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    Unit 5 Virgin Atlantic Report UK College of Business and Computing


    Gaining competitive advantages has became must for every single firm in order to sustain at marketplace for a longer period of time. In order to do this, there are ample number of aspects which should be considered like pricing, brand values, service norms, marketing department and HR section by an organisation so that rivalry benefits can be gained. Firm which has been considered under this assignment i.e. Virgin Atlantic Airways limited which is offering its services to consumers with minimal rates. Richard Branson is founder of this and in its early days its name was British Atlantic Airways and established in the year of 1984. Headquarter of this firm is in Crawley, West Sussex, England. Approximately, 9000 employees are serving to its clients (Porter, 2011). Report will show influence of elements through which its position can be changed at marketplace.

    Task- Aspects of competitive advantages that needs to be consider in an appropriate manner

    Virgin Atlantic is one of the those firms who make alterations in their services in order to enhance satisfaction level of its clients. In the year of 2016, this organisation has generated revenue approximately in amount of £2,689 million and £153.2 million as operating income. In business language, competitors are said to be the firms who deals in same sector and gives rivalry to others in order to enhance sales of their products and services that are being offered by them. Competitive advantages can be gained by an organisation through various ways and these are: highly skilled labour, geographic location, high entry barriers, and access to new and updated technology. In other words, competitory plus point is said to be leverage that a business firm has over its rivals. This can be done through various ways like advertising products and services with minimal rates by using appropriate strategies. Along side this, using appropriate theory in order to gain advantages in competition may aid firm in giving rivalry to companies that are dealing in same sector. Virgin Atlantic is rapidly enhancing their business through various aspects like they are offering fare of flights with less profit margins which has helped them in gaining attention of consumers in huge numbers. Recently, Virgin Atlantic has became an airline which has improved its economical fares which has helped them in attracting business people who uses flights on daily basis (Sirmon and et. al., 2011).

    Virgin Atlantic Airways which is a British airline that is doing business in both domestic and international market where its aircraft takes and drops passengers in almost 33 destinations or countries. In the year of 2016, airline carried almost 5.4 million travellers from one place to another which has helped them in generating heavy revenue which has helped in giving good rivalry to both big and small airlines. Away from this, they have a partner named as Delta airlines which has owned almost 49% of its shares that helps Virgin group to make effective promotional strategies in order to grab attention of passengers in great numbers. With the help of this, organisation is gaining various competitive advantages. Some of its competitors are Norwegian Air Shuttle ASA and Air France-KLM that are rapidly using various marketing strategies and doing promotions of services that they are offering to passengers is helping them in giving hard competition to Virgin Atlantic (Virgin Atlantic overhauls economy fares, adds no-frills option, 2018).

    Few of strategies that are being taken under by Virgin Atlantic are given beneath:

    1. Pricing

    Virgin Atlantic's aircraft consist three dimensions in which they offer passenger's seats like economy, premium and upper class. Mostly, they look into giving good rates of fare to their passengers so that to maintain long term relation with them. They have made strategies of giving economical prices of traveller seats in order to gain competitive advantages. £277 is the lowest fare which has been offered by this firm so that to attain all the objectives and goals of this organisation. Along side this, researcher of Virgin Atlantic rapidly looks into various aspects like passengers need and initiative of its competitors. The Virgin Atlantic’s pricing strategy can be stated as much clear and precised in sense that has helped them in gaining competitive advantages. Firm looks forward to give quality services to passengers without considering high profit margins. Promotional strategies with keeping an attractive message saying ‘price is no object as long as the customer service is of a high standard’. Along side this, business people who regularly travels pays a good amount because they need full luxury in order to stay fresh so that they attend meetings or complete their purpose of travelling. Here, benefits is being given by Virgin Atlantic as they have offered membership to passengers who travels a lot on a regular basis which included heavy discounts. This has been done by administration in order to gain competitive advantages at marketplace of airlines. Comparatively at the moment Virgin Atlantic has offered economically priced fare of aircraft so that their clients can travel in great numbers. In context to this, it has been examined that British Airways has also started reducing their prices of fare in order to give competition to Virgin Atlantic (McWilliams and Siegel, 2011).

    Away from this, Virgin Atlantic should also offer different economical prices of fare according to the season of countries. With the help of this, rivalry can be given to its competitors in much more effective ways that will aid in achieving its goals and objectives as well at the same time (Competitive advantage, 2018).

    2. Human resource department of Virgin Atlantic

    It is one of the important activity for every business organization to hire best as well as capable candidates for their vacant position. In this HR manager play vital role in recruiting skilled person for performing specific job roles. In context of Virgin Atlantic, HR department required capable staff members who easily handle their customers and provide them better services in effective manner. With the help of this company easily attain competitive advantage and at the same time also create string customers base. In addition of this, company should hire professionals with more experience so that they effectively execute their activities and enhance performance level. Along with this, the main function of HR is to utilize all the available resources effectively to manage their positive brand image at market place. Thus, for attaining better competitive advantage, manager provide training and development programs to their staff members in which they enhance their skills and knowledge towards the overall process of the company. Furthermore, HR department should use appropriate tools to measure workers performance in order to enhance their productivity level which may leads in improving their overall performance level. By this they easily communicate with their clients and provide them quality services in order to attain satisfaction level. This will directly contribute in capturing larger marker share and at the same time also take string place in market place (Chiou and et. al., 2011).

