Strategy and Change Management: A Case Study of Virgin Atlantic

This report provides an analysis of Virgin Atlantic's macro and micro environment, focusing on strategy and change management. It uses Porter's Generic Strategies and the Ansoff Matrix to evaluate the company's competitive advantages and potential growth avenues. The report also examines change management through Lewin's Change Model and the ADKAR Model, assessing their strengths and weaknesses in the context of Virgin Atlantic. Recommendations are made for cost leadership and diversification strategies, emphasizing the importance of market research and solvent recapitalization. The analysis aims to offer actionable insights for Virgin Atlantic to achieve a competitive edge in the airline industry. Desklib provides access to similar solved assignments for students.

STRATEGY AND
CHANGE

Executive summary
This project is related to the analysis of macro and micro environment of Virgin Atlantic.
The main motive is to identify the factors affecting the company from micro perspective in the
company. The second motive is to analyse the macro environment for the airline business. For
this the Porters generic strategy will be used. The aim of this report is to identify the
strength ,weakness by taking the consideration by potential scenarios. Finally recommendation
is made and a strategy is developed by taking analysis of the competitive edge of Virgin Atlantic
and offer reasonable action for the company to achieve competitive benefit.

Table of Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Virgin Atlantic undertaken strategies..........................................................................................4
Recommendations of the strategy with justification...................................................................7
Change management by different models...................................................................................8
Strengths and weaknesses of models of change........................................................................10
Application of change model in Virgin Atlantic ......................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Strategic changes refers to the implementation of changes to crucial features of the
business,like response to threats and opportunities. Top management and the CEO is mainly
responsible for the change. Planning and implementation of the change is the main aspect of the
managers role. It is basically a specific strategy and makings alteration to it. It is a long term plan
for achievement of goals and objectives. They aim at future and for long lasting change. It is
necessary for relevancy in dynamic market. It is the process in which a strategy is managed in a
proper manner for achieving companies missions and visions. It is very hard to predict the
change and control it. Companies pursue the change for maintaing the advantage in the industry.
Companies mainly selects 3 types of changes like restructuring,re-engineering and innovation.
There are various steps of change which are determination of change,performing stakeholders
analysis,building support for change,creating the network of change,preparing plan for change
management,identification and management of obstacles and evaluation of change. This project
explains the strategy and change management in context of Virgin established by the Sir Richard
Branson. All of it is studied by various models and concepts.
MAIN BODY
Virgin Atlantic undertaken strategies
Strategical planning refereed to as the process in which company leaders mention their
vision and align it with goals and objectives of the company. It is a systematic approach for
realization of goals with alignment to vision(Cui,and Li,2021). For having understanding of
strategical planning with context to operations of the business, executives of Virgin Atlantic have
decided to analyse it by Porters Generic model.
Porters Generic model- This model is related to discover of competitive benefits which
helps them to get great market share(Cui, 2019). This model is used to know the business
profitability in relevance of industry average. The models strategy are explained in reference to
Virgin Atlantic-
 Cost leadership- It is used by the company to decide on reduction of cost of
operations so it can offer goods and services in affordable prices to their
consumes. If the company is profitable to fulfil their shareholders concern they
can invest in various other areas. Executives of Virgin Atlantic can choose this

strategy as their companies shareholders are satisfied with the dividends. Some of
the parameters are low cost,rationale for investing profits,consumers approach
towards this model etc. Company Virgin Atlantic can select this strategy by
analysing the technology ,deficiency,innovation and current suppliers.
 Differentiation- It is related with providing consumers the various goods and
services from their competitors which helps company in securing competitive
edge. Company must consider points before adopting strategy. Maturity of the
markets,perception of consumers,history of competitive innovation,current
research of dynamics of market are some of the points. Executive of Virgin
Atlantic must consider current resources,portfolio of products of the competitors
and special commodities for offering to consumers. It can be accomplished by
increasing revenue streams and by new channels of marketing(Cui, Lin and Jin,
2020).
 Cost focus- Companies are willing for growing as cost leaders for focused
segment of market. It can be niche markets on geographical or demographic
sections. For acting on this strategy it is advisable them to analyse segmented
market,quality,cheap goods as compare to competitors. It will be beneficial for the
company as they can increase loyalty of consumers by providing credible services
in the sector.
 Differentiation focus- It is concerned with the innovation and differentiated
goods offering to limed consumers. It was the first company in aviation sector to
offer consumers with personal entertainment. They follow customization which
helps the company to achieve high level of differentiation in low prices in
comparison to its competitors. It also give benefit to consumers also. In mature
market is very difficult to adopt this strategy. It is important for executives of
Virgin Atlantic to study the strategies of competitors for implementing
differentiation strategy.
Virgin Atlantic should use cost leadership by cost cutting in prices of the airlines to
attract more consumers. It is a premium airline still it offers low fares in compare to its
competitors. Consumers mainly prefer better services in affordable prices,so the company can

