Virgin Atlantic, Marketing, External Environment, Internal Environment, Porter's Five forces Model, IIFM, Indian institute Of Forest Management, Richard Branson
Air france international strategy analysis (2014)Steph Nass
Air France international strategy is driven by two external threats: the pressure of low-cost competitors on short and medium haul, and the competition from emerging countries' airline on long haul.
Air France response includes : (1) external growth, (2) partnerships and (3) segmentation.
Made with love by a team of students from EMLYON Business School.
It This PPT Things We Know :
Introduction:
Research:
Analysis:
Solution
Conclusion:
Recommendations:
MAIN ISSUE
===================================
For More: https://sunnyns60.wixsite.com/kodexhub
Case Study on GETTING AIRLINES ALLIANCES OFF THE GROUNDAJ Raina
This case study on GETTING AIRLINES ALLIANCES OFF THE GROUND (International Business) was prepared by the students of Era Business School, New Delhi (PGDM 2012-14 batch)
Star Alliance| formation of Star Alliance| Benefits and ServicesAishwarya Saraf
This presentation will help you know about Star Alliance, its formation, recent articles, benefits and services. latest article on its strategy shift will also help one to understand the Alliance more efficiently.
1
6
Virgin Atlantic SWOT Analysis
Introduction
Virgin Atlantic is an airline company from Britain owned by a top businessman known as Richard Branson. The parent company for Virgin Atlantic Airline is the Virgin Group that exists in the international market category. Leading unique selling points for the airline company comprise of premium airline, the upper middle class, in addition to the middle class categories. According to the organization background review, it is evident that Virgin Atlantic primarily targets reliability and passengers seeking comfort market segments as part of its target market segment. Preferred target groups comprise of Corporates, the upper middle class category, in addition to the middle class. Looking at the company’s position, it is evident that the airline company concentrates on the premium services that focus on customer experience as well as hospitality. In comparison with other passenger carrier airplanes, Virgin Atlantic is considered to be the seventh largest. Ever since its foundation, the airplane has carried approximately 5.4 million passengers in its different classes.
SWOT Analysis
Strengths
Virgin Atlantic depicts the ability to uphold a strong brand value through propagating the cool image that has been influenced by the owner. The airline maintains a remarkable image by making certain it remains appealing to the contemporary generation as well as exuberate factors such as vigor along with youthfulness. Being an industry trendsetter is an appropriate factor that is essential in airline business that most companies have failed to take into consideration. The ability to concentrate on quality is another ideal strength that is identifiable with the Virgin Atlantic ensures the company is constantly observing music quality despite the availability. Positioning is an important part that is easily identifiable when running operations in the airline industry. The company is stationed as the source of revenue brand despite the tickets being costly when compared to its rival organization (Carter, 2013). Virgin Atlantic ascertains that its service quality along with personalized attention directed towards customers is top notch to make the brand standout from its rivals. The ability to maintain multiple customer clusters is another relevant part of the strengths since it has three clusters that consist of economy, premium, in addition to luxury categories. Through making certain that the airline company ramps up and down its service quality as well as level of personalizing the organization has been the source of providing diverse standards of services for each category. Lastly, customer satisfaction has been another reliable strength aligned with the successful operations of Virgin Atlantic in the global market.
Weaknesses
Financial challenges have been the main weaknesses affiliated with the Atlantic Airlines in the present day following issues associated with Brexit that are likely to result i ...
Air france international strategy analysis (2014)Steph Nass
Air France international strategy is driven by two external threats: the pressure of low-cost competitors on short and medium haul, and the competition from emerging countries' airline on long haul.
Air France response includes : (1) external growth, (2) partnerships and (3) segmentation.
Made with love by a team of students from EMLYON Business School.
