Virgin Atlantic Airways
Member rating: No Rating | Words: 1505 | Submitted: Mon Dec 03 2007
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Purpose of the Report Virgin Atlantic Airways (VAA) has reached a critical juncture in its history. Despite strong past performance in terms of profitability, growth rate, and overall brand awareness, the Company has yet to find a clear, sustainable, and profit-maximizing value proposition. To best capitalize on the predicted industry-wide recovery, VAA must quickly find this optimal value proposition by considering: * whether it should and could attempt to be a leader in low cost AND premium services; * how to grow without compromising its unique qualities (entertainment, entrepreneurial spirit etc.); * to what extent it wishes to directly compete with its larger rivals for specific customers; and * how to deal with the threat of unique offerings becoming mere hygiene, As the remainder of this analysis will show, VAA can find a sustainable, profit maximizing value proposition by segmenting the air-travel customer base, identifying the most profitable customer segments and developing a defensibly differentiated...

