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Therefore, even though through franchise agreements with manufacturers they could stock many cars without paying for them, car sales slumped considerably thus the company was not able to turn a profit.
Among the actions that could have been taken by Virgin Cars to make it successful was taking time to design the business plan and site their stores in order to make sure they gain the most competitive advantage. Secondly, by researching the car sales industry and profile the market before starting the business. By so doing, they would have been able to set more realistic expectations for car sales and device strategies to improve sales despite the recession.
Conclusion
Diversification as a strategy for business growth usually gives rise to successful companies. The strategy of diversification must be incorporated together with other strategies in order for the business venture to be highly successful. This...
On the other hand, when diversification is not done in the right way and in conjunction with other considerations, it will lead to the business venture failing which was the case for Virgin Cars.
References
Ansoff, I. (1957). Strategies for Diversification. Harvard Business Review, 35(5), 113-124.
Balmforth, J. (2009). Virgin Atlantic. London: Midland Publishing Limited.
Branson, R. (2006). Virgin Atlantic Airways. [Article]. Aviation Week & Space Technology, 165(13), 20-20.
Dominic, O.C. (2006). End of the road for Virgin Cars as Branson gets out, Sunday Times, the.
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