Problems Virgin Air faces competing with legacy companies Paper

Paper Type:  Essay
Pages:  4
Wordcount:  993 Words
Date:  2024-01-06


Virgin Air is a smaller Airline compared with other legacy airlines, which creates various problems. First, it charges higher prices; because of the lack of economies of scale that the other airlines enjoy. Therefore, it is not in a great position to compete with them based on its services' pricing. Consequently, it loses out on customers that are attracted by lower prices. Moreover, there are fewer planes on various routes, which reduces its reliability and options available for customers. There are more fleets for the legacy airlines, which accommodate more customers in multiple destinations and different schedules. When the two problems are combined, they reduce the competitiveness of Virgin Air against its legacy competitors.

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Strategic tools to scan the environment

There are various tools that Virgin Airline could use to scan its environment

-SWOT analysis- The tool is used to identify the strengths, weaknesses, opportunities, and threats present in the environment (Gürel & Tat, 2017). It helps the organization identify factors within and outside the organization that may contribute to either its success or failure.

-PESTLE analysis- This is a tool that enables an organization to analyze its environment in terms of its political, economic, sociological, technological, and environmental analysis. Through the specification of how the various attributes affect its operations, the organization will have a strategic plan to influence the multiple operations in its favor.

An organization uses- Scenario analysis- The tool analyzes different situations that it may be faced with based on other plans and outcomes. The scenario analysis projects various possible outcomes and analyzed how practical they are.

Five forces analysis –Virgin Air may use this tool by analyzing the suppliers' power, competitors, the threat of new entrants, substitute products, and customers (Dobbs, 2014). Through the analysis, the organization will be better positioned to utilize its resources to adopt a strategic plan.

-Stakeholder analysis – The tool analyzes the environment by grouping stakeholders based on their level of participation, their influence, and contribution, which determine the overall success. The tool enhances better planning by considering the effect and influence the organization may have, or the stakeholders may have on the organization.

Competitive methods to attract and retain customers

There are various options that Virgin Air has adopted to attract and retain multiple customers. First is through loyalty programs, which satisfy the customers better. Furthermore, the airline offers premium services that better satisfy the customers, influencing their attitude towards the organization.

Measurement of the effect of competitive methods

The airline can measure the success of its competitors based on tangible and intangible methods. One of the real ways is an increase in the number of customers attracted and retained by its operations. Moreover, the profits earned from its functions can be great pointers to success in its operations. Regarding the intangible methods, there can be an analysis of customer attitudes towards the airline's degree of satisfaction. That can be done through surveys or qualitative data analysis from the information received from the customers.

Effect of the scanning process on the competitive method chosen, and the importance of scanning

The scanning process can affect the competitive method chosen by providing vital information about the various key performance indicators. When the key performance indicators are identified, effort and resources will be channeled in that direction, designed in a unique way to suit the competitive method chosen (Abu Amuna et al., 2017). Therefore, the environment scan will highlight actionable areas that will lead to successful operations.

The importance of scanning is to provide reliable information about the environment incorporated into the strategic plan to enhance better operations that will make the airline more competitive. Based on the environmental scanning results, the airline can tailor a strategic plan to suit the results effectively.


First, the airline should expand its fleet to obtain benefits enjoyed by the legacy companies, enhancing their competitive advantage. The second recommendation will be merging or acquiring smaller airlines that are performing well, which will increase its capacity and may be a better option if there are fewer finances. Continuous improvement of the brand image through better customer satisfaction and advertising will also work effectively for the airline.

Strategies by competitors

In the position of a competitor, there are various ways I would remain competitive in the marketplace.

-Using the SWOT analysis, I would capitalize on the strengths and minimize the effect of weaknesses. Furthermore, I would look for more opportunities and reduce the threats through target marketing more successful operations.

Through PESTLE analysis, I would use the results to reduce the adverse effects of environmental factors. Furthermore, I would capitalize on the key performance indicators in the environment, leading to better outcomes against competitors like Virgin Airlines.

Using scenario analysis, I would use additional tools to get a better picture of future operations from adopting alternative plans and strategies. In that way, there will be a better way to adopt more successful procedures based on environmental analysis.

Stakeholder analysis will be used to enhance the satisfaction and participation of all parties involved in managing various aspects of the organization. With more satisfaction, the stakeholders will be motivated to act on their key performance indicators, therefore enhancing success.

The organization's five forces framework will be used to minimize adverse effects from the environment and capitalize on the strengths the organization has. For example, enhancing customer preference by adopting strategies to become a favorable choice among competitors will minimize the adverse effects of competition.


Abu Amuna, Y. M., Al Shobaki, M. J., & Abu-Naser, S. S. (2017). Strategic environmental scanning: an approach for crises management.

Dobbs, M. E. (2014). Guidelines for applying Porter's five forces framework: a set of industry analysis templates. Competitiveness Review.

Gürel, E., & Tat, M. (2017). SWOT analysis: a theoretical review. Journal of International Social Research, 10(51).

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Problems Virgin Air faces competing with legacy companies Paper. (2024, Jan 06). Retrieved from

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