Virgin America strategic analysis

Virgin America- Redefining Elegance in Flying

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Company Background

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Company Background

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The 1978 Deregulation

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Industry Economics

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Pressures in the Airline Industry

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Airline Yield Management

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Airline Capacity Utilization

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Operating Revenue (2000-2009)

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Available Seat Mile Capacity

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Change in Total Employees

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Opportunities and Threats

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Strengths and Weaknesses

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Key Success Factors

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• "unmanaged" or "self-managed" travelers “(1)• Young frequent travelers, very urban, tech savvy• Budget conscious consumers

Target markets

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Positioning strategy• “Stylish services at discounted

prices”• Domestic travelers get more for

their money by providing higher level of comfort and making coach seats affordable

• In-flight interactive experience (entertainment system, mood lighting)

• Huge social media connectivity• ELEVATE loyalty program

(matching competitive airlines elite status)

• Virgin America Visa Signature® Card

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Recognitions and Awards

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Promotional Activities

• Social Media• Sales promotions• Brand awareness• Service– Rebooking

• Discount web sites• Groupon• Livingsocial• Gilt

• Multimedia Ad Campaigns• “Breath of Fresh Airline”

- Online, Print, Outdoor• “Virgin Skies”

- Online & Outdoor19

Perceptual Mapping

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Scenario AnalysisStrategic Uncertainties

Aggressive response (20%)

Passive response (80%)

Virgin America’s

stylish service at discounted

price

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Fly High with Virgin America

• Sustain stylish service at discounted price

• Raise capital• Intensify multimedia and

outdoor advertising

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