Virgin GroupOne of the UK`s Largest Private Company

Virgin Atlantic Airways

Virgin’s Highest Profile Business

“Virgin Atlantics”(founded in 1984)

by

Richard BransonChairman and FounderHigh profile personFamous for “Think Different” advertisementsIn 1997 featured as “Shaper of the 20th Century”“No.1 Role Model”- student surveyUnusual stunts- Non stop flight around the world in Balloon.

Branson’s Goal

“ To provide all classes of travellers with the highest quality travel at the lowest

cost”

Missions

To grow a profitable airlinesWhere people love to flyPeople love to work withSafety and securityCustomer Advocacy (Number of people

who recommend)

Virgin Atlantic Strategy…..

“Our strategy is to ensure we offer the best business product in the air, grow our leisure business even further, and run an efficient but effective global airline.”

British Airways…………..Strong Competitor in 1984

Because……….

British Airways Operations in 1984

3 March: Concorde services to Washington were extended to Miami, three days a week.

1 April: The airline became British Airways plc.

4 December: British Airways unveiled a new Design. The design was to portray a different image while retaining some elements of the previous style.

Virgin Atlantic & British

Airways

British Airways.......1984

Virgin Atlantic.......1984

British Airways image ( Already Developed)Access to major Routes ( USA, Asia, Middle East, Caribbean Countries)Heathrow Airport ( Competitive Advantage)large Fleet (Boeing, Concorde)

Virgin Atlantic Image (New in Market)Route Access (Only One to USA)Gatwick Airport ( Smaller Than Heathrow)Fleet (One Leased Boeing)

Virgin Atlantic Strategy

keeping in view British Airways, the Virgin Atlantic adopted the strategy of

“Market Penetration” Increase market share of an existing product or promoting a new product by using strategies like

lower prices or by doing extensive advertisement.

Virgin Atlantic…..No Ordinary Airline

Started 22nd June 1984

“Good Quality at Lower cost”

Good Quality of travelling and Customer Services

At very cheaper prices

Virgin Atlantic in its first year of operations became a profitable airline. As they said……

“Our objective is to fly a profitable airline that people love to fly and where people love to work.”

VIRGIN ATLANTIC BUSINESS STRATEGY FOR FUTURE

Virgin Atlantic will continue to lead the industry on issues such as customer innovation in the air and on the ground, and environmental responsibility.

The year ahead will continue to be dominated by high fuel prices, airline consolidation, and an on-going focus into better customer service via our new terminal at Heathrow's Terminal.

Competitive strengthsUnderstanding customers needs and go beyond their

expectations it managed to serve both sophisticated, demanding executives and price sensitive leisure travellers in the same craft.

High profile personality of Richard Branson. “I knew that the only of competing with BA and others was

to get out there and use myself to promote it”(Branson)A full service airline with a strong brand identity

associated with higher standards of services, safety and comfort.

“Until 1991 Virgin flights are confined to Gatwick only much smaller than Heathrow , virgin encountered this commercial disadvantage with free limousine service for upper class”

Innovation in entertaining customers:-Good customer service Cost conscious

EXTERNAL ANALSYSIS (porter 5 forces)

EXTERNAL ANALYSISPolitical Aspects- Deregulation in 1978 Privatization- Privatization Price wars- 40000 donation scrapped by Lods Kings chairman

Legal Issues: Advertising Codes, was in jail Codes of advertising …

Technology: Innovative industry, Aircrafts design, looks and other facilities facilities

Economical Aspects: Recession, Inflation & Economic slowdown.

Environmental Issues: Key issues of the present context.

Areas to be improved (Weaknesses)Delays in servicesLess destinationsLow salaries to employeesFew Aeroplanes

Future Challenges And RecommendationRichard Branson VS Virgin Atlantic96% people are aware of Virgin Atlantic95% people are aware of Richard BransonVirgin should promote its identity

independently.Total focus on business class rather than on

both business and economy class They should focus on economy class as well Slogan is “innovation and entertainment”Are they going to keep up with advancement

of technology and cost efficient?

Virgin appeared to be highly dependent on

the profits of Virgin Atlantic; this was troubling as the airline industry was cyclical and facing increased competition as a result of deregulation.

Virgin group is the most diversified group. Can they be efficient in every type of business?

ANY QUESTION