It This PPT Things We Know :
Introduction:
Research:
Analysis:
Solution
Conclusion:
Recommendations:
MAIN ISSUE
===================================
For More: https://sunnyns60.wixsite.com/kodexhub
Case Study on GETTING AIRLINES ALLIANCES OFF THE GROUNDAJ Raina
This case study on GETTING AIRLINES ALLIANCES OFF THE GROUND (International Business) was prepared by the students of Era Business School, New Delhi (PGDM 2012-14 batch)
Star Alliance| formation of Star Alliance| Benefits and ServicesAishwarya Saraf
This presentation will help you know about Star Alliance, its formation, recent articles, benefits and services. latest article on its strategy shift will also help one to understand the Alliance more efficiently.
1
6
Virgin Atlantic SWOT Analysis
Introduction
Virgin Atlantic is an airline company from Britain owned by a top businessman known as Richard Branson. The parent company for Virgin Atlantic Airline is the Virgin Group that exists in the international market category. Leading unique selling points for the airline company comprise of premium airline, the upper middle class, in addition to the middle class categories. According to the organization background review, it is evident that Virgin Atlantic primarily targets reliability and passengers seeking comfort market segments as part of its target market segment. Preferred target groups comprise of Corporates, the upper middle class category, in addition to the middle class. Looking at the company’s position, it is evident that the airline company concentrates on the premium services that focus on customer experience as well as hospitality. In comparison with other passenger carrier airplanes, Virgin Atlantic is considered to be the seventh largest. Ever since its foundation, the airplane has carried approximately 5.4 million passengers in its different classes.
SWOT Analysis
Strengths
Virgin Atlantic depicts the ability to uphold a strong brand value through propagating the cool image that has been influenced by the owner. The airline maintains a remarkable image by making certain it remains appealing to the contemporary generation as well as exuberate factors such as vigor along with youthfulness. Being an industry trendsetter is an appropriate factor that is essential in airline business that most companies have failed to take into consideration. The ability to concentrate on quality is another ideal strength that is identifiable with the Virgin Atlantic ensures the company is constantly observing music quality despite the availability. Positioning is an important part that is easily identifiable when running operations in the airline industry. The company is stationed as the source of revenue brand despite the tickets being costly when compared to its rival organization (Carter, 2013). Virgin Atlantic ascertains that its service quality along with personalized attention directed towards customers is top notch to make the brand standout from its rivals. The ability to maintain multiple customer clusters is another relevant part of the strengths since it has three clusters that consist of economy, premium, in addition to luxury categories. Through making certain that the airline company ramps up and down its service quality as well as level of personalizing the organization has been the source of providing diverse standards of services for each category. Lastly, customer satisfaction has been another reliable strength aligned with the successful operations of Virgin Atlantic in the global market.
Weaknesses
Financial challenges have been the main weaknesses affiliated with the Atlantic Airlines in the present day following issues associated with Brexit that are likely to result i ...
NOTE This Industry overview is only a starting point for your an.docxhenrymartin15260
NOTE: This Industry overview is only a starting point for your analysis. Environment and industry issues can change rapidly and some of the information here may therefore be out-of-date.
You MUST supplement this information with additional research.
The Airline Industry
4940- Summer, 2014
Few inventions have changed how people live and experience the world as much as the invention of the airplane. During both World Wars, government subsidies and demands for new airplanes vastly improved techniques for their design and construction. Following World War II, the first commercial airplane routes were set up in Europe. Over time, air travel has become so commonplace that it would be hard to imagine life without it. The airline industry certainly has progressed. It has also altered the way in which people live and conduct business by shortening travel time and altering our concept of distance, making it possible for us to visit and conduct business in places once considered remote.
The airline industry exists in an intensely competitive market. In recent years, there has been an industry-wide shakedown, which will have far-reaching effects on the industry's trend towards expanding domestic and international services. In the past, the airline industry was at least partly government owned. This is still true in many countries, but in the U.S., all major airlines have come to be privately held. The U.S. airline industry has been in a chaotic state for a number of years. According to the Air Transport Association, the airline industry’s trade association, the loss from 1990 through 1994 was about $13 billion, while from 1995 through 2000, the airlines earned about $23 billion and then lost about $35 billion from 2001 through 2005. Against this backdrop of poor financial performance, dramatic changes in industry structure have occurred. Growth in air passenger traffic has outstripped growth in the overall economy and the U.S. airline industry remains in the midst of an historic restructuring. Over the last five years, U.S. network airlines have reduced their annualized mainline costs excluding fuel by more than 25%, or nearly $20 billion.
