1. What are Virgin Blue's competitive advantages? In your opinion, are these competitive advantages sustainable? Why or why not?
1. Virgin Blue's business model, which has since been copied by Qantas-owned Jetstar, operates on a different cost base from Qantas. Virgin Blue is essentially a ‘no-frills’ airline carrier. Virgin Blue assessed the Australian airline market and built an innovative business model that lowered operating costs dramatically when compared to Qantas. Virgin Blue's lower operating expenses are passed on to customers in the form of cheaper airline tickets. However, while Virgin Blue offers low prices, it has continued to emphasise in its communications what matters most to airline travellers — quality service, on a consistent basis. If Virgin Blue can keep these actions that they competitive advantages sustainable are sustainable.

2. Obtain some current examples of Virgin Blue's advertising using the Internet and newspapers. In your opinion, is Virgin......

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