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Pestel Analysis : Virgin Group

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External Analysis (Virgin Group)
Summary / Introduction
Virgin Atlantic is a British Airline that was established in 1984 and in 2014 the company sold 49% of its interest Delta Airlines, leaving 51% to the Virgin Group. As of last month, the company has also partnered with Air France – KLM. The company is competing in the international airline sector, specifically targeting middle to premium class clientele as well as cargo services. The company’s major competitors are British Airways, British Midland, and Emirates. According to the Centre for Aviation (2014), Virgin Atlantic is the second largest competitor in the UK, with 18.6% of seats behind British Airways on 37.5%. This paper will provide an external analysis of the company …show more content…

According to the airline, the experiment resulted in saving 6,828 metric tons of fuel for Virgin Atlantic, worth 3.3 million pounds and also prevented the emission of 21,507 tons of carbon dioxide to the atmosphere (Mooney, 2016). Another economic factor that threatens the company is the weakness of sterling. Earlier, this year, the chief executive, Craig Kreeger projected that the airline would likely see its first loss in four years as it copes with the fall in the value of the European pound (Quinn, 2017).
Social Factors and Cultural Factors
One of Virgin Atlantic’s key advantages is their dedication to customer service, therefore the ability to connect with their target market adjust to the external social and cultural factors is critical. The company maintains a completive advantage in this arena due to their commitment to social responsibility and the value to the customer. In a 2016 Fortune-Time interview he stated that he sincerely believes that companies need to work with the social sector to get on top of the problems of the world (Marinova, 2016). This is something that has been a core value of his organization for years, in 2006 launched an investment fund that pumped $400m (£214m) into renewable energy initiatives over the following three years (Association Press, 2017). Just recently the company was listed as one

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