• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

The current and future prospects of Virgin

Extracts from this document...


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.


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.


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.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Economy & Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Economy & Economics essays

  1. PEST and competitive analysis facing by confectionery organisations

    It was mainly made to fill there gap in the developed market. When the fuse bar was launched it was a massive success and raised confectionary goods bought up within the year. (www.cadbury.com) This is Cadbury's mission statement: "We are passionate about working together to create brands that people love,

  2. To what extent is the UK airline industry a contestable market?

    All regulations have to be followed and this could hinder a firm to enter the airline industry if they cannot fulfil the law. When a firm enters the industry, they have to consider the retaliatory behaviour of the incumbents; the existing companies tend to be more competitive in the market

  1. China or India? Many companies ask themselves this question. Due to saturated markets, increasing ...

    You should make sure that you do not regard the host country's culture, norms and attitudes as inferior. Kentucky fried Chicken for example is a company that had success in being sensitive to cultural differences to the Indian market. Ethical risks Companies that enter the Chinese market often see themselves confronted with various ethical challenges.

  2. UK Membership of the European Monetary Union.

    single currency - exchange rate uncertainty * Exchange rate volatility will continue and may increase; - technology in the global capital markets - UK increased dependence on international trade * Our European competitors no longer face this exchange rate uncertainty - Foreign Direct Investment * Political and Economic Influence -

  1. Case Study: The Home Depot

    By using a resource based approach, you will have to search for the critical strengths and weaknesses that are likely to determine if the firm will be able to take advantage of opportunities while avoiding threats. The resources where the strengths and weaknesses can be found in the organization are

  2. Selecting international modes of entry and expansion

    Thus, the licensor has little direct control. In a joint venture control is shared formally according to level of ownership, as when equity ownership over 50 percent gives one of the partners the largest number of directors on the board. However, informal control mechanisms may also be exerted as when one partner possesses and uses knowledge and information that the other lacks.

  1. The structure of the airline industry.

    AirTran was selected as the only start-up airline to become a launch partner for this aircraft and the ability to carry one of the youngest fleets in the air will allow AirTran to pass these savings onto passengers. This coupled with management's desire to expand into the Northeast and some

  2. "Marks & Spencers" and the EMU.

    * When the Euro is strong, it is an attractive alternative to the dollar, and will promote international trade, as it is a stable trading currency. WEAKNESSES * In the single currency there is only one rate of interest for all of the member states.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work