Significance of Virtualization, and Cloud Computing in Virgin Atlantic
The main concerns of being the management student are to learn great management practices and system from various organizations. Practical implication of theories and practices gained from colleges or universities must be applied to the practical world. Our knowledge will be getting a platform when it is being implemented in a real world. Virgin Atlantic is one of the successful business organizations are operating multi function services. Virgin Atlantic Airways is one of the leading airlines in Europe introduced by Virgin Group collection of branded companies in 1984.
Virgin Atlantic is centralized with UK operating 30 destinations all over the world with the 40 Aircrafts in operation. It is also extending its operation via code shares flight with various airlines including Singapore Airlines, Virgin Blue, Continental Airlines and All Nippon. Virgin Atlantic has earned huge amount of financial revenue through its cargo service from Asian subcontinent. Virgin Atlantic, being a part of Virgin Territory, is able to make a revolution in an aircraft industry.
It is repeatedly won best airline awards in the past for several years, airlines is constantly using innovation as a most primary part of its strategic success. Virgin Atlantic is the UK’s largest airlines owned by private sectors and successfully introducing new systems, operations as well as services. Virgin Atlantic now introduces on 747 and Airbus A340 as aircrafts. The key to success of this organization is team work. Virgin has the power of skilled world leading team in manufacturing as well as IT section. The team keep focuses on the innovation consistently.
Virgin Atlantic is considered as the best maintained innovation leader in airlines industry. The airline is committed to continue its innovation and to facilitate the passengers and customers with new introduced services in airlines business. It is challenging that can fight with the market competition. As per the airlines function, the main function of an airlines is to provide the transportation facilities to the passengers and to the customers. Basically, Virgin Atlantic is IATA participated airlines the sales of the seats is through the GDS systems.
Virgin Atlantic and its management team works as a sovereign foundation of analytical input to the aviation and departmental affairs strategy developing function. It also develops systematic, short-term and long-term visions of the airlines. Virgin Atlantic management develops the structure of a company depending on analysis of air costs, traffic, fares, capacity, service, and financial information. As a growing airline it frequently monitors organizational developments and make sure that departmental policies lead to address those developments.
The main functions of any aircraft are to provide the transport facilities to the people and passengers. Virgin Airlines represents the airlines industry it keep passenger connected to their precious functions, jobs, leisure, corporate relations and countries with which passengers are linked through companies, families and friends, The main motto of virgin is to touch on some features distressing the specific desires in the airline business, and some of willingness to the public who use virgin’s services. Virgin Atlantic is a member of a global aviation system, and it acts as to maintain the safety and security issue.
Top management of Virgin Atlantic provides economic analyses for international route cases. As a main functional work, Virgin Atlantic analyzes and evaluates the competitive and public effect of airline bankruptcies and strikes. The airline administers the important air service programs including fare updates, cargo systems, refund and revalidation policies, public complaints and comments regarding the services. Like every business organization, there are mainly four main functions of that produces a complete circle and create an effective management.
Without all four functions of management, there is no worth of airlines sustainability in a market. Basically the four functions Virgin Atlantic performs of are planning, organizing, controlling and leading. All those functions are key to success of Virgin Atlantic. The effective and efficient management function is the core examples applied in Virgin Atlantic. Managers of Virgin Atlantic are liable for supporting not only for the organizational growth and to achieve its entire goal. The management functions of Virgin Atlantic is also to help the employees growth and reach their goals concerning with company’s success.
Virgin Atlantic Airways is keep participating in preparation of making the rules, maintaining departmental functions on behalf of legislative proposals in consideration with a variety of economic issues impacting the airline industry, the program also includes small community based air service, aircraft access at slot-controlled airports, air transporter fitness and airline industry structural issues. Virgin Atlantic has a clear mission for its operation. Company is sensitive towards the Security, safety and consistent delivery. Company believes that those three aspects are the basic foundation of its operation and entire strategy.
Mission Statement of Virgin Atlantic- “Safety, security and consistent delivery of the basics are the foundation of everything we do” Virgin Atlantic in its word the mission is divided into three forms: Mission 1- “To Grow a Profitable Airline” Mission 2- “Where people Love to Fly” Mission 3- “And Where People Love to Work” The strategy of a company for three years is to build up those basic foundations to maintain the service effective and efficient. The top management believe that those three factors lead an organization to sustain in the leisure markets.
The main strategic objective of Virgin Atlantic is to capture the market leader position. Virgin is the brand name and it keeps trying to promote its brand value all over the world. In the company history, it struggled more to obtain this position for the past 25 years and now the main goal is to give a new taste to customer every year. The virgin brand believes that the consumer behaviour and preferences are keep changing. It innovate the product in a short period of time and to get success. The main strategic goal is to earn more customer satisfaction helps to earn brand image as well as goodwill.
Company takes every competitor as a challenge and always prepared to corporately fight with them. In this context as per the company top management “Customer are the great entity and they are weapons for competitors” “Virgin Atlantic makes every day a happier day. It is a tonic for the soul – delivering great product, and great experiences for customers all around the world. ”- Dilys Maltby, Senior Partner, Circus Virgin Atlantic is taken as the successful airlines company in an aircraft industry. The management teams are skilled and intelligence that they driven airlines in a height of success.
However, the company have some weaknesses and threats as well. The SWOT analysis of Virgin Atlantic is as below; Strength: First Largest Private Airlines in UK. Differentiation based on service, price and value. Wide diversification of Customers. Excellent Management Team. Well designed and strong organizational structure. Weaknesses: Underdeveloped channels i. e. practicing irrational premium economy class. Distribution system is not developed fluently. Centralized Market; Focused only in London.
