What Virgin does…
I’m not good at theory. Almost everything I’ve learned, I’ve learned by doing. However, Muhammad’s opinions excite me. They confirm a lot of the gut feelings I’ve developed about business over the years. And topping my list of gut feelings is this: business has to give people enriching, rewarding lives, or it’s simply not worth doing.
I think of our Virgin brand as one of the premier ‘way of life’ brands in the world. Whether you’re in the United States, Australia and New Zealand, Japan, South Africa, India, Europe, Russia, South America or China, the Virgin brand means something. The Virgin brand is about enjoying life to the full. By offering customers excellent value for money in so many areas of their lives, we aim to make them happier.
Most businesses concentrate on one thing, and for the best of reasons: because their founders and leaders care about one thing, above all others, and they want to devote their lives to that thing. They’re not limited in their thinking. They’re focused. The conventional wisdom at business school is that you stick with what you know. Of the top twenty brands in the world, nineteen ply a well-defined trade. Coca-Cola specialises in soft drinks, Microsoft’s into computers, Nike makes sports shoes and gear. The exception in this list is Virgin – and the fact that we’re worth $5 billion and counting really gets up the noses of people who think they know ‘the rules of business’ (whatever they are). We’re the only one of the top twenty that has diversified into a range of business activities, including airlines, trains, holidays, mobile phones, media – including television, radio and cable – the Internet, financial services and healthcare.
Hopefully what I’ve written here is relevant to your business no matter what sector you are in.
41 Responses to “What Virgin does…”
Roland Millward - January 5th, 2009
Excellent advice! Who can argue that Virgin have not got it right?
People like to buy from people. Why should they not buy a wide range products from a company they trust?
Keep up the good work and I look forward to seeing more products and services from the Virgin brand.
Dan Thornton - January 5th, 2009
Having read Business Stripped Bare, and followed this blog for a while, it seems like actually Virgin does concentrate on one thing - and that’s the belief in offering value for money and enjoying life to the full.
That’s as much of a specialisation as making a product in a defined category - and in many ways better, because it’s something that people can identify with easily!
BikeMike - January 5th, 2009
Thanks alot for your input. I’ve seen a Richard Branson documentary on a german TV-channel and I like your statement “that you always had the luck to find the right people for your enterprises so that you can go forward creating new models and products” so much. Also the statement on “that you always controll the quality personally as a user”.
Again thanks.
If you need a little holiday in stressful situations feel free to follow my link.
Wolfgang Dorninger aka BikeMike
Ciprian Gherghescu - January 5th, 2009
Thanks. Inspiring.
Graeme Sutherland - January 5th, 2009
Sometimes confusing to process the opposing shouts of “diversify” and “stay focussed”…
Seems like solid advice though, to enrich peoples lives, regardless of sector.
One guy said, “you can have whatever you want in life, if you give people whatever THEY want…” or something like that.
Onwards…
keven deck - January 5th, 2009
But this is my trouble Richard. I spread myself too thin, between the many interests and businesses I have going all at the one time - property development, internet marketing, options & currency trading, private investigation work. I’m good at each of these. Consequently, I’m having fun, but none of them are making me real money?
Keven
Ian Sobolev - January 5th, 2009
I always used “Virgin” as my example as to how do business. Not in the way what is right or right, but to show that most important, above all, is to believe in what you are doing, and just do it, regardless of what people say.
“Devil’s advocates”, which I try to be when discussing start-ups, always repeat the same — you’ll fail, it’s useless, no one would need it, etc. We always here that, and mavericks are used to those phrases.
I adore the way you do business, and believe that believing is most important for a success in life, despite some inevitable failures.
And that’s why is doesn’t matter what you do for a living, it does matter that you’re the best out there doing it.
DChetty - January 5th, 2009
I think that the best business lesson that I have heard to date, is: “Hire people that are smarter than you!”
Jerry Holliday - January 5th, 2009
Virgin is a great generic brand and there’s probably no market it couldn’t go into.
On the subject of helping others - all businesses should take this lead and think about their branding and relationship marketing and learn to interact more closely with their customers. The law of reciprocation is a powerful notion that works!!
Cheers
Jerry
Todd Heslin - January 5th, 2009
Richard, your post really brings me back to a lot of my own personal thoughts on the role of business in society. More importantly is the role of us, as entrepreneurs, to continue our focus on innovation - a customer-focus. Regardless of location, language or preferences, the brand must be representative of this continuous innovation process.
