The Competitive Market Player Of The Aviation Industry

The airline industry is a hyper-competitive marketplace as many airlines have gone out of business

This report will be discussing strategic management to a company in the airline industry. This report will examine a chosen company’s strategic management and outline the stages. Strategic management is analyzing the situation facing the firm, also on the foundation of analysis formulating a strategy and lastly implementing strategy. Strategic management is the identification and the description of strategies that can be used by managers so as to attain better

The Airline industry is a large and constantly growing industry. It facilitates economic growth, international investment and world trade and is therefore central to other industries as well for globalisation. There are various forces which lead to globalisation in airline industry. Key drivers of change are forces likely to affect the structure of an industry; sector or market. (1).

This section will examine each of the five competitive forces that are active in the European Airline Industry. In this instance the buyers in the industry will be taken as passengers. Fuel companies, aircraft manufacturers and employees are the suppliers. Substitutes stem from modes of transport that fall under land and sea transit. Potential entrants are any airlines based outside of Europe or newly founded airlines based in Europe.

The airline business is an industry that is competitive and unique, focussing on consumer choice and the responsiveness of airlines to changes in the external business environment. For any airline, this environment can be very complex as it is ‘hard for them to fully understand and impossible for them to fully control’ (The Times, n.d. p1). Virgin Atlantic is an international airline that is based in the UK. It was started by the entrepreneur Richard Branson in 1982 and now flies to 30 destinations around the world (Virgin Atlantic Airways Ltd, 2011). By looking at

American airline industry is steadily growing at an extremely strong rate. This growth comes with a number economic and social advantage. This contributes a great deal to the international inventory. The US airline industry is a major economic aspect in both the outcome on other related industries like tourism and manufacturing of aircraft and its own terms of operation. The airline industry is receiving massive media attention unlike other industries through participating and making of government policies. As Hoffman and Bateson (2011) show the major competitors include Southwest Airlines, Delta Airline, and United Airline.

Conduct a competitive forces analysis of the U.S. airline industry. What does this analysis tell you about the causes of low profitability in this industry?

In today’s business world, Aviation industry is frequently developing rapidly in order to compete among each other and survive in the larger markets. The passenger air travel industry is facing aggregate competition between low cost/no frills carriers -LCC and the more traditional full service carriers-FSC (Hunter 2006). Due to rapid development, consumer trend improved in the market because flying on mainstream carriers was no longer cost-effectively practical, which lead to an appear of low cost carrier (Whitelegg, 2005). Subsequently, operation strategy is fundamental to the success of the businesses. Slack, Brandon-Jones and Johnston (2013) defined operation strategy as “ The pattern of strategic decisions and actions, which set the role, objectives and activities of the operation (Slack, Brandon-Jones and Johnston: 2013: P70). In this essay, it will be discuss, how two successful businesses: British Airways and Ryanair compete and survive in the airline industry according to strategic operations performance. British Airways (BA) is a worldwide airline based in United Kingdom. It is a famous flag carrier airline. British Airways was established on 31st March 1974 and is now among the largest airlines compared to Ryanair, which is, an international airline based in Ireland. It is known as the low cost airlines and was set up in 1985 by the Ryanair family.

After the Deregulation Act of 1978 in the United States, the airline industry was forced to adapt to the rapidly changing environment (Goetz & Vowles, 2009). At the time, the nominally regulated air transporting environment permitted the airlines to begin services on any desired route, giving them a great deal of liberty in the market. Although things were going well for those involved in the aviation industry, several factors began to have a negative impact on the industry. For instance, as the competition started to escalate, airlines began to take a competitive stance against one another, fighting for their share of the market. Moreover, the World Trade Center tragedy in 2001 had an adverse impact on the entire airline industry (Coy, 2005). Adding to the predicament, the recent financial crisis of 2008 and the current inflation in fuel prices have caused the US airline industry to regroup the fleet formation, making it the most competitive airline industry in the world (Ryerson & Kim, 2014). The whole airline industry now found itself struggling to survive.

They make strategies to beat rival companies by reducing costs and increasing the volume of the plane size (bigger planes)so the seats increased and the proper use of the resources (planes, employees, gate space).

2. Boeing VS Airbus 2 Abstract The demand facing aircraft manufacturers for new orders is in principal derived fromthe perceived future demand for commercial aviation. Several key external economic factorsare likely to outline demand for new aircraft. These factors are accessed from the perspectiveof decision makers in the airline industry, Airbus and Boeing, in this paper. Also analysed inthe paper are the relevant strategies employed by both airliner makers to manipulate thisfactors or manoeuvre around them in order to survive in the market. The relevant theories ofstrategic management are also analysed in the paper. The

This report is a strategic review of British Airways. It has used various tools to analyze internal and external environment of the British Airways, and provide valuable recommendations. In generally, today’s airline market becomes more and more competitive. BA also getting chances to increase the number of passengers and expand market size mainly due to British Airways has good brand image and reputation. The Company devotes to provide high quality service for passengers, and also undertake relevant responsibilities, especially on its social and environmental responsibilities, such as setting up aim

To identify an appropriate strategy for a given industry one must look into the external and internal factors influencing the company. The following report will discuss these factors regarding Ryanair, which is one of the leading budget European airlines.

The Harvard Case Research about Southwest Airline (SWA) points out both advantages and disadvantages in the company’s strategy in maintaining its position as one of the most flown airlines in the U.S. Profit is vital to the company’s survival, but not the most concerned whereas SWA puts more effort on the bottom line, which includes Performance, People, and Planet. The company’s strengths are low fares, fast services, strong leadership and culture, and environmental sustainability. Weaknesses are the small amount of cargo/freight, one class of seating, and dependence on single aircraft and engine supplier (AirTran). Besides, the company has opportunities in longer domestic flights and international expansion, the poise of benefits from AirTran acquisition, and the application of innovating technology and facilities. However, its threats are intense competitions; increasing fuel prices; stringent government regulations could increase operating costs; high-speed rail could hurt short/medium length air travel.

A major restructuring has been taken by the Qantas in 2013. On 31st March 2013 it was seen that two Airbus 380 flights flew over Sydney Harbour in order to mark the alliance between the Emirates and Qantas. It is known that Qantas is an Australian icon and it has been present in the country since 1920s. Qantas is the flag carrier airline which nicknamed as “The Flying kangaroo”. The airline is based in Sydney and it has a market share of 65% in the domestic market of Australia. It carries nearly 18.7% of all the passengers travelling inward and outwards from Australia (Australian Business Traveller, 2012). Qantas play a big role in tourism market and economic growth in populations seeking to travel.