The Strategic Analysis Of Virgin Airlines

STRATEGIC ANALYSIS OF
VIRGIN AIRLINES

EXECUTIVE SUMMARY
The topic of the study is the strategic analysis of Virgin Airlines which includes the
identification of the key issue challenges regarding the micro and macro environment and what
impact it have that is positive and negative on the Virgin Airlines performance. It also includes
the detailed analysis with the application of PESTLE that is (political, economical, social,
technological,legal and environmental) factors and SWOT analysis to identify (strength
weaknesses, opportunities and strengths) and with Porters five force model to identify the
various stakeholders working in the environment. It also covers the potential scenario and
strategic recommendations for the Virgin airlines.

Table of Contents
EXECUTIVE SUMMARY ............................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
SECTION 1 PESTLE ANALYSES ...........................................................................................1
Section 2:- Five forces framework of virgin airlines ( micro environmental analysis)..............3
Section 3: SWOT analysis of virgin airlines .............................................................................5
4. potential scenario for the near future of the virgin airlines....................................................7
CONCLUSION ............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Strategic analysis refers to the procedure which includes researching the business
environment of the administration in which it runs as well it is very important to evaluate the
strategic planning which can result to effective decision making and efficient working in an
organisation and it analyses the strengths,weaknesses, opportunities and threats in order to
achieve the organisational objectives for the long term in an effective manner(Bigne and et.al.,
2018). Virgin Atlantic is the trading name of Virgin Atlantic airways limited as well as Virgin
Atlantic international limited and it is a British airlines which was established in 1984. it has its
headquarters situated in Crawley, West Sussex United Kingdom and the founder of the company
were Richard Branson. Another airline that is Virgin holidays that is controlled by the holding
company, Virgin Atlantic limited and from that 51% is owned by the Virgin group and 49% is
owned by Delta airlines. It has 8,875 employees and revenue is 2,689 million pound. The study
will include the strategic analysis of Virgin airlines by applying the PESTLE, SWOT and
Porter's five force model. It will also include the challenges faced by the Virgin airlines within
the micro and macro environment and its impact on its performance(Shaw, 2016).
MAIN BODY
SECTION 1 PESTLE ANALYSES
PESTLE is used to analyse the macro environment of an industry which can identify
how future trends in various aspects of the surrounding may effect the business operation of a
company. pestle is basically concerns about the external examination of an organisation(Shaw,
2016).
political analysis
it impacts on the influence of the government in terms of its policies,rules as well as
regulation on an organisation. in 2016 when Britain vote to leave the EU .as it is part of the
Brexit ,and that creates the political turmoil all over the united kingdom .virgin airlines faces a
lot of various political changes such as high costume,and also the tariff imposed by the
government .new restrictions such as deregulation of the air travel industry by the united
kingdom which allows easy entry to the other airlines resulted in the increase
competition .virgin airlines also faces the threats from the attacks of the terrorist. virgin airlines
also faced the challenging political environment in terms of the major terrorist attacks for
example- Paris as well as Brussels(Bigne and et.al., 2018).
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