'Virgin Atlantic Case Study\r'

'Atlantics primary worry is that they were operating in the middle of the optimal returns-grade model. Their slogan had become â€Å"Offering a source Class service at less than introductory Class fares”. In which unadulterated Atlantic Is crack high musical note at a disordered cost, which animations them In the middle and not lucrative. It seems that Virgin Atlantic did not take Into account that offering a allowance service as they were would come at a premium cost for them and when throwing In piteous cost fares Into the mix they were reading a imp rail linement and expectations they will not be able to foster for a long time.Starting off as a low cost premium airline aimed towards the note class may have been there delegacy into the market and obtain market share just at some point they needed to reach their way out of the middle of the optimal utility model and shift either towards high gauge or low cost, not both at the same time to stay profitable . Seeing that there number 1 goal was to provide premium innovative work/ products they could have gone the highroad that Apple Inc. As done by providing innovative premium products at a premium prices rather than setting themselves up for future losses.A recommendation for Virgin Atlantics primary worry of operating In the middle of the optimal utility model, In which consumers want either high quality or low cost products and services. Virgin should discover moving forward with innovation and providing a premium experience for all of their passengers but do it at a higher price so that they do not create any losses. Another route to go in would be to become a upper low cost provider for their commerce class niche and stop spending on infilling entertainment and amenities and focus only on slueting costs which would allow them to be profitable as a low cost air transportation provider.Another secondary problem is that during Virgin Atlantics quest to be innovative, top man agement neglected to pretend innovations that would help the company in terms of great(p) costs and Increasing profit. They only focused on innovations that benefited the consumers and not any self-interest. For example when Virgin acuity management team decided that they did not want passengers to feel bored, they came up with innovative ways to keep them entertained during their flights such as pioneering individual television receiver screens for every seat.But innovations like that did not help them cut any costs or increase fares importantly enough to increase profits or sheer costs. A recommendation in regards to creating innovations to help constrict costs and increase profits would be for Virgin Atlantic Airways to partner with small shipping impasses who could deal cargo spot on Virgin Atlantic flights that are not at full capacity, so that they can come more revenue on flights that are not traveling full of passengers.Another progressive Idea would be to use the I ndividual characterisation screens that they pioneered as ad space in the middle and Economy class section of their planes. By doing so Vulgar Atlantic would be able generate additional revenues by selling ad space to advertisers, which would allow them to lower their cost per route,\r\n'