Through innovation, you must search for new ways to provide people with enriching and rewarding lives, otherwise our next best competitor will do just that. Branding is such an imperative here as it is the single point of differentiation between recognition of a business representing the new and exciting, and the expired and mundane. (I suggest your successes can be attributed to identifying where the competition is happy to profit from the mundane)
Founders of successful businesses will recognise early on that it is this innovation process and imperative of living the brand of entrepreneurship which keeps them waking up, dawning the opportunity to make this world just the smallest bit better than it was yesterday.
Take care from Australia
Lisa Jander - January 5th, 2009
Richard,
Very well put! I found that my “mid-life crisis” was really a mid-life awakening and that by concentrating on one thing, my passion for teens, I can and do live a fulfilling life every day. However, I also have learned that I need to diversify if I want to survive.
Thanks for stepping out of the boundaries and paving a way for the rest of us.
Always thinkin’
Lisa Jander
Laurel Ennis - January 5th, 2009
This is why Virgin will survive the coming hard times. Having all your eggs in one basket risks the whole omlette. Interestingly, Virgin seems to have looked at possibilities with the way they’ve diversified. If people don’t fly, they must take trains, so they make money either way. They’ve got media covered from stem to stern, smart. This is a business to mimic in the coming years.
Brijesh - January 5th, 2009
“The Virgin brand is about enjoying life to the full.” I like that. I like that.
Chris Field - January 5th, 2009
Well said. Once again, the contrarian is the success story. Well done Richard on being the difference maker on that list. While others created a niche company, you created a different division to attack a certain niche. I like the way that you do things completely different than others.
Now that I’m thinking about it, its a good rule for business. Sometimes you don’t follow the rules. We always hear that we should “Specialize, create your niche, don’t be all things to all people…” Ignore the wisdom of the ages and become a story worth telling.
Here’s to your success…
Chris
Jonathan Fields, Career Renegade - January 5th, 2009
It’s an interesting exploration. Do you stick with what you know…or what you believe?
Sometimes they are the same, but more often than not, they diverge. And, when they do, which path do you follow. My guess is most follow the former, because it leads to less anxiety.
But, as Keirkegaard said, “anxiety is the dizziness of freedom.”
Food for thought, thanks for planting the seed.
Kim - January 5th, 2009
Happy New Year Richard. VG blog by the way.(Very Good)
That’s why I like the Virgin Group.
.VG stands for “Very Good” among other things.
By the way, have you thought of entering the driving school business, as I think the “Virgin” brand on the side of lots of learner cars would look great.
Keep up the good work
Kim
Nancy Wu - January 5th, 2009
“business has to give people enriching, rewarding lives, or it’s simply not worth doing.”
Simply love it. :D
James Irvine - January 5th, 2009
Dear Mr Branson and other subscribers,
this will be a slightly different perspective from a first time poster! The words “business has to give people enriching, rewarding lives, or it’s simply not worth doing.” rung in my ears. This particular message touched a nerve with me, helped to nail home just how daunting this all is for a person like myself.
I am a researcher, I work at my home in Brisbane Australia, I have the business skills of a doorknob, lets get that out of the way.
I have some technology here that can and will help cut carbon emissions and provide massive amounts of power generation from waste oils, fuels, gasses, including propulsion and other forms of electrical generation in an extremely efficient manner, and I’d like the capital so people will actually use it… BUT…
My major issue is I’m not a business man, as much as I try, I’m simply a researcher, and I am absolutely terrified after several dealings with possible investors that very nearly walked away with all my IP and not a cent in my direction. Luckily this didn’t eventuate but the point was they tried! How can my business ever grow if every investor I meet wants to basically route the business and myself into some bastardisation of the actual intent of my years of work!?
This idea of having billions of dollars appeals to me and some say in the direction of the business, but only because it allows me to continue developing my technology for a cleaner, greener future and better propulsion systems, nothing to do with having a massive swimming pool…
S,o where does one look for investors who share not only the intent to “Do good” but also have the ethics and standards to not exploit young entrepreneurs (like me) who obviously don’t know a legal document from a coffee cup. Do they exist, or is it my wishful thinking?
My point is if you “business people” really want to enrich peoples lives don’t forget about enriching the lives of the people who work their ass off on this technology that is eventually exploited to make you lots of money, always remember the guys on the ground doing the hard yards, they might enjoy it, like I do, I love my work in propulsion and generation, however it always seems that when it comes to making customers happier, why sacrifice the happiness of the people who got you there?
Just some food for thought…
Kind Regards, and happy new year!
James Irvine
IAE
Brisbane, Australia.
