Virgin Atlantic Airlines Strategy
1.0 Analysis on the Organization
The airport dominance has grown competitive in the hospitality industry of every country. Accommodating this competitive growth is the role it plays in the helping the economy to survive. There is always a different philosophy in every business venture in the heads of the entrepreneurs and airlines are a huge investment that still on the case-to-case basis for survival. In addition, there is a regulation that is strictly implemented in the market which makes the competitive advantage hard to catch. The specific strategy that can be applied is out of interest in finding dominant position. This is the evolving issues for the changes that might happen inside an organization. The similarities, differences and crossing out of the unlikely process and procedures are the continuous methods applied in the intermediate term of the company’s existence (2007).
2.0 Sustainable Competitive Advantage
The Virgin Airline’s outrageous connection to media gave the business a huge market competency advantage. The accessibility to the media such as television, radio, and even newspapers gave the business and the other business under the Virgin Group give the opportunity to promote each other. The leadership of Mr. Richard Branson gave an incredible impact on this matter.
2.1 SWOT Analysis
First is the Virgin Airlines’ Strengths, there is no doubt that influence, values and legacy of Mr. Bronson is one of their major strengths. Other advantage is that the business is privately owned which means they can manage the business well without the aid of following the government’s restrictions. The business also set the good image and good marketing strategy which reflects in promoting each other’s business as part of the alliance. Since it is the first company that offers low prices, they also get a chance to lease the aircrafts. Another factor is the strong leadership team of the seniors who are qualified enough in leading the entire organization toward the competency.
Second are the Weaknesses behind the Virgin Airlines. Because of the different business try-outs of MR. Branson, he is also part of his business’s weakness. All of his proposed projects or business’ strategies affect his other business although it is successful and stable. Another weakness is the low return of cash flow because they offer low prices for the passengers and there is a high expenditure for maintenance of the aircraft and sustaining the quality of their service. The direct route from London to New York is also considered as part of the weakness because it only promotes the limited destinations.
Third are the Opportunities for the Virgin Airlines. There are more cities open for another hospitality service and based on the smooth record of the airline, it is another success for them. Some of the large airline companies had experienced bankruptcy and it is a great opportunity and in addition, the European Union is on their side to support.
Threats are the fourth analysis on the airlines. The rapid growth and change in the world economy is a factor of threat because of the New Airline Restrictions. Another is the competition and high prices on the cost of fuels, threats on the terrorism, over flight restrictions, and the new airline companies are the other existing threats.
3.0 Strategy
The possible strategies of the airline can be through the expansion of partnerships to broaden the service of the Virgin Alliance and start providing the quality of service in smaller markets. They can also try to invest in U.S. for there is a great possibility to capture the markets. Since the airline id popular because of their service offered, they can answer the needs of the customers in the cities where there is a large group of jetsetters and business class which is another advantage to increase the rate of return of the customers (2000).
Although the advertising is effective, the company should make it more intense to stay well in the market competition. This will keep the airline be above the standard of their service. In addition, they can even try other marketing strategies. The existing credit cards can be valued and it is more applicable if the advertisement they will create is in the language the potential customers can understand.
The Richard Branson Factor
Mr. Branson incorporated the business under the certain criteria or conditions – it should be in high quality; the business should promote innovation; provide a good value for the money; it should introduce a kind of challenge to existing alternatives; and it must be also with the sense of fun.
Virgin Atlantic started back in 1984 with a single 747-200 and flying in route of London to New York. Aside from the gasoline, the business was fueled with two ideas – to offer low price and have a better service. Passengers are the treated as visitors and the business thought of the things to serve better meals, offer more entertainment, create fun, and acquire smiling and enthusiastic flight crews. For over the years, the airlines shook the industry with the project for innovation to provide the quality of service and entertainment. The airline is the first to offer two choices of meals, even in economy class, and spa-services. Thus, they became the industry most favorite in airlines and second largest long-haul carrier on the route of London to New York ( 2004).
The leadership of Mr. Branson is felt by all of his flight crews and supports them in every step they create. The ingredients to success that Mr. Branson formulated is first, he is unafraid to failures and instead of sticking with one you know, he proposes the idea of making great things – if an entrepreneur knows one business, then he will know any business. Another is to focus on his employee and staying the course as if in placing the control over the business.
The different entered businesses of Mr. Branson are not all successful and there are many problems which are different on the leader’s idealistic mind. Even if the Virgin Group failed at the other invested business, they still keep the values which is unique than the other organizations.
Conclusion
The Bransonism, taken from the name of Mr. Branson, believes in the idea that if the company grows larger and larger, the leader should treat the people working under him as human beings and as essential players of the organization. More over, he believes that a business will fail if he doesn’t give it try for failures are the start of great things. And a leader should find the people who are good at motivating the others and getting the best out of people. Virgin Airlines has expanded and reached the United States, Asia, and South Africa. Only Mr. Branson set sights in building the domain in United States if he can tear down the barriers blocking foreign-owned airlines from offering routes the United States.
Credit:ivythesis.typepad.com
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