Air New Zealand Business - Case Study Example

The SWOT analysis identifies the strengths, weaknesses, opportunities, and threats of the company. The case study will give an opportunity to identify and execute plans that will influence the Air New Zealand business. This will be possible through providing the key understanding of both internal and external environmental factors such as customers and competitors. However, economic, political, legal, social, cultural, technological, and international factors are the main factors that the company must influence to better its business (Aicken, 2003).

            Unlike other Airlines, Air New Zealand offers both domestic and international flights which include both passenger and cargo services. The common destinations of the Airline are Australia, the south pacific, Asia, North America, and the UK. Air New Zealand is situated in Auckland, New Zealand. Air New Zealand merged with the Star Alliance in the year 1999. The star alliance is a global airline alliance that unites different airlines. The airline had started as a flying boat company in the year 1940 before it graduated to the national airline (Aicken, 2003).

            The airline implemented many strategies that make up the economic environment, For example, the airline made a sum of $182 million dollars profit last year (New Zealand Herald, 2014). Despite several challenges, the airline has strived to beat its competitors and to achieve its targets. The key objectives drive the airline. The first objective is to devise a new method of selling airfares and packages at retail levels and wholesale levels. This will increase their sales and increase their profits by 7%. The second main objective is to define new mechanisms that will increase their returns on their marketing investment (ROI) (Gordon, 2010).

            The airline has identified several strategies to improve its operation in the company. For instance, a creative strategy where customer holiday needs are understood and met. The strategy focuses on appealing to customers on how Air NZ understands their holiday needs. The airline inspired customers and gave them different ideas on how they should spend their holidays. This helped in increasing the company’s yields. The airline went ahead to execute the strategy by developing the distinctive blue tile format. This ensured many offers and images to the customers and consequently marked the airline’s social and cultural environment operations (Aicken, 2003). Customers are the key priorities of Air New Zealand despite the fact that the airline operates using guiding principles.

The airline’s strengths, weaknesses, opportunities, and threats are analyzed in the SWOT analysis.

1-      Strengths

·        Air NZ was rated on the top 20 airlines

·        Some of the routes are designated to promote trade

·        Good number of talented team to take the business forward.

·        Well-known brand name

·        Good safety Record compared to other airlines

2-Weaknesses

·        Limited number of designations when compared to Qantas.

·        heavy competition make market share low

·        High operational costs

·        Disputes between unions and strikes

3- Opportunities

·        Merger with another airline like Qantas will help to secure its position in the travel industry.

·        Create a better brand image

·        Further development towards e-commerce operations

·        Buying more airlines to increase the routes and market share.

4-Threats

·        Strong competition from bigger airlines like Qantas, Pacific Blue and Jetstar airline.

·        Raising prices on fuel

·        Raising on labour costs

·        Increasing union powers

·        Government regulations getting to protect its rivals

·        The  money fluctuations

·        Recession