Virgin Atlantic Strategy

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UNIVERSITY OF SURREY

FACULTY OF MANAGEMENT AND LAW

School of Management

MSc Programmes

Module Leader:

Dr. Laura A. Costanzo

Academic Year: 2010-2011

|Industry |European Airline Industry | |Company |Virgin Atlantic Airways |

STRATEGY MODULE

COURSEWORK

|Student URN |MSc Programme |Surname & First Name | |6098320 |Management Information Systems |Hargley Ikechukwu | |6142620 |International Hotel management |Lu Chenyao | |6116950 |International Hotel management |Markan Abhilasha | |6141001 |International Business management |Zhang Mansheng |

“Your airline’s either got it

or it hasn’t”

Contents
1.0Introduction2
1.1Company Overview2
2.0 The Analysis of the External of Environment3
2.1 The Macro-environment3
2.2 The Competitive Environment6
2.3 Strategic Groups8
3.0The Internal Environment9
3.1Swot Analysis9
3.2 Resource-Based View of Virgin Atlantic10
3.3Value Chain Analysis11
4.0 Recommendation for the Future13
4.1 Analysing the current strategy13
4.2Future Strategic Direction14
5.0Conclusion16
References17
APPENDIX 120
SWOT ANALYSIS20
Appendix 224
Value chain Analysis24
APPENDIX 327

Table of Figures1.0Introduction2

1.1Company Overview2

2.0 The Analysis of the External of Environment3

2.1 The Macro-environment3

2.2 The Competitive Environment6

2.3 Strategic Groups8

3.0The Internal Environment9

3.1Swot Analysis9

3.2 Resource-Based View of Virgin Atlantic10

3.3Value Chain Analysis11

4.0 Recommendation for the Future13

4.1 Analysing the current strategy13

4.2Future Strategic Direction14

5.0Conclusion16

Bibliography17

APPENDIX 120

SWOT ANALYSIS20

Appendix 224

Value chain Analysis24

APPENDIX 327

Figure 1 UK Airline Industry value4

Figure 2 Strategic Groups8

Figure 3 SWOT Analysis9

Figure 4 Virgin Atlantic SWOT analysis9

Figure 5 Value Chain Analysis 11

Figure 6 Generic Strategies13

Table 1 UK GDP5

Table 2 UK Consumer Price Index6

Table 3 Resource based View11

Table 4: Strategic Implications of the resources12

Introduction

This is an executive report on Virgin Atlantic Airways, which contains an External and internal analysis of the company’s current competitiveness and concludes with a recommendations on the future strategic direction of the company.

1.1Company Overview

Virgin Atlantic Airways Limited (Virgin Atlantic) a part of Sir Richard Branson’s Virgin group is one of Britain’s largest airlines and Europe largest transatlantic airline. It is 51% owned by The Virgin group and 49% owned by Singapore airlines. In the first quarter of 2010, the revenue went up by 10% to £532 million (The Virgin Atlantic Press Office, 2010).

Founded in 1984, and headquarter in West Sussex, near that Gatwick Airport, the company flies long haul to Europe, Africa, Caribbean, Middle East, Asia and North America. It is a privately owned company and as such does not publish its financial records.

Mission Statement

Virgin Atlantic’s mission statement is “to grow a profitable airline where people love to fly and where people love to work”. This mission is profit orientated, which is a vital factor in strategic decision.

Virgin has had a history of maintaining its strategic positions in Britain competing intensely with British Airways.

2.0 The Analysis of the...
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