The group specializes mainly in entertainment and travel industries but also have a diversification of 200 businesses distributed across the United Kingdom and the Europe. However, Virgin Group has not been able to tap into the American market or create its brand name as it has done in UK and Europe. If Virgin group would concentrate more on tapping on to the opportunity in the American market then it means that its diversification strategy needs to be laid out well and if successful will reap huge benefits in terms of finances.
However, Virgin Group has built its value proposition around its image variable. It is highly diversified and therefore benefits by establishing companies in sectors they have not ventured in leading to a better image variable and an increase in its value. Tesco is an example of a company that has built its value proposition around its image variable. It started as an economy supermarket. A variety of products ranging from furniture to insurance are being sold by Tesco. However it attributes its brand name Tesco to it venturing into new market without changing its core identity thus adding value to it.
Another company is the Apple Company which has gradually changed from being a computer manufacturer to a giant in media as they came up with new services around the products they offered. Other examples include. Google, Nike, Intel, JetBlue, Amazon.com and Zapppos (Weinstein, 2012).
Virgin Group Company being a diversified company has reaped huge benefits. They have planned carefully, carried out their market research, gotten the right people to manage their businesses and reaped the benefits.