Challenges and Strategies for Virgin Airlines: A Strategic Management Analysis

Strategic
Management

Strategic Management 1
Executive Summary
The main aim of this report is to analyses the challenges that are faced by Virgin Airlines to
evaluate the strategies to overcome the issues. In this report, strategic management tools have
been used to evaluate the position and challenges that are faced by the airline's such PESTLE,
SWOT and Porter’s Five Forces Analysis. The fluctuation in political and economic factor
affects the operation of the company. As per the porter’s five forces analysis, it is observed that
the company has high competition and also the suppliers have high bargaining power due to
which the chance of facing the loss is high. The internal analysis of the company has been done
with the use of SWOT Analysis. It has been found that the airline has the strong support of its
holding company which is popular with the name of Virgin Atlantic. There are also other
weaknesses that the airline needs to improve such as price sets and offers to beat the competitors.
It is recommending that the airline attain a competitive advantage by implementing the porter’s
generic strategies. It is predicted that airlines will expand its routes shortly.

Strategic Management 2
Contents
Introduction......................................................................................................................................4
Overview of the organization and Industry................................................................................4
Section 1: PESTLE Analysis...........................................................................................................5
Section 2: Porter’s Five Forces Analysis.........................................................................................8
Section 3: SWOT Analysis............................................................................................................10
3.1: Potential Scenarios..............................................................................................................13
3.2: Strategic Recommendations................................................................................................14
Conclusion.....................................................................................................................................15
References......................................................................................................................................16

Strategic Management 3
Introduction
Strategic management is the continuous planning, monitoring, analysis and assessment of all
information which is necessary for the organization to meet its goals and objectives. The
organization needs to implement this procedure at the workplace as it helps to evaluate the
environment (Morden, 2016). Gathering information about the environment is beneficial for the
company to expand the business in a new market or to operate smoothly in the existing market.
In this procedure the internal and external analysis has been done that affects the growth of the
company. The company needs to evaluate the factors that affect the operation of the business as
it becomes the challenges for the company while operating. Numerous strategic tools help to
evaluate the business environment of the company such as PESTLE Analysis, SWOT Analysis,
Porter’s Five Forces Framework, Value chain analysis and the others (Lasserre, 2017). The
report is based on strategic management to analyze the challenges factors that affect the
organization. In this report, Virgin Airline in the European Airline Industry has been taken into
consideration to analyze the internal and external environment of the company.
There are some strategic tools have been used to analyze the internal or external environment. At
the beginning of this report, the external factors will be analyzed that impact the business with
the help of PESTLE Analysis. After that, Porter’s Five Forces Framework Analysis is used to
evaluate the key drivers of the airline industry or SWOT Analysis tool is used to analyze the
internal factor of the company. At the end of the report, the suggestion has been given based on
the above analysis.
Overview of the organization and Industry
Virgin Airline is a trading name of Virgin Atlantic Airways Limited. It is a British Airline in the
country of United Kingdom. It was established in the year 1984 to operate the business in the