Virgin Blue Essay

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Written Assignment: VIRGIN BLUE Introduction Virgin is a ‘branded venture capital organisation’ (Virgin “About us”, 2010). They have numerous diversified investments and companies. Virgin noticed the lack of competition in the Australian airline industry, following the collapse of Ansett (Nahan, 2001) and the failure of initial low-cost airlines like Compass and Impulse Airlines. (Trade Practices Commission, 1992). In 2000 it established the ‘first sustainable low fare airline’ (Virgin Blue “The Virgin Blue History”, 2010) in Australia – Virgin Blue (‘VB’). Through strategic management, VB has maintained profitable through a cost leadership strategy. Strategic Management and Strategic Competitiveness Strategic competitiveness occurs when a firm implements a strategy which allows it to exploit its core competencies to gain an advantage over the other businesses in the industry (Hanson, Dowling, Hitt, Ireland & Hoskisson, 2008). The strategic management process refers to the decisions made by a firm to achieve strategic competitiveness and earn profitable returns. The process requires an analysis of the external and internal environments, which will show the resources, capabilities and core competencies of the firm (Hanson, et al., 2008) The 21st century has an atmosphere of hyper-competition which has been spurred by globalisation and technological advances. (Hanson, et al., 2008). To succeed firms need to be flexible and have a contingent approach to managerial decisions. Quick, responsive action is necessary (being the first-mover can be a competitive advantage). Firms must be innovative, as technological advances have led to burgeoning niche markets, which must taken advantage of. There is a need to integrate and form strategic alliances to ensure their efficiency and productivity (Ireland & Hitt, 1999). The global economy has provided firms with new markets

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