Final Mngp

4155 Words17 Pages
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
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Virgin Australia uses both the prospector strategy and analyser strategy to respond to market turbulence. Turbulence in the domestic airline market, as explained in section 2.1.2 of this report, ranges from moderate to surprising. This environment requires a combination of customer/competitor based and flexible/creative strategic management (Viljoen & Dann, 2003). Virgin Australia achieves this through its application of the prospector strategy, shown in its product development strategy outlined in section 4.1 of this report. This is combined with its use of the analyser strategy, shown in Virgin’s flexible organisational structure and measured approach to risk taking.

11 Porter’s competitive strategies

There are five business level strategies used to establish a competitive position, Porter identifies these as cost leadership, differentiation, focused cost leadership, focused differentiation and integrated cost leadership/differentiation (Hanson, Ireland & Hoskisson, 2011). Virgin Australia historically used an integrated cost leadership and differentiation strategy in its low cost but varied product position in the market (Thomas, 2011). The use of cost leadership strategies is often seen as the only dependable strategy in the airline industry (Thomas, 2011). However the game change strategic goals of Virgins 2011

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