Generic Strategies of Ba

Therefore, in the short term, if the outlook of the economy stays gloomy, spending may reduce by the customers, and less travel for the purpose of pleasure and tourism. This will put a damp on the demand of air flights at Virgins Atlantic. Moreover, the suffering of the economy, individuals might move towards airline operators that are cheaper. (Tierney et. al., 2008). Also, when there is a time of recession, consumers tend to be very careful with how they spend, whereby Virgins Atlantic will see a drop with the volume of

At the present time, the airline industry faces many cost pressures. The industry has made remarkable achievements in improving its efficiency. But cost pressures continue, from record high fuel prices to unjustified increases in charges from monopolistic airports, to further taxes imposed by governments (industryspotlight.org.uk). Higher costs inevitably lead to higher prices for airline passengers. Aviation is vital part of the United Kingdom. It is not only crucial in sponsoring almost 1 million jobs and £50 billion of GDP, providing around £8.7 billion in taxes to the Treasury of the country, but aviation is also fundamental to the success of economic benefits from air transport in the United Kingdom (Roberts-Hughes, 2014). Aviation supports exports, services, manufacturing, foreign direct investment and of course tourism. This sector gives us opportunity for the holidays and visits of family and friend in different parts of a country and also around the world.

Rapid globalization and technological advancement has made the business environment more complex than before. Firms are therefore forced to understand and adapt to the environment they operate in to successfully retain their competitiveness. Such environmental factors are either internal or external and include the economic aspects, political framework, socio-cultural aspects, technological business ethics, management, corporate culture and legal aspects. These factors determine the location, nature, personnel policies, distribution systems and prices the firm is to charge for its products. It is therefore important for businesses to understand the environment they operate to avoid going bust.

A market audit process is a tool that can never be neglected despite the situation. However, very few companies carry out comprehensive audit understanding of their various operations. As a result, this has presented big margins between companies that constantly integrate market audit in their operations and those that do not (Wilson, 2002). Moreover, it is evident that efficient marketing managers need to appreciate market audit significance to the company’s effective marketing plan (Blythe, & Megicks, 2010). Essentially, market audit involves the process of analyzing the specific details on the marketing approaches embraced as realizing the best path to follow for effective operations on the same. Additionally, the audit process is of such great significance as it accords the organization the chance to answer the question of their current position. By answering the question “Where are we now”, the company is in a better position to understand the environment as well as identify the manner in which the operations are

I. Executive Summary II. Situation Analysis o Market Summary  Target Market Demographics  Geographic  Demographics  Behavior Factors Market Needs Market Trends Market Growth o SWOT Analysis  Strengths  Weaknesses  Opportunities  Threats o Competition o Product Offering o Keys to Success o Critical Issues III. Marketing Strategy o Mission o Marketing Objectives o Financial Objectives o Target Markets o Positioning o Strategies o Marketing Mix o Marketing Research o Action Plan IV. Financials o o o V. Controls o o o VI. Summary Implementation Marketing Organization Contingency Planning Breakeven Analysis Sales Forecast Expense Forecast

Contents 1. Introduction……………………………………………………………….…..…3 1.1 Report Overview………………………………………………………….…...…3 1.2 Organisation Overview……………………………………………….…………3 2. External Environmental Analysis…………………………………….……...…4 2.1 Analysis of Macro Environment………………………………………..………4-5 2.2 Analysis of Industry Environment………………………………………..……5-6 2.2.1 Threat of New Entrants……………………………………………….….…6 2.2.2 The

A marketing audit is a function, in the context of management operations, by which the assessment of the implementation of strategic marketing at tactical level is attempted. The application of marketing audit results in testing the compatibility and comparability of the objectives, sought to be implemented within the marketing strategy, with measurable targets which are achieved in reality. This can be implemented through the presentation and analysis of results in different areas of business operation which affect the application of marketing throughout the company. Thus, a marketing audit is implemented in the following areas:

environmental analysis of the above mentioned external issues. Additionally, the outline of the analysis may vary with the organization’s size and market complexity.

The environment in which a company finds itself has been a factor in a firm’s strategy, because of access to raw materials. The environment in which a company operates can make and break the company at the same time. Environmental factors are evaluated on the footprint left behind by a firm on its respective surroundings. It is important that every individual or management considers the environment in which they intend to set up a business.

................................ 11 Management of environmental and social performance ......................................... 12 Guidance available .................................................................................................... 12 Appropriate strategies for management of environmental performance ............... 13 Life Cycle Assessment ............................................................................................... 14

The environmental scan of the industry is based on the internal and external sections of the environment. The internal is what a business has influence over and controls that section of the environment. The external part is the opposite of the internal. The business does not have the influence over the section of that environment, nor does it have the ability to control it. “The surveying of a variety of indicators in order to gauge the overall business, economic, social, political, or financial conditions that could affect a project’s development”, Moschetti, T, 2015. This part of the outline I will go over issues that can affect the movement within the industry and at the same time decide the fate of any business.

The environment is like a double-edged sword, providing companies opportunities but threats as well. Therefore, in an increasingly hostile marketplace, a systematic and careful environmental analysis is supposed to be considered by companies (Johnson et al, 2011). The macro-environment of a company can be analysed by the framework of PESTEL, which includes six categories: political, economic, social, technological, environmental, and legal (Johnson et al, 2011, Appendix A ).

Since the airline industry is a direct product of market conditions, it is greatly affected by all externalities. Many people noticed a decline in travel after the September 11th tragedy occurred due to safety concerns. When there is a huge increase in fares that definitely interferes with the demand for travel; it causes the price of tickets to continue to rise since a clear correlation between supply and demand exists. When the economy is doing well in terms of the employment rate, and when the dollar is strong people have the tendency to travel more (Jerram,1998).

The growth of airline industry in any country is directly proportional to its GDP growth; the greater the business activity, the more air travel and the higher the GDP of the country. The demand

Social issues include population demographics (such as growth rate or age profile), employment patterns, income levels and population health and education. The above affect the pricing of the product and how the product is advertised, for example. Cultural behaviour is not always easy to analyse as it comprises many underlying assumptions which are hard to change intentionally but which evolve over time (Mullins, 1985). Methods of conducting business are altered by these cultural concerns.