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Unit 4 DB Virgin America

Unit 4 DB Virgin America

Q For this question, review the Virgin America short case study at the end of Chapter 5. Prior to 2016, Virgin America was consistently rated as one of the top U.S. airlines. It served 20 destinations out of its main hub in San Francisco. Known for its leather seats, cocktail-lounge-style lighting, on board Wi-Fi, in-seat power outlets for electronics devices, full-service meals, and spacious legroom, the key competitive issue the company has been facing is that it is a niche player in a much larger industry where low-cost carriers such as Southwest Airlines and Jet Blue are putting constant pressure on prices and crowding out routes with multiple flights a day. After reviewing the full case, please answer the following questions. 1. What was Virgin America’s segmentation strategy? Whom did it serve? 2. Regarding its core segment, what did Virgin America offer its customers? 3. Using the Porter model, which generic business-level strategy was Virgin America pursuing? 4. What actions, taken at the functional level, enabled Virgin America to implement its strategy?

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For this question, review the Virgin America short case study at the end of Chapter 5. Prior to 2016, Virgin America was consistently rated as one of the top U.S. airlines. It served 20 destinations out of its main hub in San Francisco. Known for its leather seats, cocktail-lounge-style lighting, on board Wi-Fi, in-seat power outlets for electronics devices, full-service meals, and spacious legroom, the key competitive issue the company has been facing is that it is a niche player in a much larger industry where low-cost carriers such as Southwest Airlines and Jet Blue are putting constant pressure on prices and crowding out routes with multiple flights a day. After reviewing the full case, please answer the following questions. 1. What was Virgin America’s segmentation strategy? Whom did it serve? 2. Regarding its core segment, what did Virgin America offer its customers? 3. Using the Porter model, which generic business-level strategy was Virgin America pursuing? 4. What actions, taken at the functional level, enabled Virgin America to implement its strategy? The segmentation strategy of Virgin America had been to target customers on the basis of psychographics of the customers (Hill et al., 2020). This is because the buying behavior, attitude towards the services, and preferred prices of customers to avail services had been important to consider before marketing and selling the services of the organization. Every individual interested to utilize as well as apply latest technology had been targeted by the organization. Moreover, every individual conveniently utilizing technology and technological tools had also been targeted by the organization for selling its services. Every customer having a modern lifestyle filled with doing activities one after another at a quick speed had also been targeted to be served by the organization (Hill et al., 2020). The interest for socializing by the targeted customers of the organization had been beneficial for providing them with luxurious services to avail even at high prices.