A case study of Virgin Airlines
Internationalization of the business nowadays apparently became a trend for the organizations to expand their market position and gain the competitive advantage among their contemporaries. The extent and nature of business activities are almost as diverse and comprehensive as the totality of the social and economic interest of a man. Various business activities acknowledged the opportunities that the internationalization may deliver. Through their ability and capacity to expand their business operations, internationalization is highly possible. For most of the time, the high degree of the competition under the umbrella of an industry and the number of competitors that are engaged in the creating the same product and/or services or often referred as the competitors that are closely related can cause market stiffening and will tend to saturate the resources. This idea is one of the reasons on why the businesses are moving into foreign markets.
Background of the Study
There are businesses that in the start of the operation had a great investment and one of which is the airline industry which can perform in either local and/or international markets. This kind of service is one of the broad classifications of the business services. Part of the business operation should cater to personal needs of people or with rendering of a personal service. In this industry, the passengers or the travellers needs the efficiency in travelling in form of safe and friendly services. One of the organizations is Virgin Atlantic Airways that is considered as one of the leading airlines. Like the other companies that play actively in the international market, there are challenges and experience different changes in their operation. But unlike the other business’s ideas, the VAA believed in the option that it is more positive and much less risky to invest in a long-term change program to satisfy the need to grow in the future (Blue Sky, 2009). Apparently, the airport dominance has grown competitive in the hospitality industry. In the accommodation of this competitive growth, the aviation or airline industry plays an essential role in helping the economy to survive although this type of business is a huge investment. The strategies applied in this kind of industry can help the entire organization in finding the dominant position (Bilotkatch, 2007). The connection of the Virgin Airline is outrageous because of the media that serves as a huge market competency advantage. Their strategy is using the media such as television, radio, internet, and even newspaper gave the business an opportunity for promotion.
Virgin Atlantic started back in 1984 with a single 747-200 and flying in route of London to New York. Aside from the gasoline, the business was fuelled with two ideas – to offer low price and have a better service. Passengers are the treated as visitors and the business thought of the things to serve better meals, offer more entertainment, create fun, and acquire smiling and enthusiastic flight crews. For over the years, the airlines shook the industry with the project for innovation to provide the quality of service and entertainment. The airline is the first to offer two choices of meals, even in economy class, and spa-services. Thus, they became the industry most favourite in airlines and second largest long-haul carrier on the route of London to New York (Rifkin, 2004).
Statement of the Problems
Based on the background of the study, it is highlighted that Virgin Atlantic Airlines (VAA) gained the expertise through the market and operational experiences that they performed. In addition, the organization’s openness in the innovation and technology and implementing various marketing strategies to acquire their unique position in the market. But despite of the benefits that the VAA may receive in performing in the competition, the local market knowledge is missing in the marketing...
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