丹麦论文范本:MBA essay参考

丹麦论文范本:MBA essay参考

来源:www.51fabiao.org作者:cinq发布时间:2014-02-11 17:38
航空业需要巨大的资金投入,以支持整个操作,并且该行业是通过规模经济来提高收入,首次进入企业往往有优势

 

Five forces analysis on Virgin Atlantic Airways
 
1.0 Industry environment analysis - five forces analysis
1.1 Threat of new entrants
For the civil aviation industry, potential entrants do not have a serious threat for existing enterprises. Aviation industry requires a huge capital investment to support the entire operation, and the industry is through economies of scale to enhance revenue, first entered enterprises often have advantages (Grant, 2012).
1.2 Bargaining power of suppliers 
In aviation industry, aircraft suppliers are only Boeing and Airbus, the industry concentration is high, thus the aircraft suppliers’ bargaining power is strong. In the process of negotiating with suppliers, airlines are in a less favorable position.
1.3 Bargaining power of customers
Convergence of air services that airlines provide and comprehensive, real-time information brought by the Internet allow passengers to make comparisons and choose among a number of airlines.
In order to meet the individual needs of passengers’, Virgin Atlantic Airways provide quality low-cost differentiated services to reduce passengers’ bargaining power.
1.4 Threat of substitute products or services
The threat from alternatives such as trains, coaches and other modes of transport for air services depends on price, time, convenience and passenger's personal preferences and other factors. Since Virgin Atlantic Airways is mainly committed to international long-haul routes, so the threat from alternatives for it is relatively small.
1.5 Intensity of competitive rivalry
Aviation is a highly mature market, the industry is extremely competitive. Deregulation, as well as the signature and coming into force of a series of free agreements result in an increase in the number of firms in the industry. Meanwhile, the high exit barriers of the aviation industry, as well as sluggish economic situation lead to intensified competition in the industry. In recent years, M&A and restructuring of the airline industry further exacerbate the competitive situation in the industry (Association of European Airlines, 2013). 
All in all, Virgin Atlantic Airways should adopt diversity strategy to reduce the bargaining power of suppliers and passengers to improve its strength and market position. First of all, in implementation of diversification strategy, one of Virgin Atlantic Airways’ dominant logic is to adhere to innovation (www.51fabiao.org/dxessay/ Goold and Luchs, 1993). Virgin Atlantic Airways should also insist on innovation and implement blue ocean strategy, looking for blank areas in the market. Through innovation to deal with the fierce competition in the industry, providing its passengers with the products and services that consumers do want, welcome and are able to benefit from that, but other companies are not willing to provide, thereby gaining a place in the fierce competition in the industry. Then, Virgin Atlantic Airways can also use synergy strategy, using its strengths in other areas to work together to provide personalized services to consumers, thereby enhancing the competitiveness. For instance, Virgin Atlantic Airways invests in aviation, hotel and resort industry, which can provide more comprehensive and personalized service for guests’ travelling and tourism (Grant, 2012).
2.0 Conclusion
Virgin Atlantic Airways has been successful in many industries via taking advantages of diversification strategy. In order to be successful in the aviation industry in the future, Virgin Atlantic Airways also needs to develop its better core competencies and adhere to its dominant logic of innovation and synergy strategy.