What do you think is virgin America’s business level strategy. please explain why you choose this strategy.

What are the ways virgin America used to differentiate itself from its competitors? what have been the financial outcomes ( e.g. cost, revenue, profitability) of America’s differentiation efforts over the years.

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Title This article first appeared the in the June 2014 issue of Airways magazine. SQUEEZED BETWEEN THE POWERFUL U.S. domestic network airlines and the aggressive ultra low-cost carriers, an airline that offers an award-winning travel experience to both leisure and business flyers might not have a chance to grow, much less survive. Virgin America begs to differ with a unique marketing advantage. Over the past year alone, thirteen million airplane seats have been removed from the skies by airlines as they reduce capacity. With little ability for growth projected for 2014, only the "ultra-low cost carriers" of Allegiant Airlines, Frontier and Spirit Airlines are poised to expand. Indeed, the average domestic load factor reached 87.1% during the second quarter of 2013. Beyond this dire analysis, an argument can also be made that true marketing differentiation among airlines in the domestic U.S. market is almost non-existent, if not a source of apathy among passengers whose sole focus is the five letter word: P-R-I-C-E. In the "low cost carrier" (LCC) category, Southwest Airlines has a unique marketing advantage, with its contagious corporate culture that encourages all employees to carry out their duties (on the ground and in flight) with humor and panache. After all, this was the first airline where this author experienced a passenger safety briefing sung in the Rap music genre by a flight attendant over the on board public address system. Outside of Southwest, a passenger would be hard pressed to associate anything significant about "flying in the aluminum tube" that would distinguish one airline over another. Title This article first appeared the in the June 2014 issue of Airways magazine. SQUEEZED BETWEEN THE POWERFUL U.S. domestic network airlines and the aggressive ultra low-cost carriers, an airline that offers an award-winning travel experience to both leisure and business flyers might not have a chance to grow, much less survive. Virgin America begs to differ with a unique marketing advantage. Over the past year alone, thirteen million airplane seats have been removed from the skies by airlines as they reduce capacity. With little ability for growth projected for 2014, only the "ultra-low cost carriers" of Allegiant Airlines, Frontier and Spirit Airlines are poised to expand. Indeed, the average domestic load factor reached 87.1% during the second quarter of 2013. Beyond this dire analysis, an argument can also be made that true marketing differentiation among airlines in the domestic U.S. market is almost non-existent, if not a source of apathy among passengers whose sole focus is the five letter word: P-R-I-C-E. In the "low cost carrier" (LCC) category, Southwest Airlines has a unique marketing advantage, with its contagious corporate culture that encourages all employees to carry out their duties (on the ground and in flight) with humor and panache. After all, this was the first airline where this author experienced a passenger safety briefing sung in the Rap music genre by a flight attendant over the on board public address system. Outside of Southwest, a passenger would be hard pressed to associate anything significant about "flying in the aluminum tube" that would distinguish one airline over another.

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Answer The Virgin America business level strategy aims for i Cost Leadership ii Price Differentiatio... View the full answer