Analysis of Virgin Australia Internal Environment assignment
Added on 2021-06-15
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Leadership Management
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Business 1BUSINESS: A BUSINESS REPORT ON ANALYSIS OF VIRGIN AUSTRALIA INTERNALENVIRONMENT AND COMPETITIVE ADVANTAGENameCourseTutorUniversityCity/StateDate
Business 2Executive SummaryMaking prudent and practical use of organizational resources to achieve organizationalgoals and objectives has become a significant concern for the corporate management team. Theefficiency of a company is measured by its ability make the most productive use of its resources.The purpose of this report was to provide an analysis of Virgin Australia internal environmentand their impact on achieving competitive advantage. It has also offered a recommendation of astrategic direction the company should take in a move to improve its efficiency regardingresource development to enhance their competitiveness in the Australia Airline Industry.IntroductionOrganization strategic management goals involve developing and implementingstrategies that will help in achieving the company short and long-term goals and objectives of theorganization. It is a continuous process, and most times it keeps changing as the organizationevolves. To develop an effective strategic management plan then the organization has to givecritical consideration to the resource capability of the organization as well as improve a criticalanalysis of its internal and external environments (Utami 2017, p. 17). One of the mainchallenges facing the management of different organizations in today’s competitive globalenvironments is building a competitive advantage. Most organizations have gained a competitiveadvantage through increasing their efficiency in service delivery, quality, by being flexible intheir operations as well as focusing on customer responsiveness. However, energy in businessoperations will be determined by the organization's ability to make the most productive use of itsresources (Davis & Simpson 2017, p. 19). Therefore the primary issue of concern in strategicmanagement for most managers has been making prudent and practical use of organization
Business 3resources and capabilities to achieve their organizational objectives in the prevailing externalconditions. This report, therefore, seeks to provide an analysis of Virgin Australia Airlinesinternal environments and recommend a strategic direction that will help in improving thecompany competitive advantage in the industry.Analysis of Virgin Australia Airlines Internal EnvironmentThe Virgin Australia Airlines is an airline company operating under the Virgin Groupand was founded by British Businessman Richard Branson. It is the second largest airlines aftertheir main competitor Qantas airlines. The company worked initially as a small carrier wheremost of their market concentration was on low-cost services. However, the company hasexperienced tremendous growth rates and improvement in its operations which has enabled it tobecome the new world carrier and enjoys a significant market concentration (Gross & Lück2016, p. 32). The substantial growth in the company was realized in the year 2011 and wasattributed to the efforts of the company to introduce new services in the airline such as newcatering services onboard, business class carrier, new wide-body aircraft as well as new uniformsfor their staffs. The company has been able to develop its market structure as well as theirconsumer base to cover significant destinations within and outside Australia. Its focus has beento expand its services in the market with the aim of satisfying their customer demands. Such astrategy has enabled the company to increase its customer base with the international airlinemarket by having a share of up to 36 percent.Analysis of the company Internal ResourcesVirgin Australia internal factors have placed the company in a strong market position andtherefore providing a competitive advantage to the company over its competitors. The Australian
Business 4Airline industry has become very competitive with the major players such as Qantas, Jetstar andTiger airways improving their efficiency to dominate the industry. Therefore the companycompetitive advantage has been able to be achieved through the development of the companykey strengths and capabilities. The ability to utilize the available company resources formaximum benefit is essential in improving a firm’s efficiency in the industry (Wheelen et al.2017, p. 27). One of the most resourceful departments of the company has been the humanresource department. The company has been able to employ very relaxed vibrant young peoplein the customer service department. The staff working in the industry is the most important assetsas they contribute to increased productivity of the company (Srisaeng et al. 2014, p. 208). Thecompany has therefore been able to offer sufficient customer services to their customers. Thecompany has been voted severally as the best airline with good flying and aircraft recordattributed to their customer service.Regarding their financial resources which play a significant role in the development ofthe airline services, the company has been able to establish itself in a strong financial position.This has been achieved through a cost advantage strategy as well as its membership to the HugeVirgin Group. The cost advantage strategy was initiated by the company to offer low fare pricesto the domestic services by providing discounts across various destinations in Australia (Zhang2015, p. 22). This has enabled the company to experience increased customers in their airlinesand therefore improving their profitability and strengthening their financial position in the airlineindustry. Its membership to the Virgin Group which is one of the world’s largest and successfulcorporate groups enables the company to enjoy continued support regarding finances,innovations and increased competitive challenges.
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