Expansion and Development of Virgin
-Due to the expansion and Persian Gulf War (1990-91), Virgin faced problem of capital.
-In this situation, CEO started doing joint venture to deal with capital problem
-Also, he sold Virgin Music which was main business as a solution of capital need and could support new businesses such as airlines and travel.
-There were three types of opportunity
III. Comparison with the competitors
A. The Coffee Bean & Tea Leaf
Some competitors of Starbucks have taken the different way in terms of international business. The representative example is “The Coffee Bean & Tea Leaf” (hereafter, The Coffee Bean). The Coffee Bean has adapted franchising strategy for overseas expansion.
As of 2008, The Coffee Bean has opened approximately 750 caf&eacut
Ⅰ. Summary
1.Introduction of Virgin group
-British international group founded in 1970 by CEO Richard Branson
-Richard Branson as a symbol of Virgin group
2. The expansion & Development of Virgin
-Capital problem by expansion and Persian Gulf war (1990-91)
-Three opportunities to do new ventures
-Privatization and deregulation
-Direct selling of goods and
centralized warehouse
Electronic transformation
High similarity
Almost same business model (SPA)
Same market
Similar resources
Difference of Business model(H&M)
In House System
Total fashion shopping
More aggressive expansion
S
High brand recognition
Cost leadership
Trend leadership
Fast distribution
W
Too centralized.
Limits of the organizational
structure.
Hollys Coffee is the most successful Korean domestic coffee brand and it is striving to enlarge the range of its market.
A representative Korean coffee retailer founded in 1998
Holds more than 200 domestic stores in 2009
Launched international stores since 2008
Not well-known to the locals
Difficult to attract investments
Existence of strong competition
Many powerful domestic retailers