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Virgin Australia
Written Group Strategic Case Study

24th May 2012


Alixandara Sutherland
Laura Tumbers
Katie Horne
Laura Field
Executive Summary

Table of Contents

1. Introduction

2. Strategic analysis

1. External analysis

1. General environment

2. Specific environment

2. Internal analysis

1. Competitive strengths

2. Competitive position in the market

3. Weaknesses

3. Conclusion on organisations competitive position

3. Strategic directions and strategic objectives

1. Vision

2. Mission

3. Strategic objectives

1. Ethics position

2. Stakeholder analysis

4. Conclusion on strategic directions

4. Strategic choice: key broad business level strategies

1. Ansoff’s product/market strategies

2. Miles and Snow’s adaptive strategies

3. Porter’s competitive strategies

4. International strategies

5. Conclusion on key business strategies being used by the organisation

5. Strategic implementation: general perspective

1. Evidence of mismatch between environmental turbulence and business strategy

2. Evidence of unrealised, unintended or imposed strategy

3. Evidence of strategic drift or strategic flux

4. Evidence of transformational strategic change

5. Evidence of second curve activity

6. Business level strategies on the BCG matrix

7. Conclusion on overall implementation of business strategies

6. Strategic implementation issues

1. Three most important strategic implementation issued faced by organisation




2. Conclusion on strategic implementation issues

7. Strategic evaluation

1. Triple bottom line reporting

1. Economic bottom line

2. Social justice bottom line

3. Environmental bottom line

2. Conclusion on organisations achievement of strategic objectives

8. Conclusion: current and future prospects and recommendations

9. References

10. Appendices



Strategic Analysis


Strategic directions and Strategic Objectives


Strategic choice: key broad business level strategies

6 Ansoff’s product/market strategies


The four product/market strategies identified by Ansoff are market penetration or expansion, product development, market development and diversification (Johnson, Scholes & Whittington, 2008). The strategies that are being implemented by Virgin Australia are market penetration or expansion and product development, these strategies respectively carry a low level of risk and moderate level of risk for the organisation (Johnson et al, 2008). The evidence for market penetration strategy in Virgin Australia is shown in Virgin’s domestic network focus and aim to continue to expand its existing market share in the Australian domestic market (Borghetti & Narayan, 2012). The organisation also displays its commitment to market expansion in the strategy line adopted within the 2011 consolidation to Virgin Australia; Virgin aims to become Australia’s “airline of choice” (Borghetti & Narayan, 2012, p11; Schneider, K, 2012). The evidence for product development strategy is in the focus on rebranding and modifying the image and product of Virgin Australia to appeal to the corporate travel market (Borghetti & Narayan, 2012). Virgin’s product development strategy includes distancing the organisation from its traditional low cost image and moving to an image that correlates to the high yield business market (Morton, 2011). This strategy includes the upgrading of aircraft interiors and airport lounges and facilities and introducing features such as valet check in and concierge services (Schneider, 2012).

9 Miles...
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