The paper "Strategic Management of Virgin Atlantic" is an outstanding example of a management case study. Virgin Atlantic is a British based Airline Company owned by Richard Branson and is headquartered in Crawley, England. The aim of writing this report is to suggest new goals and strategies for Virgin Airlines after conducting situational analysis using Porter five forces and SWOT analysis. Environmental analysis is essential for Virgin as it seeks to increase its market share in a competitive airline market (Hill & Jones, 2009). Recommendations of the various goals and strategies will help the company reposition and make strategic decisions based on tactical plans to improve its performance and brand image.
The report will help in understanding the influence of competitors and levels of substitution. The first section of the report will include a preview of the current position of the company including the mission statement. The second section will be a situational analysis of Virgin Airlines using both SWOT and Porters competitive five forces as management tools. This part explains the merits of using both management tools and undertakes internal environment analysis of Virgin Atlantic Airlines.
The third section provides recommendations on new goals and strategies as well as the rationale and corresponding action plans. The final section is a summary of the strategies recommended in the report and an appeal to the CEO, Virgin Airlines to adopt the report. 1.1 Current Situation: Virgin Airlines Virgin Airlines connects to more than 35 global destinations. It is perceived by many customers as a market leader in value addition especially visible customer innovation such as no smoking, individual TV’ s in all classes, arrivals lounge, mobile and social media connectivity on board and at-seat podcasting (Parker, 2013).
Differentiation strategy using more than £ 10 million has built the upper-class service to extol sense of fun, quality and innovation (Martyn, 2000). Global e-invoicing solutions have improved service delivery of suppliers and tax compliance for Virgin Atlantic Airlines. In developing the social business concept, the airline used social media platforms like Twitter and Facebook but these tools are cannot equip a business with culture, processes and skills to enhance the brand (Oldroyd & Oldroyd, 2007). In the words of Richard Branson, the founder, ‘ Complexity is your enemy’ allowing Virgin to place greater value on simplicity.
Virgin Atlantic’ s mission statement is simple and it is about growing a profitable airline in which people will love to work and where people will love to fly (Parker, 2013). 1.2 Discussion 1.2.1 Situational Analysis 188.8.131.52 SWOT SWOT (Strengths, Weaknesses, Opportunities and Threats) is applied to understand the internal performance of a company. It explores financial position, employee performance and motivation, infrastructural development and technology, market opportunities and operational threats (Pahl & Tichter, 2009). Strengths: Virgin Atlantic airline technology is amazing.
The company has spent more than £ 10million in marketing segmentation strategies. The flexibility of the airlines to diversity such as children, disabled and the aged has improved customer perception. Weaknesses: The Company has limited airlines, global destinations and limited expansion to territories least susceptible to terrorist attacks. The crew does not have a sense of fun and satisfaction for the hard work done in meeting company goals. The company still lacks transparency in handling employee issues.