Virgin

I'm sure you already know who Sir Richard Branson is, but I think it is an interesting tale to tell, not because of his success in so many areas, but because it is a damning indication of the state of competition in Britain, which is still relevant today.

In 1971, 'Virgin Records' opens on Oxford Street, the leading retail area in London, and was known for bean bags and free vegetarian food. A year later, Branson began his own recording label, which became quite famous in 1977 for signing the Sex Pistols.

At a party in 1984, Branson met Rudolph Fields, who was trying to launch a new transatlantic airline in competition with then-nationalized British Airways. Together, they launched 'Virgin Atlantic' with a single aircraft, flying from Gatwick to Newark, New Jersey. Known primarily for their sexy stewardesses and the Richard Branson's audacity, and supported by income from Virgin Records, they managed to attract passengers from the staid British Airways, and grew the business to become the UK's second largest airline. They also established Virgin Holidays with the slogan 'This is Virgin Territory.'

In 1988, the small 'Virgin Records' stores became 'Virgin Megastores,' and launched across the globe. However, the recession in the early 90s hit the airline business hard, and Branson was forced to sell the music in order to continue the airline. However, at that point he turned his business into a holdings company and things got interesting:
- 1993, Virgin Radio
- 1994, Virgin Vodka and Virgin Cola
- 1995, Virgin Cinemas and Virgin Direct (banking)
- 1996, Virgin Net (Internet), Virgin Brides, Virgin Express (short-haul flights to Europe), and V2 Records
- 1997, Virgin Trains and Virgin Cosmetics
- 1999, Virgin Mobile (cell phones) and Virgin Active (gyms)
- 2000, Virgin Money (credit cards), Virgin Travelstore (travel agency), Virgin Energy (gas and electric), Virgin Cars, Virgin Wines, and Virgin Blue (a low cost airline in Australia).

Since then, he has added Virgin Media (a cable company), Virgin Balloon Flights, Virgin Spas, Virgin America (short-haul flights in the US), Virgin Books, Virgin Music Festivals, Virgin Comics, Virgin Animation, Virgin Health Bank (storing baby's umbilical cord blood stem cells), and Virgin Health Care, and has pushed out many of his brands internationally.

His latest venture is Virgin Galactic, offering sub-orbital spaceflights to the public. Burt Rutan, who won the Ansari 'X-prize' in 2004 for building the first private plane to fly above 70,000 feet, is designing the new ships, and although no confirmed date has been given when the ships will fly, Virgin Galactic is already taking bookings. (The flights cost $200,000, with a $20,000 deposit.) The slogan is, "Space is Virgin Territory."

So as I said, an amazing success story, and I don't want to take anything away from Mr Branson's accomplishments. However, I think the fact that one person can launch into so many areas, and be reasonably successful in all of them, reflects how appalling the marketplace is in the UK. I've been trying to figure out for two years why London is so expensive, and I think the combination of being an island and being a separate country (with its own currency) has just made it very unattractive to would-be investors, leaving the incumbents to sit on their laurels. When someone comes along and shakes things up, the old inefficiencies become very obvious.

Richard Branson, meanwhile, is planning on kite-surfing across the English Channel on his 60th birthday.