Information Technologi Strategi Virgin America (2)

If Virgin America is planning to use the strategy Cost Advantage then they are setting themselves to fail. In the overcrowded airline industry especially in the U.S. there is cutthroat competition as the low-cost carrier. Southwest has proved a successful model and is difficult to beat them on the benefits of cost benefit alone. Many airlines have tried in the past and failed. Jet Blue could be the only exception.

But based on other Virgin products, it seems feasible that Virgin America is planning to use the differentiation strategy. To start off they have a known brand 'Virgin' which is widely recognised in the EU. They also want to use the "plush" in its aircraft (such as leather seats, entertainment system etc) to make the experience a comfortable flight. Thus, they are planning to leverage the Virgin brand as a luxury experience. Superior "flying experience" is the only way it will survive in the airline industry.