Competitive Strategic Management a Case Study of Virgin Atlantics

Topics: Strategic management, Marketing, Strategic planning Pages: 9 (2323 words) Published: January 19, 2013
Table of contents
Competitive strategy of Virgin Atlantics:3
Constant analysis:10
Hybrid strategy:10
Competitive prices:11
Value added services:11


Today, competition in international markets has become severe and in order to sustain relevant position, organizations need to assume competitive strategies so that they can gain competitive advantages. (Rao, pp.185, 2011) The dynamic condition of markets has made it complicated for the organizations to achieve higher level of success without using experts’ promulgated models and literatures. (Flouris, Oswald, pp.19, 2006) Hence, researches have made it simple for the organizations to compete at broader level yet these researches merely gives way to these organizations and they need to develop the strategic plans on their own.

Different companies adopt different kind of competitive strategies in order to get higher position in competitive market and for this purpose, it used to perform different activities than the competing firms. (Daft, pp.65, 2009)Virgin Airlines is one of the organizations who have assumed authentic strategies in order to satisfy customer’s need and ultimately got exceptional position. This paper is basically an analysis of the competitive strategy of Virgin Atlantics which it has used in order to gain competitive advantage. The first section analyzes the competitive strategy of Virgin Atlantics, second part deals with advantages and limitations and third part give certain recommendations to Virgin Atlantics in order to better its services.

Competitive strategy of Virgin Atlantics:

Porter has identified four different strategic options which an organization can use in order to gain competitive advantage keeping the contemporary internal and external environment under consideration. (Griffin, pp.244, 2010) Differentiation strategy is one of those competitive strategies promulgated by Porters In his Generic Strategic model. (Eldring, pp.6, 2009)Virgin Atlantic has based its strategic plan keeping differentiation strategy under consideration. However, if its strategy is scrutinized, it indicates that this strategy has been developed after doing thorough internal and external analysis.

As far as internal analysis is concerned, this analysis demonstrates strengths and weaknesses of the organizations and for this purpose, different models like SWOT analysis can be utilized since it allows the organizations to analyze strengths and weaknesses of the organization. (Dibb, Simkin, pp.28, 2008) Virgin Atlantic has also based its strategy keeping internal analysis under consideration since its analysis demonstrate how internal analysis aids in having differentiation portfolio and potential customers. (Strauss, pp.106, 2010) The basic strength of Virgin Atlantic is the financial affiliation which it has with Singapore airline. (Reynolds, Lancaste, 2012) However, its financial information is not disclosed publicly yet it can be found out that the service has been differentiated by the company through identifying the core strengths and cost effectiveness is one of them.

As far as weaknesses are concerned, Virgin Atlantic is though providing exceptional services to its customers yet for customers, it is costly. A normal customer cannot have first class or premium class service with this Airline. However, the solution has been provided in the form of three different classes and the average customers can utilize economy class for traveling to different destinations.

Similarly, the external analysis has been done through doing market analysis, customer analysis, industry analysis and above all competitive analysis in order to gain competitive advantages. For this purpose, usually PESTEL analysis is done which identifies political, economic, social, technological, environmental and legal aspects of the provided services. (Henry, pp.51,...
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