Virgin Australia is an Australian airline company. After the collapse of Ansett Australia airlines, Virgin Australia skyrocketed to become the 2nd largest airline company of Australia after Qantas. Virgin Australia serves 29 cities of Australia, where Brisbane, Melbourne and Sydney are the main hubs of this airline company. In the following report, the PESTLE analysis of the company is done in order to analyse the impact of different environmental factors in the business of the company. Virgin Australia faces a big challenge from Qantas Airline in the shape of competition. Virgin Australia is giving a tough competition in the domestic business but lacking in international business. This is the main threat for the company and the company need …show more content…
In this report, the external marketing environment analysis is defined in association with Virgin Australia.
Authorization: To study the external marketing environment analysis, the authorized airlines company, Virgin Australia has been opted.
Limitations: The report is limited to studying the external environment analysis associated with Virgin Australia. The study does not include the competitors and market analysis for Virgin Australia.
Scope: The main scope of the report is to help Virgin Australia to analyse the strength and opportunities along with threats so that a better marketing strategy could be built for the company.
Case Background
Virgin Group is a combination of oddly 300 companies that operate separately and Branson serves as shareholders and chairman.
Industry for Virgin Australia: Virgin Group mainly deals in airline services and Virgin Australia, an airline company, is main part of Virgin Group which is founded by British businessman in 2000. After the collapse of Ansett Australia airlines, Virgin Australia skyrocketed to become the 2nd largest airline company of Australia after
…show more content…
The external marketing environmental analysis can be described as the continuous process in which different macro-environmental forces are analysed that put the impact on the growth of the company. This external marketing environmental analysis is also known as Pestle Analysis which includes Political, Economic, Social, Technological, Environmental, Legal analysis.
Importance of external marketing environment analysis
This analysis method can be considered to be importance as it provides the information about the relevant factors which might affect the business performance and growth. Through the support of external marketing environment analysis, the following factors can be analyzed.
Political Analysis: The political analysis is about the interference of government in the economy and this interference is done through the tax policy, labour law and other legislations.
Economic Analysis: In the economic analysis, different factors such as interest rates, exchange rates and economic growth of the company are analysed. All these factors put the influential effect on the decision making process of
Geographic As the nature of air travel is largely logistical, it is hard to talk about the industry without addressing geography. Airlines don't just have to market to customers in terms of geographics, the airline industry is geographic; getting a customer from where they are to where they want to be. Internationally speaking, Australia is a slight disadvantage because of its location compared to other developed nations. The majority of global travellers do not typically pass through Australia on-route to another destination; Australia is the end of the line. Cities such as Singapore, Kuala Lumpur and Dubai are known as ‘hubs’ because they have large numbers of travellers who must pass through them in order to progress to another leg of their journey.
... amid nations (Gerber 2002, p. 29). Although there has been a major decrease of barriers to trade liberalisation concerning flight amenities in the last century, there are imperative uncontrollable external factors a business must assess and weigh before entering international borders and becoming a prosperous globally identified firm (Ramamurti & Sarathy 1997). Qantas, a highly esteemed patriotic and iconic Australian brand has demonstrated accomplishment intercontinentally. The ultimate success of their business, in order to sustain competitiveness in their global market, will rely heavily on their continuous assessment of combined political and legal reforms, economic dynamics, sociocultural influences, technological modifications and environmental concerns and their interlocking marketing strategies to gain the most beneficial opportunities that come their way.
Indirect competition in the marketplace comes from low cost airlines, and the main competitor in this market is Virgin Australia, which is jointly owned by Air New Zealand, Singapore Airways.
Many elements of Delta Airlines are described in detail, within this paper. There is a breakdown of the external and internal factors, using external and internal analysis. Porter’s Five forces are used to create the external analysis, and the key factors for Delta are power of buyers, and rivalry. Delta’s competitive advantages are identified as customer service, sustainability, brand image, strong strategic alliances, and corporate travel. Delta’s main issues are the low expansion in international markets, continuous changing of incentive program, and glitches within technology. Delta should expand more into the Chinese and African markets in order to gain market share within the airline industry.
