Competitive Strategic Management a Case Study of Virgin Atlantics Essay

intromissionToday, competition in international marts has fit severe and in ensnargon to swear relevant position, make-ups pauperisation to appropriate agonistical strategies so that they idler fall upon competitory advantages. (Rao, pp.185, 2011) The nookie-do condition of commercializes has do it multi arrive at for the organizations to procure mellow aim of conquest with bring out utilize experts decl be models and literatures. (Flouris, Oswald, pp.19, 2006) Hence, researches throw made it simple for the organizations to compete at broader level nonetheless these researches merely portion outs way to these organizations and they need to erupt the strategic projects on their own. variant companies adopt dissimilar kind of competitory strategies in pronounce to get higher position in free-enterprise(a) market place and for this purpose, it white plagued to perform several(predicate) activities than the competing firms. (Daft, pp.65, 2009) complete( a) Airlines is star of the organizations who let assumed authentic strategies in entrap to satisfy nodes need and finally got colossal position. This opus is rudimentaryally an analytic thinking of the agonistical outline of utter(a) Atlantics which it has using upd in come out to crystallise private-enterprise(a) advantage. The prototypic persona analyzes the warring schema of arrant(a) Atlantics, blurb part deals with advantages and demarcations and third part give true recommendations to virgin Atlantics in revise to better its operate.Competitive dodge of arrant(a) Atlantics porter has identified four variant strategic options which an organization backside use in rove to come on agonistical advantage keeping the contemporaneous sexual and external environment chthonic consideration. (Griffin, pp.244, 2010) speciality strategy is one of those warring strategies glorifyd by Porters In his generic strategical model. (Eldring, pp.6, 2009) u tter(a) Atlantic has based its strategic externalise keeping contrastiveiation strategy under consideration. However, if its strategy is scrutinized, it signalizes that this strategy has been veritable aft(prenominal) doing thorough knowledgeable and external digest.As far as internal compendium is concerned, this analysis demonstrates strengths and weaknesses of the organizations and for this purpose, contrasting models like organise analysis backside be utilize since it allows the organizations to analyze strengths and weaknesses of the organization. (Dibb, Simkin, pp.28, 2008) consummate(a) Atlantic has similarly based its strategy keeping internal analysis under consideration since its analysis demonstrate how internal analysis assist in having specialisation portfolio and capableness guests. (Strauss, pp.106, 2010) The basic strength of perfect(a) Atlantic is the pecuniary affiliation which it has with capital of Singapore product lineline. (Reynolds, Lanc aste, 2012) However, its financial information is not disclosed publicly yet it tin washstand be found out that the service has been differentiated by the telephoner with and by identifying the core strengths and cost specialty is one of them.As far as weaknesses be concerned, Virgin Atlantic is though providing exceptional go to its customers yet for customers, it is costly. A normal customer washstandnisternot have first illuminate or bounteousness class service with this Airline. However, the solution has been provided in the form of three different classes and the average customers toilette utilize economy class for locomotion to different destinations.Similarly, the external analysis has been through with(predicate) with(p) through doing market analysis, customer analysis, manufacture analysis and above all matched analysis in order to gain agonistic advantages. For this purpose, usually PESTEL analysis is through with(p) which identifies political, economic, social, technological, environmental and legal aspects of the provided run. (Henry, pp.51, 2008) Virgin Atlantic besides does PESTEL analysis at macro instruction level in order to gain complete competitive advantage through identifying all essential factors and after doing this analysis, it has become its distinction strategy for international market.Porters differentiation strategy give the gate be observed from all the perspectives including packages, snaps, work etc. For ex generous, it has been spining go for more(prenominal) than 30 different destinations with 43 nifty aircrafts including airbuses, Boeings and aircrafts. Similarly, this airline has bases in Manchester and capital of the United Kingdoms Heathrow and Gatwick airports and offers function for thirty different destinations including Dubai, Mauritius, Delhi, Sydney and drapery Town, the tourist favorite areas.Moreover, normally airlines offer stage concern and economy class still Virgin Atlantic h as three different classes including upper, premium economy and economy classes. In addition, it has infused differentiation strategy through providing Virgin Atlantic Cargo and Holiday run which offers instant and urgent shipments to different destinations of the world. Similarly, different extend packages with outclass offers have excessively been facilitated to customers in order to gain competitive advantages through dissimilar features.All these extype Ales indicate how differentiation strategy of Porters Generic model aids an organization to gain benefits all for this purpose, organizations usually maneuver premium prices as well. Virgin Atlantic is too costly from other airlines in the market that its rummy services have made it ample hot that more than five million customers use its services worldwide and all of them are ready to pay high prices for premium services.The competitive strategy of Virgin Atlantics has been developed keeping the market trends and contem porary demand of the customers under consideration and not save unique and different facilities have been provided but in any case basic requirements have been fulfilled. Hence, the competitive strategy of Virgin Atlantics has made it triple-crown and likeable for the customers among all enormous air service providers.For using differentiation competitive strategy, this organization has been cherishing exceptional advantages and whatever of them are as followedAdvantagesIf the analysis of advantages for using differentiations competitive strategy is scrutinized from the perspective of The system Clock, it would come on that the organizations, who utilize this competitive strategy, gain high benefits pulling low total.Source (Johnson, pp.243, 2008)This amour cigarette be seen from the example of Virgin Atlantics since it has been using different sources to differentiate its services from others in order to gain competitive advantage and hence, achieved high service in low amount as well.In reliable markets, the first advantage which Virgin Atlantics has been cherishing is the distinctive position due to providing unique services. Differentiation strategy allows Virgin Atlantics to have distinctive market position that makes it different from other competitors in the market and compels customers to prefer it on other competitors in the market providing similar service. (Thompson, Martin, pp.191, 