Research Paper: Organization Behavior Business Model Development

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[. . .] National Aeronautics and Space Administration (NASA) has specifically designed the regulatory policies for businesses in this industry so that they meet the minimum criteria for operating in the industry and contribute towards the economy and overall Global aerospace industry.

Human Resource Planning:

The human resource needs for the company are also becoming more and more complex day by day. Whenever some new technology is introduced in the industry, Virgin Galactic has to train its present engineers and technicians so that they get equipped with the most advanced knowledge and skills in the Space Sciences. In addition, it has to recruit engineers from the outside market that are well-trained and highly skillful in the required areas. These recruitment and training costs are a major part of the operating expenditures for the company. In this new business strategy, Virgin Galactic will have to plan its human resource, processes, and technological improvement needs for both short run and long run. The innovation in business operations and improvements in current technological processes will enable it to control its costs and bring them to the minimum possible level while human resource planning will help it to ensure the most efficient spacecraft launch operations in the Space.


Virgin Galactic operates in a highly capital intensive industry. Although the aerospace industry is composed of less number of participants than other industries, but the capital requirements, Research and Development needs, and risks associated with the business are the largest among all types of industries. The aerospace industry is concentrated with manufacturers, suppliers, regulatory bodies, and customers (airlines, Space research organizations, and military and defense corporations). The industry has been showing a growing trend for the last few years which is a positive sign for the technology oriented businesses that are directly or indirectly associated with the telecommunication networks and aeronautical or space sciences (Clear Water Corporate Finance 2010).

Virgin Galactic is a well-recognized manufacturer of superior quality spaceships and air jets for all types of space research organizations. Currently, it is being operated through funding by a private organization. Keeping in view the potential of this industry, it can be anticipate that Virgin Galactic will see a tremendous growth in its business operations and excellence in its manufacturing capabilities in the future (Ryu & Pak 2010). However, the competitors of Virgin Galactic which possess the competencies to dominate the market in the near future include SpaceX, Space Adventures, SpaceDev, ARCA, EADS Astrium, Armadillo Aerospace, Bigelow Aerospace, Boeing, Blue Origin, Excalibur Almaz, Reaction Engines, Starchaser Industries, XCOR, and others. Most of these competitors are specialized in rockets, capsules, and space plane launchers. The aerospace companies which have self powered launchers can give them a competitive advantage over other companies. The largest airlines of the world like Delta Airlines, Ryanair, U.S. Airways, Lufthansa Group, British Airways, United Airlines, Emirates Airlines, etc. can also enter this space business in the future. These airline businesses will further concentrate the aerospace industry and make the competition more severe for Virgin Galactic.


The most important players in the aerospace industry are the aircraft manufacturers that design, manufacture, promote, sell, and maintain highly advanced and technologically superior and faster air jets, rockets, spaceships, and other types of aircrafts for their customers all over the world. The second most important player in this industry is the regulatory authorities that regulate the way these manufacturers conduct research, make investments, use technology, and manufacture their products (Corallo, Laubacher, Margherita, & Turrisi 2009). The third primary player of this industry is the customers of the aircraft and spacecraft manufacturers. The fourth and equally important player of the aerospace industry is the suppliers of raw materials, technological processes, and technical capabilities (Deloitte Development 2012).

Keeping in view the recent growth trends in this industry, it is expected that the manufactures of passenger and cargo airlines that are financially and operationally strong will also penetrate in the aerospace industry in the near future. They will be a potential player in this industry which will further get concentrated with a large number of manufacturers. This entry of new manufacturers will open new horizons for more potential participants in the form of suppliers and technical support firms (Platzer 2009).



a. Human Flights:

According to aeronautical engineers and space scientists, there are numerous opportunities in the space business which are still unexploited. Virgin Galactic has planned to launch human flights to moon in the future. This will be a highly attractive opportunity for making high market share and profits. If Virgin Galactic launches these human flights as an individual line of business before any of its competitor firms do, it can get a competitive advantage over these firms and make its own identity in the tourism industry. Virgin Galactic has strategized to offer these human flights on frequent basis and make it a new way of tourism for the tourism lovers. However, these flights will initially be expensive enough to be borne by only wealthy people once in their lifetime. With the passage of time when other manufacturers will also start offering human flights, the fair charges will come down to a lower level which could be affordable by high to upper middle income groups. This step is highly attractive for the growth of Virgin Galactic in the long run. The investment made on this project will improve its market share and brand image in the eyes of its key stakeholders and will help it in beating the other industry leaders with this first mover advantage for a long period of time.

The major cost in this investment will be the fuel expenses which account for more than 50% of the total cost of travelling. In order to encounter this issue, Virgin Galactic will have to focus on introducing more advanced air jets and spacecrafts which are more fuel efficient and faster than previous craft line. The first mover advantage can become a distinctive competency for Virgin Galactic if it will focus on quality management, fuel efficiency, financial performance, and competitive strategies at the same time.

b. Satellites:

Virgin Galactic will also find great opportunities in the satellite business. It can produce more efficient, reliable, faster, and technically advanced satellites at lower costs in the future by using its manufacturing capabilities and innovative procedures. The markets size for satellite business is quite small as compared to aircraft and spacecraft manufacturing. However, Virgin Galactic can develop its name in the industry by producing large number of satellites that are customized according to the requirements of its customers. Initially, Virgin Galactic can take the services of suppliers for technical processing, maintenance, and controlling procedures for its satellites, but with the passage of time, it can become self-sufficient, more innovative, and capable of doing each and every process itself (Clear Water Corporate Finance 2010).


Space is certainly the riskiest business so far. It is because there is a huge different between what is known about the Space and what actually exists. The size of the Universe where aerospace industry tries to make discoveries is still immeasurable. Therefore, the aircrafts and spaceships which companies manufacture to explore the secrets of the Space have a limited speed, capabilities, and coverage (European Commission 2012). The risks associated with the Space business refrain them from thinking beyond a certain destination in the Space. Thus, the biggest risk in the Space business is the operational efficiency of the spacecrafts which may cease after a particular distance, making them quite non-functional, useless, and uncontrollable beyond that distance (Corallo, Laubacher, Margherita, & Turrisi 2009).

The second biggest risk or threat in the space business is the need for huge investments which may go in vein if a company fails to launch its spacecraft effectively. The Research and Development costs are also very high which put a direct negative impact on the profit margins of the company. Companies in the aerospace industry are generally exposed to high risks of technological failures. They have to expend a huge amount from the revenues on the Research and production activities so that every new air jet or spacecraft they manufacture is more advanced, faster, reliable, and efficient than all its previous aircrafts. Any minor technical failure or accident can cause billion dollar losses to the company (Clear Water Corporate Finance 2010).

Another risk in the space business is the strong rivalry and cold war among industry leaders. This rivalry often makes the less competitive firms copy the technological processes and innovative ideas of the market leaders. Once an innovative idea is stolen by a less competitive firm, it will not remain a core competency for the first mover firm any more. This risk always puts negative impacts on the market share of aerospace companies as less competitive firms get succeeded in snatching the market share by implementing the same advanced technological… [END OF PREVIEW]

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APA Format

Organization Behavior Business Model Development.  (2012, September 23).  Retrieved June 17, 2019, from

MLA Format

"Organization Behavior Business Model Development."  23 September 2012.  Web.  17 June 2019. <>.

Chicago Format

"Organization Behavior Business Model Development."  September 23, 2012.  Accessed June 17, 2019.