While some of the cost savings realized in the industry were the product of identifying greater operational efficiencies, most of the savings were generated by renegotiation of existing contractual arrangements with creditors, aircraft lessors, suppliers and airline employees and achieved either through the bankruptcy process itself or under threat of bankruptcy. A portion of industry capacity still operates in bankruptcy. But, it is down from a high of 46 percent in 2005. As a result, several carriers that were near liquidation now have lower cost structures that should allow them to show improved performance.
Economic profile of the Air line industry: The airline industry has always exhibited cyclicality because travelers' demand is sensitive to the performance of the macro economy yet airl.
Revenue management first appeared in the airline industry in the early 1980s. It arose from the need for accurate demand estimates and profit-generating resource allocations in a newly deregulated environment. We begin this program and this module with a look back at the main causes and consequences of airline deregulation in North America. We describe how the deregulated North American airline industry has encouraged a trend toward deregulation, or at least liberalization, worldwide. We then move on to introduce the basic concept involved in airline revenue management.
Digital Commerce Lecture for Advanced Digital & Social Media Strategy at UCLA...Valters Lauzums
E-commerce in 2024 is characterized by a dynamic blend of opportunities and significant challenges. Supply chain disruptions and inventory shortages are critical issues, leading to increased shipping delays and rising costs, which impact timely delivery and squeeze profit margins. Efficient logistics management is essential, yet it is often hampered by these external factors. Payment processing, while needing to ensure security and user convenience, grapples with preventing fraud and integrating diverse payment methods, adding another layer of complexity. Furthermore, fulfillment operations require a streamlined approach to handle volume spikes and maintain accuracy in order picking, packing, and shipping, all while meeting customers' heightened expectations for faster delivery times.
Amid these operational challenges, customer data has emerged as an important strategy. By focusing on personalization and enhancing customer experience from historical behavior, businesses can deliver improved website and brand experienced, better product recommendations, optimal promotions, and content to meet individual preferences. Better data analytics can also help in effectively creating marketing campaigns, improving customer retention, and driving product development and inventory management.
Innovative formats such as social commerce and live shopping are beginning to impact the digital commerce landscape, offering new ways to engage with customers and drive sales, and may provide opportunity for brands that have been priced out or seen a downturn with post-pandemic shopping behavior. Social commerce integrates shopping experiences directly into social media platforms, tapping into the massive user bases of these networks to increase reach and engagement. Live shopping, on the other hand, combines entertainment and real-time interaction, providing a dynamic platform for showcasing products and encouraging immediate purchases. These innovations not only enhance customer engagement but also provide valuable data for businesses to refine their strategies and deliver superior shopping experiences.
The e-commerce sector is evolving rapidly, and businesses that effectively manage operational challenges and implement innovative strategies are best positioned for long-term success.
Come learn how YOU can Animate and Illuminate the World with Generative AI's Explosive Power. Come sit in the driver's seat and learn to harness this great technology.
Top 3 Ways to Align Sales and Marketing Teams for Rapid GrowthDemandbase
In this session, Demandbase’s Stephanie Quinn, Sr. Director of Integrated and Digital Marketing, Devin Rosenberg, Director of Sales, and Kevin Rooney, Senior Director of Sales Development will share how sales and marketing shapes their day-to-day and what key areas are needed for true alignment.
