Virgin Airline: Strategic Management Analysis and Recommendations

This report provides a strategic management analysis of Virgin Airline, examining its internal and external environments. The analysis utilizes tools such as SWOT and PESTEL to assess the company's strengths, weaknesses, opportunities, and threats. The report also explores key issues at national, industry, and global levels, applying Porter's Five Forces framework to understand competitive dynamics. Furthermore, it evaluates innovation within the context of the airline industry, considering both internal and external factors. The report concludes with an overview of the airline's strategic positioning and recommendations for future growth and sustainability. The document is a student submission for the Desklib platform.

Strategic management

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
TASK 1............................................................................................................................................3
Critically analysis the strength and weaknesses of company. ...................................................3
TASK 2 ..........................................................................................................................................5
Explain the key issues which are organisation faced at national, industry and global level......5
TASK 3............................................................................................................................................6
Evaluating the innovation with the help of internal and external environment. ........................6
CONCLUSION ..............................................................................................................................8
.....................................................................................................................................................8
REFERENCES ...............................................................................................................................9

INTRODUCTION
Strategic management is essential for each and every company in order to effectively and
efficiently analysing environment in order to achieving organisation goal and objectives. It is
essential for organisation to know about the customers need, taste and preferences on that basis
providing products and services (Barca, 2017). It includes organisation using various tools and
techniques in order to attained goal, competitive environment analysis as well as evaluating
strategies in order to analysing the internal and external environment so organisation effectively
implementing strategies. The report is about Virgin British airline company which are one of the
leading organisation in order to providing best services for customers. The paper consist is
organisation assisting internal and external environment in order to using various tools and
techniques such as SWOT and PESTEL analysis. Organisation formulating new strategies in
order to gaining competitive advantages at market place as well as beat competitor at market
place.
MAIN BODY
TASK 1
Critically analysis the strength and weaknesses of company.
It includes organisation evaluating the internal strength and weaknesses in order to
gaining competitive advantages. It considered as Virgin Atlantic is multinational British airline
organisation in UK in order to operating their business in many countries. It includes they are
providing various facility for customers in order to achieving organisation goal and objectives. It
involves they are providing various services so customer conveniently travelling from one place
to another. It includes they are serves the best services for their customers in order to ease of
customers (Bryce, 2017). It considered all the basic things which are providing for customers
such as safety and security measures are followed. It includes they are providing online services
for customers in order to easily booking and other amenities are provided for customers. It
includes they are operating business in another country so developing brand image at
marketplace. In context of organisation, it includes SWOT analysis which are discussed below.
Strength-: It is process which refers to they providing luxurious facility for customers as
well as market leader such as British air line in UK. It involves main reason of this innovation
and using advanced technology so they are developing brand image in the mind of customers. It

involves they are beat their competitors in order to gaining competition advantages. It is using
various promotional tools and techniques in order to attracting large numbers of customers as
well as using creative approach due to fulfil the needs and wants of customers. It involves they
are charge reasonable price for their customers. Main strength of an organisation in order to
serves all facility and the best services for customers. It involves customer take best experience
of travelling from one place to another.
Weaknesses-: Each and every organisation facing many challenges and issues in order to
impact the external environment such as political, social, technological and many others. It
considered as government changes their policy so accordingly implementing in their policy and
ample numbers of changes are followed (Carayannis, 2018). It includes dynamic environment so
changes are too fast so accordingly accepted the changes in term of technology in order to
developing brand image and survive at marketplace for longer period of time.
Opportunities-: There are ample numbers of opportunities are available at market place
in order to evaluating with the help of various tools and techniques in order achieving
organisation goal an objectives. In context of Virgin airline, it involves they are operating
business many countries so they are targeting new customer base. It includes they are using
various method in order to increasing sales and profit margin as well as expand their business
operation in many other countries. It also providing online app service for customers in order to
easily booking their tickets as all kind of facility providing accordingly trained their staff.
Threats-: Organisation facing various threat in present scenario due to pandemic
situation of COVID-19 as well as impact on business and profitability. There are ample numbers
of competitors are present in the market so organisation know about their policy and strategies
accordingly plan them and serves the best services for customers. They are operating business
function in many countries so changing environment impact on business operations and
functions (Dzwigol, 2020). It includes Virgin airline managers trained their staff and evaluating
environment with the using various tools and techniques in order to attained their goal and
objectives.
Hence, it is essential for each and every company which refers to organisation using this
tool and techniques in order to analysing to know about the internal strength, weaknesses, threats
and opportunities in order to gaining competitive advantages.

