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Business Assignment: Strategic Management

   

Added on  2020-05-28

9 Pages1919 Words36 Views
Running Head: Strategic Management Strategic managementVirgin Airlines

Strategic ManagementContentsIntroduction......................................................................................................................................1Current strategies.............................................................................................................................1PEST Analysis.............................................................................................................................2Richard Branson bids goodbye....................................................................................................2Limited Markets...........................................................................................................................2Recommendations............................................................................................................................3Expanding markets.......................................................................................................................3Effective Marketing.....................................................................................................................3Brand Positioning.........................................................................................................................4Conclusion.......................................................................................................................................5References........................................................................................................................................6

Strategic ManagementIntroductionVirgin airlines is a leading airline company which was formerly better known as Virgin Blue Airlines. It is Australia’s second largest airline. The airline is co-founded by the famous businessman and serial entrepreneur Richard Branson. The airlines came into existence in 1999 and currently serves over 30 cities of Australia with hubs in Brisbane, Melbourne and Sydney (Krupp & Schoemaker, 2014). The airline offers economy class, upper economy class and business class services to its customers. The enterprise has done a tremendous job at targeting and catering to a varied market with its no frills as well as premium paid services. The biggest competitor of Virgin airlines is British airways besides Lufthansa, American airlines and Cathy pacific. This report throws light on various strategies used by Virgin airlines and their success as well as failure in the business. The airline industry on the whole is growing at a rapid pace. This is dedicated to factors like improved lifestyles, slashing oil prices and increasing globalization which is making the world a flatter place (Homsombat, Lei & Fu, 2014). During the past 20 years, international aviation capacity has grown from 9.3 million inbound seats in 1995 to 24.6 million seats in 2016 (Tourism Australia, 2017). But the increasing growth of the industry has been complemented by increasing competition among the players of the industry. Product competent airlines are offering better in flight services while price competent airlines are offering lower cost to customer for travel. Current strategies At present Virgin Airlines has witnessed a drop in the number of customers as well as total generated revenue (The Economist, 2014). A few reasons for the decline may be attributed to themarket and industry scenario while a few are the marketing loopholes within the branding of the airlines. To gauge a better understanding of the industry, PEST analysis tools has been used as given below:

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