Introduction
In the emerging challenge of globalization or international markets, the businesses are bound to cut the costs in different areas, promoting the training and development for the workforce and the change management initiatives. The business that are not strong enough to ride in the current of the competition are drastically failed and the other remained strong are continued to push their effort to provide the most desirable service or product available to the market. In that strategy, the business can gain the loyalty of the customers and earn profits. But the international market is not an ordinary competition, gaining an advantage is one of the most essential ingredients to pro-long the life of the business.
Background of the Study and Problem Statement
Virgin Atlantic Airways is one of the leading airlines and just like the other companies that plays in the game of the international market, the challenges and different changes came along their way. But unlike the other business’s ideas, the VAA believed in the option that it is more positive and much less risky to invest in a long-term change program to satisfy the need to grow in the future (Blue Sky, 2009). But aside from their answer in the industrial challenges, the company also establishes analyses, but on what point will the analyses such as pest analysis and porter’s analysis create effectiveness as a strategy for the company?
Research Objectives
The research has a two main objectives and the first is to understand on how competitive the structure of an industry. The competitive advantage can be gained through the in-depth analyses of the consumer’s needs and preferences. In the relation of the first statement, the second objective is concern on the corporate strategy to develop an appropriate solution in the industry. It is believed that through the strategies, there is a creation of a sound decision that requires the attractiveness of different industries in terms of the profits.
Research Questions
The entire study is guided by the research questions which are in relation to the main topic of the research.
1. What are the outcomes of the analysis of the Virgin Atlantic Airways?
2. How wide a range of the substitutes or competitors are available in the market?
3. What is the present capability of the business in terms of answering the customers’ demands and competition?
Literature Review
The Virgin Atlantic Airways had serious cultural challenges to overcome but the business never changes their focus on the customer service. There are evidences that show the lack of focus on balancing the sales. There are challenges in any organization to manage an operation that lacked the knowledge, skill and experience (Blue Sky, 2009). Through the different analysis, the company expected to create a strategy in different part of their business aspect (Taylor, 2002). The PEST analysis is the short-term applied to the political, economic, social, and technological conditions or influences in the environment. Through the systematic and continuous scanning of the external influences, an organization might see an opportunity such as attempting to direct the business to be more cost-effective. Meanwhile, the center of the Porter’s Five Forces Analysis is to develop a systematic approach through analyzing and evaluating the industry’s environment and exploring the economic factors in terms of its profit potential and identifying the sources of the competitive advantage (Marks, 2002; Blackwell, 2004).
Methodology
The applied method that serves as the engine of the research is the comparative case study. Through the past literature or reports about he Virgin Atlantic Airways, the research can identify the different strategies applied by the business to gain the advantage in the market. Furthermore, through the applied method, the research can have an opportunity to analyze the important points on the effectiveness of the strategies.
Conclusion
The PEST analysis and Porter’s Five Forces analysis are important to identify the right position of the firm in the industry to outperform the other rivals. In fact, those analyses are not always meant to measure the uncertainties or threats in the market but to reduce the impact it might bring in the business. It is expected that the changes economic trends, changes in social, political, and technology can serve as a threat or part of the weakness of the business, but knowing this weaknesses is the key of the business to open and manage the opportunities for their future.
References:
Blackwell, 2004. Industry Analysis: The Fundamentals. [Online] Available at: http://www.blackwellpublishing.com/grant/pdfs/CSA5eC03.pdf. [Accessed 01 Feb 2010].
Blue Sky, 2009. Sales and Service Performance Improvement Virgin Atlantic Airways. [Online] Available at: http://www.blue-sky.co.uk/casestudies/Virgin_Atlantic.pdf. [Accessed 01 Feb 2010].
Marks, R., 2002. Industry Analysis - Porter’s Five Forces. [Online] Available at: http://www.agsm.edu.au/bobm/teaching/ECL/lect02.pdf. [Accessed 01 Feb 2010].
Taylor, K., 2002. Customer Success Story Virgin Atlantic Airways. [Online] Available at: http://www.sun.com/datacenter/consolidation/docs/virginatlantic.pdf. [Accessed at: 01 Feb 2010].
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