Case study - The Virgin- The global enterpreneur - Essay Example

Topic: Case Study Affiliation: The Virgin Group has highly diversified business operations that are undertaken by the member companies. Among these members is the Virgin Galactic, a company that is persistently seeking to launch suborbital space passenger services (Johnson, Scholes, & Whittington, 2010, p.261). This move is technologically driven and complemented by immense creativity and innovation. This is a business line that is yet to be operationalized, let alone exploited. This heightens the company’s stake relative to business and industry strength and attractiveness respectively.

Directional Policy: Investment and GrowthVirgin Galactic could essentially pursue investment and growth under the Directional Policy Matrix. This implies a high business strength and high industry attractiveness. The ultimate goal and objective Virgin Galactic is highly creative and innovative. Suborbital space business is yet to realize the start of its exploitation. The company has identified the underlying business opportunity, and can move swiftly to exploit the market before numerous entries are made.

To do this, Virgin Galactic has to make substantial investments in the project as it continues to pursue its growth strategies.The investment and growth factor would require that Virgin Galactic rank high and strong in long-term market attractiveness and SBU strength respectively. In this respect, market size and market share are critical factors to consider. The passenger service line that Virgin Galactic is persistently pursuing is an extremely expensive investment. In order to maintain a favourable business portfolio, investment returns from the project would also be expected to be high (Shahi & Greco, 2008, p.81). As a result, the target market becomes the high and mighty.

The implication here is that the market size and market share could be relatively small, but the returns could be substantially high.Criteria for Business Strength EvaluationThe Virgin SBU, Virgin Galactic, bases its operations in a business line that is substantially risky to invest in (Otto, 2010, p.58). On the same note, the costs involved, operational technicalities, and the underlying technological factors further limits the number of players in this business. Consequently, the market share only accounts for those consumers who can afford the passenger services once launched.

Notably, the company and market potential strengthens the SBU’s operations now and in future. Moreover, the corporate parent enjoys a substantial financial resource base and competent management.Criteria for Industry Attractiveness EvaluationAs earlier noted, the market size in the spaceflights industry is relatively small. However, this does not imply that an investing company is not bound to successful operations, revenue generation, and profit making. The market is still subject to grow and open up with time.

Technology is a critical factor in Virgin Galactic’s suborbital space passenger service pursuit. The corporate parent’s creativity and innovativeness has further fostered Virgin Galactic’s business prospects (Surhone, Timpledon, & Marseken, 2010, p.43). Moreover, the legal and political environment in Virgin Group’s home country enhances its overall operational welfare. The combination of all these factors informs Virgin Galactic’s position on the Directional Policy Matrix.Reference ListJohnson, G.

, Scholes, K. & Whittington, R. (2010). Exploring Corporate Strategy, London: Prentice Hall.Otto, M. (2010). Feasibility Study and Future Projections of Suborbital Space Tourism at the Example of Virgin Galactic, London: GRIN Verlag.Shahi, G. & Greco, J. (2008). Financing Technology Innovation, London: Lulu.com.Surhone, L., Timpledon, M. & Marseken, S. (2010). Virgin Galactic, London: VDM Publishing.