What was virgin americas segmentation strategy

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Question:

Review the Virgin America short case study at the end of Chapter 5. Prior to 2016, Virgin America was consistently rated as one of the top U.S. airlines. It served 20 destinations out of its main hub in San Francisco. Known for its leather seats, cocktail-lounge-style lighting, on board Wi-Fi, in-seat power outlets for electronics devices, full-service meals, and spacious legroom, the key competitive issue the company has been facing is that it is a niche player in a much larger industry where low-cost carriers such as Southwest Airlines and Jet Blue are putting constant pressure on prices and crowding out routes with multiple flights a day.

After reviewing the full case, please answer the following questions.

What was Virgin America's segmentation strategy? Whom did it serve? Regarding its core segment, what did Virgin America offer its customers?

Using the Porter model, which generic business-level strategy was Virgin America pursuing?

What actions, taken at the functional level, enabled Virgin America to implement its strategy? Please be sure to cite any outside source and use APA style.

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The paper explores an understanding of the segmentation strategy used by Virgin America based on the given case study. However, the segmentation strategy used by Virgin America in the given case study is based on psychographic segmentation. The company primarily targets the tech savvy younger generation as a customer segment in order to earn profit. It targets customers based on the purchasing capacity and age of people. Virgin America is pursuing a cost leadership strategy at the business level for providing low cost fare to appeal more customers. It is recognized that several actions taken by the company at the functional level for implementing a strategy which involve focusing on the customer needs and developing new architecture for web.

Reference no: EM132843899

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