Business strategy for Virgin Australia
Contents
Description of Virgin Australia Airline in the Aviation Industry Market and an Evaluation of the Current Trends 3
a. Growth 3
b. Profitability 3
c. Macro Environment (PESTLE Analysis) 4
Major Market Segments For Virgin Australia Airline And An Evaluation Of Both Primary, And Secondary Target Markets 5
Nature of Competition in Aviation Industry and an Analysis of the Virgin Australia’s Place 8
SWOT Analysis 8
Strength 8
Weaknesses 8
Opportunities 9
Threats 9
References 11
1. Description of Virgin Australia Airline in the Aviation Industry Market and an Evaluation of the Current Trends:
a. Growth
The Virgin austral airline initially known as Virgin blue airline is currently one of the largest airlines in Australia. In fact, it is only Qantas that outshines this airline arguably by statistics meaning that it Virgin Australia is a giant player in the aviation industry. It uses the Virgin brand as an airline that was founded with the help of others by a tycoon called Richard Branson. It started as a two aircraft single route operational airline but with time endured tremendous success notably after the downfall of a rival airline known as Ansett Australia (Worrell, 2008). The success has seen this airline grow to directly serve approximately 30 cities within Australian boundaries transporting passages and languages using a fleet of Boeing that has a typical narrow body design. Virgin airline entered Australian aviation market stunning the existing airline due to the level of competition they demonstrated. They initiated new techniques that colored the leisure sector in the market. In an effort to remain more competitive, they are initiating new technological advancements that are rendered to boost their service output.
b. Profitability
Profitability in the aviation industry normally increases from the level of service a particular airline is able to offer its customers that is above the cost of delivering the service. It depends on of how the customers value the service and have a willingness of paying for it.
(I.C. JPS 1494)