How Does Virgin Atlantic Respond To Its Externalize Environment

How Does Virgin Atlantic Respond To Its Externalize Environment
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How Does Virgin Atlantic Respond To Its Externalize Environment
Virgin Group is an established business merger headed by Richard Branson that has been focusing primarily on the air travel, entertainment and lifestyle related company. Today, Virgin airline as a group has more than 300 subsidiary companies worldwide. In this report, the analysis will be the focus on Virgin Atlantic. Besides, Virgin Atlantic is preferably chosen because it is the most interesting to analyze how the company can accomplish superior success in one of the most competitive industry, the airline industry. Virgin Atlantic group is faced with some external factors around its environment. The current external business environment in the airline industry is more dynamic then in the past. The major external environment factors that directly and indirectly shapes the evolution of the airline industry include social, technology, economic, ecological and management factors. Therefore, the Virgin Atlantic has managed control the pressure in the external environment by effectively to responding to the impact of economic dynamism competition level and changes in technology.
First, economic crisis has been a determinant factor especially in the European Market. In the UK particularly, the rates of unemployment remain at its highest levels. Therefore caution is given to the consumers to be prudent in all their usual spending habits. For the last seven years in the UK (2009-2016) the economy of the country has remained gloomy and has led to people cutting their expenses and travels especially for leisure or tourism reasons (Donnelly, 2009). As a result of this, Virgin Atlantic as an airline company has suffered a lot as the economy distress, which has severely dampened the usual demands for air flights (Donnelly, 2009). In addition, the suffering economy has prompted people shift to cheaper costs airlines operators and other mode of transport such as road and railway.
The Virgin Atlantic has responded to the current economic recession by implementing innovation strategies to reduce operating costs, match supply and demand, solve customers’ pain, as well as improving their supplier business (Notis, 2015). Particularly, the company has managed to reduce its operating costs by changing to affordable methods, techniques, equipment, and software to increase service while increasing margins as well. This strategy is known to make business recession-proof. By solving customers’ pain the company has reduced cost of flight tickets, introduce flexible travels destinations and other affordable travelling packages (Notis, 2015). Thus, this significantly helped the company to at least manage the current economic downturn by maintain their passenger volume.
.      Second, competition in airline industry arises from various sources such road, rail and other airline companies such as British Airways, British Midland, Emirates and Jet Airways. Although, The competition in a common phenomenon across the industry Virgin Atlantic seemed to have suffered the most due to its negative corporate level strategies. In other words competitio...