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Executive Summary Current Situation Virgin Blue currently operates as one of two major domestic Australian airlines the other being Qantas The company currently holds an approximate market share of 33 which it has developed in the five years in which it has operated Virgin Blues strategy is simple it offers an easy-to-understand low priced carrier using a low-cost business model ensuring high profit margins Key Issues The Virgin brand stands in a situation where it has numerous opportunities ahead of it The chance for the company to move into a global market place Upon moving into a global market the organisation must have consistent values a constant brand image as well as common positioning Key Recommendations Increase capacity and capability with regards to the fleet - larger multi class planes Attempt to create meaningful customer relationships perhaps by introducing a loyalty program similar to that of the Qantas Club With regards to the entire Virgin group employ a brand image which will emphasise the innovative risk-taking attitude of Richard Branson when moving the company into a global market Table of Contents Company Background3 Industry Analysis3 Analysis of Case5 Alternative Solutions10 Recommendations11 Implementation Issues13 Reference List14 Log15 Company background Virgin Blue provides lost cost low fare domestic flights offering frequent passenger services on routes between all of the Australias major cities is one of the subsidiaries of the Virgin Group that was established on 3 August 2000 with two aircraft initially offering seven return flights a day between Brisbane and Sydney This has since been expanded to cover the major cities in Australia According to Virgin Blue the objective of launching the company is to develop a Virgin branded low cost low fare carrier operating in the Australian domestic aviation market In fact Virgin Blue has been become one of the fastest
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