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Virgin Australia Essay

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Task: Create a feasibility report for the business directors of Bain Capital. Your report should examine the influences of environmental forces and two (2) repositioning strategies to improve Virgin Australia's current situation in the post-maturity stage of the business life cycle. Use the stimulus material and some additional research to: Describe: business situation and an internal environmental force that has forced Virgin Australia to reposition. Explain: Porter's five forces tool, including supplier power, buyer power, competitive rivalry, the threat of substitution and the threat of entry Planning rivalry, the threat of substitution, …show more content…

- Virgin Australia faces direct competition from other airlines, including Qantas, in terms of pricing, routes, and service offerings. - There is a moderate threat of substitution in the airline industry, as customers can choose alternative modes of transportation such as trains, buses, or driving (Australian Competition and Consumer Commission, 2022). - Virgin Australia needs to continuously differentiate itself by providing superior service and value to mitigate the threat of customers switching to alternative travel options. - The barriers to entry in the airline industry are high due to significant capital requirements, regulatory compliance, and the need for extensive infrastructure and operational capabilities (Australian Competition and Consumer Commission, 2022). - However, potential new entrants or existing low-cost carriers may pose a threat to Virgin Australia's market share if they can overcome these barriers and offer competitive …show more content…

Virgin Australia's bargaining power and costs are influenced by the availability of aircraft suppliers and maintenance services, while the ability to attract and retain customers depends on competitive fares, superior service quality, and loyalty programs. Competitive rivalry is intense, and Virgin Australia faces direct competition from other major airlines, especially in terms of pricing, routes, and service offerings. The threat of substitution exists as customers have alternatives like trains, buses, or driving. To mitigate this, Virgin Australia must continually differentiate itself by delivering exceptional value and service. Lastly, the barriers to entry in the airline industry are high, but potential new entrants or low-cost carriers could pose a threat to Virgin Australia's market share if they can overcome these barriers and offer competitive services. In summary, the insights gained from these analyses indicate that Virgin Australia needs to adapt its services to meet changing customer expectations, prioritize sustainability and technology, ensure financial sustainability, reduce environmental impact, collaborate with the government, adhere to regulations, and maintain ethical business practices. These findings inform the repositioning strategies required for Virgin Australia to remain competitive and sustainable in the dynamic airline

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