Virgin Atlantic Case Study

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• Virgin Atlantic provides a very exceptional service to its customers. People have been transported with a high level of accommodation and efficiency that is not provided by their competitors such as British Airways, Qatar airline etc. Virgin Atlantic pride themselves of how they treat their customers on each flight. However, they provide, food, drinks, entertainment with advanced technology and a welcoming staff. The geographic scope in presence is minimal. “They concentrates on Europe and especially North America, and has not taken advantage of emerging markets in Asia. For instance, in Asia, the Airline operates routes to Shanghai, Hong Kong, and Delhi, only; while in the Middle East, they fly to Dubai only”
Entry and Exit Barriers
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Moreover, those who make spare parts are also suppliers to Virgin Atlantic. With the consideration of the fact that Virgin Atlantic is characterized by their presence as a number of suppliers vying for business, it is no surprise that the suppliers power is low and Virgin Atlantic have the upper hand in their interactions with all the suppliers.
However, in cases such as the supply of jet fuel, Virgin Atlantic have a diverse advantage, because of the expensiveness of the fuel and a premium product, “meaning that there are not too many buyers for it making Virgin Atlantic a favoured customer for the aviation fuel companies”. “Virgin’s supplier power is high. Its suppliers are large and it has few in number in its
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However, the obvious significance that can be drawn from the framework is that Virgin Atlantic encounters a challenging and a competitive external environment that will affect its operation directly because it has to originate and be lean and mean in its operational capabilities and capacities if it has to endure the assault of competition. Moreover, it is relevant in pointing out that the global airline industry is in a death spiral and therefore, Virgin Atlantic needs to be ahead of their rivals to remain profitable. The attractiveness is that there is presence of threats that is displayed in the industry by Virgin competitors. However, when the threat is high, the less the industry becomes
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