Competitive Strategic Management a Case Study of Virgin Atlantics Essay

IntroductionToday, competition in world(prenominal) market places has become surd and in ready to continue relevant position, validations need to assume warring strategies so that they peck conglomerate competitory avails. (Rao, pp.185, 2011) The dynamic condition of markets has make it complicated for the validations to achieve higher direct of success without employ experts promulgated models and literatures. (Flouris, Oswald, pp.19, 2006) Hence, researches ease up make it simple for the cheeks to compete at broader level nevertheless these researches merely gives way to these organizations and they need to civilize the strategic plans on their own. diametrical companies adopt polar kind of competitive strategies in wander to draw off higher position in competitive market and for this purpose, it employ to manage opposite activities than the competing firms. (Daft, pp.65, 2009) thoroughgoing(a) Airlines is one of the organizations who bear assumed authentic strategies in prescribe to satisfy customers need and last got exceptional position. This stem is basically an abstract of the competitive schema of gross(a) Atlantics which it has used in secern to gain competitive advantage. The first section analyzes the competitive dodging of vestal Atlantics, second part deals with advantages and limitations and third part give original recommendations to utter(a) Atlantics in aubergeliness to better its operate.Competitive dodge of Virgin AtlanticsPorter has identified four divergent strategic options which an organization kitty use in order to gain competitive advantage tutelage the modern essential and external purlieu under consideration. (Griffin, pp.244, 2010) Differentiation scheme is one of those competitive strategies promulgated by Porters In his generic wine strategical model. (Eldring, pp.6, 2009)Virgin Atlantic has based its strategic plan retentivity specialism scheme under consideration. However, if it s schema is scrutinized, it indicates that this outline has been developed after doing thorough immanent and external analysis.As far as internal analysis is concerned, this analysis demonstrates force-outs and weaknesses of the organizations and for this purpose, contrasting models like SWOT analysis eject be use since it al small-scales the organizations to analyze strengths and weaknesses of the organization. (Dibb, Simkin, pp.28, 2008) Virgin Atlantic has in addition based its strategy keeping internal analysis under consideration since its analysis demonstrate how internal analysis aids in having distinction portfolio and potential customers. (Strauss, pp.106, 2010) The basic strength of Virgin Atlantic is the financial affiliation which it has with Singapore production lineline. (Reynolds, Lancaste, 2012) However, its financial learning is not disclosed publicly that it nookie be prove out that the service has been fall apartd by the company with with(predicat e) identifying the eye strengths and cost effectiveness is one of them.As far as weaknesses argon concerned, Virgin Atlantic is though providing exceptional function to its customers yet for customers, it is costly. A blueprint customer cannot start out first class or agio class service with this Airline. However, the solution has been provided in the form of three assorted classes and the average customers can utilize economy class for traveling to different destinations.Similarly, the external analysis has been done finished doing market analysis, customer analysis, assiduity analysis and above all competitive analysis in order to gain competitive advantages. For this purpose, usually PESTEL analysis is done which identifies political, economic, social, technological, environmental and legitimate aspects of the provided serve. (Henry, pp.51, 2008) Virgin Atlantic also does PESTEL analysis at macro level in order to gain complete competitive advantage through identifying all essential factors and after doing this analysis, it has developed its differentiation strategy for planetary market.Porters differentiation strategy can be spy from all the berths including packages, offers, operate etc. For example, it has been offering services for more than 30 different destinations with 43 outstanding aircrafts including airbuses, Boeings and aircrafts. Similarly, this airline has bases in Manchester and Londons Heathrow and Gatwick airports and offers services for thirty different destinations including Dubai, Mauritius, Delhi, Sydney and Cape Town, the tourist favorite areas.Moreover, unremarkably airlines offer business and economy class and Virgin Atlantic has three different classes including upper, subsidy economy and economy classes. In addition, it has infused differentiation strategy through providing Virgin Atlantic Cargo and Holiday services which offers instant and urgent shipments to different destinations of the world. Similarly, differe nt travel packages with outclass offers have also been facilitated to customers in order to gain competitive advantages through non-homogeneous features.All these examples indicate how differentiation strategy of Porters Generic model aids an organization to gain benefits but for this purpose, organizations usually missionary station premium prices as well. Virgin Atlantic is also costly from near other airlines in the market but its unique services have make it ample popular 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 contemporary needs of the customers under consideration and not only unique and different facilities have been provided but also basic requirements have been fulfilled. Hence, the competitive strategy of Virgin Atlantics has made it successful and preferable for the customers among all large air service providers.For using differentiation competitive strategy, this organization has been cherishing exceptional advantages and few of them are as followedAdvantagesIf the analysis of advantages for using differentiations competitive strategy is scrutinized from the perspective of The Strategy Clock, it would appear that the organizations, who utilize this competitive strategy, gain high benefits investment low bill.Source (Johnson, pp.243, 2008)This thing can 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 profit in low amount as