Richard Branson's Five Forces Analysis Of The Virgin Atlantic
QUESTION 2. Five Forces analysis
1) Threat of New entrants
As can be seen from the fact that the airline industry take a lot of capital to enter the sector, the entry and exit barriers of this market are quite high.
Furthermore, the aviation industry is identified by many rules and tight regulation, which means that regulators must be satisfied about the safety aspect in addition to the financial stability and the airworthiness of the carriers.
This means that the entry barriers are very challenging and therefore, Virgin Atlantic faces an external environment that is comparatively hard for newer entrants.
It must be remembered that the situation is different once a new company enters the industry as it can then engage in all out price wars and a race to the bottom.
According to a 2012 report in the New York Times, fuel is the largest
…show more content…
SWOT analysis.
a) STRENTHS:
Virgin Atlantic has got a strong foundation, more than thirty years on from its first launch in 1984, the North Atlantic airline network remains at the core of the business. One of the most important strengths of Virgin airline is its strong brand image. Virgin Brand recognized by 98% of British Public. By innovative branding and excellent advertising campaign, Richard Branson brings Virgin Atlantic many awards over the years, known as a leading premium airline.
They also introduced advanced technology: including in flight music, ice cream, games and movies.
. Virgin Atlantic is one of the largest British Airlines which is very strong in strategic alliances with other airlines that offers over 35 destinations, carried over 5 million passengers in a year. Singapore Airline is the partnership shareholder at 49%. This partnership is beneficial with both airlines because they allows the transfer of core competencies and provide non-overlapping routes.
They have quality trained employees recruited from other airlines with more than 8000 people are employed with the
Swot Analysis Of Air Canada
1235 Words | 5 PagesThe growing competition however does provide consumers with several choices and for Air Canada to be efficiently and constantly drawing its consumer it must offer " money for worth" deals, such as new multi-pass product, holiday packages and other promotional deals that has not yet been utilized in Canadian market. The possibility of Buyer power is moderate. Threat of New Entrants: Air Canada can be considered a fortunate airline as it does not have any major threat from new entrant stepping in Canadian airline industry due to the strict government legislation and regulations. “Even though the entry barriers for new airlines are lower in a deregulated market, still prospect of a new entrant entering the market is weak to moderate. Rivalry:
Where The Wind Leads: An Analysis
684 Words | 3 PagesIn his memoir, Where the Wind Leads, Vinh Chung demonstrates the theme that times of despair and hardship will eventually pass, but it is the motivation to succeed which will make that time fruitful. While relaying the story of his family’s past, Chung gives an overall theme of success and prosperity which accompanies the distress and conflict brought about by the encompassing Vietnam War. As Chung stated, “[W]hat I do know is that the same pressure that can crush coal into dust can also turn carbon into diamond . . . Tough times produce tough people” (14). Though this theme of success can be grounded in one’s desire to prosper, Chung shows a deeper desire from which this success stems.
Disney Oligopoly: The Market Structure Of Walt Disney
1249 Words | 5 PagesIn spite of that, barriers to entry in an oligopoly market are high. The prime barriers are economies of scale, access to costly and sophisticated technology, patents and tactical measures by existing dominating firms devised to hinder new firms from entering the market. In addition, other sources of barriers include government regulation favoring incumbent firms making it difficult for nascent firms to
Rihanna Swot Analysis
1488 Words | 6 PagesA swot analysis is an analytical tool whereby the positive and negative internal and external aspects of a company or entrepreneur are analysed. RIHANNA’S STRENGHTS: A strength is an internal positive factor that can benefit a company or an entrepreneur. Rihanna has an enormous fan base which will benefit her as it will ensure the continued and unconditional support which means that her profits will be continual.
Stakeholder Analysis Body Shop
941 Words | 4 PagesStakeholder Analysis The answer to whether this partnership will be advantageous to both entities will hugely depend on how each of the management teams learn to understand, value and cater for various stakeholders involved. From an analytical perspective, a stakeholder approach can assist in promoting analysis of how the company fits into its larger environment and how its standard
Transnational Strategy Of Lufthansa
1545 Words | 7 PagesFor worldwide airline industry, opportunities can emerge from new client expectations, items, business sector structures or regulatory
What Is The Competitive Advantage Of Ryanair
1490 Words | 6 PagesHowever, in the recent years, Ryanair keep changes and make a development on its brand image and made a lot of efforts to attract more customers and use the past bad experienced to teach them to become better in future. After Ryanair faced all the challenges in the airline business for many years, it is managed to become a biggest low-fares airline in the Europe and use the low fares as a competitive advantage of Ryanair. In this report, we are required to perform a SWOT analysis, evaluate four criteria of sustainable competitive advantage, discuss the two primary value chain activities which are operation and sales and marketing, and finally we need to discuss the impact of two external environmental factors that challenge Ryanair company to remain competitive in the airline industry. 1.