When most people in the industry talk about online or digital reputation management, what they're really saying is Google search and PPC. And it's usually reactive, left dealing with the aftermath of negative information published somewhere online. That's outdated. It leaves executives, organizations and other high-profile individuals at a high risk of a digital reputation attack that spans channels and tactics. But the tools needed to safeguard against an attack are more cybersecurity-oriented than most marketing and communications professionals can manage. Business leaders Leaders grasp the importance; 83% of executives place reputation in their top five areas of risk, yet only 23% are confident in their ability to address it. To succeed in 2024 and beyond, you need to turn online reputation on its axis and think like an attacker.\
Key Takeaways:
- New framework for examining and safeguarding an online reputation
- Tools and techniques to keep you a step ahead
- Practical examples that demonstrate when to act, how to act and how to recover
Mastering Local SEO for Service Businesses in the AI Era is tailored specifically for local service providers like plumbers, dentists, and others seeking to dominate their local search landscape. This session delves into leveraging AI advancements to enhance your online visibility and search rankings through the Content Factory model, designed for creating high-impact, SEO-driven content. Discover the Dollar-a-Day advertising strategy, a cost-effective approach to boost your local SEO efforts and attract more customers with minimal investment. Gain practical insights on optimizing your online presence to meet the specific needs of local service seekers, ensuring your business not only appears but stands out in local searches. This concise, action-oriented workshop is your roadmap to navigating the complexities of digital marketing in the AI age, driving more leads, conversions, and ultimately, success for your local service business.
Key Takeaways:
Embrace AI for Local SEO: Learn to harness the power of AI technologies to optimize your website and content for local search. Understand the pivotal role AI plays in analyzing search trends and consumer behavior, enabling you to tailor your SEO strategies to meet the specific demands of your target local audience. Leverage the Content Factory Model: Discover the step-by-step process of creating SEO-optimized content at scale. This approach ensures a steady stream of high-quality content that engages local customers and boosts your search rankings. Get an action guide on implementing this model, complete with templates and scheduling strategies to maintain a consistent online presence. Maximize ROI with Dollar-a-Day Advertising: Dive into the cost-effective Dollar-a-Day advertising strategy that amplifies your visibility in local searches without breaking the bank. Learn how to strategically allocate your budget across platforms to target potential local customers effectively. The session includes an action guide on setting up, monitoring, and optimizing your ad campaigns to ensure maximum impact with minimal investment.
A.I. (artificial intelligence) platforms are popping up all the time, and many of them can and should be used to help grow your brand, increase your sales and decrease your marketing costs.In this presentation:We will review some of the best AI platforms that are available for you to use.We will interact with some of the platforms in real-time, so attendees can see how they work.We will also look at some current brands that are using AI to help them create marketing messages, saving them time and money in the process. Lastly, we will discuss the pros and cons of using AI in marketing & branding and have a lively conversation that includes comments from the audience.
Key Takeaways:
Attendees will learn about LLM platforms, like ChatGPT, and how they work, with preset examples and real time interactions with the platform. Attendees will learn about other AI platforms that are creating graphic design elements at the push of a button...pre-set examples and real-time interactions.Attendees will discuss the pros & cons of AI in marketing + branding and share their perspectives with one another. Attendees will learn about the cost savings and the time savings associated with using AI, should they choose to.
When most people in the industry talk about online or digital reputation management, what they're really saying is Google search and PPC. And it's usually reactive, left dealing with the aftermath of negative information published somewhere online. That's outdated. It leaves executives, organizations and other high-profile individuals at a high risk of a digital reputation attack that spans channels and tactics. But the tools needed to safeguard against an attack are more cybersecurity-oriented than most marketing and communications professionals can manage. Business leaders Leaders grasp the importance; 83% of executives place reputation in their top five areas of risk, yet only 23% are confident in their ability to address it. To succeed in 2024 and beyond, you need to turn online reputation on its axis and think like an attacker.
Key Takeaways:
- New framework for examining and safeguarding an online reputation
- Tools and techniques to keep you a step ahead
- Practical examples that demonstrate when to act, how to act and how to recover
Monthly Social Media News Update May 2024Andy Lambert
TL;DR. These are the three themes that stood out to us over the course of last month.
