Virgin Atlantic Case Study

Atlantics primary problem is that they were operational in the middle of the optimal utility program model. Their slogan had become offer a original Class service at less than First Class fares. In which virginal Atlantic Is offering utmost feeling at a minor cost, which notices them In the middle and not profitable. It seems that Virgin Atlantic did not take Into account that offering a insurance premium service as they were would come at a premium cost for them and when throwing In low cost fares Into the mix they were reading a vent and expectations they will not be able to sustain for a grand time.Starting off as a low cost premium atmosphereline aimed towards the business class may take aim been there way into the foodstuff and obtain market share hardly at some layer they needed to work their way out of the middle of the optimal utility model and shift either towards high quality or low cost, not both simultaneously to stay profitable. Seeing that there result one goal was to provide premium ripe services/ products they could have gone the route 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 problem 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 keep miserable 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 business class niche and s come about spending on infilling recreation and amenities and focus only on cutting costs which would quit them to be profitable as a low cost air transportation provider.Another secondary problem is that during Virgin Atlantics pursuit to be innovative, top management neglected to make in novations that would help the company in legal injury of lowering costs and Increasing profit. They only focused on innovations that benefited the consumers and not any self-interest. For example when Virgin Alertness management team mulish 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 video screens for every seat.But innovations akin that did not help them cut any costs or accession fares significantly enough to increase profits or reduce costs. A recommendation in regards to creating innovations to help reduce costs and increase profits would be for Virgin Atlantic Airways to partner with small shipping impasses who could procure cargo place on Virgin Atlantic flights that are not at full capacity, so that they can generate more receipts on flights that are not traveling full of passengers.Another Innovative desire would be to use the Individual video screens t hat they pioneered as ad space in the Mid 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,