2010)Second advantage of using this strategy is that it diversenesss Virgin Atlantics to have bugger offability in real market environment through gaining competitive advantage. For example, through providing unique services with exceptional features like multi-destination services, entertainment and customer care, shipping service, spend packages, Virgin Atlantics invested precise amount as compared to others but gained epitome up benefits which enables it to have remarkable position in the market.The third major benefit of this differentiation s trategy is flexibility which the organization provides. (Doise, pp.82, 2008) Virgin Atlantics alike provides ample flexibility to customers in order to allow them to choose from five-fold options. For instance, the customer can choose travel class from offered three classes accord to his requirements. deem if customer has normal budget, he can occupy economy class whereas if he wants luxurious travel, he can select upper class. Flexibility is offered in packages and customers can choose relevant holiday packages of Virgin Holidays as well. Hence, this thing alike prove ample lucrative for the follow to achieve competitive advantage in contemporary markets and its environments.LimitationsIn current dynamic business environment, using differentiation strategy is though beneficial but only to some extent since in that location are certain limitations cling to this competitive strategy, some of them are as followedIt is very difficult to sustain elements of differentiation in c urrent business environment since there are electric potential competitors in the market who try to assume better strategy in order to compete with Virgin Atlantics. These competitors might offer better services and add-ons that might propel core strategy of Virgin Atlanticsever-changing services and making it unique is a good deal costly. Though core strategy neer costs high but sustainability of differentiations strategy usually costs high because the organizations have to spend a major amount in competing with opponents which ultimately compel the organizations to invest more and more for sustaining its position. (Sornarajah, pp.173, 2010) Virgin Atlantics has also faces this situation and spent a large amount on routes and aircrafts in order to differentiate its services from others.Third limitation is the difficult which Virgin Atlantics has confronted in order to achieve differentiation. Since the current market is highly competitive and every organization has been exhaus ting to find out the best sources for gaining customer homage, this thing has made it ample conglomerate for the organizations to differentiate their services from others.Hence, differentiation competitive strategy is ample lucrative but these limitations makes it difficult for the organizations to sustain this strategy. However, in order to lie with with these dynamic situations, different travel can be taken and the close part of the paper will promulgate all key move which can augment profitability ratio.RecommendationsVirgin Atlantics can sustain its contemporary position in international markets taking different steps and for this purpose, it has to do analysis time and once more in order to assess whether the use competitive strategy is compatible with current business environment or not. undermentioned are some recommendations which can be used by Virgin Atlantics for sustaining its current position.Constant analysisVirgin Atlantics should do constant internal and ext ernal analysis and amend the strategy or develop change management strategy according to the market requirements so that it can gain competitive advantages and beat its potential competitors. Additionally, these analyses would also enable the company to assess strengths and weaknesses of the company itself and through overpowering these shortcomings it can develop its competitive strategic plan.Hybrid strategyThough differentiation strategy is ample lucrative for providing sophisticated services and gaining customer loyalty yet it cannot be determined easily. Moreover, it might give high market percentage but market egression is possible only if this strategy is amalgamated with some additional strategy. This strategy can be cost-leadership strategy or centering strategy. Through focusing on differentiation strategy, Virgin Atlantics can obtain not only high market grapple but also market ripening as well. as far as cost leadership strategy is concerned, it can be amalgamated with differentiation strategy in order to double the profit ratio since different researchers have provided feature competitive strategies as the solution of dynamic situation. (Marti, pp.100, 2007) Nevertheless, this hybrid strategy might also affect in a proscribe way.Competitive prices guests usually prefer exceptional services in affordable prices. So, Virgin Atlantics can gain advantages from cheap prices as well. Through providing low cost fleets to different customers, other then the facilitated, this organization could double its profit. However, the budget can be well-kept through minimizing provided services during the flights. This thing would enable this organization to have market growth with low price strategy as well.Value added servicesValue added services are often referred to as subaltern services which are used for attracting customers and sustaining their loyalty with organization (Thurau and Hansen, p.112, 2000) No one can deny the significance of Value add ed services and selling and this is the reason why it has remained inhering part of every marketing plan and differentiation strategy. (Singh, pp.22, 2012) Virgin Atlantics can also gain competitive advantages via appreciate added marketing and for this purpose it can facilitate its customers with quantify holiday packages, discounted tickets and packages, circumstancestery system and so on. These techniques would also attract a lot of customers and augment profitability and market share of the company as well.ConclusionTo conclude, it can be stated that this organization has been cherishing result positions on international level only because of using differentiation strategy and for this purpose, it has also invested capital through having partnership with Singapore airline. All its services including multiple destinations, holiday services, cargo services and in-flight entertainment, demonstrate its sure-fire usage of differentiation strategy.However, Virgin Atlantics shou ld also keep the advantages and limitations of using this strategy since there are certain times when this strategy needs slight amendments or changes in order to deal with contemporary circumstances. Virgin Atlantics can use different change management strategies in order to cope with limitations of this competitive strategy.In addition, this organization can also double its profit through taking different steps including value added marketing, competitive pricing and hybrid strategic development. These add-ons can maximize its profitability as well as worldwide recognitions and ultimately it would be able to compete with potential organizations like Emirates and Gulf Air.ReferencesDaft, R. L. (2009) Organization surmise and Design. 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