1️⃣ Social media is becoming increasingly significant for brand discovery. Marketers are now understanding the impact of social and budgets are shifting accordingly.
2️⃣ Instagram’s new algorithm and latest guidance will help us maintain organic growth. Instagram continues to evolve, but Reels remains the most crucial tool for growth.
3️⃣ Collaboration will help us unlock growth. Who we work with will define how fast we grow. Meta continues to evolve their Creator Marketplace and now TikTok are beginning to push ‘collabs’ more too.
Digital Money Maker Club – von Gunnar Kessler digital.focsh890
Title One is a comprehensive examination of the impact of digital technologies on
modern society. In a world where technology continues to advance rapidly, this article delves into the nuances and complexities of the digital age, exploring Its implications across various sectors and aspects of life.
It's another new era of digital and marketers are faced with making big bets on their digital strategy. If you are looking at modernizing your tech stack to support your digital evolution, there are a few can't miss (often overlooked) areas that should be part of every conversation. We'll cover setting your vision, avoiding siloes, adding a democratized approach to data strategy, localization, creating critical governance requirements and more. Attendees will walk away with actions they can take into initiatives they are running today and consider for the future.
Mastering Local SEO for Service Businesses in the AI Era is tailored specifically for local service providers like plumbers, dentists, and others seeking to dominate their local search landscape. This session delves into leveraging AI advancements to enhance your online visibility and search rankings through the Content Factory model, designed for creating high-impact, SEO-driven content. Discover the Dollar-a-Day advertising strategy, a cost-effective approach to boost your local SEO efforts and attract more customers with minimal investment. Gain practical insights on optimizing your online presence to meet the specific needs of local service seekers, ensuring your business not only appears but stands out in local searches. This concise, action-oriented workshop is your roadmap to navigating the complexities of digital marketing in the AI age, driving more leads, conversions, and ultimately, success for your local service business.
Key Takeaways:
Embrace AI for Local SEO: Learn to harness the power of AI technologies to optimize your website and content for local search. Understand the pivotal role AI plays in analyzing search trends and consumer behavior, enabling you to tailor your SEO strategies to meet the specific demands of your target local audience. Leverage the Content Factory Model: Discover the step-by-step process of creating SEO-optimized content at scale. This approach ensures a steady stream of high-quality content that engages local customers and boosts your search rankings. Get an action guide on implementing this model, complete with templates and scheduling strategies to maintain a consistent online presence. Maximize ROI with Dollar-a-Day Advertising: Dive into the cost-effective Dollar-a-Day advertising strategy that amplifies your visibility in local searches without breaking the bank. Learn how to strategically allocate your budget across platforms to target potential local customers effectively. The session includes an action guide on setting up, monitoring, and optimizing your ad campaigns to ensure maximum impact with minimal investment.
Most small businesses struggle to see marketing results. In this session, we will eliminate any confusion about what to do next, solving your marketing problems so your business can thrive. You’ll learn how to create a foundational marketing OS (operating system) based on neuroscience and backed by real-world results. You’ll be taught how to develop deep customer connections, and how to have your CRM dynamically segment and sell at any stage in the customer’s journey. By the end of the session, you’ll remove confusion and chaos and replace it with clarity and confidence for long-term marketing success.
Key Takeaways:
• Uncover the power of a foundational marketing system that dynamically communicates with prospects and customers on autopilot.
• Harness neuroscience and Tribal Alignment to transform your communication strategies, turning potential clients into fans and those fans into loyal customers.
• Discover the art of automated segmentation, pinpointing your most lucrative customers and identifying the optimal moments for successful conversions.
• Streamline your business with a content production plan that eliminates guesswork, wasted time, and money.
Most small businesses struggle to see marketing results. In this session, we will eliminate any confusion about what to do next, solving your marketing problems so your business can thrive. You’ll learn how to create a foundational marketing OS (operating system) based on neuroscience and backed by real-world results. You’ll be taught how to develop deep customer connections, and how to have your CRM dynamically segment and sell at any stage in the customer’s journey. By the end of the session, you’ll remove confusion and chaos and replace it with clarity and confidence for long-term marketing success.
