Branson’s latest venture…

Paul blogs a Fast Company article on Richard Branson’s plans to launch a US domestic airline. A good article. Personally, I have mixed feelings about RB.

But one sentence in the article makes me hope his efforts really succeed. Which is this snarky remark by Peter Sealey, the former head of marketing at Coca-Cola, who now teaches at UC Berkeley and Stanford:

“What’s Virgin’s advantage?” asks Sealey. “He’s going to be buying the same planes and hiring pilots at the same salaries. His cost structure will be identical to theirs. If I were a banker, I wouldn’t lend him the money. If he were presenting this as a business case in my class at Stanford, I would fail him.”

Is it just me who finds that kind of know-it-all, ner-ner-ner ner-ner, attitude a bit smug? Maybe Sealey’s been harshly edited, but I don’t think the cost-structure is the sole determinant of a business’s potential to succeed.

2 thoughts on “Branson’s latest venture…

  1. Stanley Moss

    You know, the only real criteria for business modeling at B school is bottom line drivers. What else could he say? The bean counters are in charge, and they control the money. We in our dialogue are trying to factor in the humanistic issues. BUT snarky remarks aside, I don’t hope Branson succeeds just because of what Fast Company’s author says. I do hope his space tourism venture with SpaceShipOne and Bert Rutan succeeds. It would take an arrogant British guy to do what the Americans can’t, simply by buying their technology and redeploying it. Now that would be a coup. Good luck to Sir Richard on that one at least.

    Reply
  2. Greg Tingle

    It looks like Paul Stoddart may give Sir Richard Branson a run for his money. What’s this I hear about Branson and OzJet collaboration? See barkingblue.com to see what I am refering to.

    Reply

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