Protecting the Virgin Brand Name
Branson is fiercly protective of the Virgin brand, and makes decisions based upon that protection.
He had a venture into the PC business one time where the product was made by anothe company while having the Virgin name slapped on it. It was a disaster. Ever since then, Branson has refused to be in a business where he didn't have control.
That's one of the reasons he didn't get into the U.S. airline industry as foreign owners could only have up to a 49% stake in the company. He lobbied Washington for a long time to get rid of the rules so he could get a majority ownership in a U.S. airline. This is one of the few areas where he looks like he'll have to compromise to get a foot in the U.S. airline door.
Of course the down side to that is that it makes you miss some tremendous opportunities that come your way. One huge example is when David Neeleman offered Branson a 40% stake in his new U.S. airline company for no cash at all, only so he could use the Virgin name. Branson decided to turn the opportunity down. It became the JetBlue airline we all know today.
I like his attitude and way of doing things here though. There are always deals and opportunities to be had, but a brand that has been built up for decades, can come crashing down with one huge error. Branson isn't going to let that error happen even if it costs him some great opportunities.
On the other side of the coin, the Virgin name has become so revered by many, that Branson is offered ownership in companies of up to 60% to 70% while putting up none of his own money. Now that's building a brand!
So occasionally, with one hand he might get something taken away from him, but on the other have 10 offers waiting on the table because he won't change his determination to protect the brand. He's doing the right thing. We need to ferociously protect our brands and not let anything interfere with it being torn down in a very short period of time.
Other Richard Branson Resources:
Richard Branson's Virgin Success
Thoroughly postmodern billionaire
Richard Branson's latest adventure will take Virgin into space
Richard Branson - Life - Philanthropy - Money
Richard Branson, Business Personality
Richard Branson conquered the world. Now he wants to fly you to space.
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