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Contemporary management systems research report - Assignment Example

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Despite having business operations in various markets with around 300 companies worldwide, the Group ventured into the aviation market for the first time in the year 2000 with its line of…
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Download file to see previous pages The domain of internal and external factors for Virgin Airways would be discussed using the PEST and SWOT analysis respectively so as to give a more explicit insight into the influencing factors for the company.
Political – Legal Impacts: In terms of the political scenario, it can be seen that the liberal policy environment along with the airline industry deregulation has served as a major factor boosting competition in the industry and encouraging new entrants in the market.
Economic Impacts: The economic turmoil following the events of 9/11 and SARS has put the airline industry in a challenging environment. Along with that, the rising prices of fuel have increased the basic costs of flights while the consumer base on the other hand is reluctant to spend money in times of rising inflation.
Socio-Cultural Impacts: In this context, the challenge is to get an adequate labour force for the operations from the tight labour markets especially for operations requiring skilled labour, which is quite essential for the airline industry.
Technological Impacts: The rapidly changing advancement in technology has led to the creation of knowledge dependent global industries. The biggest challenge today for all companies is to keep pace with these advancements and talking in context of Virgin Airways; they would have to upgrade their operations and aircrafts to achieve better economies of scale in these testing times.
Strengths: The greatest strength that Virgin Airways has is that of a strong supporting structure in form of the Virgin Group. Along with that, the company has well established itself as a well-recognized brand in the market that it serves as a low cost, no-frills travelling service provider capitalizing perfectly on the need of the time.
Weaknesses: On the downside, Virgin Airways is faced with strong competition from Qantas Airlines that follows a more or less similar business model. Hence, the ...Download file to see next pagesRead More
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