TASK 2
Explain the key issues which are organisation faced at national, industry and global level.
Porter five force framework are utilised by organisation in order to examine the issues
which are facing organisation at market place (Wunder, 2016). There are various measures
which are evaluating by organisation in order to know about the market situation and condition
and accordingly formulating business policy and strategies. There are ample numbers of factors
which are discussed below.
Threats of new entrants-: It includes organisation easily entering in new market place
because they are easily operating diversified business. It includes new organisation entering in
this business so difficult to survive because already very tuff competition and huge amount to
spend in order to starting the business operation. In context of company, it includes another
organisation difficult to beat this organisation because they are leading airline in British, UK so
difficult to beat them.
Bargaining power of supplier-: It involves power of supplier which refers to negotiation
price of resources which are delivering to organisation. In relevance of Virgin airline, it includes
they are ample numbers of suppliers so their bargaining power is low ion order to company are
not depended on single supplier (Georgiev, 2017). It considered as organisation developing
necessary rules and policy because they are big brand name and vendor making long term
association with organisation.
Bargaining power of buyers-: It includes bargaining power of customer is high due to
various competitors are present at marketplace. In relevance of Virgin airline, it includes ample
numbers of rival firm which refers to customers has several options are available so they easily
switch from one brand to another. It includes buyer has multiple options are available at
marketplace so they easily select products and services. It involves they are developing new
strategies to retain customers for longer period of time.
Threat of substitute-: In context of organisation, it includes ample numbers of substitute
product and services are available in the market so buyers have various options are available in
the marketplace. It includes within industry and similar organisation in order to various
competitor are available so customers used this services which are offered by customers. It
considered has various measures are used in order to best services are provided for customers.

Competitive rivalries-: It includes organisation facing very tuff competition at
marketplace because Virgin airline facing extensive competition in the market (Hill, 2017). It
includes competitor affect the business operation and functions so mangers of company using
various tools and techniques in order to analysed the competition on that basis formulating
strategies in order to achieving organisation goal and objectives.
Therefore, it includes organisation using this model in order to companies facing many
issues at global level so accordingly implementing policies and strategies in order to enhancing
profitability and productivity of company.
TASK 3
Evaluating the innovation with the help of internal and external environment.
Innovation:
It is essential for each and every organisation in order to having ability and capability
which refers to business model sustain and survive for longer period of time. It includes
organisation using various tools and techniques in order to making innovative products and
services which are helps to organisation easily sustain and survive at longer period of time. In
relevance of Virgin airline, it includes they are using innovative approach in term of technology
as well as attracting large numbers of customers. Aviation industry are generating new ideas and
they are implementing in order to providing best services for customers. It is essential to
developing new products and services in order to beat competitor at marketplace. It is process
which refers to they are analysed the needs and demands of customers on that basis developing
products and services in order to fulfil the requirement for customers.
Advantages-: The innovative approaches are useful for customers in order to ease of
products and services so they easily fulfil the requirement of customers (McKiernan, 2017). It
includes organisation easily facing competition at marketplace as well as attracting large
numbers of customers.
Disadvantages-: Each and every things is positivity as well as negativity so they
developing innovation in technology which are resist in interaction with others. It includes this
are not good for society as well as creating so many issues and concern for longer period of time.
It includes they are developing dependency in order to essential fulfil the needs and wants of
customers.

