Emilio Aguilar Ponce

BCG MATRIX: VIRGIN

HIGH Relative Market Share LOW

FINANCE
ENTERTAIMENT
Market Growth Rate

SOCIAL
ENVIROMENT

FLIGHTS
Virgin COLA

Stars: Virgin Entertaiment unit of business has a lot of market growth and market
share in the world. Virgin has 8 brands in this unit, for example: Virgin Games, Virgin
Radio, Virgin Productions, Virgin Festivals, Virgin casino, Virgin management etc.. So
they make a lot of investments in this sector and a lot of marketing ( you can see it in
Virgin.com).

Question Marks: there are business units in Virgin that are a interrogance for the
company, they are investing a lot of money in Finance with Virgin Money because they
think Virgin Money can win big market in Uk because many people do not believe in
Banks. But not everything is good for Virgin money1, they incorporated branches in
the US in 2007 where after one year closed branches, now only have in Uk,
SouthAfrica and Australia. In the Social and Enviroment we can see brands like Virgin
geen Fud and Earth Challenge.
1
https://www.virgin.com/virgingroup
Emilio Aguilar Ponce

Invest
Grow

Selectivity
Earnings

Harvest/Divest

Dogs: they launched in 1994 Virgin cola which was not successful, Richard Branson
said he did not succeed because they never realized how big the market for coke in the
world, the philosophy of virgin is crearn disruptive products but in the soft drink
market nobody wanted something disruptive, all people were happy with the
traditional cola.2

Cows: Flights are one of the most important brands in Virgin company, because they
are keeping in the top of companys airlines. In Australia they won the best service
arline in 2015. Alot of money comes from the airline services for Virgin company.

GE- McKinsey 9 Box Matrix:3

Low
High Medium

Finance
Market Attractiveness
Flights Social Enviroment
2
https://www.virgin.com/entrepreneur/richard-branson-what-to-do-when-things-
go-wrong.
3
Entertaiment
http://queaprendemoshoy.com/¿que-es-el-analisis-de-cartera-de-negociosii-matriz-
ge-mckinsey/
Emilio Aguilar Ponce

Virgin Cola

In the Sector of invest grow, we need to invest more in the business unit that give us
more money and more profitability, thats why Flights are there because is a
profitability market and we have competitive advantages, and its very important to
expand to another countries to have more market share and money. For Entertaiment
we need to invest and make innovations in the market to have more strenghts. Social
Enviroment and Finance estructure if that model gives us return, if not give us better
profitability is better to sell that model or cut costs. Finally for Virgin Cola is much
better to sell that business unit, there is no profitability.