Porter's Five Forces Analysis Of Virgin Atlantic

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Virgin Atlantic which is a subsidiary of virgin group of companies, it started back in the 1980’s when Richard Branson who is the Founder/CEO made it known that a high quality, value for money airline would begin operating and it has become a major British success story. Starting from the first leased jumbo to becoming UK’s second largest airline. . After 10 years Virgin had flown over 1 million passengers and also started a trend of onboard services by being the first airline to offer individual TVs to their business class passengers.
In the 1990’s, Virgin Atlantic spent most of it purchasing new planes and also increasing its route network and also innovating new ways and methods of making passenger service better. In 1992,
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They are:
1) Threat To New Entrants:
The airline industry already has strict rules and regulations, this means that new entratnts have to meet up to the standards of the authorities when it comes to the aspect of safety and also financial stability, in addition to their airworthiness. It can be said that the entry barriers are quite tough and therefore, Virgin Atlantic has an external environment that is reasonably difficult for new entrants to establish themselves.However, It should be noted that once a new entrant comes into the industry, the whole situation changes as this new entrant can now be involved in every competition, price wars etc.

2) Rivalry Among existing Firms:
The airline industry is filled with more and more airlines entering the industry in search of profits. Though most airlines do not make this profit on a consistent basis, this has not discouraged new carriers from entering the industry. Therefore, it is clear that the industry rivalry is quite high and it is something that affects Virgin Atlantic.The rilvaary amognst airlines is leading to many mergers due to the lack of profitability and airlines think the bigger they are the more profit they will be able to achieve. This has led to mega mergers in the
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