A Strategic Analysis of the Airline Industry Based on Virgin Atlantic Airways

A Strategic Analysis of the Airline Industry Based on Virgin Atlantic Airways

Executive Summary

Introduction

I will be looking in in detail at the airline industry in which Virgin Atlantic operates and will conduct a strategic analysis. An organisation must be aware of the environment in which they operate as not only does the operating environment provide them with the tools they need to survive, it can also be detrimental to an organisation should they fail to note just how important it is to conduct strategic analyses on a regular basis.

The airline industry is an interesting one because we can study the effects of the September 11th attacks, the rising oil prices and the impact the recession has had on the airlines.

There are many layers that surround the organisation and can be determinents in its ultimate success or failure:

The inside layer, number 4 is the organisation itself. The closest layer is number 3 which represents the competitors and markets. Layer number 2 represents the industries and sectors and layer number 1 is the macro environment.

Description of the company

Virgin Atlantic Airways is a British airline owned by Sir Richard Branson and Singapore Airlines and it is part of the Virgin Group of companies. In December 1999 Branson sold a 49% stake to Singapore Airliens and he holds the other 51%. Its main routes depart from the UK and their destinations include the Carribean, North America, Asia, Australia and Africa. Virgin Atlanntic currently have 38 aircraft but they also codeshare with a number of other airlines. They employ approximately 9000 people worldwide including 4000 cabin crew and 700 pilots. The airline carries an overage of between 5 and 6 million passengers each year.

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