    With the help of giving proper training to employees like air hostess, pilots and other crew members of aircraft of Virgin Atlantic airlines may help in enhancing experience level of its passengers. Along with this, hitting targets had became essential for this firm and in order to do this training and development programmes can aid in gaining competitive advantages.

    3. Marketing department

    It is essential for Virgin Atlantic Airline to utilize latest techniques and methods into business. Therefore, they will be able to do marketing activities in a proper manner. There are various kind of tools which will be used by superior, such as social sites, advertisement and so on. This aids them to gain attention of numerous individuals towards them and in this manner, they will improve their revenues. In context of Virgin Atlantic, they are using unique techniques for marketing which enable them to take benefits from rivals. As a result, they will survive at marketplace for maximum period of time. Richard Branson who is an owner of various brands utilises unique promotional techniques and considers tools which may aid in getting attention of passengers in huge number. With the help of this, it has been examined that Virgin Atlantic can aid in gaining competitive advantages. Boeing 787 Dreamliner was recently is being bought by Virgin Atlantic Airline which has a capacity of 335 passengers in one time. Richard Branson did various promotional activities in order to gain attention of consumers in ample number. Partner Delta has given support like proper funding which has helped Virgin Atlantic to make effective decisions which is related to promotional activities (Campbell, Coff and Kryscynski, 2012).

    Henceforth, it can be stated as that marketing department plays a vital role in order to gain a good position at marketplace through which firms can give great rivalry to their competitors. Along with this, it has been located that political, economical, social and technological are few factors in this context that can put positive impact on profitability and productivity of an organisation. Considering all policies and rules which has been created by government of UK, looking at passengers pocket so that alterations can be made in fares, doing CSR activities in order to enhance reputation of company and using updated technology can aid in hitting all the desired targets in most effective and efficient manner (Saeidi and et. al., 2015).

    4. Brand Value

    In order to do self promotion it is must for every single firm to keep on valuing its own brand. This can be stated as the starting point for every single business operation. Along with, it has been examined that in order to do branding firms should select a unique sign so that consumers whenever see the logo get to know about it or recognise the company. Good brand value may help in giving rivalry to competitors of same sector. Partnership with Delta has enhanced brand value of Virgin Atlantic which has putted great efforts in giving rivalry to rivals. Effective strategies has helped them in many sort of ways like enhancement in profitability and productivity level of this firm and with the help of this targets can get attained right on time. Continuing valuation of brand may aid in hitting targets or to make effective decisions to grab a good position (Macey and et. al., 2011). Quality of services like usage of healthy food which is being offered to passenger through flight attendants can help in increasing brand value of the company in short period of time. Along with this, price or cost also plays a vital role in this context as Virgin firm should offer discounts to passenger so that their interest can be maintained of passengers so that they use flights of Virgin in future as well.

    5. Service norms

    It has been examined that Virgin Atlantic airlines has introduced its services in front of passengers through which targets has been attained in much effective ways. It is important for this company to keep on considering all laws and regulations which has been made government of United Kingdom. Along with this, organisation's vision and mission also aid in giving proper description of company's aim and objective so that it can be attained right on time (Wagner III and Hollenbeck, 2014).

    It is also important for business organization to make effective brand values which may leads in capturing larger market share and at the same time also attaining string place at market place.

    Decisions that needs to be made so that to succeed

    With effective usage of all the above aspects Virgin Atlantic has gained the 7th position in British airlines that is offering economical prices of fare to its passengers (Schilke, 2014). Continuation of this process may lead firm to come on number one position. In order to do this, they have to locate all the areas that have became as a barrier in order to grab good position.

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    From the above mentioned report it has been concluded that, maintain competitive advantage is one of the important activity for business organization to attain better growth level at market place. For attaining the same company use various elements such as marketing, HR, brand values and pricing. With the help of this, firm create strong customers by serving their quality services. In this, company promote their products and services in front of their customers to capturing their attention which will helps in improving performance level at market place. In addition of this, it is also an essential for company to communicate with their customers in order to understand their needs and wants towards the company services which may leads in attaining better competitive advantages.


    • Campbell, B. A., Coff, R. and Kryscynski, D., 2012. Rethinking sustained competitive advantage from human capital.Academy of Management Review,37(3), pp.376-395.
    • Chiou, T. Y. and et. al., 2011. The influence of greening the suppliers and green innovation on environmental performance and competitive advantage in Taiwan.Transportation Research Part E: Logistics and Transportation Review. 47(6). pp.822-836.
    • Macey, W. H. and et. al., 2011.Employee engagement: Tools for analysis, practice, and competitive advantage(Vol. 31). John Wiley & Sons.
    • McWilliams, A. and Siegel, D. S., 2011. Creating and capturing value: Strategic corporate social responsibility, resource-based theory, and sustainable competitive advantage.Journal of Management. 37(5). pp.1480-1495.
    • Porter, M. E., 2011.Competitive advantage of nations: creating and sustaining superior performance(Vol. 2). Simon and Schuster.
    • Saeidi, S. P. and et. al., 2015. How does corporate social responsibility contribute to firm financial performance? The mediating role of competitive advantage, reputation, and customer satisfaction.Journal of Business Research. 68(2). pp.341-350.

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