Strategic Management - AIR NEWZEALAND
Executive summary
Air travel is one of the largest growing industries in the world. Activities such as world trade, economic growth, international investment, tourism and cargo services are central to the globalisation that is taking place in other industries. Air travel for business and leisure purpose has been experiencing a significant growth worldwide.
Air New Zealand was founded in 1940 based in Auckland, New Zealand with a starting fleet of two flying boats. They have since grown to a fleet of 99 aircrafts serving domestic, regional and internationally across the globe to 52 destinations. In recent years, Air New Zealand has been recording profits and increase in the number of passengers carried per year. Air New Zealand is a member of the Star Alliance and positions their strategy on service and product offering through code-sharing, joint frequent flyer programs (Airpoints), sponsorship and large investment on modern technology and new aircrafts.
This report uses Porter’s Five Forces model in analysing Air New Zealand with the aim of determining the attractiveness and competitive intensity of the market. Other external forces such as the macroenvironment and the microenvironment will also be discussed. The core competencies and competitive advantages of Air New Zealand would also be identified. This report aims to give a clearer view of how Air New Zealand is able to achieve and sustain a high level of growth as competition in the airline industry increases. Air New Zealand’s strength and weaknesses would also be analysed with the strategy chosen to be implemented. Recommendations are provided at the end of this report for Air New Zealand’s future strategic development based on the above analyses. Content page
Executive Summary……………………………………………………………… 2
1. Introduction…………………………………………………………….……… 4 1.1. Purpose and objective…………………………………………………… 4 1.2. Background……………………………………………………………… 4 1.3. Scope…………………………………………………………………….. 5 1.4.
Air travel is one of the largest growing industries in the world. Activities such as world trade, economic growth, international investment, tourism and cargo services are central to the globalisation that is taking place in other industries. Air travel for business and leisure purpose has been experiencing a significant growth worldwide.
Air New Zealand was founded in 1940 based in Auckland, New Zealand with a starting fleet of two flying boats. They have since grown to a fleet of 99 aircrafts serving domestic, regional and internationally across the globe to 52 destinations. In recent years, Air New Zealand has been recording profits and increase in the number of passengers carried per year. Air New Zealand is a member of the Star Alliance and positions their strategy on service and product offering through code-sharing, joint frequent flyer programs (Airpoints), sponsorship and large investment on modern technology and new aircrafts.
This report uses Porter’s Five Forces model in analysing Air New Zealand with the aim of determining the attractiveness and competitive intensity of the market. Other external forces such as the macroenvironment and the microenvironment will also be discussed. The core competencies and competitive advantages of Air New Zealand would also be identified. This report aims to give a clearer view of how Air New Zealand is able to achieve and sustain a high level of growth as competition in the airline industry increases. Air New Zealand’s strength and weaknesses would also be analysed with the strategy chosen to be implemented. Recommendations are provided at the end of this report for Air New Zealand’s future strategic development based on the above analyses. Content page
Executive Summary……………………………………………………………… 2
1. Introduction…………………………………………………………….……… 4 1.1. Purpose and objective…………………………………………………… 4 1.2. Background……………………………………………………………… 4 1.3. Scope…………………………………………………………………….. 5 1.4.
References: 2.1.2 Other forces In all environments, change is the only constant (Hill et al, 2007) 2.2 Internal Environment For any company to achieve superior efficiency, innovation, quality and responsiveness towards customers, the unique strength needed to allow the company to achieve this is known as competency (Hill et al, 2007) 2.3 Strategy Used Growth, neutral and defensive strategy are three groups of strategies that corporate-level strategies are classified under (Khoo & Munro-Smith, 2003)