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Running head: Threats to your organization 1

Threats to your organization 8

Threats To Your Organization

Threats to Virgin Atlantic (VA)

The biggest threat to Virgin Atlantic that comes under the socio-environmental domain is the Increased Competition in the European Market. VA faces competition from several brands, including Emirates, Lufthansa, Cathay Pacific, Air France, and British Airways. These airlines provide first-class service, including highly comfortable seating, several entertainment facilities, first-class lounges, terminals, and check-in counters for passengers and on-demand meal options (Sadq, 2016). These airlines offer a wide range of products and value-based variable policies for pricing. These airlines invest in marketing by making promotional advertisements and offer incentives like loyalty programs, promotional codes, and discounts to customers (Baxter, 2019). These airlines have made effective use of social media platforms and have travel agents' portals tied with Facebook and Twitter accounts. To be competitive, Virgin Atlantic should invest in customer-oriented techniques of social media marketing and cookies information. VA should enhance its service quality, expand its network of global routes and develop strategies for cost control.

Another threat to Virgin Atlantic in the Legal dimension is the investigation by the EU of Delta's Ownership on non-European investments in the European airline industry. In April 2014, the EU began investigating that these investments should contravene restrictions imposed on non-European control and ownership. Inquiries were made on 49% of Delta's stake in VA. The restrictions imposed by Delta are not overtly contravened by corporate governance structure and ownership of VA. This has increased the concerns of the European Commission over whether there is a control of Delta. These investigations have put a question mark on the relationships of Delta and VA. This threat can be reduced by building on equity relationships and driving cost synergies with Delta. The significance of VA revenue to Northern America’s Revenue is that if there occurs a cost reduction of 1ppt, then it would lead to a gain of 0.55ppt in operating margins.

Cyber Security threat is another major threat in the technological dimension to Virgin Atlantic. Several airlines have suffered data breaches that have affected their customers. Cybercriminals are present that hack websites and sensitive personal data, including passport details and customer bank account details. These data breaches greatly impact customers. The airline business is a lucrative target of cybercriminals who seek financial gains (Baxter, 2019). The cost of remediation for protecting customers is very high, along with regulatory fines imposed on companies. The myriads of legacy systems in aircraft are liable to exploitable vulnerabilities, which have become a source of major concern. To reduce this threat, VA must invest in developing a strong security system. A system to keep a record of safety, security practices, and resilience must be developed that should be strong enough to withstand physical security threats, extreme climate events, terrorist attacks and respond promptly with caution.

References

Baxter, G. (2019). Capturing and Delivering Value in the Trans-Atlantic Air Travel Market: The Case of the Air France-KLM, Delta Air Lines, and Virgin Atlantic Airways Strategic Joint Venture. MAD - Magazine Of Aviation Development, 7(1), 17-37. https://doi.org/10.14311/mad.2019.01.03

Sadq, Z. (2016). Virgin Group Success Businesses: Diversification, and Key Strengths.. 1. 56-67. Retrieved from: https://www.researchgate.net/publication/318727329_Virgin_Group_Success_Businesses_Diversification_and_Key_Strengths