发布时间：2020-12-30 热度：
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下面为大家整理一篇优秀的essay代写范文 -- Strategic analysis between Virgin Atlantic and British Airways，文章讲述英国是世界上最大的航空市场之一，历史悠久且市场成熟。英国航空和维珍航空是英国的两家大型航空公司。两家航空公司都有自己的经营策略，以实现更好的发展。但是，它们在全球航空业中也面临挑战。
Strategic analysis between Virgin Atlantic and British Airways
The United Kingdom is one of the biggest aviation markets in the world with a long history and the mature market. British Airways and Virgin Atlantic Airways are two giant airlines in the United Kingdom. Both airlines have their own operating strategies for better development. However, they also face challenges in the global aviation industry.
This essay is divided into six parts. The first part briefly introduces the two giant airlines. The second part analyzes the strategy of British Airways and its potential challenges. The third part analyzes the strategy of Virgin Atlantic Airways and its potential challenges. The fourth part makes a comparison between the two airlines in the dimensions of environment and brand theories. The fifth part discusses the competition between the two airlines. The final part is a conclusion of the whole essay.
1. Introduction of British Airways and Virgin Atlantic Airways
British Airways is the largest British airline. It is headquartered in London Heathrow Airport and defines London Heathrow Airport as a hub base. The history of British Airways can be dated back to 1924. It is the oldest airline in the United Kingdom. British Airways is one of the world's largest international air transportation companies and one of the world's seven major cargo airlines. British Airways always sticks to the excellent tradition of providing high quality services to passengers from various countries in the world. (Wikipedia, 2015)
Virgin Atlantic Airways is a British airline established in 1984, providing intercontinental air services. Virgin Atlantic Airways has Britain's second largest international airline. It is also headquartered in London Heathrow airport. Virgin Atlantic Airways is famous for its consistent high quality service and innovative ideas, which pay attention to enterprise development and sustainable innovation dynamics. (Wikipedia, 2015)
2. Strategy analysis of British Airways
The strategy of British Airways can be divided into five perspectives.
Firstly, British Airways has launched the framework of e-commerce. The supply chain is greatly strengthened by the addition of electronic purchasing. In addition to the aviation industry, the core competitiveness of BA is also used in the field of network risk investment.
Secondly, the Company provides an upgraded customer experience. They guarantee the exceed punctuality and baggage targets across the network, achieving record customer satisfaction scores. (British Airways, 2014)
Thirdly, the Company strengthens the competitive cost base. It continues to reduce the cost of Heathrow operations. A significant management voluntary severance program has reduced the number of the management. The Company also wants to use the fuel efficient aircraft. (British Airways, 2014)
Fourthly, the Company has formulated a plan for growth like continuing to meet the needs of its customers and launching new routes.
Fifthly, the Company takes related social responsibilities in reduction of carbon emissions, recycling waste and minimizing air and noise pollutions. (British Airways, 2014)
Challenges for British Airways
The challengers for British Airways can be divided into two dimensions: new competitors and the changing needs from customers.
On the one hand, the Company has to face new competitors. In 1992, the European Union enacted Single European Act and many of the original national trade barriers were removed. At the same time, successive relaxation of regulation also makes any EU airlines can fly freely in the EU. This regulation of relaxation has led to the emergence of a lot of new low-cost airlines.
In order to tackle the challenge, British Airways hasn’t carried out low cost strategy. However, the Company focuses improving the quality of services. The Company has formulated clear strategy in five aspects: firstly, be the airline of choice for long haul premium customers; secondly, deliver an outstanding service for customers at every touch point; thirdly, grow the presence in key global cities; fourthly, building on a leading position in London; fifthly, meet the customers’ needs and improve margins through new revenue streams. (British Airways, 2014) Through these measures, it is hoped that the Company can go through the difficulties.
On the other hand, the Company has to tackle the changing of customers’ needs. As the market has become a fully competitive market, each industry has a lot of competitors. Increasingly high degree of homogeneity of the product or service leads to a lower customer loyalty. Due to the competition of services and prices, the loss of customers is becoming more and more serious for British Airways.
In order to deal with this challenge, the Company has taken three measures. Firstly, the Company focuses on those customers who can bring profits to the company. The Company is willing to give up passengers who are very sensitive to the price of vacation tourism. Secondly, the Company has a clear understanding of the profitability of each route and gives up those who do not make money. Thirdly, the Company aims to win more high-end customers by increasing the number of small passenger flights to and from the business centers.
3. Challenges and Strategy analysis of Virgin Atlantic Airways
The challenges for Virgin Atlantic Airways can be illustrated in two perspectives. One is competition from the pioneering giant airlines and the other is the huge operating cost for an airline company. In order to tackle the two challenges, the Company has formulated related strategies.
The biggest challenge is the competition from the pioneering giant airlines like British Airways. British Airways is the biggest airline in UK and it is difficult to compete with it directly. Therefore, the Company carries out differentiation strategy to tackle the challenges. The differentiation strategy can be divided into three aspects.
Firstly, the Company focuses on the difference of service quality, providing customized products and services. The airline has canceled first class cabin and opened business class, economy class with different levels. Its business class can be comparable with the first-class cabin of British Airways. In addition, its economy class has higher quality and lower price than other airlines’ economy class.
Secondly, the Company focuses on service innovation and differentiation. The Company has provided many new modes of entertainment on the aircraft. In addition to some basic services, the airline also provides additional value-added services by additional charges like massage, manicure and member clubs. On the aircraft, the Company has set up areas for games and a bar.
Thirdly, the Company is good at marketing differentiation, especially using the method of event marketing. Richard Branson, the Company’s CEO, is a dramatic leader and he has made several big events like driving a tank on the royal road, controlling a hot air balloon across the Atlantic and sending aircraft emergency shuttles to Iraq for British hostages during the Gulf War. Richard Branson is very good at using his own image. He has turned up in a lot of brand promotion activities. He always gives surprise to the public. The different ways of marketing of fun, innovation, rebellious corporate image have left a deep impression in people’s mind.
Another challenge is the huge operating cost for an airline company, which results in the high cost for passengers. Meanwhile, the British government has started to levy green taxes on all aircrafts’ arrival and departure. According to the policy, green taxes are undertaken by passengers. Virgin Atlantic Airways has announced that it will bear the tax for passengers, which further increases the operating costs. In order to solve the problem, the Company carries out cost leading strategy, which can also be demonstrated in three aspects.
Firstly, most tickets of Virgin Atlantic Airways are tackled through the call center or the Internet and 99 percent of the tickets are electronic tickets, which is an important measure for cost saving. In the perspective of Virgin Atlantic Airways booking system, the cost of each passenger is one tenth of other large airlines. In the accounting department, only 3 people deal with the tickets, while large airlines need 50 to 60 headcount.
