Virgin atlantic airways


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Virgin atlantic airways

  1. 1. Virgin Group One of the UK`s Largest Private Company Virgin Atlantic Airways
  2. 2. Virgin’s Highest Profile Business <ul><li>“ Virgin Atlantics” </li></ul><ul><li>(founded in 1984) </li></ul><ul><li>by </li></ul><ul><li>Richard Branson </li></ul><ul><li>Chairman and Founder </li></ul><ul><li>High profile person </li></ul><ul><li>Famous for “Think Different” advertisements </li></ul><ul><li>In 1997 featured as “Shaper of the 20 th Century” </li></ul><ul><li>“ No.1 Role Model”- student survey </li></ul><ul><li>Unusual stunts- Non stop flight around the world in Balloon. </li></ul>
  3. 3. Branson’s Goal <ul><li>“ To provide all classes of travellers with the highest quality travel at the lowest cost” </li></ul>
  4. 4. Missions <ul><li>To grow a profitable airlines </li></ul><ul><li>Where people love to fly </li></ul><ul><li>People love to work with </li></ul><ul><li>Safety and security </li></ul><ul><li>Customer Advocacy (Number of people who recommend) </li></ul>
  5. 5. Virgin Atlantic Strategy ….. <ul><li>“ Our strategy is to ensure we offer the best business product in the air, grow our leisure business even further, and run an efficient but effective global airline.” </li></ul><ul><li>British Airways…………..Strong Competitor in 1984 </li></ul><ul><li>Because………. </li></ul>
  6. 6. British Airways Operations in 1984 <ul><li>3 March: Concorde services to Washington were extended to Miami, three days a week. </li></ul><ul><li>1 April: The airline became British Airways plc. </li></ul><ul><li>4 December: British Airways unveiled a new Design. The design was to portray a different image while retaining some elements of the previous style. </li></ul>
  7. 7. Virgin Atlantic & British Airways <ul><li>Virgin Atlantic Image (New in Market) </li></ul><ul><li>Route Access (Only One to USA) </li></ul><ul><li>Gatwick Airport ( Smaller Than Heathrow) </li></ul><ul><li>Fleet (One Leased Boeing) </li></ul><ul><li>British Airways image ( Already Developed) </li></ul><ul><li>Access to major Routes ( USA, Asia, Middle East, Caribbean Countries) </li></ul><ul><li>Heathrow Airport ( Competitive Advantage) </li></ul><ul><li>large Fleet (Boeing, Concorde) </li></ul>Virgin Atlantic.......1984 British Airways.......1984
  8. 8. Virgin Atlantic Strategy <ul><li>keeping in view British Airways, the Virgin Atlantic adopted the strategy of </li></ul><ul><li> </li></ul><ul><li> “ Market Penetration” </li></ul><ul><li>Increase market share of an existing product or promoting a new product by using strategies like </li></ul><ul><li>lower prices or by doing extensive advertisement. </li></ul><ul><li> </li></ul><ul><li> </li></ul>
  9. 9. Virgin Atlantic….. No Ordinary Airline <ul><li>Started 22 nd June 1984 </li></ul><ul><li> </li></ul><ul><li> “ Good Quality at Lower cost” </li></ul><ul><li>Good Quality of travelling and Customer Services </li></ul><ul><li>At very cheaper prices </li></ul><ul><li>Virgin Atlantic in its first year of operations became a profitable airline. As they said…… </li></ul><ul><li>“ Our objective is to fly a profitable airline that people love to fly and where people love to work.” </li></ul><ul><li> </li></ul><ul><li> </li></ul>
  10. 10. VIRGIN ATLANTIC BUSINESS STRATEGY FOR FUTURE <ul><li>Virgin Atlantic will continue to lead the industry on issues such as customer innovation in the air and on the ground, and environmental responsibility. </li></ul><ul><li>The year ahead will continue to be dominated by high fuel prices, airline consolidation, and an on-going focus into better customer service via our new terminal at Heathrow's Terminal. </li></ul>
  11. 11. Competitive strengths <ul><li>Understanding customers needs and go beyond their expectations it managed to serve both sophisticated, demanding executives and price sensitive leisure travellers in the same craft. </li></ul><ul><li>High profile personality of Richard Branson. </li></ul><ul><li>“ I knew that the only of competing with BA and others was to get out there and use myself to promote it”(Branson) </li></ul><ul><li>A full service airline with a strong brand identity associated with higher standards of services, safety and comfort. </li></ul><ul><li>“ Until 1991 Virgin flights are confined to Gatwick only much smaller than Heathrow , virgin encountered this commercial disadvantage with free limousine service for upper class” </li></ul><ul><li>Innovation in entertaining customers:- </li></ul><ul><li>Good customer service </li></ul><ul><li>Cost conscious </li></ul>
  12. 12. EXTERNAL ANALSYSIS (porter 5 forces)
  13. 13. EXTERNAL ANALYSIS <ul><li>Political Aspects </li></ul><ul><li>Deregulation in 1978 Privatization </li></ul><ul><li>Privatization Price wars </li></ul><ul><li>40000 donation scrapped by Lods Kings chairman </li></ul><ul><li>Legal Issues: Advertising Codes, was in jail Codes of advertising … </li></ul><ul><li>Technology: Innovative industry, Aircrafts design, looks and other facilities facilities </li></ul><ul><li>Economical Aspects: Recession, Inflation & Economic slowdown. </li></ul><ul><li>Environmental Issues: Key issues of the present context. </li></ul>
  14. 14. Areas to be improved (Weaknesses) <ul><li>Delays in services </li></ul><ul><li>Less destinations </li></ul><ul><li>Low salaries to employees </li></ul><ul><li>Few Aeroplanes </li></ul>
  15. 15. Future Challenges And Recommendation <ul><li>Richard Branson VS Virgin Atlantic </li></ul><ul><li>96% people are aware of Virgin Atlantic </li></ul><ul><li>95% people are aware of Richard Branson </li></ul><ul><li>Virgin should promote its identity independently. </li></ul><ul><li>Total focus on business class rather than on both business and economy class </li></ul><ul><li>They should focus on economy class as well </li></ul><ul><li>Slogan is “innovation and entertainment” </li></ul><ul><li>Are they going to keep up with advancement of technology and cost efficient? </li></ul>
  16. 16. <ul><li>Virgin appeared to be highly dependent on the profits of Virgin Atlantic; this was troubling as the airline industry was cyclical and facing increased competition as a result of deregulation. </li></ul><ul><li>Virgin group is the most diversified group. Can they be efficient in every type of business? </li></ul>
  17. 17. ANY QUESTION