Strategic Management and Virgin Atlantic Essay

2815 Words Jul 19th, 2013 12 Pages
Question 1

Virgin group limited is world largest british multinational company founded by Richard branson.it has various core business like travel,entertainment and life style and it includes 400 companies world wide.

Virgin Group's date of incorporation is listed as 1989 by Companies House, who class it as a holding company; however Virgin's business and trading activities date to the 1970s. The net worth of Virgin Group as of September 2008 was £5.01 billion.

Virgin Group operates from its headquarters at The School House, 50 Brook Green in the London Borough of Hammersmith and Fulham.Richard branson retains complete owner ship and control of virgin brand.

Each of the companies operating under the Virgin brand is a separate
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Therefore, upper class generates much higher revenues compared to premium economy and economy. Dogs are SBU’s that have low market share in low growth market. We see Virgin Atlantic’s economy class as a dog. Question marks are SBU’s that have high potential but will require great resources to build market share. We believe that Premium Economy is a question mark as it has potential to be a cash generator. Premium economy targets cheaper flying business class passengers and high end couples. There are 38 seats in this class and tickets generally sell for around $3,000. Economy class focuses on families and groups flying together. Tickets for economy class are priced around $500 and there are 271 seats.

Virgin Atlantic established the strategy in promotion. They need to communicate with their customers for their initiatives in offering special offers that effectively make an appeal to their customers

The benefits are expected to gain the Airlines 3-month payback on their investment; can utilize the advantage of the company over the technology such as computers; lowering the costs of the promotional materials because of the interaction of the business in the different forms of media; prioritizing the communication to the customers; and having the complete control on the advertising campaigns

The Virgin Atlantic recently tested the innovation and can continuously apply this in all their system. This strategy deals with the climate

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