Unfavourable use of code- shares, alliance and partnerships Opportunity: Mergers and Alliances for the future. Use as a tourism development carrier. Increase the destinations throughout the Europe. Less number of competitors in a country. Asian Markets can be used as a destination. (Only few direct connections are available in Asian least developed countries) Threats: Terrorisms and frauds in the text of tourism domination. Unconsciousness towards the health program or a campaign. Online booking facilities of other airlines may results an unfair competition. Supply surplus lead to lose in revenue.
The main weakness of Virgin Atlantic Airways is its distribution system. Airline is only appointing more on UK based companies. The company is centralized and more concentrating to develop inside the UK rather to expand the International flight. Asian and African market is more potential than European destination. It is not meeting the perfect level of competitive market. The fare is relatively higher in comparison to other airlines due to the low connecting network. The introduction of the premium economic class itself is a contradictory one. It clearly discriminates the consumer preferences.
Business class passengers are de-motivated and it will be the major reason for revenue cuts in future. On the other hand, Potter’s Five forces model is the most useful tool in the text of market analysis of Virgin Atlantic. The virgin Atlantic is basically focusing on the UK, it has the great influence in UK market. The potential customers of Virgin Atlantic is UK customer prefer more Virgin Atlantic with respect to its reliability, accuracy and the durability in short connection services. However, as per the internal problem of British Airways and improved loyalty of Virgin the level of customers is dramatically increasing.
Virgin Atlantic is still not capable to capture the global market and it is somehow difficult to win over the various renowned airlines operating multi destination service. Such as Air France, KLM, Lufthansa, British Airways in Europe, Etihad, Qatar, Thai, Cathay Pacific, Singapore, Quantas in Asia and middle east. American, Continental, United, Air Canada in America are amazingly doing well business. Competition with those carriers is like a nightmare to Virgin Atlantic. Potential Entrants such as low cost carriers and the budget airlines are providing the excellent service those customer beliefs.
Customers are price and quality sensitive and for the Virgin Atlantic it is a real threat to overcome new entrants strengths. An organization then becomes successful when it improves its weaknesses to challenge competitors and to exceed their strength. There are various tools are in use to overcome the weaknesses. In the age of information technology, IT based software are more useful to support business process. Strategic Grid model is one of the most common tools in business organization that provides the information from various functional departments using IT.
Basically strategic Grid model gives business organization a framework what should be the best. Namingly, strategic grid model supports an organization to improve its competitive advantage using four factors analysis i. e Support, Factory, Turnaround and strategy as well. Strategic grid model in Virgin Atlantic is useful that it supports to make a strategy using the information provided as a grid. Zachman Framework is on the other hand, is just like an operation of a business organization. It analyze and shows the framework whether the business changes should be accepted or not.
It is a framework that shows the concrete analysis of Scope, model of business, technology model, detailed interpretation as well and functioning the system based on IT based program. Framework use an ER diagram, Data Flow Diagram, user interface etc. Basically, it is a system design leading to system development life cycle helps to identify the problem and to give a recommendation to the organization. Virgin Atlantic should need to decentralize its operation to keep business running that it needs to rely on information technology.
Online fare is one of the greatest weaknesses of Virgin Atlantic that it should maintain the level of online based ticketing to meet the competitors strength. Virgin Atlantic also needs to understand that the revenue is generating in organization with support of IT. So, it needs to increase the IT budget meeting the global needs of customer. Virtualisation is the most appropriate Information system in this competitive world. Using the virtual information system makes people familiar with the airlines system, fares and the pricing. It will lead to maintain the bridge between various countries that will minimize the corporate distances.
Virtualization allows agent to book online, pay online and check online. Traditionally, we used to go to airlines or an agent to make a reservation, booking and to buy a ticket. But now the time is changing, technologies are improving and people are more engaging. Virtualization leads to push an organization in a global market as well. We often think that computerized system will cut off the employment level and creates an unemployment level. But the virtualization increases the efficiency and effectiveness of an organization as well as it improves the level of awareness as well.
Virtualization is most necessary to meet the level of competitive market. As we are familiar with Web based ticketing and the aircraft system that no one wants to waste their time if they easily get the service with a same price via web. Virtualization also controls the level of fraud and eliminates the errors and the mistakes as well. Virtual system gives a proper knowledge to the clients than they get from agents. Customer can directly interact with the airlines as it somehow does not require third parties. Being a part of aircraft industry, Cloud Computing is the most effective tool to develop an organizational strength of Virgin Atlantic.
Mainly, cloud computing allows airline and its member to use the information system in demand. Introducing the cloud computing will give more confidential information and precious data to the management that will use as a tool to compete with other organizations. The system is most reliable that leads to reduce the failure in system and signal problems. Obviously, people are more sensitive and they valued the time emotionally. Cloud computing allows people to use the internet in a cloud as well. Information system on air then will make people informed every time whether they are within aircraft or whatever.
Grid computing supports to enable virgin’s shared network computers to be pooled and provisioned on demand to meet the changing demands of customers as well as changing needs of business. Grid computing is cost effective that enables multiple applications to share computing infrastructure, resulting in much greater flexibility, power, cost, power, scalability, performance, and availability all of the various functions at the same time. Grid computing leads to eliminate the unwanted or problematic systems without interrupting the system that will give continuity in process.
Grid computing itself monitors and administers the airlines database systems. In today’s global economic environment where the competition level cannot be compared, the demands are growing; preferences are changing and the willingness power of people also increasing. Technologies and information systems are facilitating to satisfy the customer needs and demands. Computer and business information system plays a key role to improve organizations efficiency and effectiveness. One of the most important aspects of business is its Computer Information System. The business future is uncertain without use of computer technologies.