Rishard+Branson+1990s-2000

= **1990's** =


 * The period from 1990 to 1992 was one of major change for the Virgin group-expansion. Pressured cash ﬂow and the Persian Gulf War of 1990–91 cut airline proﬁts. Increasingly, Branson relied upon **joint ventures** to ﬁnance new business development.


 * The partnering arrangements were primarily in retailing and included one with Marui, a leading Japanese retailer, and another with W. H. Smith, a prominent UK retail chain.


 * As capital-hungry Virgin Atlantic needed more money, Branson would have to let go of other parts of his empire. In March 1992, Branson sold his most proﬁtable and successful business, Virgin Music, the world’s biggest independent record label, to Thorn EMI for £560 million (close to $1.0 billion). Virgin Music’s tangible assets had a balance sheet value of only £3 million.


 * The sale marked a dramatic shift in focus for Virgin away from its core entertainment business towards airlines and travel, and provided the capital to support new business ventures.([|Grant, 2004]).


 * In the meantime, Branson’s long-standing rivalry with British Airways took a nasty turn. Evidence emerged that British Airways had pursued a “dirty tricks” campaign against Virgin. This included breaking into Virgin’s computer system, diverting Virgin customers to BA ﬂights, and spreading rumours about Virgin’s financial state. The outcome was a UK court case which resulted in BA paying him £500,000 and a further £110,000 to his airline. The hostility between Virgin and BA continued after Lord King’s early retirement. During the late 1990s, Branson battled tirelessly against the proposed alliance between BA and American Airlines. ([|Harrison,1993])

**Branson attempts to ext****end the Virgin franchise into your fridge...**

 * Within a few months of its release, Virgin Cola had a 50% market share in the outlets that sold it. It went on to be launched in France, Belgium, Switzerland and South Africa. In its first year more than 500 million units were sold worldwide.
 * Virgin Wine was also launched.

**And in to your comm****ute...**

 * In the same year Branson took what many saw as being one of his riskier business exploits by entering into the railway business and Virgin Trains was formed to take advantage of the privatisation of British Rail. ([|virgin.com 2011])

**And into your wallet...**

 * Direct launched in 1995 as a joint venture with Norwich Union offered telephone-based ﬁnancial services to consumers. Virgin Car and Virgin Bike challenged the existing dealership system of the automobile and motorcycle manufacturers by offering direct sales of cars and motorbikes at discounted prices.

**Into your homes...**

 * In 1997 Virgin Net, an Internet service provider and portal, was launched as a joint venture between Virgin and cable operator NTL.
 * The next year Virgin Mobile, a joint venture with Deutsche Telecom’s One-to-One wireless telephone service, began business in Britain. Text messaging allowed Virgin Atlantic to sell discounted airline seats to Virgin Mobile customers.
 * TheTrain.com was set up as an online reservation service for train passengers. ([|Grant, 2004])

**Branson is Knighted...**

 * In the New Years Honours list dated 30 December 1999, HM The Queen signified her intention to confer the honour of Knight Bachelor on him for his "services to entrepreneurship". He was knighted by HRH The Prince of Wales on 30 March 2000 at an investiture in Buckingham Palace. ([|Wikipedia])