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The current and future prospects of Virgin

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Introduction

The current and future prospects of Virgin Introduction Virgin is one of the most established brands in Britain and also now becoming the first global brand name of the 21st century. Virgin began in the 1970's with a student magazine and small mail order record company. From then on Virgin kept on evolving years after years. This organisation has many products and services it offers from planes, trains, finance, soft drinks, music, mobile phones, holidays, cars, wines and many more. They have formed 200 companies worldwide, employing over 25,000 people. The particular product that I'm going into is Virgin Atlantic, which operates in the airline industry. Industry Structure Analysis To examine the competition in this industry, the best model for this is Michael Porter's Five Forces Model. Porter describes that there are five forces that determine industry attractiveness and long-run industry profitability. These five competitive forces are: - The threat of entry of new competitors (new entrants) - The threat of substitutes - The bargaining power of buyers - The bargaining power of suppliers - The degree of rivalry between existing competitors The threat of new entrants- New entrants to an industry can increase the level of competition and the barrier to entry is key. In the airline industry new airplanes require extremely high investments accompanied with great risk and the inability to get a positive return on that investment for many years. ...read more.

Middle

With these challenges, managing customer contact information effectively is vital. Virgin Atlantic, a brand leader in the airline industry, recognized that it needed to manage sales data more effectively. Role of Government - Industrial Policy In the highly competitive airline industry, carriers struggle with regulations and bilateral agreements that restrict international airline ownership and full access to global capital markets. The main issue facing the Government in relation to airlines is what they should do to facilitate the further, sustainable development of the UKs successful airline industry. Development should aim, as far as possible, to meet the needs of consumers, bring wider economic benefits to the UK and protect the environment. Many policy and regulatory aspects of the aviation industry are therefore governed by the outcome of negotiations between several countries. It is the responsibility of governments to deliver their obligations under these agreements and to work within that framework to achieve their national goals. The Government is also keen to encourage the growth of regional airports to meet local demand, provided that expansion is consistent with sustainable development principles. It is also the role of the UK Government to establish and ensure implementation of an effective UK aviation policy framework. This includes establishing an effective planning system, negotiating bilateral air services agreements outside the EEA, and setting and enforcing security and local environmental standards. Virgin Atlantic has to comply with the government's legislations, as they are a well established company all the policies set out in the industry are minimal and most are made from the airline companies. ...read more.

Conclusion

Consumers and businesses would have to pay for these costs through higher prices and taxes. There would be a lot of impacts on Virgin Atlantic if the single currency was to be taken on by the UK. As then being the strongest currency would go down to being equal with other European countries which of some are not so high level of standards as they have a lower economy to the UK. Recommendations & Conclusion For Virgin Atlantic being such a brand power and well established organisation it will always remain competitive in the global market. As this airline does not operate in European destinations I think that it should enter the europe market of airlines as it can compete all the little airlines that operate in europe. Why I think that they should implement to this recommendation is that for one Virgin Atlantic's mission statement states that "To grow a profitable airline, that people love to fly and where people love to work." Having seen there profits they have some what achieved their mission statement, so it'll be a no problem in competing to a new market. For being in the intensely competitive market Virgin Atlantic has achieved a lot of its goals, it'll always be a healthy business organisation even if new entrants come in to compete it'll take huge investments to become well established, loved by the customers making customer loyalty, as Virgin Atlantic will already have this as customers have already experienced this. ...read more.

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