benefit from cheap prices also by providing them low cost fleets and maintain budget by
minimizing services in the flights. It will help them to grow with low price strategy as well. Its
main aim is to give excellent services to consumers who pay high prices for services. The
strategy of the company have been developed by keeping trends of the market and needs of the
consumers for consideration and provides them with unique and different services and basics
requirements also. This strategy will make it more successful and preferable in consumers
among its all competitors.
Ansoffs matrix model- For supporting avenues of Virgin Atlantic it is important for executives
to analyse the Ansoff matrix which is as tool for helping managers for determination of their
direction. Here are the element of Virgin Atlantic-
 Market penetration- It is related with selling of the products of the organization in sane
markets. Company develops the existent goods and services for growing the market
share. For using this strategy in business company must use extensive marketing and
promotion campaigns. Virgin Atlantic can improve the quality and offer services after
sales. Executive of the company can make goods more attractive by offering additional
features in compare to competitors(Dannenberg and et, al., 2019).
 Market development- It is concerned with selling the existent goods in new markets.
For finding market for the product company can go to international market by focusing
on needs of uncatered markets. It is important for the executives to analyse markets
before going to other markets. It is a less risky strategy as company will have to put
investment in launching marketing campaigns in new markets and establish itself as a
brand. Virgin is a already well known in international markets.
 Product development- This strategy helps company to develop new goods in the
existent markets. Companies can develop another variable in the previous goods by
offering new features. It reduces the risk of acceptance of existing consumers. Different
way for it is launching new and innovative goods on the basis of research. Executives of
Virgin Atlantic can bring some change in the old products(Ghazouani, Farah. and
Solaiman, 2019). It involves investment by the company in research and development as
they will have to innovate new products as per the needs and want of consumers.
 Diversification- It is most risky strategy where the company innovates goods which are
sold in new markets. There are two types of this strategy, one is synergistic and other is

conglomerate. In synergistic diversification the organizations has sufficient knowledge
about the good with marketing ,manufacturing,distribution etc. In conglomerate
diversification companies goes to new markets. Virgin Atlantic is a very big brand and
operates on international level so they can adopt the diversification strategy. Company
has to launch new products in new markets with new taste preferences and new
promotion campaigns. Company will have to put in the efforts and time in to it for
making it successful.
Recommendations of the strategy with justification
Executives of Virgin Atlantic has been recommended the cost leadership strategy by
reducing the cost of operations which will help them to reduces the flight prices. It give them
competitive benefit as their fares are very low in comparison to their competitors like British
Airways. For becoming cost leader ,executives of Virgin Atlantic can collaborate with other
airlines which will help them to cut competition in the market. Company has developed
partnership with Singapore Airlines to help them to connect the passengers of London and
Manchester to Singapore and Australia. In the collaboration ,passengers are provided with extra
facilities. Passengers who flight on the Virgin Atlantic for connecting to Australia to Singapore
are given single baggage allowance for single ticket. They are also provide with complimentary
meals and beverages irrespective of their class of travelling. Apart from leader in cost by giving
reduced prices of tickets,company can choose diversification strategy for entering into new
markets with innovative goods.
Company is a well known brand and has various business operations in different sectors
like hospitality,beverages,tourism etc. Executives of the company also want to diversify the
business operations in many sectors,for securing competitive benefit. For diversification there
are many issues which company have to face like selling Virgin records for continuing the
business operations of airlines. Thorough market research is to be done by the executives of the
company and start business operations in markets having no competition for establishing the
brand in the market. For maintaining goodwill in the market company ha sold out unprofitable
business ventures for running the existent businesses in efficient manner. Company enters in
only those markets which are growing so they can easily connect to consumers in strategical
manner. It is important for them. The company has developed business in a way by entering into

various industries like cinema,tourism,hospitality etc. Executives are also planning to restructure
the business of airline.
Virgin Atlantic is been facing issues due to the covid and to rejuvenate with it executives
are deciding to enter in solvent recapitalisation for providing connectivity and competition to its
competitor airlines. For the solvent recapitalization of the company ,executives have prepared a
package of worth £1.2bn in next 20 months with the help of its stake holders ,investors and
creditors. Strategies for future are been set up by the senior management of the company for
diversifying the business operations by new business and partnership with other companies who
also want to diversify. Executives of the company want to use the brand image for operating in
new markets and make alterations in the goods for making them feasible and affordable.
Change management by different models
Change management can be refereed to as the methods and manner adopted by the
company for implementation of change strategically(Hickman, and Silva, 2018). It essentially
includes preparation of acceptance of employees,setting of process and evaluation of it for
making it successful. It is very beneficial for the companies for consistency and integrity in
operation of the business. IT helps the executives of Virgin Atlantic fro providing them impetus
for discovering innovation and make employees embrace changes. For making changes in
effective manner the executives of the company has adopted Lewin change model and Adakar
model of change.
Lewin change model-This method works on the principle that changes can be embraced with
the perception of employees working in the company. Different elements of this model in
context of Virgin Atlantic are-
 Unfreezing- It is related with forgetting previous behaviour,process,thinking ways etc.
the assessment of making changes and embracing it done. The importance of change is
specified to employees and how they help company to get competitive benefit.
Executives of Virgin Atlantic must communicate with the employees in accordance to
their organizational structure. It is important for the executives of the company to make
employees aware of diversificationv(Kohli and Habibi, 2022).
 Changing- It is related with implementation of changes in the methods and process. In
this phase employees learn new behaviours and thinking ways. It is important fro the

