The impact of external changes on Virgin
New Competitors
Benefits on new competition entering the market
Drawbacks of new competition entering the market
Benefits on new competition entering the market
- Forces Virgin to become more innovative (come up with new ideas) for example the introduction of cleaner fuel in the use of their planes. This means that they can market this new unique selling point (USP). This leads to a competitive advantage.
- Forces Virgin to become more efficient. Virgin would have to look at their processes and may find areas in Virgins practices that can be improved. This mean that they can improve services in areas such and baggage waiting time. This leads to improved customer satisfaction.
Drawbacks of new competition entering the market
- Customers might decrease as they look at the arrival of a new service and opt to try them out. This could mean the customers' brand loyalty changes and this could lead to reduced revenues in the future.
- The other company could offer lower prices (If big enough). This could mean the Virgin are unable to compete leading to Virgin ceasing trading.