Virgin Airline Swot Analysis

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Virgin Airline Strategy Management Project

Virgin Airline is now the second largest long-haul international airline in the United Kingdom. Virgin Airline is renowned for its consistent high-quality service and innovative ideas, focusing on the comfort and feelings of passengers while on a plane. Routes throughout the world’s major cities. This paper analyzes the general environment and industry environment of Virgin Airline by using PESTEL, Porter’s “Five Forces Model” and SWOT, taking Virgin Airline as an example. This paper analyzes the formation and development of business stratum and company stratum strategy provides the basis, and put forward some suggestions and opinions to the company's future.
1 Introduction to Virgin Aviation
Virgin
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28, 2008, reported that Virgin Atlantic reported a pre-tax profit of £ 34.8 million, a five-fold increase from $ 6 million, and revenue growth and 9.1% respectively. As of the end of February 2009, the company’s pretax profit was £ 68.4 million ($ 109 million), almost double the previous year’s profit, due to higher passenger insurance costs.Can be seen before the strategy development and implementation of the guidance has the right meaning, but also proved that Virgin Atlantic is a considerable development prospects.

2.2 Market share
Since its launch, Virgin Atlantic has always firmly occupy a high market share. In particular, between 2005 and 2007, Virgin Atlantic’s sales at an annual rate of not less than 35% of the rapid growth. For the 12 months to September 30, 2008, Virgin ranked second in the list of UK airlines, but ranked second in the UK for 13.3% of passenger flights, While British rival British Airways Zeyi 37% share of the highest.From this we can see Virgin Airlines and the market leader is still a certain distance still need to work hard, the future there is still a great market share can go to win.
2.3 Equity In December 1999, Singapore Airlines acquired a 49% stake in Virgin Atlantic Limited for £ 550 million and Virgin Group a 51%
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Because Virgin Atlantic is primarily focused on international long-haul routes, alternatives are less of a threat to it.
Competition within the Industry - Strong
Aviation industry is a highly mature market, the industry is very competitive. As a result of deregulation and the signing and entry into force of a number of liberal agreements, the number of firms in the industry has increased, and competition in the sector has increased due to higher exit barriers in the aviation industry and sluggish economic conditions. In recent years, mergers and acquisitions and restructuring of the aviation industry is further exacerbated by the industry's competitive situation.
Virgin Airlines in response to fierce competition in the industry to avoid the traditional airlines and low-cost airlines, looking for market gaps for the passengers who did not think the boss, or do not want to do, and consumers are very welcome, it is necessary , Can benefit from the products and services. Thus in the fierce competition in the industry to win a

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