construction phases in the space tourism industry. In 2009, Virgin Group contracted with Aabar Investments PJSC in the United Arab Emirates in which the company agreed to invest $280 million USD to assist in developing the space tourism industry (Space News 2009). Aabar Investments took a 32 percent ownership in Virgin Galactic, making them one of the largest venture capitalists supporting the Virgin brand. NASA, an American space organisation, also invested over 1.5 billion dollars to re nt lab space in suborbital vessels and for contract to resupply the global Space Station upon launch of Virgin Galactics service (Del Castillo 2012). The space tourism industry is an untapped market, an innovation from conception to actual be launch. To facilitate all of the operational components necessary to achieve a viable space tourism business model, Virgin Galactic must invest extensive capital resources. This involves establishing a cost effective and efficient supply chain consisting of multiple vendors in multiple industries (e.g. technology, metallurgy, software support systems, etc.). Virgin Galactic is currently developing an entire fleet of space tourism vehicles, each vessel maintaining its own focus for research and development as well as consumer-centric tourism services. The United States represented the most viable market for entry due to the ease of distribution supported by a vast and well-developed distribution base in the country and the consumer interest in space tourism as a potential lifestyle enhancement. To achieve the return on investment needed on preliminary capital expenditures in the billions of dollars, Virgin Galactic had to identify a target market that would provide the best opportunity for revenue output upon launch of the tourism model. Figure 1 Ghemawat + AAA strategic framework applicable to Virgin Galactic Source Ning, L. (2012). The most important