Virgin Atlantic strategy report - Essay Example

VIRGIN ATLANTIC STRATEGY Virgin Atlantic employs marketing segmentation as the most effective marketing positioning strategy for competitive advantage in the air travel market (Virgin Atlantic, 2010, p. 50). Through market segmentation, the company focuses on specific market segments with a goal of meeting the unique and diverse needs of customers. Virgin Atlantic’s market segments are categorized in line with the purchasing behavior of travelers and their characteristics. It is through the understanding of its market segments that the company is able to design and offer differentiated services and products, which are accurately aligned with the wants of the consumers (Brownsell, 2010, p. 3). The market segmentation strategy differentiates Virgin Atlantic’s services from British Airways, American Airlines, Lufthansa and Air France, which comprise of its main competitors.

Through a focus on market segments, the Virgin Atlantic has been able to price its services in line with the needs of its customers. This includes the leisure travelers, general price and high income travelers. The design of the company’s air travel services and products are therefore not misplaced in various market segments (Gray, 2009, p. 42). In order to position itself at an advantageous position in the market, virgin Atlantic employed the market segmentation strategy to focus on long haul international air travel operations and therefore filling the market gap.

It is through this that the company has been able to overcome market rivalry from British Airways. Virgin Atlantic has also taken advantage of the string brand name, which characterize the Virgin Group, to attain a competitive position in the international air travel market (Wells, Lea, Taylor & OToole, 2013, p. 10). The value chain operations and activities within Virgin Atlantic, which support its competitive position in the market include the exploitation of the Virgin Travel outsources. The company’s value chain operations also include the supply of IT solutions from manufacturers, such as NCR and IBM (Capell & Zellner, 2009, p. 45). The supply of its aircrafts is based on high quality designs and an understanding of the market and the needs of consumers.

Maintenance of Virgin Atlantic’s airplane fleet is also attributed to the ability of the company to create more value for its services and therefore becoming highly competitive in the market (Bokaie, 2011, p. 1). Effective communication through the integration of its value chain has also fostered collaboration, operations management and coordination among the main players of the value chain. Virgin Atlantic’s employees represent the key resources, through which it is able to sustain its competitive market positioning in the market.

The company’s effective leadership under Richard Branson reveals the importance of the company’s employees and the happy working culture in its success (Brownsell, 2013, p. 22). It is through motivated employees that a company is able to provide high quality services, win the loyalty of customers and become competitively positioned in the market (Stahl, Heitmann, Lehmann & Neslin, 2012, p. 48). There are potential strategies, which Virgin Atlantic would employ to consolidate its market positioning approaches and become more competitive in the market.

Since the Virgin Group has diversified its business operations, its units, such as Virgin Atlantic should consider specific strategies, which would potentially promote their competitiveness in the market further (Wells, Lea, Taylor & OToole, 2013, p. 10). The potential strategies available to Virgin Atlantic include financial, operational and marketing strategies (Ulrich & Smallwood, 2010, p. 94). For instance, the company would employ an effective pricing strategy, so that it would present the most competitive prices within the market and provide value for its travelers.

An integrated strategy would also be used to enhance the efficiency of the company’s operations and operation management processes (Ataman, Van Heerde & Mela, 2010, p. 867). Innovation in marketing communication is a potential strategy, which would allow the company to present promotional images and messages in a manner that would attract and capture the attention of the customers and motivate the use of its air travel services (Wilkie, Johnson & White, 2012, p. 958). It is through this strategy that the company would grow its sales.

Through the utilization of these potential strategies, the company would consolidate its current strategies and achieve a strategic position in the global air travel market. Virgin Atlantic’s current positioning in the market can be considered to be sustainable. This is demonstrated by the fact that the company has laid down its business strategies, within its vision and mission to facilitate its international operations and business approaches (Wells, Lea, Taylor & OToole, 2013, p. 10). However, the company’s current positioning can be improved, so that it can overcome the high level of competition from British Airways (Brownsell, 2010, p. 3). Virgin Atlantic should adopt an integrated strategy in its value chain.

This will ensure that its business activities are highly coordinated. Through an integrated approach, the company will enhance the interaction of its units and enhance communication and management processes (Jullens, 2013, p. 122). It would be able to adjust its value chain activities into an integrated paradigm through the adoption and implementation of integrated information systems for its global operations (Stahl, Heitmann, Lehmann & Neslin, 2012, p. 47). The integration of Virgin Atlantic’s business units would make corporate logic because they would be synergized into a single or holistic system, with each of units dedicated towards meeting its business objectives and goals.

A consolidated strategy is recommended for Virgin Atlantic. This means that the company should be able to consolidate its market positioning strategies, such as financial, marketing and operational strategies into a single integrated and holistic system of operation. This will make its value chain highly efficient and effective (Cottineau, 2012, p. 246). Consolidating the company’s market positioning strategies will allow it to integrate market research processes with product development and service offering.

It is through this that the company will acquire planes that are designed to meet the diverse needs of its customers as indicated within market research data. More importantly, the company would be able to identify changes in the preferences and tastes of customers and subsequently employ such understanding in the delivery of air travel services (Cottineau, 2012, p. 245). For instance, if the company understands the technological changes in the aviation industry and the associated customer preferences, it would be able to meet their needs in a more effective manner.

The most logical formal recommendation to the management of Virgin Atlantic is to consolidate the company’s market positioning strategy with a view of promoting the efficiency of its value chain and the quality of services that it provides to its customers. This recommendation is related to the fact that the company’s units should work in synergy in meeting the common goals and objectives that are designed within the company’s strategic plans. Through the consolidation of the market position strategy, Virgin Atlantic’s financial, operations and marketing approaches will be aligned with its strategic goals, mission and vision (Stahl, Heitmann, Lehmann & Neslin, 2012, p. 54). References Ataman, M, Van Heerde, H, & Mela, C 2010, The Long-Term Effect of Marketing Strategy on Brand Sales, Journal Of Marketing Research (JMR), 47, 5, pp.

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