——————–
I’m on Skype! James Irvine
Michael Reason - January 6th, 2009
I’ve just finished the latest book and was impressed that Virgin has such a mixed portfolio of businesses. I also loved the fact that Virgin as a brand attracts the customers whatever the industry, exceeds expectations to attract more customers to provide a stronger brand and restart the cycle. Investors are always advised to have a mixed portfolio (Like Virgin), so why do business leaders advise sticking to core competencies..
My question; I understand why Virgin does this but what makes Virgin more able to do this than any onyone else??? After Virgins success you’d expect other big corps to try the same model..
Franki Nguyen - January 6th, 2009
Just what I needed to kick down 09. Thanks for the insights Richard :)
Uwe Hook - January 6th, 2009
Richard, I agree with everything you say. However, my last experience with your airline was so sub-par that I won’t consider using your airline for a while. I didn’t get excellent value for my money and left the plane disappointed. I think you should have a boot camp with your Virgin Atlantic employees and remind them what the airline used to be about. And should be in the future.
Viktoria Sumner - January 6th, 2009
Hi Uwe (comment 21)
Thank you for your comments and for taking the time to drop a line to Richard.
I’m sure you’ll appreciate that Richard is very busy, and much as he’d love to answer everything personally, it isn’t always possible. With that in mind, he does sometimes ask me to reply for him.
I was concerned to see that you feel our onboard service levels aren’t up to the standards they should be. That’s certainly not something we ever like to see and I’m sorry you feel so disappointed in us.
I wanted to let you know that I’ve passed your comments onto our crew training managers and onboard facilities managers. All feedback is really important to us so thank you again for taking time out to get in touch.
I really hope that you’ll change your mind and that we’ll have the pleasure of welcoming you onboard again soon.
Viktoria Sumner
Customer Correspondent on behalf of the Chairman’s Office
Steve - January 6th, 2009
When are you lanching Virgin Brains?
Andy Calloway - January 6th, 2009
I got the new book for Christmas and I can’t put it down. What’s exciting about it is I was in Australia when Virgin Blue launched and now reading about how it all came together adds a new perspective.
Branson is one of my heroes and having been through a particularly crazy year with my own business, it’s reading about his resolve that makes me think it’s all worth while.
You can read lots of business books that tell how people have gone from rags to riches using this method or that, but no book goes into the sort of raw detail that this one does.
The comments in this blog ring true - anyone can do this business lark if they have the resolve, the guts and the ability to admit one’s weaknesses. So I suppose what I’m saying is “not everyone can do this business lark”.
Brilliant stuff, Richard, I’m now following on Twitter too, I look forward to your updates.
Bill Starr - January 6th, 2009
Richard, You are an inspiration to all entrepreneurs and a true Life List Legend!!! Check out http://www.mylifelist.org for a great website that uses a proven methodology and the power of social networking to help people achieve their goals!!
Would love it if you became a member and shared some of your Life List goals and stories!! By the way how do I get a ride on Virgin Speedboat?? What an amazing sail boat!
CREATE. ACT. CELEBRATE.™
Bill Starr
CEO, My Life List™
http://twitter.com/mylifelist
Christophe Poizat - January 6th, 2009
Hi Richard,
Great, our own agenda is perfectly aligned with what you are saying, here is our Executive Summary:
“Following Gandhi’s philosophy that “You Have to Be the Change You Want to See in the World”, our primary objectives are to contribute to the edification of a world that is more at peace, where the beauty and diversity of humanity is celebrated everyday instead of being feared. To foster a greater level of cooperation, we focus on the common needs that we all share as human beings living on the same planet.
Our main endeavor is contributing to the achievement of the Millennium Development Goals (MDGs) signed by 191 countries of the United Nations (U.N) back in 2002 with the following top priorities:
- Eradication of extreme poverty
- Increased protection of the environment
- Providing better education across the globe
We will contribute to making the world a better place, now and for generations to come; we will bring love where hate exists, hope where there is despair, peace where there is strife, sustenance where there is hunger, health where there is disease, tolerance where there is ignorance, knowledge where there is lack of education, respect where there is division and passion where there is apathy! We call it the “O1P/INSE 2015” Challenge and we will have a clear set of Key Performance Indicators (KPIs) and Key Social Impact Indicators (KSIIs) in place for measuring the effectiveness of our actions.
We will fulfil our objectives by raising awareness of the needs of the planet and all its inhabitants to the highest possible levels, promoting one-on-one collaboration of all cultures as well as developing and promoting social entrepreneurship, worldwide. Social entrepreneurism has got nothing to do with Socialism, it’s actually the opposite: we want the poor to get richer, only rich people can help poor people. We aim to create more wealth and distribute it abundantly across the world.
