Ansoff’s growth matrix is a classic corporate strategy framework for generating four basic

directions for organisational growth: market penetration, new products and services, market
development and conglomerate diversification.
For Virgin Groups, conglomerate diversification is mainly used in its strategic development, as
you can see the Ansoff matrix. Its business has grown through new products and new markets.
Virgin Group of UK was mainly associated with music and recording, however, the company
ventured into new products and new markets including Virgin Atlantic (airline), Virgin Mobile
(telecommunications), Virgin Train (Railway), Virgin Money (financial services) Virgin care
(health service). As a result, the Virgon Group had been able to have a result of higher gains
from higher risks strategic direction.
The conglomerate diversificaiton is considered as appropriate option when the current markets
are saturated or when the products are already reaching the end of its lifecycle because it can
help in order to produce vital synergies and can also help in order to spread the risk by
broadening the product and market portfolio.