SWOT Analysis: Summary

Finance challenges

All the companies have different strengths, but there are always some weaknesses that cannot be ignored. There are two major weaknesses of Virgin Atlantic Airlines are financial challenges and poor differentiation. Both weak points are important, and it is needed for the company to work on them. The financial challenges started with Brexit, and since then, the company has been facing many issues. The airlines have to pay the amount in dollars, but the exchange currency is in pounds. It is only one factor of the financial challenges, and it is expected to be resolved soon, but it is seen that there is another challenge that has been presented (Bhasin, 2018).

Pandemic has stopped the air travel, but it made the people confined to their house, so there is various news that the company is running out of money and there are many things that need to be managed. At the start of the pandemic, no one knew that the lockdown would go so long, and the airline industry had to face a huge loss. Recently, the company has issued its financial statement, and it has been seen that the capital is three times lower than the previous year.

Issue and crisis management can be implemented to handle the financial crisis. The issue is the coronavirus, and the company needs to accept that natural pandemics cannot be fought against, and the humans are helpless about it. The issues and crisis management theory enables the whole management to think of the strategies that can minimize the impact of the crisis. As soon as the strategies are defined, there is a need to work on them and get back on track (P, 2020).

The preventive measures are to be taken for the company, and the financial crisis can be handled by using paid software, i.e., auditing software. Earlier, the company used to have the data in the spreadsheet and QuickBooks, but after the pandemic, it is needed that effective financial statements should be made, and there should be no mistake in it. Moreover, the latest software tells about the strategies to improve the system. The cost of the software is almost 100 USD, and it needs to be renewed.

The laptops are the tools used to communicate for the company, and the employees already have their laptops provided by the company. The outdated technologies should be eliminated from the company, and the updated technologies should be introduced. It will also help to overcome the weaknesses of the company.

The cost of the product is minimal, as it has been mentioned above, so that the company will buy it. The financial software cannot be leased because all the company's private information is saved inside the software. However, the weakness is presented because the company faces challenges, and there is a need to address them (Essay, 2020).

Poor Differentiation

The company's differentiation strategy has been a complete failure because it is one of the leading companies in the state. Still, the new entrants have beaten it up with their strategies. It has been observed that several other companies started the business later than it and the reason is lack of quality services. The differentiation policy is implemented to maintain the distinction from the other companies.

The communication theory should be implemented in the company because employees and managers maintain differentiation. There should be meetings, and employees should be empowered to give their opinions and suggest what can be improved. The communication between the managers and employees minimizes the gap and helps overcome the weaknesses (Arnott, 2020).

The products to be bought for the differentiation issues are the personal protection equipment, including face masks and head protection. Moreover, an interface has to be developed that maintains the management data and process. It will guide the company on how the activities should occur and how things can be normalized. There is almost an expenditure of 2000 USD for the complete interface system. It cannot be leased because of the privacy of the company. The company must protect its data, and it has further been seen that the expenses are less than the benefits. The poor differentiation has been selected because the company has to improve its differentiation strategy. It needs to be on track and regain its status, so it was important to discuss it as a major weakness.

The company's current liabilities are 1,351.6 million pounds that include different categories like borrowing, trade, deferred revenues, provisions, and others. The company is bad at adopting technology and communication. The technology innovation and the communication strategies should be improved because they are guarantee success. The traditional methods of financing should be avoided, and modern technologies should be introduced. The company can buy both technologies mentioned above because they are minimal and are management software. The company is in poor cash flow because of the coronavirus. The highest cash flow was in 2016, and since then., the company has been facing loss that has been worse now because of coronavirus (Virginia, 2020).

References Arnott. (2020). VIRGIN STRATEGIC MANAGEMENT ANALYSIS INTERNATIONAL BUSINESS. Retrieved from https://www.globalsocialmediamarketing.com/virgin-strategic-management/?cn-reloaded=1 Bhasin, H. (2018). SWOT analysis of Virgin Atlantic. Retrieved from https://www.marketing91.com/swot-analysis-of-virgin-atlantic/ Essay. (2020). Virgin Atlantic: SWOT analysis. Retrieved from https://phdessay.com/virgin-atlantic-airways-swot-analysis/ P, S. a. (2020). Virgin SWOT and PESTLE Analysis. Retrieved from https://www.swotandpestle.com/virgin-atlantic/ Virginia. (2020). Virginia Annual Report 2020. Retrieved from https://corporate.virginatlantic.com/content/dam/corporate/Virgin%20Atlantic%20Annual%20Report%202020_final%20v1.pdf