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Company overview:
Since it was founded in 1984, Virgin Atlantic Airways has become Britain’s second largest carrier serving the world’s major cities. Now based at both London’s Gatwick and Heathrow airports, it operates long haul services to thirty destinations worldwide as far apart as Las Vegas and Shanghai. Virgin Atlantic has enjoyed huge popularity, winning top business, consumer and trade awards from around the world. The airline has pioneered a range of innovations setting new standards of service, which its competitors have subsequently sought to follow.
Despite Virgin Atlantic’s growth the service still remains customer driven with an emphasis on value for money, quality, fun and innovation. Virgin Atlantic had carried around 53m passengers since it began operations and now employs almost 9000 people worldwide.
ANALYSIS OF THE CASE STUDY:
The Customer benefit package from Virgin airlines:
The Tangibles:
1-Comfortable seats
2- Fairly spacious lounge for business and first class passengers 3- Overall tasty and exceptional option of food and beverages is served
4- Comfortable and cheerful atmosphere in the airplane.
5- Reasonable pricing for the guaranteed service
6- Well-organized design selection for the inside of the plane such as the separate seat and bed idea
The Intangibles:
1- Caring and friendly flight attendants.
2-In flight Internet connection.
3-Highly advanced website with several checking choices such as the Check in, chill out in the Caribbean which allow customers to relax in their hotel.
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As the staff deliver the boarding passband, they take the luggage in a secure van to check it in the airport.
4- Several fair packages serving diverse customer demands.
5- Enable customers to book other related inquiries such as booking a car, a hotel
6- The website covers all the needed information from getting airport directions to inflight exercises.
7- Enable customers to exchange their money at different locations.
8- Cleanness and neatness of the airplanes.
9- Hip and trendy design for the logo.
10- Brand recognition.
11- Exceptional customer service such as personally calling customers before the flight time to check if they're in need for help. 12- Involving customers in their objective which is “to grow a profitable airline, that people love to fly and where people love to work”.
13- Efficient customer complaints procedure even for non travelers.
14- Efficient baggage claims procedure even in incidents occurrence
* What are the heads of Virgin's product design?
Virgin has three product heads which are the economy's and Premium Economy's classes design, the Upper Class and a head for Clubhouses.
* What kind of structure does the organization apply?
The organization has a flat structure.
* What gave Virgin's design a level of respect within the organization? Virgin's design was granted respect by building relationships and communicating the value of design in the organization.
* What is the benefit from the service design?
The benefit is to ensure that the new designs of virgin's services are improving and increasing customer's satisfaction.
*How does Virgin maintain a low staff turnover even though their promotions are limited? Virgin maintains a low staff turnover in their design by keeping employees motivated and satisfied.
The organization assures this result by educating their design employees, involving them in training programs, applying a cross-functional share of ideas and teamwork.
* What are the incentives of applying team works?
Teamwork grants designers with the appropriate reward and grant managers the achievement of the negotiated goals.
*What is the operational focus of Virgin?
Virgin airlines focuses on differentiation in design.
*How does Virgin Atlantic operate within its time and resource constraints? Virgin executes its projects and designs activities through a company of wide project management system.
*How is the project design processed?
The design process undergoes R&D, Design Development and implementation.
*What are the stages of research and development of Virgin Atlantic? First,
they start with product challenge in which the performance is monitored not to decrease or it's raised. After that, the opportunity identifier stage begins where an idea is introduced into action by the group directors with the approved fundings. From the OI, Virgin develops the product brief. Then, the project design is discussed in a dialogue form between the employees responsible for the project and the design team. Finally, the approval of the board is requested with a detailed presentation in hand.
*What are the risks of the OI stage?
Budgets and timelines limitations are critical to OI.
*What is the aim of creating a dialogue for the project design? Creating a dialogue is important for the stakeholders because it assures them that their interests will be delivered within the time and money limits.
*What are the reasons behind the meetings of Design Development? 1) The ITCM is held to ensure that the project design is applicable. 2) The PDR is held so that the manufacturers demonstrate their understanding of the project and correct any misinterepretation . 3) The CDR is held so that the designers and manufacturers both agree on the final design. 4) The FAI is to ensure that the manufactured products are as planned.
*How does Virgin Atlantic minimize the risks of implementation? Virgin minimizes the implementation's risk by reducing the expensive aircraft downtime and by storing products six months before the roll out.
*Does Virgin outsource and if so in which activity?
Virgin uses external agencies to help with creating different designs.