executives for educating the employees for embracing change management in effective
and efficient manner. In context of Virgin Atlantic new changes are being developed for
decisions of diversification in operations of the business.
 Refreezing- It is concerned with reinforcing,stabilizing and solidifying the new
behaviours of employees. It is very important phase as people can move backwards to
their previous behaviours. For maintaining this state company the executives can give
rewards and acknowledgement to the employees(Maimon, 2018). Virgin Atlantic
employees are rewarded in proper manner for achievements by remoulding the
behaviours and perception.
ADKAR model- it is used by the companies executives for analysing and enhances the
understanding of affect of changes in reference to the place of work(Merkert and Swidan,2019).
Different elements of Adkar model in reference to Virgin Atlantic are-
 Awareness- It is basically concerned with efficient communication with the employees
for ensuring awareness about the changes. It is important for the executives of Virgin
Atlantic to communicate the change rationale for readily acceptance. Employees must be
informed about the diversification strategy.
 Desire- For making acceptance of changes to employees it is important for the company
executives to makes them desirous for the employees to accept them. If the need of
change is felt by the employees,they will accept it easily for their benefit. Executives of
Virgin Atlantic must make effective communication for involvement of employees for
making them to embrace change in efficient manner(Santana, Valle and Galan, 2019).
 Knowledge- It is the most important phase where employees are involved and trained
for embracing changes in rational way. It is also related with making sense of
knowledge. It is important for executives of Virgin Atlantic for maintaing the structure
which helps them in process of change management. Space is also provide to employees
for their ideas for involving them with changes.
 Ability- Executives of the company identify different obstructions which stops
employees by taking part in the process of change management. It is very crucial for the
executives of the Virgin Atlantic for motivating the employees for accepting the change

in diversification strategy. It can be done by survey conduction ,asking questions about
potential barriers which stops employees from embracing changes.
 Reinforcement- It is concerned with the rein forcing of changes in effective and
efficient manner(Suk, and Kim,2021). For sustaining the change for long term it is
advisable for the executives of Virgin Atlantic to track it ,celebrate the milestones and
appreciation for employees to accept it and work with changes.
Strengths and weaknesses of models of change
The Lewin model of change is known for its simple framework by studying the basic
physiology of individuals while embracing the changes. It includes simple steps which help
executives for change analysis management. The application is beneficial for the company as by
this executives can understand basic nature of resilience and embrace changes in the workplace.
By this executives can gain knowledge about the changes in perceptions of employees about
changes as its considers concepts which are clear which make process of management easy to
understand. The weakness of Lewin model of change is that in modern times it is not suitable.
The nature of it is not flexible as it is based on basics of freezing and unfreezing behaviours of
employees. For making it adaptable in modern times ,it should be made flexible in nature. It can
be applied significantly in the process of management of change of the Virgin Atlantic,but it has
weak points and can be used for understanding of physiology of employees.
Adkar change model is beneficial for the company as it gives practical understanding of
process of management of change and can applied to companies efficiently. In this framework
the companies executives provide training to top employees for change appreciation in effective
manner. It has been found that it can be applied to companies structure of Virgin Atlantic due to
stance of practical. Virgin Atlantic has this disadvantage as it requires deep understanding of
company executives as they have to diversify the operations of the business.
Application of change model in Virgin Atlantic
Company culture can be understand by the estimated beliefs collection,practices and
employees value which guide the behaviours while job performance at the place of
work(Teece,Raspin and Cox,2020). Company culture of Virgin Atlantic is not formal and

decentralised in their approach. It helps the employees for providing them
suggestion,involvement in process of decision making process and makes them accountable for
the workings. The culture helps company executives for bringing changes in the process and
take step for diversification in the operations of the business by moving to new markets. It is
important to follow change models for making compliance with changes which are evolved in
company setting.

CONCLUSION
From the above project it has been concluded that strategy of the company includes
different decisions which are been taken by the executives of the company to achieve companies
goals and objectives. For this various models like Porters Generic model was used to know the
competitive advantage and market share. Ansoffs model was also mentioned to evaluate the
growth of the company and take decision. Change is refereed to as the processes where
companies encourages employees for change. Lewin change model was also used which
includes various phases such as unfreezing,changing and freezing. Adkar change model was also
studied to knew the potential barriers which employees face while change in the company. The
project also studies about the strengths and weakness of the model applied to the company.
Application of change models in Virgin Atlantic were also mentioned in the project.