It could lead the company to the heights in airlines industry and could become one of the best airlines around the globe in near future. 9) STRATEGIC CHANGES There are three key success criteria that are recommended by Johnson et al (2008) to assess the viability of strategic changes. They are suitability, acceptability, and feasibility. 10) CONCLUSION By studying this external and industry analysis on environmental facts, it could be said that Virgin Atlantic Airways is situated in standard cycle markets wherein its competitive advantage is moderately shielded from imitation. The Virgin group of companies is remarkable in many aspects. Providing customers with superior products and services and a smile is synonymous to the Virgin brand. However, it is with much need, that Virgin should re-evaluate its diversification strategies and focus on core values and competencies. In general, airline industry belongs to slow cycle markets, however, due to relatively smaller capital and operations of some firms like Virgin, companies within this industry are unable to assure their long-term above average returns because they are relatively vulnerable to general environment (low lobbying power) and relatively unsecured to industry forces (potential entrants or larger competitor predation). As a result, Virgin should also focus in a specific market niche or specific routes to obtain value other than price and survive the competition. The aviation industry is segmenting; regional centers are being served point to point. Traditional airlines are reducing costs, thereby using certain aspects of the business model of low fare airlines, < e-ticketing - distribution - e-commerce > but also business class, full fare economy, best buy, one way fares and supplementary revenue. 11) BIBLIOGRAPHY: Books: Airline Marketing and Management, By Stephen Shaw, Published by Ashgate, 2007 Competitive strategy, M.E. Porter, Free Press 1980 Total global strategy II, 2003 EBook: Airline Marketing and Management, fifth edition (PESTLE FACTORS) http://books.google.co.uk/books?id=cVu4E4eB5lAC&pg=PA50&lpg=PA50&dq=political+factors+airline+industry&source=web&ots=4vLQOblWFr&sig=BT-uHKjLV7YAGV3sQHqrCY-E6cw&hl=en&sa=X&oi=book_result&resnum=10&ct=result#PPA76,M1 Internet sources: http://www.investopedia.com/features/industryhandbook/airline.asp http://adg.stanford.edu/aa241/intro/airlineindustry.html http://excellence.qia.org.uk/VLSP4/pdf/tour_resources_d.pdf www.vocationallearning.org.uk/teachers/subjectspecific/supportpacks0405/pdf/tour_resources_d.pdf+deregulation+in+airline+industry http://www.reportlinker.com/p052393/UK-Airlines-Sector-PEST-Analysis.html http://www.oppapers.com/essays/Virgin-Atlantic---Strategic-Memo/143561 http://www.virginatlantic.com/en/gb/allaboutus/pressoffice/presskit/index.jsp http://www.m-travel.com/news/2006/06/business_travel.html http://findarticles.com/p/articles/mi_qa3766/is_200110/ai_n8986735 http://findarticles.com/p/articles/mi_qa3766/is_200110/ai_n8986735/pg_2 http://www.virgin-atlantic.com/en/gb/allaboutus/ourstory/history.jsp http://web.ebscohost.com/ehost/pdf?vid=5&hid=21&sid=6829bffb-c97f-4d74-afff-b2827304add8%40sessionmgr3 http://www.virginatlantic.com/en/gb/allaboutus/pressoffice/presskit/index.jsp http://www.bashares.com/phoenix.zhtml?c=69499&p=irol-reportsannual http://news.delta.com/article_display.cfm?article_id=10959 http://www.datamonitor.com/companies/company/?pid=C00F1CDB-4C6F-4BA5-997B-A82D60E1071C http://news.bbc.co.uk/1/hi/uk/7259004.stm http://www.abcmoney.co.uk/news/272005315.htm…