Virgin Blue's Competitive Advantage

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  • Topic: Strategic management, Airline, Low-cost carrier
  • Pages : 4 (1240 words )
  • Download(s) : 269
  • Published : September 14, 2010
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1. Introduction
Virgin Blue is the low-fare/high quality carrier, one of the leading airways in Australian airline industry. Its objective has been established itself as Australia's leading low-fares scheduled passenger airline through continued improvements and expanding offerings of its low-cost service and caters to customers who are after an economical, yet reliable airline. Virgin Blue was launched on August 3, 2000. Having only starting with two aircrafts, it has since expanded to all major Australian cities and favoured holiday destinations (Virgin, 2007). Virgin stands for value for money, quality, innovation, fun and a sense of competitive challenge (Virgin, 2007).

2. Strategic management and strategic competitiveness
In this context, VB has built strong strategic competitiveness in Strategic management. Strategic management is an endeavour to examine wealth creation and capture it by firm. Firms should be aware of their business level and should struggle to maintain or to expand their competitive advantage. Strategic competitive advantage is gained when the firm fully achieves core-value implementation. However, due to the advent of 21st century’s rapid, changeable and uncertain environment landscape, firms may encounter strategic discontinuities. In order to navigate effectively in this new competitive landscape, firms have to develop strategic flexibility and competitive advantage while building dynamic core competences, performing strategic leadership, employing valuable strategies, implement new strategic structures and so forth. VB has built strong competitive advantage by low leisure fare, offering corresponding quality compared to other airlines by innovations and services. However due to the quick responses of other airlines and the entrant of new low-fare provider, the VB’s competitive advantage is getting threatened.

3. External Environment
Like every other organisations, external influences will always be presented. Virgin...
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