No matter how a business operates, change is inevitable and affects all businesses. CAMERON SMITH investigates the changes Qantas have had to undergo in order to keep up with their competitors, whilst navigating the challenges of low cost of fares.
The industry for Qantas Airways Limited is a company that guides a long distance in airline, which is in international and domestic location. Qantas Airways Limited is a company that established as a world airline that comes from Australia.
Qantas is the oldest airline in the English speaking world. It was founded by the three aviation pioneers Hudson Fysh, Paul McGinness and Fergus McMaster as the Queensland and Northern Territory Aerial Service in 1920 and has grown from one aircraft which offered air taxi services and joyrides to a vast, complex fleet operating all over the world. By 1930 Qantas’ air routes had expanded to reach up to North Eastern Australia and was later purchased in 1947 by the Australian Federal Government.
Virgin is made up of over 200 companies and employs approximately 50,000 people worldwide. It was originally set up as a mail-order record business by Sir Richard Branson. Conceived in 1970 by Sir Richard Branson, the Virgin Group has gone on to grow in business sectors ranging from mobile communications, to transportation, travel, financial services, leisure, music, holidays, publishing and retailing. In 2006 Virgin’s revenues from around the world exceeded £10 billion.
Qantas is one of the reputed and oldest airlines in the world. Qantas was born in Winston, Queensland in the year 1920. The abbreviation is Queensland and Northern Territory Aerial service limited. It is headquartered at Sydney one of the largest building block in Australia, it is worth 50 million Australian Dollars.
This paper will discuss the five environmental factors that influence global and domestic marketing decisions that organizations must make. These five environmental factors are technology, demographics, government, culture and economics. Companies are affected differently by these factors depending on the industry they are in and the size of the organization. I will be using the Washington Plaza Hotel to illustrate how these environmental factors affect the hotel industry's marketing decisions. The Washington Plaza Hotel is a hospitality business located in Washington, DC. They offer services such as lodging, restaurant, bar, catering and meeting space rental. The Washington Plaza Hotel's major customer base is government, tourist, non-profit organizations, local businesses and some corporate clientele. Let's now take a look at how these environmental factors affect the marketing of the hotel.
Virgin Atlantic’s Hub Nears Full Capacity. Virgin Atlantic started operations in 1984 with the concept of serving strong demand destinations. The maiden flight from London Gatwick to Newark Liberty International Airport took place on 22 June 1984 (Nandy, 2015). Since then the airline expanded but largely remained as a single city hub airline.
Vodafone is the world's largest mobile telecommunications community, employing over 65,000 staff and with over 130 million customers. The business operates in 26 countries worldwide. Vodafone is a public limited company with listings on the London and New York stock exchanges.
When a business aims to be as successful as possible in selling its products and services, it must examine in detail whether or not the products will be attractive and necessary; if the price is optimal; if the product is being distributed in the best locations; and finally, how interest and awareness can be created for the products. In order for a business to target all of these elements to the right people at the right time, it must employ the right type of marketing mix: Product, Price, Place and Promotion. In a dysfunctional time for the airline industry, most airlines, especially major carriers, are adapting the concept of "doing less with more." One low-cost carrier, JetBlue, is changing the domestic aviation landscape in this regard and is defying the odds. Here is a company that has examined each marketing mix elements carefully, has adapted them to its customer’s needs, and is succeeding because of this approach.
Porter stated; “for an airline to succeed in the marketplace, it must have a sustainable competitive advantage” (Porter M. E., 2008). The airline industry is the highest competitive industry, and I believe a sustainable completive advantage is essential to succeed in the future of the aviation industry. The competitive advantages that an airline embrace, needs to be based on the airlines strategy and differentiation to competitors. Emirates displays how it has a strategy and how the airline gets ahead of its competitors through how unique it is.
Virgin Atlantic is UK's second largest major airline; it had its first take-off in 1984 and nowadays has routes leading to the world's major cities, having carried more than 38 million people to this date.