Swot Analysis Of Virgin

Virgin is a U.K-based company led by Sir Richard Branson and is one of the three most recognized brands in Britain. The company has a vast history of brand extensions – one of which is their launch of a wireless phone service in the USA. Dan Schulman has been appointed CEO of the Virgin

The SWOT analysis gives organisation the opportunity to evaluate issues within and outside the business. It is the method of evaluating the strengths, weaknesses, external opportunities and threats from competition, and also to identify some strategic decision-making (Colbert 2018).

The purpose of this report was to provide a strategic evaluation of the company Virgin Australia. The report begins by conducting a strategic analysis of Virgin, including an analysis of the external environment and an internal analysis of competitive strengths and weaknesses. The report then identifies the strategic direction and objectives of Virgin Australia, including the vision, mission, strategic objectives and stakeholders of the company. The report moves on to explore strategic choices of Virgin Australia by identifying the key broad business level and

The first part of this report provides a broad introduction into the business of Virgin Australian by examining its principal sources of revenue, its nature of operating, its competitors, the market share and the regulations affecting its operations. From this, it can be seen that Virgin Australia operates in a very competitive environment and generates revenue by the core business of passenger and cargo transport.

Being in the service sector it is important for Virgin Atlantic to study its marketing mix as it works as an efficient tool, while building up marketing plans. It comprises of the seven P’s which are as follows.

The business is very heavily promoted, through all forms of media, including press, billboards, magazine inserts, British TV and the internet. The firm capitalises on the distinctive Virgin logo, which is familiar to the British public due to the variety of other products and services offered by the Virgin Group.

This new territory caused the first major shift in the strategic thinking of Virgin as the airline was capital intensive and by 1985 airfares price war and the investment needs of virgin Atlantic (the airline) had taken its toll on Virgin finances with the result that publicly listed to raise more equity. Virgin’s music, retail, and vision business was brought together to form the Virgin Group and 35% of its equity was listed. Branson was not happy with this new arrangement because of the control that shareholders would hold on direction and this was not in keeping with his nonconformist style and also that he felt that his organization was misunderstood and undervalued by so called experts. The organization culture at Virgin was also at risk in this new arrangement and he seized the opportunity presented by the 1987 stock market crash to buy out external shareholders.

“Safety, security and consistent delivery of the basics are the foundations of everything we do.”

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

Economic conditions include the terms, such as, inflation, income level and others (Davidson, Poole and at all 2011, pp 35). According to Virgin Australia (2011) the company received strong underlying result for the first half of year. As evidences, the company published Annual Report 2011 with information that proves company’s improvements. For instance, company’s total revenue has increased by 18.4 per cent from 1695 million dollars to 2006.4 million dollars, net profit after tax increased by 117.6 per cent from 23.8 million dollars to 51.8 million dollars, significant improvement in liquidity, with 506 million dollars of unrestricted cash and 851 million dollars total cash balance(Virgin Australia, Annual Report 2011).

The Virgin Group, is a British international corporation conglomerate founded by entrepreneurs Sir Richard Branson and Nik Powell in the 1970. Today, the Virgin Group, operates in 13 regions internationally, in seven industries with a net worth valued at $4.9 billion (Virgin, n.d.). Although, the Virgin Group is made up of several largely diversified companies, for the general purpose of this assessment, we will concentrate on the airline sector of the Virgin Group. Virgin-branded airlines include: Virgin Atlantic, Virgin Galactic, Virgin Australia and Virgin America. In this analysis, we will take an in-depth look at the external, internal and SWOT analysis for Virgin America Airline.

The SWOT analysis is business analysis method that business can use for each of its department when deciding on the most perfect way to increase their business and future growth. This procedure identifies the internal and external strengths, weaknesses, opportunities and threats that are in the markets.

Diversifying the company: Since Virgin sticks its hands into so many industries across the board, it has a good chance of surviving even if the economy dips. For example, after the events of 9/11, airline business suffered. However, the other ventures that Virgin stood for kept the company afloat.

The corporate strategy of the Virgin Group is to operate like ‘a venture capital firm based on

At Virgin “fun” and “challenge” is the key brand value and terminology. It provides a challenging