Competitive Advantage Analysis Report of Virgin Atlantic Airlines

This report provides a VRIO analysis of Virgin Atlantic, a prominent airline company. The report begins by defining the VRIO framework, which assesses a company's resources based on their value, rarity, imitability, and organizational support. The analysis then applies this framework to Virgin Atlantic, examining how the airline's brand reputation, financial resources, and human capital contribute to its competitive advantage. The report highlights the importance of valuable, rare, and inimitable resources, along with the necessity of a supportive organizational structure to maximize the benefits derived from these resources. Finally, the report concludes that Virgin Atlantic demonstrates a strong competitive advantage within the airline industry, leveraging its resources effectively to maintain its market position and provide value to its stakeholders. The report references books and journals to support its findings.

VIRGIN ATLANTIC

Table of Contents
INTRODUCTION...........................................................................................................................1
Define and Discuss......................................................................................................................1
VRIO...........................................................................................................................................1
CONCLUSION................................................................................................................................2
REFERENCES................................................................................................................................3

INTRODUCTION
The term VRIO is defined as framework of business analysis that forms a strategic
scheme of firm in a larger way (Daellenbach, 2015). It falls under internal analysis as it gives
information about resources that are available and also various other information related to
organisation. Thus, in this report, Virgin Atlantic has been taken into consideration which is the
airline industry based in United Kingdom.
Define and Discuss
VRIO is initialism for the four question framework that has been asked about resource in
order to determine competitive potential (Indartono and Wibowo, 2017). It is the question of
value, the question of Rarity, the question of immitablity and about the question relating to
organisation. It is further designed in order to help organisations in terms of protecting
capabilities that gives a higher and longer term of competitive advantage. Here we are talking
about Virgin Atlantic. It is a trading name of Virgin Atlantic Airways Limited and is a British
Airline that is associated in Crawley, United Kingdom.
VRIO
It is a good and important tool that helps in establishing whether resource is of
competitive advantage or not.
Valuable- here, V stands for valuable. The first question that arises is to know that the resources
that are available is valuable. Thus, if we own something which no one wants then resource is
not valuable. The brand names virgin has ability to raise the capital due to its reputation. From
this, it has been analysed that sustainable competitive advantage has been achieved. They also
have financial as well as human resources and also strong relationships with stakeholders.
Rare- the other advantage of virgin Atlantic is rarity. The example of rarity is Aircraft engine
technology.
Imitable- Along with variability and rarity, inimitably also provides competitive advantage for
the organisation that has been cited. It really means to copy. So the company must be difficult to
imitate its resources otherwise it can act as a drawback because competitors can copy the
resources available in Virgin Atlantic. This can affect the stated company in loosing their
advantage.
1

Organisation- to support the above three factors, they must have suitable organisation in order to
support them and ensure maximum benefits in utilising such resource. Suitable organisation
requires all the resources in order to perform their work in effective and efficient manner.
Thus, it has been analysed from this framework that Virgin Atlantic shows competitive
advantage is being gained from valuable resources, rare, inimitable and organised ones (Knott,
2015). Thus, this framework helps in bringing the organisation back to notion of being Fit. It has
been stated that the components of Virgin Atlantic fits the delivering value, they will enjoy
higher competitive advantage.
CONCLUSION
From above report, it has been concluded that virgin Atlantic is a leading company in
airline industry and enjoys competitive advantage in market. They have valuable resources that
makes them to enjoy competitive advantage.
2

REFERENCES
Books and Journal
Daellenbach, U., 2015. Competitor Analysis. Wiley Encyclopedia of Management, pp.1-4.
Indartono, S. and Wibowo, F.W., 2017. VRIO and THES Based Development of University
Competitive Advantage Model in Formulating University Strategic Plan. International
Information Institute (Tokyo). Information. 20(10A). pp.7275-7283.
Knott, P.J., 2015. Does VRIO help managers evaluate a firm’s resources?. Management
Decision. 53(8). pp.1806-1822.
3