Question 1
Virgin Galactic is the first space line in the world that owns and runs privately built spaceships. The company plans to be the pioneer in commercializing space travel and offering ordinary people a unique opportunity of going into history as the first ever non-professional astronauts. Its main competitor is the Blue Origin, which has already attained a spectacular achievement in pioneering the first rocket booster to make a safe trip back to earth from space (The Economist, 2015). Virgin Galactic plans to use its massive resources and synergistic effects from the Virgin Group umbrella to beat its competitor in the space industry. First, the company has extensive financial and marketing resources to enable it to make inroads in the industry at a faster pace than Blue Origin. Its founder and business mogul, Richard Branson, is a billionaire with his personal wealth valued at more than $9 billion (Howell, 2016). Thus, he is capable of injecting funds into the space program and sustaining it for several years to come until the company becomes fully functional. Moreover, sister companies under the Virgin Group provide additional funds to the company to support research and development. Unlike Virgin Galactic, Blue Origin founder has limited sources of funds, including his personal wealth and revenues from his multi-million Amazon Company. For this reason, he may incur more debt in the form of loans that could strain spaceship development in the enterprise. Virgin Galactic also plans to use its sister division dealing with media, publishing and retailing to carry out aggressive marketing of its space program (Alegre, Spitler, & Wells, n.d.). The media section will enable it to conduct low-cost advertising since the Group already has a significant base of existing customers and does not need to set up a new marketing department, unlike its competitor. The publishing section will undertake the creation of flyers, articles, and bulletins in both local and national magazines and newspapers. These publications will contain stories about successful launches, latest technologies, new products and flight packages, and safety issues, thus permitting it to reach potential customers and ease the anxiety in the general population regarding space travel (Alegre, Spitler, & Wells, n.d.).
Second, Virgin Galactic plans to recruit pilots from the massive pool of experienced personnel maintained by its sister airlines to cut costs associated with external recruitment and training (Alegre, Spitler, & Wells, n.d.). These pilots have years of flying experience while some of them have employment background in well-known space organizations such as NASA. They will only incur minimal training costs compared to Blue Origin, which will have to conduct fresh, costly recruitment and training of its pilots. Third, the company signed an exclusive agreement with highly accomplished space companies such as Mojave Aerospace Ventures and Scaled Composites renown for developing novel spaceship technologies in the industry (Alegre, Spitler, & Wells, n.d.). These contracts give Virgin Galactic technological advantage over Blue Origin, which spends a lot of time developing its spacecraft and rocket templates from scratch. The technologies used by Virgin Galactic are, therefore, proven, simpler, and cheaper. They also appeal to ecologically-conscious customers – the spaceships are constructed using composite materials and not metals, and the fuel is safer because it combines rubber and nitrous oxide (Alegre, Spitler, & Wells, n.d.).
Fourth, Virgin Galactic enjoys a massive fan- and customer-base resulting from its first mover advantages in commercial space tourism. The company was the first to register its “Virgin Galactic trademark” before its competitors and was the first company to receive a sub-orbital launch license from the FAA (Alegre, Spitler, & Wells, n.d.). Since its incorporation, the entity has had several firsts including the creation of the SpaceShipOne and WhiteKnightOne in 2003. The company already owns a futuristic looking spaceport – Spaceport America – in New Mexico, the first airport designed precisely for the purpose of space travel (Notso Scholarly, 2012; Howell, 2016). Competitors will find it hard to duplicate this awe-striking, technologically-advanced spaceport once space travel commences. Accordingly, most people believe in the ability of the company to one day take people to space, amounting to high goodwill that could potentially translate into sales revenues when the space flights become a reality. In contrast, Blue Origin lacks such advantages and will have to cultivate such goodwill when it begins its operation.
Question 2
In the past, the space industry was mainly a government affair through the activities of the NASA (National Aeronautics and Space Administration). Over the years, NASA conducted space explorations through robotic machines that later culminated into the first landing of man on the moon. These feats opened the eyes of the private sector to the opportunities of space travel. Both Blue Origin and Virgin Galactic operate in the commercial reusable suborbital spaceflight industry in the United States (Federal Aviation Administration [FAA], n.d.). These companies contribute significantly to the development of the industry through innovations in sub-orbital vehicles and business models, and slowly building demand for space flights. The technological revolution in the industry arose from the institution of the Ansari X Prize that plans to award $10 million to the first private organization that developed a reusable spacecraft to fly people into space (Howell, 2016). The first competition held in the late 1990s attracted 26 teams, and Mojave Aerospace Ventures vehicles won the prize (FAA, n.d.). The race to win the prize by being the first company to transport passengers to space has spurred the two companies to inject massive resources in the creation and testing of spaceship prototypes.
