Virgin Atlantic Case Study

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Virgin Atlantic Case Study

Company Name

Virgin Atlantic

Type of Industry

Aviation 

Headquarters

Crawley West Sussex, England,

Heathrow,

Gatwick

Sales/Revenue

2,689 million (2016)

Area Served

Worldwide

Number of Stores

NA

Competition

Air India.

Singapore Airlines.

Etihad Airways.

Malaysia Airlines.

Qatar Airways.

Qantas Airways.

Lufthansa.

British Airways.

USP

Provision for luxury at affordable price

Target Group

Individuals and corporations

Products

A330-200 aircraft, A340-600 aircraft G-VNAP etc

Website

www.virginatlantic.com

Virgin Atlantic Introduction

The British airline giant, Virgin Atlantic (which is a trading name of Virgin Atlantic Airways Limited and Virgin Atlantic International Limited) has accomplished success in expanding its business globally by the dint of the implementation of the right business strategy at the right time. Since 2016 the operating income of the Company is on the rise and this is owing to the impeccable business strategy that Virgin Atlantic has been able to introduce and implement. A SWOT and PESTLE analysis of the Company is essential to strengthen the Virgin Atlantic case study and to determine how the Company is operating within a given business environment adapting to different business challenges. It is in order to assess and evaluate the efficacy of the business position of Virgin Atlantic that the Virgin Atlantic case study has become an imperative.

Virgin Atlantic Swot Analysis

The Virgin Atlantic case study should has to be started with a Strength, Weakness, Opportunities and Threats (SWOT) analysis of Virgin Atlantic. This beginning is needed to make certain a logical flow in the Virgin Atlantic case study.

Strengths

The primary strength depicted by Virgin Atlantic, as the Virgin Atlantic case study reveals, is the Company’s strong brand value. The immaculate brand image of the Company has helped Virgin Atlantic to expand its business on a global basis. Moreover, the unique branding strategies implemented by the Company also allow it to become one of the strongest names in the aviation industry today. Besides, innovation is also a strength of Virgin Atlantic and by the dint of being innovative it has been able to dominate the domestic and international markets. Furthermore, it should be noted that a strong North Atlantic networking has added to the strength of the Company in a thorough manner. It should also be noted that continuous improvement of the IT and support systems has also ensured success for Virgin Atlantic. Apart from this, a successful joint venture with Delta has also added the Company’s business vigor.

Weakness

The pivotal weakness of the Company is its inability to ensure a global presence in the way that its competitors have done. Besides, as the Virgin Atlantic case study reveals, a thorough dependency on Richard Branson’s strategies has also confined the Company’s success reach. It should also be taken into account that the very nature of the organizational structure of the Company, i.e. private ownership, has also limited the outreach of the business in a thorough manner. This limitation has again added to the Company’s weakness.

Opportunities

Introduction of new fleets and opening of new routes should be considered growth opportunities for Virgin Atlantic. Moreover, as the Virgin Atlantic case study reveals, the paving of a new runway at Heathrow airport has also opened the doors of opportunity for Virgin Atlantic to introduce more fleets to meet the demand of the customers. Besides, the Company has the opportunity to spread its business through setting up successful alliances with other airline giants like Air-France, which will allow the Company to expand its business thoroughly and effectively. It should also be noted that the present alliance with Delta has also provided ample opportunities to Virgin Atlantic to reach out to more potential customers.

Threats

The Company is faced with certain specific threats and the North Atlantic overcapacity should be considered as one of the primary threats in this regard. Moreover, the unstable political relation between the member states of the European Union (EU) should also be considered a threat to Virgin Atlantic’s business as such instability may result into political chaos and confusion, hindering the growth prospects of business operating within the EU. Moreover, as the Virgin Atlantic case study reveals, the growing competition within the aviation industry and the growing strength of the competitors also pose serious threat to the Company’s domestic and international business.

Virgin Atlantic Pestle Analysis

To make sure that the completion of the Virgin Atlantic case study is done effectively, it becomes essential to conduct a thorough analysis of the political, economic, social, technological, and legal environments in which Virgin Atlantic operates. Evaluation of the aforesaid factors against the backdrop of some precise environmental factors will provide a deeper insight into Virgin Atlantic’s global business standing.

Political Environment

The political environment, in which a business operates, plays a vital role in determining either success or failure on the part of the concerned business. This holds true for Virgin Atlantic too. In respect of determining the political environment amidst which the Company is operating, it becomes essential to mention the negative impact that BREXIT has been rendering on the Company’s business. Moreover, the indecisiveness of the EU leaders in terms of determining a strong future business strategy has added to the dilemma through which Virgin Atlantic is suffering. But Britain’s favorable trade policies may be a positive sign for the Company’s future business growth and development.

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Economic Environment

The economic environment renders large impact on any business and in this respect Virgin Atlantic is no exception. The Virgin Atlantic case study reveals that, low interest rates and the dropping price of fuel have been two primary economic reasons that have contributed to Virgin Atlantic’s business growth and development on a global basis. But it should be noted that the British currency depreciation is an economic issue that is going to impact negatively on Virgin Atlantic’s business in a thorough manner.

Social/Socio-Cultural Environment

The ability of the Company to meet the demands of its stakeholders should be considered a positive social facet that has helped the business growth of Virgin Atlantic. Moreover, the corporate social responsibility (CSR) activities of the Company have added to its market reputation as a socially responsible Company. The Company’s sustainability efforts have not only promoted social well-being of its stakeholders but have also promised quality life to majority of its stakeholders (Virgin Atlantic Airways Ltd, 2019). Besides, a sustainable supply chain has added to the Company’s market reputation in a thorough manner.

Technological Environment

The introduction of the AIR 4 technology should be considered to be a landmark scenario in terms of advancing the technological build up of the global aviation industry, and this will be surely boosting Virgin Atlantic’s business in the future. But simultaneously, digital disruptions should be considered a technical glitch that has the potential to trouble Virgin Atlantic’s business in the long-run.

Legal Environment

The differences between PPU and BALPA can have adverse legal effects on the business of Virgin Atlantic. Moreover, the volatile legal environment of the EU will also, as assumed, negatively impact on Virgin Atlantic’s domestic and global business in a thorough manner.

Environmental Factors

Carbon neutrality should be considered an effective strategy on Virgin Atlantic’s part that has the scope to establish the business as an environment-friendly one. The sustainability efforts of Virgin Atlantic will also render a positive ecological and environmental impact that will surely boost the environment-orientation of the Company in both the short- and long-run.

Conclusion

The Virgin Atlantic case study has revealed that the Company has been able to establish its market reputation through investing in social and environment needs. Both the SWOT and PESTLE analyses suggested the fact that Virgin Atlantic is continuing to emerge as a leader within its industry, promoting itself as a customer-oriented, environmental-friendly, and energy-efficient business entity.

References

Virgin Atlantic Airways Ltd (2019). Change is in the Air. Retrieved August 12, 2019, from https://corporate.virginatlantic.com/gb/en/sustainability.html

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