Business Strategy of Virgin Atalantic Airlines

1988 Words Apr 11th, 2009 8 Pages
TITTLE: ‘‘THE AIRLINE INDUSTRY’’ (VIRGIN ATLANTIC AIRLINES)

Contents 1) Introduction to airline industry 2) Drivers of globalisation using yip’s model 2.1 Market globalisation 2.2 Cost globalisation 2.3 Globalisation of government policies 2.4 Globalisation of competition 3) Localisation- arguments against globalisation 4) Pestle Analysis 5) Porter’s 5 forces analysis and their application to Airline industry 5.1 Rivalry amongst Existing Firms 5.2 Threat of substitution 5.3 Threat of new entrants 5.4 Power of customers 5.5 Power of buyers 6) Opportunities and Threats of Airline industry 7) Internal analysis of Virgin Airlines: Strengths and Weakness 8) Financial Statics of Virgin Atlantic Airline 9) Strategic
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Threats: http://excellence.qia.org.uk/VLSP4/pdf/tour_resources_d.pdf http://www.datamonitor.com/companies/company/?pid=C00F1CDB-4C6F-4BA5-997B A82D60E1071C Intense competition: The airline industry includes a large number of players; with many of them having worldwide operations. There are many large airline chains such as BA, Cathay Pacific, and Lufthansa. Furthermore, a large number of independent airlines especially in the European region provide acquisition opportunities to large chains. Merging in the airline industry would strengthen competition and result in loss of revenues. Intense competition threatens to wear away the group’s market share and reduce its profitability. http://www.datamonitor.com/companies/company/?pid=C00F1CDB-4C6F-4BA5-997B A82D60E1071C *7) *INTERNAL ANALYSIS* OF VIRGIN ATLANTIC: *STRENGTHS & WEAKNESS Strengths Strong financial position: The Company has witnessed strong financial performance during the last few years. Its revenue increased at a CAGR of 9.5% to reach £2,140 million in fiscal 2007 as compared to £1,630 million in fiscal 2005. The net profit of the company increased at a CAGR of 32.5% to reach £46.8 million in fiscal 2007 as compared to £20.1 million in 2005. Moreover, the net profit margin of the company also increased from 1.2% in 2005
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