Blue Origin recently released the New Shepherd spacecraft and subjected it to several tests and reuse to ascertain its safety. Since its creation, the spacecraft has completed three test flights. In the first flight, the craft rose to 58 miles above the ground just shy of the Karman Line (Fedde, 2016). According to Woollaston (2016), the Karman Line refers to an altitude of 100 kilometers (62 miles) that the Federation Aeronautique Internationale accepts as the boundary line for the edge of space. The second flight took it beyond the Line, and both the spacecraft and its rocket booster called the BE-3 made it safely back to earth (Fedde, 2016). This trip was a significant milestone in the industry because it demonstrated that reusability is possible with proper technological specifications. The rocket booster separated from the spacecraft and fell back to earth. However, instead of breaking up in the atmosphere as most rockets do on their way back to earth, the BE-3 reignited its engines at an altitude of 1.5 kilometers, slowed its fall, and made a controlled and gentle landing (The Economist, 2015). The same spacecraft and rocket booster were employed in the third flight proving reusability. The company plans to test them until they are no longer reusable to determine their useful life, and later use a new model that will permit pilots to accompany the spacecraft in its ascent to space. Furthermore, the BE-4 will use an oxygen-rich combustion cycle, operating at lower chamber pressures to achieve high performance (Boyle, 2016b). Blue Origin, therefore, made strides in the industry in terms of reusability that has low-cost implications for space companies.
The latest space vehicle released by Virgin Galactic is the SpaceShipTwo and an aircraft launcher called WhiteKnightTwo. Two pilots will fly the winged rocket plane to attitudes above the Karman Line. The WhiteKnightTwo will carry the spaceship and release it at about 50,000 feet above the ground before its engine ignites (IBNLive, 2016). The ship uses the feathering system consisting of twin tails that extend backward from the tips of each wing (IBNLive, 2016). As the craft re-enters the atmosphere of the earth, the tails rotate upward to slow and stabilize the ship. After that, the feathers (tails) turn back to their normal position during the rest of the journey and landing. The company plans to begin test flights later this year. A significant achievement in creating the vehicle is its ability to land on a runway like normal planes (Boyle, 2016a). This milestone will assist in curbing the fears of potential customers about the risks associated with spaceship takeoff and landing, thus building customer demand and expanding the industry. Virgin Galactic has also revolutionized the satellite segment by developing an orbital launch vehicle called the LauncherOne (Howell, 2016). The launcher is an expendable rocket using liquid fuel that will launch commercial satellites into space. This technology will assist in industry diversification thereby creating more segments for attracting numerous industry players and leveling competition. Other contributions include the development of a spaceport by Virgin Galactic that will ease spaceflight scheduling, take off, and landing activities like conventional airports. The company also plans to open another spaceport in Abu Dhabi – a move that will shift space travel from a national to a global market, thereby expanding the industry and attracting a wider customer base (Howell, 2016). Moreover, possible segments of the sector targeted by the two companies include microgravity research and remote sensing.
Virgin Galactic and Blue Origin work with various federal organizations and departments such as the FAA, NASA, and NTSB. The Federal Aviation Administration (FAA) is responsible for issuing licenses and permits through its Commercial Space Transportation office that allows commercial launches of orbital and sub-orbital vehicles (FAA, n.d.). It also issues licenses for various space operation sites, commercial spaceports, and non-federal launch sites. The NASA gives hardware specifications that guide the development of space vehicles by the companies. It also awards contracts and provides grants to the companies operating in the industry (FAA, n.d.). For instance, Virgin Galactic signed a contract with NASA in 2011 to do research flights. The National Transportation Safety Board works with the companies in ensuring the safety of the space vehicles before commercial flights can begin. In this regard, it investigates accidents such as the fatal crash of SpaceShipOne that resulted in the death of a pilot.