Key Takeaways:
• Uncover the power of a foundational marketing system that dynamically communicates with prospects and customers on autopilot.
• Harness neuroscience and Tribal Alignment to transform your communication strategies, turning potential clients into fans and those fans into loyal customers.
• Discover the art of automated segmentation, pinpointing your most lucrative customers and identifying the optimal moments for successful conversions.
• Streamline your business with a content production plan that eliminates guesswork, wasted time, and money.
1. Indian Institute Of Forest Management
CASE STUDY ANAYSIS OF VIRGIN ATLANTIC AIRWAYS
Submitted by
Jasim Alam 1418
Pravel Jain 1426
Vivek Anand 1444
2.
3. VIRGIN ATLANTIC
Introduction
Initiated by Sir Richard Branson, founder of the Virgin group, “Virgin Atlantic took to the air in
1984” (Virgin Atlantic History, 2013) And it reflected all the values promoted by all the products
under the ‘virgin’ umbrella: “value for money, quality, innovation, fun and a sense of competitive
challenge” (Virgin Atlantic, About us, 2013) “On 20 December 1999 Richard Branson signed an
agreement to sell a 49% stake of Virgin Atlantic to Singapore Airlines to form a unique global
partnership.” (Virgin, about us, 2013) However, Branson retained the controlling 51% stake in
the company and focused on developing it into a successful airline.
Currently, Virgin Atlantic operates in the UK out of Heathrow airport: “We've only got 3% of the
slots at Heathrow, but we have 10% of the movements and a 23% or 24% market share on the
North Atlantic."(Kinglsley-Jones, M., 2011) And it has positioned its self as the main competitor
of British Airways.
Figure 1 Competitor’s
4. The success of the airline industry depends on numerous uncontrollable factors influencing the
market place. These range from volatile fuel prices, economic crises, natural catastrophes to an
increase in political as well as safety regulations, just to name a few of the challenges companies
face. In an environment with such intense rivalry, it is crucial to differentiate to survive; a point
which Virgin has continuously excelled at through their marketing communication efforts. Virgin
Atlantic has managed to transform their product into an experience, allowing their brand
personality to thoroughly shine through.
GENERAL ENVIRONMENT
Economic
The 9/11 attacks left a major impact that the airline industry is yet to recover from
The prolonged recession, fluctuations in oil prices and an imminent global slowdown
are factors that are affecting the growth.
Airlines have to cope with declining passengers, high fuel prices, competition from low-cost
airliners, labor demands and soaring operating and maintenance costs
Deregulation keeps airline fares so low as compared to that of other countries.
The reason for this is despite the failure of most entrants since deregulation, investors continue
to create new airlines.
Market implications: lowered airline tickets; discounts for senior citizens; discounts for group
travelers
Political-Legal
In January 1991, the UK opened Heathrow Airport to Virgin when it abolished the London
Air Traffic Distribution Rules in response to pressure from the industry.
Highly regulated political environment where passengers are favored over the airlines.
Passenger safety is paramount.
Government intervention are necessary to protect the passengers’ interests and airline
operations’ safety measures.
Social factors
Demand for air travel has increased significantly over the years.
5. Indicating ravel preferences among the latest generation.
The passenger profile has changed as well with there being more economically minded
passengers.
Business class passengers, improved communication facilities have reduced the need to fly
down for meetings.
Technological factors
Technology is also one of the four pillars under the International Airline Transport
Association’s (or IATA) strategy to address climate change.
To survive the intense competition companies must adopt the latest technology.
Use of advanced aircraft technology results in lower fuel consumption this improves efficiency
and the cost of airline operations.
INDUSTRY ENVIRONMENT
Barriers to Entry (Medium to High)
Initial investment capital is high cannot be afforded by all.
Existing market players have already stabilized their positions and have also created a brand
identity.
