Virgin Australia Business and Corporate Strategy

Running head: STRATEGIC MANAGEMENT
STRATEGIC MANAGEMENT
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1STRATEGIC MANAGEMENT
Introduction
The overall significance of airlines in Australia has been increasing at an extensive rate.
The paper has taken into reflection Virgin Australia previously known as Virgin Blue recognised
as the second largest airline in Australia following Qantas airlines. Additionally the paper will
evaluate Virgin Australia business strategy and its corporate strategy.
Discussion
Michael porter's generic business strategies
Virgin Australia has aligned to the strategy of cost leadership as well as differentiation as
per the generic strategies of Porters (Virgin Australia, 2019). Research studies of Srisaeng,
Baxter and Wild (2014) have revealed that Virgin Australia has made a significant come back in
order to increase revenue after its rapid decline. Such a significant redevelopment has been due
to its alignment to cost leadership which has contributed in reducing cost and driving domestic
yield growth as well as aiding the company to improve its corporate and government travel
share. Reports of Arblaster (2016) have claimed that although several strategic losses have been
in opposition to the Virgin mobile, the company has been able to achieve success in the freight
business. Furthermore due to its implementation of marketing strategy Virgin’s business results
have shed light on disability in the airline industry with substantial difference with an EBIT
profit of around 88.6%valuated at around AUD 135 million.
On the other hand, Zhang, Wang and Fu (2017) have mentioned the use of cost
differentiation strategy by Virgin Australia. According to authors, Virgin mobile has entered into
the market when two highly established cost structure airlines have already been executing their
business in the market namely Qantas and Ansett. These two airlines revealed at most