We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Strategic Management: Airlines industry - Essay Example

Comments (0)
Airlines industry is the kind of industry which requires huge investments yet the level of competition is such that airlines often keep investing for years together and keep waiting for break even. The industry is investment intensive from the beginning, and requires continuous replenishment throughout the operational activities as well…
Download full paper

Extract of sample
Strategic Management: Airlines industry

Download file to see previous pages... some of the recurring costs that an airlines industry requires to survive. The airlines industry is a complex one. Therefore, the industry is attractive as such but with the kind of investment required in carrying out the business, it is very difficult for new entrants to challenge the existing players, as is the norm is many other sectors like retail, IT services etc. Deregulation of market in EU did open up the field for new entrants, but the developments that followed have firmly established the high levels of competition prevailing in the industry.
The Scandinavian Airline Systems (SAS) group is an established player in the sector, with over 60 years of experience in the sector. SAS group is also one of the founder members of the Star Alliance. Formed in 1997, the Star Alliance of a number of leading players in the aviation sector is an effort towards consolidating the respective positions of the airlines in such a manner that competing companies do not end up working at cross purposes.
The airlines industry is a high risk industry as well. Particularly after the onslaught of SARS virus and 9/11 events, the airline companies are required to be doubly careful in handling the security matters, installing safety features, recruiting new people etc. The onset of low cost airlines has further made the field competitive while squeezing the profit margins. As a result of decreasing profit margins and the growing realisation of the need to consolidate their positions, a major trend within the global airlines industry has been for companies to seek strategic alliances with other airlines and benefit from synergies in operations. The Star alliance is a good example of such a realisation.

The growing competition has proved to be a boon for the travellers actually. With airline companies trying all out efforts to woo the customer, the number of alternatives for the customer have actually increased. This has led to increased emphasis on improving the quality of services being offered to the customer. Providing quality on board services, perfect baggage handling, adhering to the timeline i.e. punctuality, presenting pleasing faces during customer handling etc. are some of the benchmarks for the airline companies. The fact that SAS has been declared as Europe's most punctual scheduled airlines during the past six months points out the emphasis being placed by SAS in making the journey comfortable for its customers. Such measures are in fact are a prerequisite not only for maintaining a decent level of profitability but even for survival in the industry. The closure of airlines like Hong Kong's 'Oasis', after just about 18 months of its launch1 or that of another Low-cost US carrier Skybus Airlines within less than a year of its start off are an indication of the cut-throat competition prevailing within the industry. It is worthwhile here to mention that the recessionary trend started off with the US sub-prime mortgage crisis is also making the life difficult for the airline industry. ATA, Aloha, American, Southwest, Delta etc. are some of the names which have been facing the pinch. In order to survive in the industry some airlines are also resorting to mergers and acquisitions. Merger of Delta Airlines and Northwest airlines2,

2. Identify, analyse and discuss SAS's group unique resources and competences, their ...Download file to see next pagesRead More
Comments (0)
Click to create a comment
Operations Management in Southwest Airlines
Southwest Airlines is one of the largest airlines in United States of America. The success achieved by Southwest Airlines has attracted management gurus all over the world. The operations management of the airline has been seen as a standard for other airlines. The way Southwest Airlines has acquired its wide market just by following its cost leadership approach is simply amazing.
10 Pages(2500 words)Essay
Strategic management
Current services of these airlines can be characterised as no-frills, low fares and punctuality of flight. These two strategies have allowed these companies to operate in a time that can be classified as extremely hostile. Rapid increase in the fuel cost and reduction in the demand of travelling (due to the economic crisis), have led to a drastic decline in the profit margin of airliners.
3 Pages(750 words)Essay
Emirates Airlines Cabin Crew Strategic Development System for Effective Staff Motivational Management
This claim can be clearly witness from the changes in aviation industry that has constantly been adapting to the changing dynamics of business that is related to it or not. For instance, the event of 9/11 that changed the entire world has put multitude of impact on the aviation industry as the industry has been directly involved.
40 Pages(10000 words)Essay
Strategic management in Delta Airlines
The implications generated through a slight deviation in not meeting the potential needs of general stakeholders could be pervasive, influencing the culture of an organization, its structure and strategies encompassing operational procedures
4 Pages(1000 words)Case Study
Strategic Management - Southwest Airlines
Possible strategies and their impacts for the organization (Grand Strategy Matrix) 5. Alternative Strategies (Corporate, Business, and Functional)-Bundles of Strategy Strategic Formulation: A Case Study of Southwest Airline 1. Introduction Few Airline industries have been as successfully strategic despite a number of organizational bottlenecks like Southwest Airline.
8 Pages(2000 words)Essay
Southwest Airlines Strategic Management
The discussion explains about the history of the company along with its organizational values in terms of its mission and vision. Moreover, a SWOT analysis of Southwest Airlines has been performed in the discussion to assess its competitive presence in the global market scenario.
5 Pages(1250 words)Essay
Strategic management (structural industry analysis)
According to Kotelnikov, Porter's Model is particularly useful in that it "outlines the primary forces that determine competitiveness within an industry and illustrates how those forces are related. The model suggests that in order to develop effective organizational strategies, managers must understand and react to those external forces within an industry that determine an organization's level of competitiveness within an industry" (2007, p.
3 Pages(750 words)Essay
Analysis Report on the Airline Industry The Strategic Management process
Most of the focus would be on growth trends, revenue and significant industry statistics in conjunction with highlighting the logistic and supply chain factors as a strategic means to accomplishing competitive success in the industry. Strategic management tools like
10 Pages(2500 words)Essay
Strategic management
It will focus on features and factors of the aviation industry and how it affects British Airways. From there, the paper critically evaluates the strategic choices that were
12 Pages(3000 words)Essay
Strategic Audits of Delta Airlines

Hartsfield-Jackson International Airport is the largest operating hub under delta airline. In addition, it has four other hubs in full operation in U.S cities. It is estimated to be the second largest airline in the world. In 2008, it made an intention of purchasing Northwest Airlines known thus creating one of the largest airlines in the world.

12 Pages(3000 words)Research Paper
Let us find you another Essay on topic Strategic Management: Airlines industry for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us