Political customers Social factors, British Airways, Atlantic airways

Political analysis; inspects the guidance of government, it is
Polices, rules and regulation on the industry or association with reference to
virgin Atlantic airline it can be debated that several political factors such
as taxation policies, labour low, customer policies and trade restrictions
forced by the government have had great impact to airline industry. According
to Verging airline management they are expression with various political
challengers 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 parameter
and control of business operation by government.

Economic analysis; Virgin Atlantic airline has been challenged with
hard competition from other firms in the industry, for example, the
organization was required to lower its flight rates following an analysis of
prices for air travels by its major opponents in the air transport industry
such 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 back
video entrainment systems for economy class passengers ” .This new decision
creates an opportunity to win the economic competition and get more profit
& customers

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Social factors, British Airways, Atlantic airways and other airlines such as EasyJet
have already requested the EU and the French government to advance an action
plan to minimize the effect of ATC attacks on passengers (The Guardian 2017). A
number of ATC union strikes hit France in 2016 due to social unrest over a
series of disputed labour reforms from the Socialist government, causing Virgin
Atlantic to cancel many flights to and over France The peak summer season in
2016 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 France

Technologic analysis: Further as Jones (2009) has argued, the Internet
makes industry competition perfect   because
it allows passengers to compare airfares of different airline companies with
just a few clicks, which in effect affects pricing ability, according to Gal-Or
(2011).Nevertheless, the internet also offerings a cost-cutting chance for
Virgin which is why it recently launched AIR4, Virgin Atlantic’s major
technological revolution in company history, which saw Virgin invest in IT
based passenger service systems such as a new mobile app, self-service booking
technology and improved kiosk functionality (Annual report 2016).

 Legal
environment:
During the December 2016, Virgin Atlantic pilots decided to take        industrial action in a row over union
recognition after the pilots union, Professional Pilots’ Union (PPU) which
represents over 70% of Virgins 900 plus pilots, demanded to be the only exclusively
recognized union for Virgin’s pilots and for British Airline Pilots Association
to be derecognized (The Guardian 2016).

Environmental Factors People are much attentive of the
effects of climate change since people of all nations have knowledgeable some
form of negative disaster; from floods, drought extreme record breaking hot
temperatures, record breaking sub-zero temperature etc, that have been credited
by scientists to global warming. Virgin Atlantic like many other airlines faced
sustained working disruption in June last year (2016) as well as January 2017
due to adverse weather conditions, in particular thunderstorms in South East
England, which led to a cancellation of flights to and from London Heathrow and
Gatwick and a delay in many other flights (Swinnerton 2017).

          Total words 572

2.
Conduct a Five Forces analysis of one of the Virgin companies, Among the forces
are new entrants, substitutes, buyers, suppliers and competitors. (around 600
words)

 

 3. Conduct a SWOT analysis. Among the issues
to be addressed are the business response to the threats and opportunities; was
the business reactive or proactive? how the business activities are organised?
What are their strengths and weaknesses? Judgement on the business ability to
respond. (around 600 words)

                                                                                                     
                               According
to Johnson (2005) SWOT is a valuable device to study economic  accounts and developing healthy work
environment of any corporation. It is a key step towards any strategic design
in a business. It is measured to be very significant source of info for judging
and understanding any kind of conditions in the organization. Below SWOT
analysis 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 Heathrow

This is great opportunity for Virgin Atlantic. The planned
development will create new and affordable extra capacity at Heathrow. It will
also reduce the cost of operating to or from Heathrow which is currently the
world’s most expensive hub airport (Johnson 2016). Further, expansion of
Heathrow post-Brexit will allow carriers like Virgin Atlantic to offer more
direct flights to not only UK destinations but also up to 40 new cities abroad
such 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 

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