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Virgin atlantic

The document outlines details of a business strategy for an airline, including its group members, strategies to focus on corporate segments and long-distance flights while providing all classes at low fares. It also includes analyses of the airline industry using Porter's 5 Forces and PEST frameworks, a SWOT analysis of the company, and recommendations to aggressively expand in Asia and South America while increasing its aircraft fleet and forming strategic alliances.

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Group Members o Divyani (10072) o Ishani () oGagandeep (10073) o Bhargav (10068)
Strategy • To focus on corporate segment • Long distance flights • Provide all classes – at lowest faresComparative Flight Revenues for VAA and BA – 2003 • Tailor made service • Branson Brand
Porter’s 5 Forces (Industry Analysis) Threat of Potential Entrants (High) -Alliance of other airlines - Establishment of a new airline company Competitive Rivalry (High) -BA & new airline alliance Power of Suppliers (High) (smaller airlines grouping Power of Buyers (High) -Fuel suppliers together) -Competitive prices from - Manufacturers: Airbus & - Fly Emirates (recently competitors Boeing signed the contract for 90 - New Airline A380’s) Threat of Substitutes (Low) - No threats for long-haul routes
SWOT Analysis • Most attractive • Small player Cabin & Crew • Small fleet • Unique informal and Cool treatment • Profit making airline Strength Weekness Opportunity Threats • Bio fuel • Recession • Brand Value • Terrorism • Technology
PEST Analysis • Approvals to • Rising fuel cost expand & • taxes Government relations Political Economical Social Technological • Fall in number of • Use of bio fuel business travelers • Fall in tourism industry
Mission and Vision Vision: • Forgetting what made you famous Mission: • Mission 1: To grow a profitable airline • Mission 2: Where people love to fly • Mission 3: And where people love to work
Comparative Flight Revenues for VAA and BA - 2003 Upper class 50 seats at $ 1,195 = $ 59,750 47 % • VAA Mid class 38 seats at $ 473 = $ 17,974 14 % Economy 271 seats at $ 185 = $ 127, 859 39 % Total Revenues = $ 127, 859 • BA First Class 18 seats at $ = $ 34, 830 15 % 1,935 Club World 70 seats at $ = $ 74,270 32 % 1,061 World Traveller 282 seats at $ $ = $ 125,490 53 % 445 Total Revenues = $ 234, 590
Recommendations • Aggressive expansion in Asia, South America • Increase the aircraft fleet • Form a strategic alliance with other airlines • Maintain relationships with Upper Class customers • Globalize the Virgin brand further
Losing My Virginity • "A brand name that is known internationally for innovation, quality and a sense of fun - this is what we have always aspired to with Virgin.“ • Mine’s Bigger than Yours • 4 Engines 4 Long-Haul • No way BA/AA • Still Red Hot for 25 Years