Thus, it involves organisation making changes in products and services in order to
attracting large numbers of customers as well as developing new innovations in products and
services which refers to creating brand image at market place.
Analysis of external environment
Organisation using this tool and techniques in order analysis the market condition and
situation which are essential in order to know about present environment. It includes various
factors which are discussed below.
Political factor-: It is an important factor which refers to various rules and regulation
which are imposed by government in order to organisation adhered to follow such rules and
regulation. In relevance of company, it includes various political factors which are changes so
accordingly organisation making changes in their policies and rules (Morden, 2016). In present
scenario of COVID-19 organisation incurred in heavy loss so government making policies and
measure regrading safety and security so companies follow them after lock down period.
Economical factor- :This element plays vital role in order to including various factor
such as inflation rate, tax rate, demand and supply, interest rate & many others. In relevance of
organisation, it involves organisation analysed the demand of products and services at
marketplace on that basis fulfil the needs of customers as well as customers purchasing power so
organisation contribution in en economy in order to developing ample numbers of job
opportunities.
Social factor-: Social Factors help in sharing the attitudes and the beliefs of the
individual in an organisation. Social factor of the Virgin Co. is the low price charged by the
passengers but the cost incurred is high as they are maintaining the quality of services.
Technological factor-:Technological help in showing the way in which the products are
marketed by using the new technologies so that the customers get attracted. In the Virgin Co. is
the digital Disruption creating the opportunities of growth and switching to the new technology
that is AIR4.
Environmental factor-: Environmental factors are important as these are related to the
environment and the resources which are the important part of the organisation. The
environmental issues of the Virgin Co. is the adverse weather conditions which affect the airlines
and should focus on the reduction in the CO2 (Rothaermel, 2016).

Legal factor-: Legal Factors includes the safety, quality of the products and should know
all the rules and regulation while trading (Somov, 2018). The Virgin company should follow the
legal rights between the PPU and the BALPA flights.
Hence it includes various factors which are essential for organisation in order to
analysing the external environment on that basis formulating strategies in order to successfully
grow at marketplace.
CONCLUSION
From the above report it has been concluded that, it involves organisation using various
tools and techniques in order to assist the external environment in order to organisation
formulating new strategies which are essential for successful growth and development. It
involves organisation to know about internal environment so they are using SWOT analysis. It is
essential for organisation in order to know about the internal strength and weaknesses of
organisation as well as analysis opportunities and threats. It involves organisation developing
new innovative approaches in order to attracting large numbers of customers. It is process which
refers to using PESTEL framework in order to analysis market condition and situation in order to
gaining competitive advantages.

REFERENCES
The Books and Journal
Barca, M., 2017. Economic foundations of strategic management. Routledge.
Bryce, H.J., 2017. Financial and strategic management for nonprofit organizations. Walter de
Gruyter GmbH & Co KG.
Carayannis, E., 2018. Strategic management of technological learning. CRC Press.
Dzwigol, H., 2020. Methodological and Empirical Platform of Triangulation in Strategic
Management. Academy of Strategic Management Journal, 19(4), pp.1-8.
Georgiev, M., 2017. The Role of the Balanced Scorecard as a tool of strategic management and
control. Journal of Innovations and Sustainability, 3(2), pp.31-63.
Hill, T., 2017. Manufacturing strategy: the strategic management of the manufacturing function.
Macmillan International Higher Education.
Lasserre, P., 2017. Global strategic management. Macmillan International Higher Education.
McKiernan, P. ed., 2017. Historical Evolution of Strategic Management, Volumes I and II (Vol.
1). Taylor & Francis.
Morden, T., 2016. Principles of strategic management. Routledge.
Rothaermel, F.T., 2016. Strategic management: concepts (Vol. 2). McGraw-Hill Education.
Somov, D., 2018. The functional approach to strategic management. Економічний часопис-
ХХІ, 171(5-6), pp.19-22.
Wunder, T., 2016. Essentials of strategic management: Effective formulation and execution of
strategy. Schäffer-Poeschel.