Branson should apply the following criteria when deciding on new diversifications: - It should add value to end users and communities in line with Virgin's brand of value, quality, fun and innovation. - It should benefit from Virgin's resources like its strong brand, management expertise, and ability to innovate in constrained industries. - The diversification should create opportunities for synergies across Virgin's existing operations through shared resources and capabilities.

1. VIRGIN CASE STUDY THE TEAM MILENA BANASZEK MONTY KHAN CHRISTOPHER PEAT LINDA RICHARDS FIRAT UCER

8. OPERATIONAL FOCUS OVERVIEW OF VIRGIN VIRGIN’S BELIEFS DIVERSIFIED COMPANIES OPERATIONAL DIFFERENCES OPERATIONAL FOCUS RESOURCES & CAPABILITIES COMPETITIVE ADVANTAGE VIRGIN ADDED VALUE FOCUS OF DIVERSIFICATION VIRGIN CHECKLIST CONCLUSION DIFFERENTIATION FOCUSED DIFFERENTIATION INCREASED PRICE / STANDARD VALUE INCREASED PRICE / LOW VALUE LOW VALUE / STANDARD PRICE LOW PRICE / LOW ADDED VALUE LOW PRICE HYBRID “ increased value ”

12. FOCUS OF DIVERSIFICATION OVERVIEW OF VIRGIN VIRGIN’S BELIEFS DIVERSIFIED COMPANIES OPERATIONAL DIFFERENCES OPERATIONAL FOCUS RESOURCES & CAPABILITIES COMPETITIVE ADVANTAGE VIRGIN ADDED VALUE FOCUS OF DIVERSIFICATION VIRGIN CHECKLIST CONCLUSION Ansoff’s Matrix “ seeking new products and markets ” Diversification Market Development New Markets Product Development Market Penetration Existing Markets New Products Existing Products