We are strong proponents of the capitalist model with the concept of free enterprise which thus far and in spite of the current turmoil is perceived to be the best model of positive, viable and sustaining economic and environmental change; we are promoting a capitalist model which is more mature, a model which encompasses a new mindset where the bottom line is no longer the driving factor in the decisions of business leaders and entrepreneurs. We will champion a new paradigm shift, ushering in the concept of the “triple bottom-line”: People, Planet, Profits – this will be promoted globally, showing the world that “Capitalism with a Conscience”, or “Spiritual Capitalism” as some call it, is the next vital stage in our evolutionary process. We strongly feel that this is the most appropriate remedy to the biggest global challenges threatening humanity and the planet: extreme poverty, destruction of the environment, lack of education, terrorism, disease and other issues affecting millions.
Our One Planet (referred to as “O1P”) and International Network of Social Entrepreneurs (referred to as “INSE” in the rest of this document) are like the right and left lungs in our body, breathing in the same desire to creatively solve the most critical global issues threatening us and the planet. We strongly intend to leave an open and self-perpetuating model which will hopefully inspire many generations of entrepreneurs across the world to work collaboratively toward the edification of a world that is more at peace and where the majority of people live our given birth-rights: the pursuit and attainment of happiness, for themselves and their families.”
I look forward to meeting you and exploring our potential synergy and wish you a very happy, healthy and prosperous 2009!
In dynamic peace,
Christophe
–
All the best,
Christophe J. Poizat
CEO of Our One Planet (O1P)
International Network of Social Entrepreneurs
Founder & Chairman
http://inse.collectivex.com
“Fostering Connections to Pursue Business Endeavors with Social and Environmental Benefits”
Robert Rogers - January 6th, 2009
I love the passion that the Virgin brand exudes. I think that is the key. The companies listed are led by passionate people. They found their niche and worked it. They had the drive to make it happen. What a great reminder that either singularly focused or in a cross-section of industries, success is to be had for the passionate business person. Much success and passion in the coming year!
Norman Pascoe - January 7th, 2009
First of all Happy New Year to all readers, it will surely be a challenge.
I am in my day job, so to speak, an Independent Financial Adviser. We have a very torrid time of it at present with masses of regulatory changes to cope with that all take time and cost us money rather than earning us any; and, an economic climate that we have not seen the like of for some decades.
Our clients in noirmal times want to invest money, borrow money or put in place measures to protect the wealth already accumulated. At ptresent those that have money are keeping it, those that need to borrow money can’t get any and as for protection, well, it seems to be the first economy made even before the SKY subscription. As for pension provision, well it still seems to be a few only that make that effort.
In consequence I am looking at Marketing on the Internet as a complimentary and hopefully [I hate that word] an eventual alternative to escape the regulation ridden world I exist in currently.
Sir Richard, you indeed are an inspiration and, its good to hear that you are not a theorist but a hands on action taker. Whatever it is that you do you do it well but remain a very approachable and affable person and have not turned into a person who feels success entitles them to demi God status.
When success earns me a real return I will strive to model myself on you and keep my feet firmly on the ground with the intent to help others in mind as I make progress down the road.
With such long term businesses in the high street failing it points towards the fact that many now make their purchases from the internet meaning less visitors over the threshold in the high street. Sad but true(I’m counting on it)
Happy New Year
Norman Pascoe
Isaka - January 7th, 2009
Hi,
I like your opening paragraph and I agree with it. I’m not sure however that business diversification would work for all. And I don’t see you mentioning this, which is my main point here.
My perception of Virgin is that it’s primary business is to manage the brand it has created. As such, the business would be naturally prone to diversification, given that that’s its forte. However, any business that successfully create a brand through years of toil and struggle would find it difficult to diversify. If nothing else, it would be that the brand would have grown to become embedded with the business itself, the organisation behind it and potentially the culture emerged through it. This is the case for most businesses (80%?), success just doesn’t come too easily or quickly. You cite Coca-Cola, a good example, they will find it very difficult to succeed in liquor business or car rental business for example.
Another more plausible path to diversification is through acquisitions, once a business is cash-rich and can afford to run a loss-leader. Even then, if the brand is sensitive then it can easily and quickly unravel.
I think your advice is good, however it would be truly excellent if it would also give a perspective on the type of business that could successfully diversify. The history of the business which could be heavily impacted by successions is also a driver in diversification. Nokia is an example there.
I hope this makes sense somehow.
Best,
Isaka
Ori "The Couch Surfer" Bengal - January 8th, 2009
Wow! Now I don’t feel so bad about offering so many services. Everyone always says that you have to be focused, or you wear yourself too thin.
