According to Johnson (2005) SWOT is a valuable device to study economic accounts and developing healthy work environment of any corporation. It is a key step towards any strategic design in a business.
It is measured to be very significant source of info for judging and understanding any kind of conditions in the organization. Below SWOT analysis aimed at Virgin Atlantic.Strengths • Virgin Brand standard by 98% of British Public.
Brand reputation is important for any company, Atlantic airline got strong foundation and airline was ranked 6th in world best Arline’s, the only British carrier to make the world top 10.Becourse of punctuality, Quality and the speed of dealing with reward claims.• Carried over 5 million passengers in year. Passenger’s always expect good customer service in each travel business /economy and verging able to fulfil their customer satisfaction• Virgin Atlantic airline is one of the biggest British airline with over 35 destinations, because Atlantic has a customer base and preferred airline off comfortable customers • Atlantic airline has outstanding advertising and marketing management team • Virgin Atlantic Using high technology: including in flight music, video, games, and movies.• Offering loyalty card for regular customers and also providing quality food and comfort service for them.• More than 8000 people are employed with airline and they are quality and well trained staff • Reasonable pricing for business class offers more services.
• Partnership with Singapore airlines (49% shareholder)Weaknesses• Flight Delays and need to improve flight competence. Virgin Atlantic Airways is known as one of the believed airlines, take care of passengers and their needs but sometimes their flights do get delayed due to reasons which could have been foreseen. • Lack of travel routes and limited, increasing destination and extra flight• Heavy reliance in celebrity personality of Richard Branson for promotion of brand. because one man owner and director of multiple companies it can give negative impact and risk for company • Main competition from cash rich gulf airline. • Disproportionate growth skewed towards USA flight compared to other high growth regions especially china, India and midlist• Atlantic airline decide Cut routes to Chicago, Toronto, and Cape in relation to the September 11 tragedy.• Cost of keeping two five star chefs, lounge, and limo service impact negatively for profit Opportunities• US government approved third runway at HeathrowThis is great opportunity for Virgin Atlantic.
The planned development will create new and affordable extra capacity at Heathrow. It will also reduce the cost of operating to or from Heathrow which is currently the world’s most expensive hub airport (Johnson 2016). Further, expansion of Heathrow post-Brexit will allow carriers like Virgin Atlantic to offer more direct flights to not only UK destinations but also up to 40 new cities abroad such as Wuhan, Osaka and Quito • Continued low fuel price will translate