Business Development and Strategic Analysis of Virgin Australia

This report provides an analysis of Virgin Australia's business development and strategic planning, exploring various aspects of the airline's operations. It begins with an overview of the entrepreneurial ecosystem, highlighting Virgin Atlantic's business model and its evolution over time, emphasizing customer-centric approaches and the use of business planning tools. The report then delves into strategic enterprise management, examining customer segmentation, innovation strategies, and market trends. New venture creation is discussed, focusing on organizational structure and legal considerations. The analysis extends to entrepreneurial finance, risk management, and the impact of intellectual property, including digital marketing strategies. Pricing structures, contracts, and networking are also evaluated, alongside customer relations strategies. Finally, the report covers tax principles, business insurance, cash flow, bookkeeping, and personal survival planning within the context of Virgin Australia's operations. The report uses references to support the analysis of the business and marketing strategies of Virgin Australia.

Business Development and
Planning of Virgin Australia
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The Entrepreneurial Ecosystem
• Virgin Atlantic is a British airline carrier that was mainly established in 1984
• Virgin Atlantic has been the prime airline carrier in the sector. They have a unique form of
business model that has evolved over the years (vom Brocke et al. 2014)
• Virgin Atlantic have been able to use the canvas within their business planning process
• They have mainly focused on the customer needs and have thus introduced several
services

Strategic Enterprise Management
• Virgin Australia segments their customer into certain categories. These are –
technological, demographic, social-cultural and political or legal
• They primarily depend on the feedback of the customers and thus revise changes
• They primarily focus on bringing innovation within their services
• They mainly target the recent market segment based on making any changes

Strategic Enterprise Management
(Fig 1: Trends in Commercial Aviation Business)
(Source: Whyte and Lohmann 2016)

New Venture Creation
• The business boards at Virgin Atlantic primarily consists of CEO, Executive Vice
President and the different Operations department
• The organisational structure consists of a hierarchical structure that would consist
of different managerial levels.
• They also comprise of a legal team that handles the legal matters concerning the
organisation

Entrepreneurial Finance and Managing Risk
• Virgin Atlantic also support the rights based on Intellectual Property (IP)
• They mainly support – Registered and Unregistered Rights that protect the different legal
aspects of the organisation
• Insurance is also supported within the business aspects that also incorporates the aviation
terminology
• The legal requirements are based on conditions of contract

Impact of Intellectual Property
• Virgin Atlantic support innovative and creative spirit within the global market
• Digital marketing is also supported within the internal carrier business scenario
• They primarily follow social media in order to advertise their services and thus
attract the customers
• The audiences are primarily provided with tangible and meaningful rewards

Pricing Structures
• There are certain terms and conditions that are set within Virgin Atlantic
• Contracts help in streamlining of business processes
• The various contracts help in binding the security aspects of the organisation (Lawton
2017)
• These contracts help in ensuring the integrity of the workplace within Virgin Atlantic

Networking and Customer Relations
• Virgin Atlantic support the 4P’s of marketing mix. These include – Product, Place, Price and
Promotion
• The various pricing structures are meant to gain a competitive advantage in the global market
• The company understands the current market trends and thus improvises strategies (Derudder
and Witlox 2016)
• Funding is often supported by several entrepreneurs that benefits the organisation

Networking and Customer Relations
(Fig 2: Shift in Value Creation in the Aviation Business)
(Source: Derudder and Witlox 2016)

Calculation of Tax and VAT
• They promote goodness within the work culture by making partnerships and
negotiations
• Four form of tax principles are included – Compliance, Commerciality, Transparency
and Risk Management
• Impact of business insurance helps in supporting the business and financial services

Cashflow, Bookkeeping and PSP
• Cash flow within the business process is based on operations, investment and
financing activities
• Bookkeeping operations decides the strength of business operations
• The Personal Survival Planning (PSP) sustain the extreme effects within the
business scenario

References
Derudder, B. and Witlox, F., 2016. International business travel in the global economy.
Routledge.
Lawton, T.C., 2017. Cleared for take-off: structure and strategy in the low fare airline
business. Routledge.
vom Brocke, J., Debortoli, S., Müller, O. and Reuter, N., 2014. How in-memory
technology can create business value: insights from the Hilti case. Communications of the
Association for Information Systems, 34(1), pp.151-167.
Whyte, R. and Lohmann, G., 2016. Airline business models. Air Transport Management:
An International Perspective; Budd, L., Ison, S., Eds, pp.107-121.

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