Among all other entrepreneurs, I hold Richard Branson with high esteem. He is a British magnate most well known for the Virgin Group of Companies. Decades ago, flying was considered a luxury. It was associated with beautiful ladies, champagne, haute cuisine and something only the well heeled could afford. With his Virgin Airlines, he has dropped fares considerably without a downsurge in quality.
However, such is not the only reason for my admiration of Branson. He has a diverse set of interests, despite being told in his younger years that he would have a hard time succeeding due to his being a dyslexic and too much of risk taker. Unlike other entrepreneurs, Branson can hardly be considered broody nor isolated. He was not one to shun the limelight. In fact, he has repeatedly done a number of cameos in different films.
His level of risk taking is quite unparalleled that in 1985, he was famously rescued after attempting to cross the Atlantic via the fastest possible speed. Moreover, he failed thrice while trying to circle the globe through a hot air balloon.
Branson first parlayed into business when at age 16, he dropped out of high school, his academics hampered by his disability. He founded a magazine, and eventually a mail order company. He had a knack for finding niches and building brands out of it. Realizing that his mail order business had demand, he set up a discounted record store too, which eventually funded his recording studio.
He had the eye and guts to enter into ventures which most businessmen would back off. He signed Sex Pistols in 1977 when other companies dropped them from their roster. Although the group disbanded and downtrended from there, it gave Virgin Records a name.
When Branson was asked what motivated him to delve into his business gambles, he retorted that he only wanted to do what others did, only better. In economic terms, Branson does simply does not wage a price war, he shifts the demand curve and sometimes even creates one. With his mail order record firm for example, he generated market taste for such form of purchasing music.
His biggest gamble that proved to be a game changer was his Virgin Airlines which challenged big player British Airways. Undaunted, he revolutionalized trans-atlantic flying. He pared down costs by simply giving customers what they wanted- to be able to fly without frills.
However, with his financial successes, came hurdles. When oil prices shook the airline industry, he was forced to sell his records business to keep his planes afloat. The cost of flying was unable to keep with the exponential and volatile structure of oil prices. Learning from this experience, he created a strategy which proved to be profitable for him. Instead of seeking loans, he lent the Virgin name to almost everything, allowing unknown ventures to be recognized, giving him access to liquidity in exchange.
Such strategy is considered one of a kind, very Branson indeed. It is now known as branded capitalism wherein one partner will be the capitalist funder while the other will provide his reputation or brand.
Currently, he is underway in his space venture. He aims to provide accessible space travel. In this aspect, he is once again bordering on unknown territory, a virgin one, and in doing so, he is creating a market, a niche.
Bibliography
Entrepreneur. (2008, October 10). Retrieved from Entrepreneur: http://www.entrepreneur.com/article/197616
Richard Branson Biography . (n.d.). Retrieved from The Biography: http://www.biography.com/people/richard-branson-9224520
