Case study - The Virgin- The global enterpreneur Essay

Case study - The Virgin- The global enterpreneur - Essay Example Virgin Galactic could essentially pursue investment and growth under the Directional Policy Matrix. This implies a high business strength and high industry attractiveness. The ultimate goal and objective Virgin Galactic is highly creative and innovative. Suborbital space business is yet to realize the start of its exploitation. The company has identified the underlying business opportunity, and can move swiftly to exploit the market before numerous entries are made. To do this, Virgin Galactic has to make substantial investments in the project as it continues to pursue its growth strategies. The investment and growth factor would require that Virgin Galactic rank high and strong in long-term market attractiveness and SBU strength respectively. In this respect, market size and market share are critical factors to consider. The passenger service line that Virgin Galactic is persistently pursuing is an extremely expensive investment. In order to maintain a favourable business portfolio, investment returns from the project would also be expected to be high (Shahi & Greco, 2008, p.81). As a result, the target market becomes the high and mighty. The implication here is that the market size and market share could be relatively small, but the returns could be substantially high. The Virgin SBU, Virgin Galactic, bases its operations in a business line that is substantially risky to invest in (Otto, 2010, p.58). On the same note, the costs involved, operational technicalities, and the underlying technological factors further limits the number of players in this business. Consequently, the market share only accounts for those consumers who can afford the passenger services once launched. Notably, the company and market potential strengthens the SBU’s operations now and in future. Moreover, the corporate parent enjoys a substantial financial resource base and competent management. As earlier noted, the market size in the spaceflights industry is relatively small.