Understanding Diffusion and Entrepreneurship Strategies: Cases of Apple and Virgin Group

Case 5 iPod to iPad: Innovation and Entrepreneurship at Apple

Innovation and Entrepreneurship at Apple Question 6. Diffusion, the S curve and the tipping point. Understanding the diffusion process, the tipping point to tripping point. Use case evidence to demonstrate apple product.

Branson uses the media very carefully to enhance his business. He appears to have two images: the carefree adventurer and the astute entrepreneur.The Virgin brand has benefited from its image in constantly attracting people who have new business ideas.The organisation has developed into a very effective parental developertogether with the ability to enhance business ideas or reject them quickly if they do not meet Virgin’s criteria.Virgin, probably because of its private limited status, may stick with a business far longer if it feels it has a long-term strategic role such as the rail business in the United Kingdom.

-As a counter to this, Virgin will sell off businesses it no longer sees as part of its strategic aims or there is something more advantageous to invest in.  They will also admit defeat altogether:  Virgin Cola and Virgin Computers are prime examples of this. Here we see elements of a portfolio manager.

-How clear, for instance, was it when Branson bought the group back from public ownership that he wanted to be rid of simply earning profits for shareholders, the constraints of the City and the need for quick profits rather than the steady build up of businesses which he considers have long-term potential?  The other side to this decision may have been that, from the entrepreneur mindset, he was able to buy the company back at a very competitive price and he wanted to operate without the public eye minutely viewing how he ran his various companies.

Virgin’s various diversification moves in terms of Ansoff’s framework

How does Virgin add value as a corporate parent?  Is there anything more it should do to add value?

-The parental developer seeks to employ its own central capabilities to add value to its businesses.

-The portfolio manager operates as an active investor in a way that shareholders in the stock market are either too dispersed or too inexpert to be able to do.

-The synergy manager is a corporate parent seeking to enhance value for business units by managing synergies across business units.

Assessment of whether moving further into the banking industry is the right strategic option for Virgin.  Does the continued pursuit of this industry suggest a more careful hidden strategic plan that is not revealed to outsiders?  

Students should look through the case material and form an opinion whether there are distinct strategic patterns as the organisation has grown.

What would be the challenges faced by a successor to Sir Richard Branson, and what might he or she do?

-All aspects of his ability and personality need to be evaluated and then the question is – which of these will need to be replicated in a new leader? Some may not be found easily; some may not be necessary!  

-Change of brand image?