Swot Analysis of Virgin group

Experienced in two different kinds of distribution-Stationary trade-Mail ordering•Location.-Geopolitical position is good for business.

•Co-existence in the region of 2 seaports and an international airport with direct possibility of export. -Variety of exports possibilities.

•Large land resources.-Existence of a powerful technical basis and building firms.

•Ecologically clean environment.-> 100 km of virgin beach.

•Historical diligence.-Initiative of local municipal authorities, arranged cultural-educational network and possibilities of development.

•Tradition in industry and an availability of labour force.

•Superior product performance vs. competitors.

•Right product, quality and reliability.

•Expanded IT Sector.

•Highly skilled workforce.

•High budget and enough money for business.

•Less integrated than other big groups like Daimler or Smiths Industries so higher flexibility.

2. WEAKNESSES

•Too loose supervision

•Sluggish communication

•Lack of a strategy for development of ports

•Bad transport communication with the port-Bad organisation of intermodality (connections between transport systems)

•Inherited nature damages made by industrialisation.-Inventory of environmental conditions is never made

•Demographical situation becomes worse-Pessimistic attitude toward changes-No positive motivation for self-development of the inhabitants and labours. -Poorly developed real estate market.

•Not yet gone public fully.

•Out of date plant and machinery.

3. OPPORTUNITIES

•Can establish themselves in a monopolistic or oligopolistic situation with the help of huge advertising budgets.

•Could expand to overseas.

•Could seek better supplier deals.

•Opportunities for training and retraining.

•Opportunities to obtain information using information technology.

4. THREATS•Existing core business risk.

•Could distract from core business.

•Possible negative publicity.

•Patenting from innovation.

•The jeans venture is only one of the many in the big group and could easily be abandoned if it seems not to be feasible after a while. The jeans market has a very unsteady component, which are the designer jeans. With the customer’s change in taste new competitors enter and leave the market. At the moment all the important designers are coming back into the market. The situation is very much alike the one in the late 70’s and early 80’s. In the mid 80’s the market for designer jeans collapsed and many players had to leave the market.