well.In live markets, the first advantage which Virgin Atlantics has been cherishing is the characteristic 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 a nd stimulates customers to prefer it on other competitors in the market providing similar service. (Thompson, Martin, pp.191, 2010) support advantage of using this strategy is that it modifys Virgin Atlantics to have sustainability in current 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 little amount as compared to others but gained double benefits which enables it to have incomparable position in the market.The third major benefit of this differentiation strategy is flexibility which the organization provides. (Doise, pp.82, 2008) Virgin Atlantics also provides ample flexibility to customers in order to allow them to demand from multiple options. For instance, the customer can choose travel class from offered three classes according to his requirements. Suppose if cust omer has normal compute, he can select economy class whereas if he wants lordly travel, he can select upper class. Flexibility is offered in packages and customers can choose relevant vacation packages of Virgin Holidays as well. Hence, this thing also proved ample lucrative for the company to achieve competitive advantage in contemporary markets and its environments.LimitationsIn current dynamic business environment, using differentiation strategy is though beneficial but only to just about extent since there are definite limitations cling to this competitive strategy, some of them are as followedIt is very difficult to sustain elements of differentiation in current business environment since there are potential competitors in the market who try to assume better strategy in order to compete with Virgin Atlantics. These competitors cleverness offer better services and add-ons that might affect core strategy of Virgin AtlanticsChanging services and do it unique is much costly. Though core strategy never cost 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 trying to find out the best sources for gaining customer loyalty, this thing has made it ample complicated 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 cope with these dynamic situations, different move can be interpreted and the next part of the paper will promulgate all let on steps 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 again in order to appraise whether the implemented competitive strategy is compatible with current business environment or not. Following are some recommendations which can be used by Virgin Atlantics for sustaining its current position.Constant analysisVirgin Atlantics should do constant internal and external analysis and amend the strategy or develop wobble 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 shortcomin gs 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 helping but market growth is possible only if this strategy is mingle with some additional strategy. This strategy can be cost-leadership strategy or focus strategy. Through focusing on differentiation strategy, Virgin Atlantics can obtain not only high market share but also market growth 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 combined competitive strategies as the solution of dynamic situation. (Marti, pp.100, 2007) Nevertheless, this crown of thorns strategy might also affect in a nix way.Competitive pricesCustomers usually prefer exceptional services in low-priced prices. So, Virg in 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 maintained 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 secondary 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 added services and trade and this is the reason why it has remained inseparable part of every marketing plan and differentiation strategy. (Singh, pp.22, 2012) Virgin Atlantics can also gain competitive advantages via value added marketing and for this purpose it can facilitate its customers with value holiday packages, discounted tickets and packages, dividetery sy stem and so on. These techniques would also attract a lot of customers and augment profitability and market share of the company as well. certaintyTo conclude, it can be stated that this organization has been cherishing top positions on international level only because of using differentiation strategy and for this purpose, it has also invested smashing through having partnership with Singapore airline. All its services including multiple destinations, holiday services, cargo services and in-flight entertainment, demonstrate its successful usage of differentiation strategy.However, Virgin Atlantics should 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) ecesis Theory and Design. Mason, OH South-Western Cengage Learning.Dibb, S., Lyndon S. (2008) Marketing Planning A Workbook for Marketing Managers. London South-Western Cengage Learning.Doise, M. L. (2008) An integration of Corporate Culture and Strategy The Interrelationships and Impact on Firm Performance. US ProQuest.Eldring, J. (2009) Porters (1980) Generic Strategies, Performance and Risk an Empirical investigating with German Data. Hamburg Diplomica-Verl.Flouris, T. G.,Sharon L. O.(2006) Designing and Executing Strategy inAviation forethought. Aldershot, England Ashgate.Griffin, R. W. (2011) Management. Mason, OH South-Western Cengage Learning.Henry, A. ( 2008) consciousness strategical Management. Oxford Oxford UP.Johnson. (2008)Exploring Corporate Strategy Text & Cases, 7/E. Dehli Pearson Education India.Lancaste, G., Reynolds, P. (2012)Marketing. NY CRC.Marti, M. (2007)Complexity Management Optimizing Product Architecture of Industrial Products. Wiesbaden Deutscher Universitats-Verlag.Rao, R. M. (2011)Services Marketing. Dehli Pearson Education India.Singh, M. (2012)Building Customer Loyalty through Value Added Services A Case of Telecom Sector. NY GRIN Verlag.Sornarajah, M. (2012) The worldwide Law on Foreign Investment. Cambridge Cambridge UP.Strauss, R. (2010)Marketing Planning by Design opinionated Planning for Successful Marketing Strategy. London John Wiley & Sons.Thompson, J. L., Frank M. (2010) Strategic Management Awareness & Change. Andover South-Western Cengage Learning.Thurau, T, Ursula H. (2000) Relationship Marketing Gaining Competitive Advantage through Customer Satisfaction and Customer Retention. Berlin Spring er.