Fuel is the largest barrier to entry for the new comers.
According to a 2012 report in the New York Times, fuel costs account for up to 50 percent of
an airline’s expenses.
Airlines are subject to a significant range of government regulations, and complying with all
of them can be a barrier.
New pilots tend to prefer a career with an established company rather than a riskier startup.
Bargaining power of the suppliers (High)
The main supplier for airlines is obviously its aircraft manufacturer.
In Virgin Atlantic case, the main aircraft manufacturers are Boeing and Airbus.
Fuel companies are also one of the key suppliers for airlines, since fuel is the basic necessity
for aircraft in order to operate.
The airport itself supplies the services needed by aircrafts. IT companies such as IBM and
NCR can be classified as suppliers as they supply IT solutions.
6. Bargaining power of the buyers (Medium)
Virgin Atlantic Airways is known for the quality service render to their passengers.
The Virgin Atlantic Airways offers the cheapest airfare so that the passengers can afford.
Passengers were used to purchase their tickets directly from the airlines company.
At that time, bargaining power of customers was very low
Now every airline spreads its distribution channel everywhere even overseas to keep up with
the competition this enables the airlines to cover a larger market.
Competition (High)
American Airlines Group Inc., BRITISH AIRWAYS PLC, AIR FRANCE - KLM
Reduced government role and protective rules have lead to the increased competition among
airlines.
Competitors in the industry have same capability in terms of interactivity of their web page.
Already established brands
Possess global identity hence large customer based
Big Players having similar models
Availability of Substitutes (Medium)
For every product or service a company offers, there is always a potential of a substitute for it.
Virgin Atlantic Airways operates completely in air transportation.
Air transportation is utilized by people who need to travel faster and time efficiency is crucial
for them.
If time is not a main consideration, people might choose to travel by sea or land and this saves
them a lot of money.
The main substitutes for airline industry are trains, buses and ships.
7. SWOT Analysis
Strenghts
Comprehensive Service
Cargo
Strong brand Image
Brand loyalty
Brand awareness
Effective Communication,
campaigns, Innovation
Uniques product(differentiation)
Receive awards consistently
Weakness
Lack of Scale compared to
competitors
Fleet size
Limtited routes
Threats
Price Wars
Economic downturn
Unpredictable fuel prices
Opportunities
Expansion into Asian market
Growth of Air Industry
SWOT
8. Business Strategies
Cost Leadership
Low cost carriers (LCCs) as well as mid-range airlines are appealing to a broad scope of
consumers.
As Virgin Atlantic does not fall into the low cost category, but pioneered unique features
to differentiate their services, they have adopted a differentiation strategy.
LCCs follow a cost leadership strategy, Virgin Atlantic are offering the same value for
product, in this case the flight, at a lower price.
This tends to attract a larger number of customers and allows them to sell higher volumes
at lower margins.
Differentiation
The recent changes in passenger needs have influenced the trend and direction of the
aviation market.
Passengers desire to be presented with the option to choose the components of their
service package individually.
Virgin Atlantic pioneered with offering flexible, customizable service.
Providing the passengers with choices makes them feel as though they are able to own
the experience, which increases customer satisfaction, ultimately leading to enhanced
brand loyalty.
Their upper class passengers are able to access the office area, the in-flight bar and spa
area even personalizing meal times.
Virgin Atlantic aims at end-to-end service, on and off the plane, allowing passengers to
even book Virgin-sponsored motorcycles or limousines for their airport transfer.
9. Recommendation
The first proposal involves Virgin Atlantic becoming a public company rather than a
privately owned one. This would be recommendable, as the company needs an injection
of capital to continue delivering value to its customers. With a current fleet only 38 planes
strong the company needs to grow both internally, purchasing more planes and hiring
more personnel, and externally by servicing more routes
The second proposal suggests that Virgin merges with a South-East Asian airway.
Currently Singapore Airlines owns part of virgin Atlantic, however a full partnership would
allow for the British company to penetrate the profitable Asian market.