Virgin Galactic: Diffusion of Innovation in Space Tourism?

Name: Virgin Galactic: Diffusion of Innovation in Space Tourism? (English version)
SKU: 9B19M141

Arpita Agnihotri; Saurabh Bhattacharya

Product #:9B19M141

Supplier:Ivey

Discipline:General Management

Setting:United States, 2018

Details:Case (PDF) • 10 pages • 2020-01-14

Subjects:

Diversification Corporate strategy Management

Geography:

North America United States

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$9.71

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In December 2018, US-based Virgin Galactic LLC (Virgin Galactic), a commercial space tourism company founded by Sir Richard Branson, launched its first successful crewed test spacecraft. The company’s goal was to launch suborbital space tourism in 2019. However, experts and critics voiced concerns that Virgin Galactic’s space tourism program could have adverse environmental and health effects. A prominent astronaut also considered Branson’s space program to be a marketing gimmick aimed at ultra-rich consumers. Branson believed that Virgin Galactic caused less environmental pollution than conventional air travel and with time would become affordable. Could Branson make space tourism a feasible reality in the long term? Was Branson right to claim that space tourism would become affordable over time? Should he pursue multiple business opportunities, such as intercontinental space travel and supporting research and development projects, along with space tourism?

Learning Objectives

This case is intended for both undergraduate- and graduate- level courses on creativity and innovation, strategic marketing, and business strategy. It deals with innovation, diffusion of innovation, and responsible innovation in space tourism as offered by Branson through Virgin Galactic. The case also discusses the concerns of experts and critics regarding space tourism and Branson’s claims about the advantages of space tourism, where Virgin Galactic is supporting several space-related research and development projects. After working through the case and assignment questions, students will be able to do the following

define the concept of responsible innovation;
describe how diffusion of innovation takes place across society;
critically analyze whether space tourism has market potential, and identify the factors that a space company should consider when forecasting market demand;
explain the significance of exploratory versus exploitation innovation in identifying business opportunities; and
examine whether space tourism is actually a marketing gimmick.