Virgin Blue

Introduction:

Virgin Blue is the second-largest airline and the largest fleet size airline company in Australia. It was taken to the Australian skies in August 2000 and it has expanded to routes that include most Australia major cities and holiday destinations. Virgin blue has strongly brand recognition and remain innovative, low-cost and high quality services let them gain more advantage of competitiveness. This essay will discuss how Virgin Blue has achieved strategic competitiveness base on the affect of strategic management and strategic competitiveness, the influence by external environment and the internal environment, and business level strategies.

Strategic management and strategic competitiveness:

Strategy management is the duty of the company leaders to plan their business at the highest possible level, which is to exploit the business’s core competencies and gain a competitive advantage. Besides that, strategy management is an ongoing process that evaluates and controls the business to enhance company’s ability to earn above-average returns. Further more, strategy management entails specifying the organization’s mission, vision and objective goals, developing policies and plans which are designed to achieve these objective goals.

Strategy competitiveness is the result of successful formulation and implementation of a value-creating strategy. By achieving strategic competitiveness and successfully exploiting its competitive advantage, a firm is able to gain its primary objective.

There are four main characteristics of the 21st century competitive landscape influenced the strategic competitiveness of firms:

First is the global economy. Global economy is one that goods, services, people, skills and ideas of a nati...

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...ickets to the customers rather than just cut down the price. Cost-leadership strategy helps Virgin Blue take more market share within the airline market as well as win the Ski-Trax’s best low-cost airline Australia/ Pacific at 2010 World Airline Awards ahead of Jetstar and Tiger airway.

Focused cost leadership strategy is an integrated set of actions designed to produce or deliver goods or services that serve the needs of a particular competitive segment. For Virgin Blue, their main target market is the young travelers, because they are a group of people who love to travel nationally and internationally but they have not much income, so Virgin blue’s high quality and low-cost airlines are exactly fit their demands.

Based on cost-leadership strategy and focused cost leadership strategy, virgin blue is able to earn above-average return and achieve competitiveness.