Environmental/Ecological, low, customer policies and trade restrictions

Environmental/Ecological, and Technological. (Around 600 words)Political analysis; inspects the guidance of government, it is Policies, rules, and regulation on the industry or association with reference to Virgin Atlantic airline it can be debated that several political factors such as taxation policies, labour low, customer policies and trade restrictions forced by the government have had great impact on airline industry. According to Verging airline management, they are expressed with various political challenges when business spread into foreign countries compare to the UK,( ex; USA & Australia) .

this most of the political challenges are embrace licensing, bureaucracies set by the UK and foreign governments also increased parameter and control of business operation by the government.Economic analysis; Virgin Atlantic airline has been challenged with hard competition from other firms in the industry, for example, the organization was required to lower its flight rates following an analysis of prices for air travels by its major opponents in the air transport industry such as American Airlines and UK Airways. because of this competition in 1990 “Atlantic airline offered first class ticket at business class prices, inventions included limousine pick up for first class passengers and seat back video entrainment systems for economy class passengers”.This new decision creates an opportunity to win the economic competition and get more profit & customersSocial factors, British Airways, Atlantic Airways and other airlines such as EasyJet have already requested the EU and the French government to advance an action plan to minimize the effect of ATC attacks on passengers (The Guardian 2017). A number of ATC union strikes hit France in 2016 due to social unrest over a series of disputed labour reforms from the Socialist government, causing Virgin Atlantic to cancel many flights to and over France The peak summer season in 2016 was operationally difficult for many airlines including Virgin Atlantic, largely due to social factors outside of the airline’s control particularly, air traffic controller (ATC) strikes in FranceTechnologic analysis: Further as Jones (2009) has argued, the Internet makes industry competition perfect because it allows passengers to compare airfares of different airline companies with just a few clicks, which in effect affects pricing ability, according to Gal-Or (2011).

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Nevertheless, the internet also offerings a cost-cutting chance for Virgin which is why it recently launched AIR4, Virgin Atlantic’s major technological revolution in company history, which saw Virgin invest in IT-based passenger service systems such as a new mobile app, self-service booking technology and improved kiosk functionality (Annual report 2016). Legal environment: During the December 2016, Virgin Atlantic pilots decided to take        industrial action in a row over union recognition after the pilots union, Professional Pilots’ Union (PPU) which represents over 70% of Virgins 900 plus pilots, demanded to be the only exclusively recognized union for Virgin’s pilots and for British Airline Pilots Association to be derecognized (The Guardian 2016).Environmental Factors People are much attentive of the effects of climate change since people of all nations have knowledgeable some form of negative disaster; from floods, drought extreme record-breaking hot temperatures, record-breaking sub-zero temperature etc, that have been credited by scientists to global warming. Virgin Atlantic like many other airlines faced sustained working disruption in June last year (2016) as well as January 2017 due to adverse weather conditions, in particular thunderstorms in South East England, which led to a cancellation of flights to and from London Heathrow and Gatwick and a delay in many other flights (Swinnerton 2017).

          Total words 5722. Conduct a Five Forces analysis of one of the Virgin companies, Among the forces are new entrants, substitutes, buyers, suppliers and competitors. (around 600 words)   3. Conduct a SWOT analysis. Among the issues to be addressed are the business response to the threats and opportunities; was the business reactive or proactive? how the business activities are organised? What are their strengths and weaknesses? Judgement on the business ability to respond. (around 600 words)                                                                                                                                      According to Johnson (2005) SWOT is a valuable device to study economic accounts and developing healthy work environment of any corporation. It is a key step towards any strategic design in a business.

It is measured to be a very significant source of info for judging and understanding any kind of conditions in the organization. Below SWOT analysis aimed at Virgin Atlantic.Strengths Virgin Brand standard by 98% of British Public.

Brand reputation is important for any company, the Atlantic airline got strong foundation and airline was ranked 6th in world best, the only British carrier to make the world top 10.Because of punctuality, Quality and the speed of dealing with reward claims. Averagely Carried over 5 million passengers in a year. Passenger’s always expecting good customer service in each travel business /economy and verging able to fulfill their customer satisfaction Virgin Atlantic airline is one of the biggest British airlines with over 35 destinations because Atlantic has a customer base and preferred airline off comfortable customers Atlantic airline has outstanding advertising and marketing management team Virgin Atlantic Using high technology: including in-flight music, video, games, and movies. Offering loyalty card for regular customers and also providing quality food and comfortable service for them. More than 8000 people are employed with airline and they are quality and well-trained staff  Reasonable pricing for business class offers more services. Partnership with Singapore airlines (49% shareholder)Weaknesses Flight Delays and need to improve flight competence.

Virgin Atlantic Airways is known as one of the believed airlines, take care of passengers and their needs but sometimes their flights do get delayed due to reasons which could have been foreseen.  Lack of travel routes and limited, increasing destination and extra flight Heavy reliance on celebrity personality of Richard Branson for the promotion of the brand. because one man owner and director of multiple companies it can give negative impact and risk for the company Main competition from cash-rich Gulf airline. Disproportionate growth skewed towards USA flight compared to other high growth regions especially China, India and midlist Atlantic airline decides Cut routes to Chicago, Toronto, and Cape in relation to the September 11 tragedy.

Cost of keeping two five star chefs, lounge, and limo service impact negatively for profit   Opportunities US government approved the third runway at HeathrowThis is a great opportunity for Virgin Atlantic. The planned development will create new and affordable extra capacity at Heathrow. It will also reduce the cost of operating to or from Heathrow which is currently the world’s most expensive hub airport (Johnson 2016). Further, expansion of Heathrow post-Brexit will allow carriers like Virgin Atlantic to offer more direct flights to not only UK destinations but also up to 40 new cities abroad such as Wuhan, Osaka, and Quito  Continued low fuel price in 2017  will translate into low fuel cost Technology is key factor for airline, flight internet connection and Website needs to be improved may be an unexpected opportunity for investment and make it a more strong brand name Threats Main threats for the Atlantic airline is fuel price is a fluctuation because 15% of total airline expenses going under fuel price.

modern days traveling for leisure and business is greatly impacted by the global economy and terrorist attacks .because of this issues fewer people are likely to travel .this leads to low income to the Virgin airline and during this period possible losses due to its operating cost exceeding income Atlantic airline has competition for routes British and the USA Taxes  Total Words 580


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