Strategic Management of Virgin Airlines

Strategic Management

Contents
Introduction......................................................................................................................................3
Environmental Analysis...................................................................................................................3
Internal Analysis..............................................................................................................................5
Business Strategy.............................................................................................................................6
Gap Analysis....................................................................................................................................6
Strategic Option...............................................................................................................................6
Conclusion.......................................................................................................................................7
References........................................................................................................................................8

Introduction
Virgin Airlines entered the Australian Aviation market in 2000 for the very first time to bring
actual competition in the vacation sector of the market. The mission statement of the company is
to embrace the human spirit and let it fly. The vision statement of the company is to revolutions
the air travel again (Virgin Atlantic, 2018). The company is more focused towards hiring right
people for the right role and the culture of the company is encouraged innovation. The
employees of the airlines keep huge importance in their business and they want to make sure that
they are rewarded fairly for their dedication as well as hard work.
The main aim of this assignment is to focus on the strategic implication by taking consideration
of Virgin airlines that is why the environmental analysis will be focused. The core competencies
of Virgin Airlines will be demonstrated. Along with that the business strategy and their
importance over the business will be evaluated with the help of the gap analysis.
Environmental Analysis
Pestle analysis of Virgin Airlines is demonstrated below in order to bring superior perceptive
regarding the impact of various factors over the performance of the company.
Political Factors
Virgin Airlines is facing a number of challenges in the context of the political environment that
is featured by major terrorist attacks in a major destination like Paris, Brussels, and Nice. The
airline got great shocked at the time of Brexit (Chiang Leong, 2008). The changes in the political
term impact the entire procedure of airlines operation.

Economic Factor
The vagueness subsequent Brexit had a negative impact of the economy on a number of British
airlines entailing Virgin Atlantic. As per the annual report of 2016, it has been found that the
sterling of Pound’s value dropped which put adverse impact over the economy. in the term of
positive, it has been found that the Virgin Airlines advantageous from low fuel costs as fuel
prices of Brent crude oil which is fallen by 21.8% at the time of first half of 2016 (Pearson,
Lloyd, Ferry, Wells, and Miles, Virgin Atlantic Airways Limited, 2008).
Social Factor
The peak summer season brings a lot of benefits for a number of airlines including Virgin
Atlantic, hugely because of the social aspects outside of the airline’s control individually
(Whyte, Prideaux and Sakata, 2012). There are ATC strikes on passenger which impose threat
for the airlines that is why it has been requested by airlines to keep consider the action plan to
reduce the impact of them.
Technological Factor
The role of the technology is increased day by day that makes aware people check and evaluate
in a proper manner before taking any action regarding the booking of airlines as well as hotels. it
has been found that the internet shows the cost-cutting opportunity for Virgin for which it is able
to launch AIR4, Virgin Atlantic’s biggest technological amendments in the history of the
company.
Legal Factor