Wayne Tarken - January 9th, 2009
Richard – Virgin is still run by an entrepreneur who has the energy to grow. Those others are run by caretakers, managers who aren’t entrepreneurs.
I don’t know you but I’ll make the assumption that you probably have 3-5 new ideas for businesses that you’re working through in your mind right now. And you’ll do something about them.
Those other CEOs need to be focused on getting results quarter after quarter to meet stakeholder expectations so their narrow operational focus is not surprising
But companies need both – entrepreneurs at the top but strong operators to run divisions. I would suspect that you have some pretty strong operators who run a tight ship for some of your businesses.
I use you as an example for my entrepreneurial clients who are always building and managing many ideas in their heads but who also need strong narrowly focused operators to drive efficiencies and profits.
What I admire the most about you is your continued ability to grow and innovate over the long haul. It’s not something that many including me can do. Maybe it’s your hair (which provides growth strength like Samson) which if you see my picture explains my lack of success in this area.
Thanks for your willingness to reach out to others in the community
Jessica Gottlieb - January 9th, 2009
I felt compelled to find a place to comment since we’re neighbors at alltop.
My mother adores you, thinks your airline is fabulous and now I’m a fan.
Mostly because I think rules suck.
Mark S - January 12th, 2009
I believe the difference is Virgin focuses on the process of how they apporach business where many traditional firms, like Coke, focus on the product and then the process. Could Coke be a great Internet comapny if they applied all of their business knowledge of branding and product management? Possible. Is it a pillar of how they do business? No. Virgin grew up with a view that the process of business was in some cases more important than the product.
Different perspective of business. Yours is alot more fun…
Jules Vos - January 13th, 2009
Inspiring article and, along with the rest of the articles on here, a great manual on how and why business should be done.
As you mentioned in your article, most of your knowledge comes from experience. That has left me pondering about something other that strictly business, namely the balance between theoretical and practical knowledge.It makes me wonder if theoretical learning(sitting down and reading books or listening to somebody talk) is really necessary to become competent at what we want to do.
If our education wants to bring forth achievement and creativity, it will need to see the value of the real world. That way, instead of pushing the knowledge, they may start playing a more facilitating role for real experience(s) and create a climate for progress.
I think that there are still opportunities in the education sector. I, for one, would love to see a Virgin Academy!
By the way, congratulations on your 10000+ followers on twitter! (I’m 10000 ^_^) http://tinyurl.com/9yvxfo
Gihan Fernando - January 15th, 2009
Dear Sir,
I would like to warmly welcome your Virgin Group to set up some businesses in Sri Lanka now that our country is very much on a stable position economically. I am sure you will not let this favorable opportunity pass by.
p.s- I was caught posing on a teen magazine with one of your books in my hand :S (http://www.games.lk/paperAds/full/01.10.2008-chokolaate2.jpg)
Regards,
Gihan Fernando.
Managing Director, GTS (http://www.gtslk.com)
Allan florentino - January 15th, 2009
Mr. Branson, the virgin company do this as i observed, our lord taught:” let them do good, that they be rich in good works, ready to give, willing to share” tim6:18
Chris - January 16th, 2009
Thanks for all you do, Richard.
I must say, I feel like I missed out on much of the Virgin experience growing up in the USA. I know there are some offerings here, but it seems like Europe and other places on the globe got the lion’s share of the benefits from your companies. Hopefully you’ll be able to provide more and more enriching, rewarding products and services to Americans going into the future.
All the best.
Emma Terracini - January 23rd, 2009
damn straight Richard.
Jerry Walla - January 24th, 2009
Richard,
I have followed you from a very young age, and I think I always will. If only I had the courage to get down and contact you, I might be able to fulfil my dream of meeting you one day. I think that your an inspiration to so many people, and although a true entrepreneur, I think also a wonderful person. I hope I can find out one day…
One my good friends is one of your top employees in London and keeps me upto date on the Virgin Story (from the inside) and unlike so many companies its so refreshing to hear that Virgin isn’t all Marketing and PR. Something I would love to part of.. I hope you don’t stop being you.
Jerry
gertie - February 3rd, 2009
Subject:
Dear Richard,
Im just a reader who recently finished reading “Business stripped bare”, and I wouild like to say how much I enjoyed it.It was almost a life changing read( people around me won’t think I have changed into a buddist monk or anything, just a happier person to work with who has extended her business interests )
The chirpy chatty upbeat nature of the book has been timely in my business career and I take away from the book – have a go and be happy about it !
Regards,
Gertrude Behan
Bijoy Goswami - April 11th, 2009
Put another way, Virgin’s singular QUESTion is: how do we make life more fun and enjoyable?
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