Question 3
Virgin Galactic markets its space program as an experience. This definition includes some minutes of black sky and zero gravity, zero views, and ejection seats. Few minutes of zero gravity will enable passengers to experience weightlessness while the large glass windows of the spaceships will accord them a broad view of space and provide good vantage points for observing the earth. Ejection seats will enable passengers to leave their seats to experience weightlessness. The spaceships travel at a speed of 2500 mph, giving passengers a supersonic thrill ride (Notso Scholarly, 2012). To promote sales, the company has already sold more than 700 tickets to potential passengers at $200,000 each, with a refundable deposit of $20,000 (Notso Scholarly, 2012). Among the ticket holders are Hollywood A-listers such as Brad Pitt, Leonardo DiCaprio, Angelina Jolie, and Ashton Kutcher (Woollaston, 2016). Such big names aim at getting other people to buy their product. Blue Origin also markets the space experience by offering few minutes of weightlessness after the rocket booster separates from the passenger capsule (IBNLive, 2016). Passengers will leave their seats and float around the capsule for a short time after which a signal will tell them to retake their seats in preparation for landing. While Virgin Galactic offers longer space flights and extended space vacations into the orbit, Blue Origin offers joyrides to the edge of space. Both companies launch their new spaceship and rocket models in the public arena by holding public interviews and conferences where they display their latest vehicles. They also give regular updates on the nature of their products to keep the public abreast with the latest space technology. Moreover, both companies have released the timelines for their first commercial flights to hook the attention of potential customers and increase the demand for space flights.
Question 4
Question 5
The future of the space industry is bright. If the trend is anything to go by, the technological advancements in space vehicles will continue in the coming years. Space companies are increasingly investing in research and development, manufacturing technologies, and product design to create efficient spaceships that are both environmentally friendly and affordable. Given the rise in environmental awareness among the population and the strength of the green movement, future spaceship development will emphasize on technologies that cause the minimum impact on the environment, in this case, the atmosphere. Virgin Galactic has already made strides in creating sustainable spaceships that use renewable jet fuel and composite materials. Currently, the flight tickets are very high, making it a luxury product that only the rich can afford. When commercial flights commence, the prices will fall due to lower operational costs and intense competition. Thus, it is likely that the flights will be available to middle-class earners in a few years after the commercial flights begin. Besides, space travel will expand into the international scene for customers from other nations. Hence, more spaceports will emerge in different parts of the developed world to cater for the expanded market. Lastly, the space industry will involve more cooperation among national and international transport regulatory bodies to set safety and flight guidelines for space travel.
References
Alegre, P., Spitler, P., & Wells, D. (n.d.). Space Tourism Business Model: The Virgin Galactic Approach. Retrieved from http://www.geocities.ws/innovating_competitively/aerospace/Virgin-Galactic.pdf
Boyle, A. (2016a, January 22). Branson ribs Bezos and Musk over space ventures. Retrieved April 19, 2016, from http://www.geekwire.com/2016/virgin-galactics-richard-branson-ribs-blue-origin-jeff-bezos-elon-musk-spacex/
Boyle, A. (2016b, April 13). Interview: Jeff Bezos lays out Blue Origin's space vision, from tourism to off-planet heavy industry - GeekWire. Retrieved April 19, 2016, from http://www.geekwire.com/2016/interview-jeff-bezos/
The Economist. (2015, November 28). Reusable rockets | The Economist. Retrieved April 19, 2016, from http://www.economist.com/news/business/21679057-jeff-bezoss-blue-origin-brings-space-tourism-step-closer-reality-reusable-rockets
Fedde, C. (2016, March 9). How Blue Origin plans to soon send people into space, safely - CSMonitor.com. Retrieved April 19, 2016, from http://www.csmonitor.com/Science/2016/0309/How-Blue-Origin-plans-to-soon-send-people-into-space-safely
Federal Aviation Administration (FAA). (n.d.). The U.S. commercial suborbital industry: A space renaissance in the making. Retrieved from Federal Aviation Administration, Office of Commercial Space Transportation website: https://www.faa.gov/about/office_org/headquarters_offices/ast/media/111460.pdf
Howell, E. (2016, February 17). Virgin Galactic: Richard Branson's Space Tourism Company. Retrieved April 19, 2016, from http://www.space.com/18993-virgin-galactic.html
IBNLive. (2016, February 15). Virgin Galactic's SpaceShipTwo to Amazon founder Jeff Bezos' Blue Origin: A look at current space tourism projects - News18. Retrieved April 19, 2016, from http://www.news18.com/news/tech/virgin-galactics-spaceshiptwo-to-amazon-founder-jeff-bezos-blue-origin-a-look-at-current-space-tourism-projects-1203361.html
Notso Scholarly. (2012, September 24). Virgin Galactic Strategic Plan. Retrieved April 19, 2016, from notsoscholarly.notsogeeky.info/virgin-galactic-strategic-plan/
Woollaston, V. (2016, February 15). Virgin’s SpaceShipTwo competes to be the first to take tourists into space | Daily Mail Online. Retrieved April 19, 2016, from http://www.dailymail.co.uk/sciencetech/article-3447431/Space-tourism-projects-glance.html
