Political analysis; inspects the guidance of government, it isPolices, rules and regulation on the industry or association with reference tovirgin Atlantic airline it can be debated that several political factors suchas taxation policies, labour low, customer policies and trade restrictionsforced by the government have had great impact to airline industry. Accordingto Verging airline management they are expression with various politicalchallengers when business spread in to foreign countries compare to UK,( ex; USA& Australia) .this most of the political challengers are embrace licensing,bureaucracies set by the UK and foreign governments also increased parameterand control of business operation by government.Economic analysis; Virgin Atlantic airline has been challenged withhard competition from other firms in the industry, for example, theorganization was required to lower its flight rates following an analysis ofprices for air travels by its major opponents in the air transport industrysuch as American Airlines and UK Airways. because of this competition in 1990″Atlantic airline offered first class ticket at business class prices,inventions included limousine pick up for first class passengers and seat backvideo entrainment systems for economy class passengers ” .This new decisioncreates an opportunity to win the economic competition and get more profit& customersSocial factors, British Airways, Atlantic airways and other airlines such as EasyJethave already requested the EU and the French government to advance an actionplan to minimize the effect of ATC attacks on passengers (The Guardian 2017).
Anumber of ATC union strikes hit France in 2016 due to social unrest over aseries of disputed labour reforms from the Socialist government, causing VirginAtlantic to cancel many flights to and over France The peak summer season in2016 was operationally difficult for many airlines including Virgin Atlantic,largely due to social factors outside of the airline’s control particularly,air traffic controller (ATC) strikes in FranceTechnologic analysis: Further as Jones (2009) has argued, the Internetmakes industry competition perfect becauseit allows passengers to compare airfares of different airline companies withjust a few clicks, which in effect affects pricing ability, according to Gal-Or(2011).Nevertheless, the internet also offerings a cost-cutting chance forVirgin which is why it recently launched AIR4, Virgin Atlantic’s majortechnological revolution in company history, which saw Virgin invest in ITbased passenger service systems such as a new mobile app, self-service bookingtechnology and improved kiosk functionality (Annual report 2016). Legalenvironment:During the December 2016, Virgin Atlantic pilots decided to take industrial action in a row over unionrecognition after the pilots union, Professional Pilots’ Union (PPU) whichrepresents over 70% of Virgins 900 plus pilots, demanded to be the only exclusivelyrecognized union for Virgin’s pilots and for British Airline Pilots Associationto be derecognized (The Guardian 2016).Environmental Factors People are much attentive of theeffects of climate change since people of all nations have knowledgeable someform of negative disaster; from floods, drought extreme record breaking hottemperatures, record breaking sub-zero temperature etc, that have been creditedby scientists to global warming.
Virgin Atlantic like many other airlines facedsustained working disruption in June last year (2016) as well as January 2017due to adverse weather conditions, in particular thunderstorms in South EastEngland, which led to a cancellation of flights to and from London Heathrow andGatwick and a delay in many other flights (Swinnerton 2017). Total words 5722.Conduct a Five Forces analysis of one of the Virgin companies, Among the forcesare new entrants, substitutes, buyers, suppliers and competitors. (around 600words) 3. Conduct a SWOT analysis.
Among the issuesto be addressed are the business response to the threats and opportunities; wasthe business reactive or proactive? how the business activities are organised?What are their strengths and weaknesses? Judgement on the business ability torespond. (around 600 words) Accordingto Johnson (2005) SWOT is a valuable device to study economic accounts and developing healthy workenvironment of any corporation. It is a key step towards any strategic designin a business.
It is measured to be very significant source of info for judgingand understanding any kind of conditions in the organization. Below SWOTanalysis aimed at Virgin Atlantic.Strengths Virgin Brand standard by 98% of British Public. Brand reputation is important for any company, Atlantic airline got strong foundation and airline was ranked 6th in world best , the only British carrier to make the world top 10.Becourse of punctuality, Quality and the speed of dealing with reward claims.
Averagely Carried over 5 million passengers in year. Passenger’s always expect good customer service in each travel business /economy and verging able to fulfil their customer satisfaction Virgin Atlantic airline is one of the biggest British airline with over 35 destinations, because Atlantic has a customer base and preferred airline off comfortable customers Atlantic airline has outstanding advertising and marketing management team Virgin Atlantic Using high technology: including in flight music, video, games, and movies. Offering loyalty card for regular customers and also providing quality food and comfort service for them. More than 8000 people are employed with airline and they are quality and well trained staff Reasonable pricing for business class offers more services. Partnership with Singapore airlines (49% shareholder)Weaknesses Flight Delays and need to improve flight competence.
Virgin Atlantic Airways is known as one of the believed airlines, take care of passengers and their needs but sometimes their flights do get delayed due to reasons which could have been foreseen. Lack of travel routes and limited, increasing destination and extra flight Heavy reliance in celebrity personality of Richard Branson for promotion of brand. because one man owner and director of multiple companies it can give negative impact and risk for company Main competition from cash rich gulf airline. Disproportionate growth skewed towards USA flight compared to other high growth regions especially china, India and midlist Atlantic airline decide Cut routes to Chicago, Toronto, and Cape in relation to the September 11 tragedy. Cost of keeping two five star chefs, lounge, and limo service impact negatively for profit Opportunities US government approved third runway at HeathrowThis is great opportunity for Virgin Atlantic. The planneddevelopment will create new and affordable extra capacity at Heathrow.
It willalso reduce the cost of operating to or from Heathrow which is currently theworld’s most expensive hub airport (Johnson 2016). Further, expansion ofHeathrow post-Brexit will allow carriers like Virgin Atlantic to offer moredirect flights to not only UK destinations but also up to 40 new cities abroadsuch as Wuhan, Osaka and Quito Continued low fuel price in 2017 will translate into low fuel coste Technology is key factor for airline, flight internet connection and Web site needs to be improved may be an unexpected opportunity for investment and make it more strong brand name Threats Main threats for Atlantic airline is fuel price are fluctuation, because 15% of total airline expenses going under fuel price. modern days traveling for leisure and business is greatly impacted by the global economy and terrorism attacks .because of this issues less people are likely to travel .this leads to low income to the virgin airline and during this period possible losses due to the its operating cost exceeding income Atlantic airline has competition for routes British and USA Taxes