The history of the airline industry went through a period described as challenging and soaring. The reason behind this description is the rapid increase in oil price which caused major financial losses and a cut in airline profits. Airlines which declared bankruptcy between 2004 and 2007 have all been a case of such losses. As of 2009, in the UK, airline analysts expected that airlines will have to face great challenges in the future. An example of this is British Airways which predicted a profit
Executive Summary Industry analysis The airline industry is at the growth stage. The economic and technologic development are the main factors for airline industry growth. Also, the demand of customers drives the market growth. Economy globalization also has an impact on airline industry. The competitive rivalry within the industry is high. Southwest’s chief rivals are American Airlines, Delta Air Lines, United Airlines and US airway. Overall, the airline industry develops well. Strategic issues
Eventually, SIA won numerous awards as “The best airline” for the innovation and these were the reason of attack for SIA to participate among its competitors and to shore up its company strategy. Nevertheless, position is another way for a company to find themselves in marketplace. In this way, a management could identify their strength and weakness; and helps them to explore the fit between environment and the organization for further development. As mentioned previously, SIA has strong brand
International Airlines Introduction Regarded as the national symbol and icon, Singapore Airlines is also the national carrier of Singapore. Living up to their vision, “ To position the airline for continued growth in a globalizing industry while maintaining the airline’s loss free record”, for the past 43 years, it is now one of the world’s most largest and successful airline industry. Singapore Airlines is majority-owned by the Singapore government followed by Temasek Holdings. It has 3 airline subsidiaries
global economy, firms have to find new ways to remain competitive and strategic alliances emerge as an important avenue for firms to reduce information asymmetry and increase their competitive advantage. A strategic alliance can be viewed as cooperation between one or more firms where skills and resources are amalgamated in order to make the involved parties more competitive. As markets become more complex, dynamic and massive, firms join forces to create larger corporations. Such alliances are beneficial
3. Pegasus Airlines According to Pegasus site official information (Source: http://www.flypgs.com/en/about-pegasus/pegasus-history.aspx, 2013) and (http://www.pegasusyatirimciiliskileri.com/en/about/history-of-pegasus.aspx): "The company offered 34.5 percent of its shares of stock to the public. The shares began to be traded at the Borsa Istanbul as BIST: PGSUS on April 26, 2013. It is a leading low-cost airline in Turkey, which provides reasonably priced transportation opportunities in short and
1.5 Competition and five forces: In order to achieve average return, Customer satisfaction is a core competency that every organization should focus. Business level strategies are used to carry out this core competency. Actions which are taken to add values to customers and gain competitive advantage in a specific market with the single product or service, are included in the business level strategy. The main concern of a business level strategy are position of a firm in the industry, firm’s competitors
Singapore Airline’s (SIA) position within the industry SIA is a respected airline company internationally renowned for her innovative technology, excellent service and impressive safety flight records. Since 1972, after separation from Malaysian airlines, SIA has been progressively maturing into a leader in global airline industry with almost $12 billion in revenue within the financial year 2012 & 2013. SIA and her subsidiaries, with the mark of “Singapore Girls” are internationally recognized for
To reduce costs the Company has to focus on the factory (efficient equipment, preventive maintenance and smaller inventories) and the staff (simplifying processes, employee’s training and empowering of employee’s contribution). Could the Southwest Airlines system emulate within the leadership of self-managing agile and lean teams? I think
Analysis and Assessment Analysis of the Corporate Strategy Employed by Virgin Group From its beginning as a start-up, the Virgin Group still utilizes the same strategic model, which entails devolving from its original values and culture. Markedly entrepreneurial, Virgin group has no headquarters even though it has overseen an extended period of considerable growth and persistent profitability. Uniquely, even though lacking a specific corporate structure, Branson, his advisers and senior executives