Panera Bread Research Paper
629 Words | 3 Pages• Rivals face high exit barriers Very High Potential Entrant Pressure • High entry barriers • Strong product differentiation • Menus change constantly with
Swot Analysis Of Virgin Australia Airlines
2186 Words | 9 PagesThe airline is financially weak and its share price has slumped. Virgin Australia Airlines has a strong market value and image owing to its innovative ideas and creative thinking. It operates a rapidly growing fleet basically comprising of Jets and Airbuses. The low average fleet age helps the company to reduce maintenance cost of the aircrafts. Financial performance of the company was not so encouraging in 2011 because of rising fuel price, high value of Australian dollar and environmental disaster.
Hong Kong Dragon Airlines Case Study
2150 Words | 9 Pages(REF). In January 2006, the management of Hong Kong Dragon Airlines
Competitive Case Analysis Of Wilkerson's Company
1770 Words | 8 PagesEXECUTIVE SUMMARY TABLE OF CONTENTS Executive Summary 1 Introduction 3 Competitive Situation 4 Variable Costing 5 Existing Costing System 6 Diagram ABC 8 Activity Based Costing & Profitability 9 Conclusion 14 Bibliography 15 INTRODUCTION COMPETITIVE SITUATION Firstly, here is a brief description of what Wilkerson Company specializes in. According to our case study and various online sources, Wilkerson manufactures and markets a complete line of compressed air treatment components and control products.
Virgin Atlantic Competitor Analysis
1025 Words | 5 PagesBut in choosing one out of the two, the differentiated strategy is preferable. Virgin can use the differentiated strategy to increase growth by product differentiation to better develop their brand which allows them to stand out from their competitors such as Qatar, British Airways. “Virgin’s minimum level of quality for differentiation also creates threshold pricing”. However, Virgin using the differentiated strategy can create value for Virgin Atlantic because when Virgin uses this strategy that concentrates on the cost value of the product or services as opposed to similar products in the industry of their rivals, it builds a perceived value between potential customers and
Political And Environmental Factors That Affect The Airline Industry
885 Words | 4 PagesEconomic Environment Factors such as Crude oil prices, aircraft prices, Economies of Scale may also have effect on the airline industry. Social Environment Tourists and Business travellers contribute to the growth of the airline industry. Technological The use of modern technology by the airline manufacturers can contribute significantly to the growth of the
Business Strategy Case Study: Delta Airlines
742 Words | 3 Pages• Threat of substitute goods: Threat of substitute good is high in this industry. If a private company or government introduces any fast road transportation services in the United States, then traveling through airline can reduce. Air travel is somehow costlier than road transport. If the same kind of leisure will be provided in public transport with greater speed, then the share of airline industry can decline. This threat can be reduced if their products offer more value than other substitute
SWOT Analysis Of Flydubai: Low Fist Airlines
1467 Words | 6 PagesSWOT Analysis of FlyDubai This is the analysis of the strengths, weaknesses, opportunities and threats facing FlyDubai. They are explored below:- Strengths: The strengths of this airlines lies in its low cost flights that attract low income
More about Richard Branson's Five Forces Analysis Of The Virgin Atlantic
Swot Analysis Of Air Canada
1235 Words | 5 PagesWhere The Wind Leads: An Analysis
684 Words | 3 PagesDisney Oligopoly: The Market Structure Of Walt Disney
1249 Words | 5 PagesRihanna Swot Analysis
1488 Words | 6 PagesStakeholder Analysis Body Shop
941 Words | 4 PagesTransnational Strategy Of Lufthansa
1545 Words | 7 PagesWhat Is The Competitive Advantage Of Ryanair
1490 Words | 6 PagesPanera Bread Research Paper
629 Words | 3 PagesSwot Analysis Of Virgin Australia Airlines
2186 Words | 9 PagesHong Kong Dragon Airlines Case Study
2150 Words | 9 PagesCompetitive Case Analysis Of Wilkerson's Company
1770 Words | 8 PagesVirgin Atlantic Competitor Analysis
1025 Words | 5 PagesPolitical And Environmental Factors That Affect The Airline Industry
885 Words | 4 PagesBusiness Strategy Case Study: Delta Airlines
742 Words | 3 PagesSWOT Analysis Of Flydubai: Low Fist Airlines
1467 Words | 6 Pages