Competitive Analysis and Global Position of Virgin Atlantic Airline (Case Study Sample)

Virgin Atlantic Airline Case Analysis
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Table of Contents u

Section 1: Introduction 3

Virgin Atlantic Airline Mission and Vision  3

Virgin Organization Structure and Human Resource Management Approach  4

Section 2: Virgin Atlantic Airline External Environment Analysis 5

Political Factors  5

Economic Factors 5

Social Factors 5

Technological Factors 6

Legal Factors 6

Environmental Factors  6

Potter's Five Forces  7

Entry and Exit Barriers 7

Industry Rivalry  7

Power of Suppliers  8

Power of Buyers  8

Threat of Substitutes  8

The Competitor Environment  9

Section 3: Virgin Atlantic Airline Internal Environment Analysis  10

Value Chain Analysis  10

VRIO Analysis  10

Virgin BCG Matrix Analysis  11

Section 4: Current Strategic Position and Strategies of Virgin Atlantic  12

Strategic Response  13

SAF Analysis 14

Implementation of Recommendations  15

Conclusion 15

References  17
Section 1: Introduction
Virgin Atlantic Airline is among the world's most renowned and esteemed brands with well-established top-labeled venture capital. The company was visualized by Sir Richard Branson in 1970 and was initially known as Virgin group. One of the associates in the Virgin group came up with the name "Virgin" as a show of commercial innocence, modesty, shock-value, and novelty. Since then, the company has been incredibly successful in venturing into industries such as gym, media, music, advisory and financial services, transportation and travel, and mobile networks (Baxter, 2019). Virgin has employed about 50,000 employees in approximately 30 nations and has over 300 brands worldwide. The total revenue of the company from its brands across the world is estimated to be 19 billion dollars. The triumphant story of Virgin Atlantic Airlines implies they have effective human resource practices which have sustained their continued growth over the years.
Virgin Atlantic Airline Mission and Vision
Virgin's mission is focused on dependable delivery, security, and safety, which forms the foundation of its operations. The mission states, “To grow profitable airlines, where people love to fly and where people love to work ."The company's objectives aim to identify different stakeholders and their organizational needs (Albers & Rundshagen, 2020). Virgin constantly seeks innovation and customer feedback to create a well-established customer experience that will ensure quality service delivery for the consumers.
The company's vision is to develop equity that considers creativity and people-friendliness. The aim is to be recognized as an icon of fun, value, and innovation by making a difference in the industry. The company's goal is to offer a diversified and wide variety of products to consumers by re-entering inactive markets with new and innovative ideas, including strategic developments (Albers & Rundshagen, 2020). For instance, Virgin Atlantic Airline has a reputation for quality offers for business persons, which keeps them ahead of other first-class competitors.
Virgin Organization Structure and Human Resource Management Approach
Moreover, Virgin's organizational structure is not as multinational as many assume. The 300 branches the company owns operate separately, with Sir Richard Branson serving as public relations supreme, chairman, and shareholder. Most branches are individual operating companies offering goods and services, employing people, and owning assets. The operating companies are controlled and owned by roughly 20 holding group companies (Yang & Ferraro-Doucette, 2020). Therefore, Virgin's complex company structure makes it a keiretsu and a brand franchising operation.
The company understands the value of strategic human resource management as it facilitates the active involvement of employees during strategic decision-making. The challenge of making strategic decisions has led Virgin to adopt a Shared Services Approach, which has helped the company expand its services to other markets internationally (Yilmaz, 2022). Virgin has discovered the value of incorporating HR functions in its strategic plan development. Virgin Atlantic Airline has merged with Delta Airlines to enhance the delivery of transatlantic services and reduce costs. The merger was crucial to reducing competition from its rival airline, British Airways. Virgin's Shared Services approach and M&A are designed to adopt efficient human resource practices by facilitating employee participation and engagement during change processes.
Section 2: Virgin Atlantic Airline External Environment Analysis
PESTLE Analysis as a framework helps businesses improve productivity and understand market dynamics. It includes the following:
Political Factors
Virgin Atlantic Airline's headquarters in Crawley, United Kingdom, is crucial in its business operations as a