Custom «Virgin Atlantic Airline’s» Essay Paper Sample

Virgin Atlantic Airline’s

Virgin Atlantic is one of the worlds leading long haul airlines. The company has gotten into partnership with aircraft maker Boeing including the largest order yet in the European airline market. Among the many successful international companies, Virgin Atlantic’s vision statement details its history and their vision for the future (Collin, 2009). Their vision and mission statements are powerful and compelling. In addition, they convey confidence and inspiration to their staff and customers. Virgin Atlantic Airlines whose vision statement is “The success of our three year strategy requires us to build on these foundations by focusing on the business and leisure markets and driving efficiency and effectiveness.” The Company has ensured that the importance of the Vision statement is not underestimated. This is because the simple paragraph has been used to describe the values, services as well as vision for the future. In addition, the Vision statement provides inspiration to develop successfully and explanatory motivation for it associates, customers and employees (Collin, 2009).

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Furthermore, Virgin Atlantics mission Statement is “to become the world leading Sub-orbital commercial airline service provider, reaching an altitude of 62 miles above the earth for a modest 200 thousand dollars per ticket”. The purpose of this mission statement is to help everyone, a fact that Virgin Atlantic has strived to achieve. Moreover, the mission statement of any organization just as the case with Virgin Atlantic is what the company does. Virgin Atlantic has used its mission statement to continue in its global expansion. This has made it possible for this organization to fly to several cities including third world countries (Collin, 2009). For instance, by following its mission statement, Virgin Atlantic placed Europe’s largest order for the Boeing 787 Dream liners which uses less fuel compared to the airbuses A340-300 (Collin, 2009).

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External Assessment of Virgin Atlantic, Utilizing Porter’s Model for a Competitive Analysis

The major reason for putting Porter’s model into practice is to help an organization identify threats to its competitive position. In addition, it helps an organization devise plans such as the use of IT and e-commerce to enhance and protect their current position. Virgin Atlantic has put into practice the Porter’s five forces to understand where power lies in its business situation (Kossowski, 2007). For instance, Virgin Atlantic has used Porter’s model to understand the supplier’s power. This is used to asses how easy it is for its suppliers to increases prices. This is influenced by the number of its major suppliers such as Boeing. The uniqueness of the supplier and how key they are to the organization determine their power (Kossowski, 2007).

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The second force described by Porter is the buyer’s power. The question any business owner should ask is how powerful the client is to pull down their prices. Virgin Atlantic having high number of customers, the number and importance of each and the cost of them choosing another airline drives the companies market share. Virgin Atlantic has managed to deal with many, but powerful customers to ensure that it retains control over them (Kossowski, 2007). Thirdly competitive rivalry is another force that Virgin Atlantic has implemented from Porter’s model. What is important here is the number and potential of Virgin Atlantics competitors such as British Airways, Etihad Airways and many more. Virgin ensures it offers competitive rates and reliable and high quality services to remain in the market. Threat for substitution and threat of new entry are other forces in the model. Substitution affects an organization if it finds al alternative to what is already in market (Kossowski, 2007).

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Five Year Corporate Strategy

Virgin Atlantic has come up with various marketing strategies with an aim of identifying its target markets and identifying related marketing mix. In addition, the organizations strategy is the firm to plan in building a suitable and competitive advantage. A suitable and competitive advantage is one that is aimed at attaining advantage over the organizations competitors with a competition strategy that is not easily copied (Martin, 2010). This makes it sustainable and maintained over a long period of time. Some of the market strategies that Virgin Atlantic has put in place are to upgrade customer experience through the introduction of text as well as mobile services for business class customers. This is aimed at enhancing fast communication and correspondence (Martin, 2010).

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In addition, Virgin Atlantic strategizes on penetrating markets through the employment of modern aircrafts fleet as well as offering new services. In addition it aims at managing the cost base so as to remain comparative in the market. This will both help the organization develop its market and products.  In addition, Virgin Atlantic is involving in corporate responsibility through the environmental performance and partnership. This is aimed at helping the organization penetrate the market and as well develop its market apart from its services and products.  This service is offered by both clients and suppliers (Martin, 2010). Furthermore, the organization has focused in customer excellence. The organization focuses on retaining customers that are loyal through the provision of excellent customer related services. Moreover, Virgin Atlantic involves in operational excellence to maintain market penetration and dominance.  This is achieved through efficient operation as well as excellent supply chain to its customers and human resource management.

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SWOT Analysis on Virgin Atlantic

The SWOT analysis for Virgin Atlantic gives the companies major business structure and operations, history as well as products. This also provides information as well as summary analysis of its revenue lines and strategies.


Virgin Atlantic has several strengths of which it boasts of (Drucker, 2009). They include cost advantage and asset leverage. Others include effective communication, online growth as well as market share leadership. Strong brand equity and a strong financial position are part of its strengths.


 However, some of the company’s weaknesses include lack of diversification, diseconomies of scale as well as low R&D. Others include ubiqualitiouegory, products, services and a weak real estate (Drucker, 2009). It should be noted that some of the strengths of Virgin Atlantic are considered as weaknesses to some of its competitors.

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In the SWOT analysis, Virgin Atlantic also has certain opportunities that it can capitalize on. They include acquisitions, assets leverage as well as innovation through new technology. The organization can also involve in product and service expansion.


On the other hand, its threats include competition from other airlines with cheaper technology (Sandhasen, 2008). Economic slow down and external changes in government, politics and taxes are also threats to future expansion. Exchange rates keep fluctuating causing threats to the organization too. Others include price wars and lower cost competitors or imports (Drucker, 2009).

In conclusion, Virgin Atlantic should involve in corporate responsibility that will ensure its future is bright. The organization can be part of environmental management and conversation. This is a corporate responsibility that Virgin Atlantic can involve in together with manufactures, suppliers such as Boeing, and jet fuel manufactures in ensuring that engine emissions are safe to the environment. In addition, Virgin Atlantic can also involve in corporate affairs with other Data providers that will provide the organization with in-depth research, analysis, data as well as a forecast through a variety of interactive database.                            This will also provide database, reports and management styles. Involving in corporate responsibility with companies such as GlabalData, which as global presence can provide market intelligence and thus improve customer satisfaction.

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