Porter's Five Forces Analysis Of The Attractiveness Of Virgin Atlantic

782 Words4 Pages
Pratap (2017) The attractiveness of Virgin Atlantic is affected by a number of factors. Within the 21st century, the airline industry has been growing frequently and in demand. In spite of the speedy growing world economy, there are a number of forces that can affect the growth of Virgin Atlantic. Also, a number of forces determines the level of competition and competitiveness in the market that Virgin has to face.
The five forces of Porter’s model are an exceptional tool that can help Virgin to understand the level of competition in the airline industry. Some of Virgin competitors are Qatar, British Airways etc. The managers at Virgin Atlantic can create strategies that are more successful to tackle competition and to improve Virgin competitive strengths by using this tool.
Porter’s Five Forces Analysis
Threat of new entrants
The threat of new entrants in the airline industry is very low for Virgin Atlantic, this is because the barrier for both high entry and exit barrier is very high. These barriers can stop new airlines not to enter into the industry. The entry and exit can be difficult for Virgin because there are a number of regulatory factors. For new airlines to enter, there must be large capital investment human resources that are skilled
…show more content…
The most important inputs are craft and technology, aviation fuel, and skilled labour. Due to the reasons of political and economic, the fuel price is subjected to fluctuate. Also, the technology suppliers and craft suppliers are very limited and Virgin brands solely relies upon the supplier for them to supply very fast and aircraft that is well designed and fast. Boeing and Airbus are the two leading manufacturing aircraft that supply Virgin. The Virgin Group is constantly being technologically developed by suppliers with its touchscreen seat back entertainment, Wi-Fi accessibility, health club maintenance, cutting edge smart phones, and new space

More about Porter's Five Forces Analysis Of The Attractiveness Of Virgin Atlantic

Get Access