Virgin Atlantic Strategy Case Study
Key Learning Outcomes
By the end of the case, students should be able to:
- Understand what the BCG (Growth-share) matrix is.
- Analyse the various strategic business units in Virgin Atlantic's portfolio and assess which ones are the stars and cash cows generating the most value, or the question marks, and dogs that may need further investment or divesting to achieve a balance of the portfolio.
- Apply strategy business models and frameworks such as the BCG matrix to real company cases.
1.0 INTRODUCTION
Virgin Atlantic is a trading name of virgin Atlantic Airways Limited. It is a private company that was incorporated in 1984. It is a British Airlines with its head office in Crawley, United Kingdom. Since it holds Civil Aviation Authority (CAA) type A of operating license (AOC 534), virgin Atlantic is therefore permitted to operate as an airway to carry passengers, cargo, and mail on aircraft with 20 or more seats. It uses a mixed fleet of Airbus and Boeing wide body Aircraft and it operates to destinations in North America , the Caribbean, Africa, middle Asia. Virgin Atlantic operates with three class cabin configuration that is to say; the economy class, premium economy class and the business class. Virgin Atlantic operates ten lounges worldwide. It has nine “clubhouse” locations in London, New york, Newark, Boston, Washington DC, San Francisco, Los Angeles and Johannesburg. It also maintains a rival’s arrival lounge in London Heathrow. They are accessible for passengers travelling in upper class and flying club Gold tier members. Virgin Atlantic in the recent years has had codeshare agreements with the following airlines; Air china, Air New Zealand, Delta airlines, Flybe, Jet Airways, Singapore Airlines, virgin Australia among others. In 1985 when it made its maiden flight to America, it has never looked back since then. The Airlines even now operates local flights in America under the brand Virgin America.