*How does Virgin manage the work of the internal and external design groups? Virgin manage the work between these parties by establishing weekly meetings and increasing those meetings when needed. Also, Virgin ensures that external groups reach their highest performance by giving them their space and keeping them separate from one another.
*What are the methods used in improving Virgin service?
Virgin collects information from internal customers, external customers, third parties. An example of internal customers are the senior mangers. Furthermore, Virgin provide customers with Xplane questionaries which are taken under consideration by the designers even in seat sizes. Virgin also uses benchmarking data to improve its design satisfaction.
* How did Virgin reached success with its new upper class addition? At first, the design team discussed a number of flat beds' layouts with the managers. Then, they prioritized the features to ensure that the important features are included in the layout. After that, the engineering department ensured that the layout is safe and undergoes the regulations. Then, the layout of separate seats and sleeping areas was passed to the development stage after the approval of the board of directors. In addition, the seat features were analyzed and tested to ensure its performance.
* In which way did the upper class concept cover customer’s retention? The upper class concept didn't only include a comfortable layout, it also included service factors such as limousine pick-up, in-flight massage, lightning specifications and dining options. Also, Virgin included customers in the assessment of its new service inquiry.
In your opinion, how do you think Virgin airlines can improve their performance? I believe that Virgin have reached a high performance and established a brand image within the airlines sector. Thus, the best way to ensure their success is by benchmarking and seeking improvements even in the small missing aspects. In the end, there isn't limit to the competing market.
Primary problem:
How will Virgin Atlantic airways segment and position their firm in the market in order for them to surpass their competitors and become market leader?
Supporting details:
Richard Banson (the founder of Virgin Atlantic) believes that knowing the needs and wants of all customers is the best core competence, the Virgin Atlantic believes that they need to accommodate all the customers who can afford to pay for the ticket, but Virgin Atlantic don’t practice the marketing segmentation.
Secondary problem:
How will the Virgin Atlantic Airways maintain their good reputation and their service?
Supporting details:
The Virgin Atlantic airways is known for its innovations, products, services, schedule, but the seats are tiny with no legroom in the premium economy class.
Recommendations:
Primary problem:
virgin Atlantic airways need to identify their target market so they can serve and do their job effectively and efficiently
Secondary problem:
Virgin Atlantic should conduct a disciplinary action for their employees. Attendants should distribute a wish-list where passengers can write what they want freely either during the flight or after the flight, they can wish to buy presents instead of going to the duty free, by the wish-list the management will know the likes and dislikes of the passenger and this will result in avoiding complaints.
REFERENCES
http://www.designcouncil.org.uk/Case-studies/Virgin-Atlantic-Airways/Designing-the-Upper-Class-Suite/
Quality management manual
Worldwide flights | Africa, Asia, Australia, Caribbean, UK and USA | Virgin Atlantic. (n.d.). Worldwide Flights | Africa, Asia, Australia, Caribbean, UK and USA | Virgin Atlantic. Retrieved from http://www.virgin-atlantic.com/gb/en.html
http://www.guardian.co.uk/business/virginatlantic
Research Methodology. (n.d.). Research Methodology. Retrieved from http://research-methodology.net/virgin-atlantic-airways/
Virgin Strategy1. (n.d.). Virgin Strategy1. Retrieved from http://fr.scribd.com/doc/60328463/Virgin-Strategy1
Virgin Atlantic Airways Fleet Details and History. (n.d.). - Planespotters.net Just Aviation. Retrieved from http://www.planespotters.net/Airline/Virgin-Atlantic
http://www.virgin-atlantic.com/en/gb/careers/highlife/timeline/index.jsp
Virgin Atlantic Limited. (n.d.). PrivCo. Retrieved from http://www.privco.com/private-company/virgin-atlantic-limited
Virgin Atlantic Airways Passenger Reviews and Customer Trip Reports. (n.d.). Virgin Atlantic Airways Customer Reviews. Retrieved from http://www.airlinequality.com/Forum/vir_atl.htm
AirlineMeals.net - Airline catering * the world's largest website about airline catering. (n.d.). AirlineMeals.net - Airline Catering * the World's
Largest Website about Airline Catering. Retrieved from http://www.airlinemeals.net/browse.php?id=2325
https://www.virgin-atlantic.com/en/gb/manageyourflights/index.jsp
The Economist. (n.d.). Retrieved from http://www.economist.com/blogs/gulliver/2012/12/virgin-atlantic
Quality Management Virgin Atlantic. (2016, Mar 12). Retrieved from https://studymoose.com/quality-management-virgin-atlantic-essay
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