Strategy Paper of Philippine Airlines

Topics: Airline, Philippine Airlines, Flag carrier Pages: 37 (9479 words) Published: May 15, 2011
strama paper

Strategic Management Paper


Making a strategic paper is never easy. There’s hard work, sleepless nights, and sometimes inevitable argument among the group. But what makes it fulfilling is the fact that there are people around who, without thinking twice are willing to lend their hands.

To Mr. Sofronio “Toti” Dulay , our beloved adviser, for the unwavering support, guidance, and patience he has shown.

To our families for their love, provisions, support, and understanding before, during, and after the research process.

And to God Almighty for providing the researchers with amazing grace and wisdom that only He can give, for His provisions and heavenly guidance from the beginning up to the very end. for His unfathomable and overflowing love that helped us surpass all the challenges that came our way.

With the abovementioned names, the group would like to extend the utmost gratitude with all our hearts. May God bless us all!

I. Executive Summary

Philippine Air Lines also known as PAL, is the flag carrier and national airline of the Philippines, headquartered in the Philippine National Bank Financial Center in Pasay City. Philippine Airlines maintains aircraft with the highest degree of airworthiness, reliability and presentability in the most cost-effective manner; and conduct and maintain safe, reliable and cost-effective flight. It continues to achieve on-time performance on all flights it operates, as well as providing safe, on time, quality and cost effective in flight service for total passenger satisfaction.

The Philippines Airlines offers services at reasonable, competitive prices, and at the highest level of quality consistent with such prices. It meets the needs of the public for moving people, goods, information, and in particular for safe and reliable travel, transport, communication, distribution, and related services. The company’s products and services is the core company’s strength since these are what they mainly offer and, in return, where the company generates its profit. On the other hand, the decline in the number of the passengers carried placed the major weakness of PAL since the passengers are relevant to the revenue the company could earn.

The Philippines has high levels of economic, political and financial system risk. This impressive result continues the encouraging and positive trend reflects the Philippines Government’s impressive efforts on fiscal management. Also, the public and international confidence will strengthen further and provide confidence to the international investors that there is no economic risk of doing business in Philippines.

Philippine Airlines is performing well above average in the Philippine airline industry. It significantly indicates that the company has a strong internal position. This means that PAL has an above-average-ability to respond to external factors that could affect the operations of the company. Also, PAL has a strong competitive position in the market with rapid growth thus; it needs to use its internal strengths, take advantage of external opportunities, overcome internal weaknesses, and avoid external threats to develop a market penetration and market development strategy. This can include product development, integration with other companies, and acquisition of competitors. On the other hand, PAL still has to improve itself with regards to the critical success factors.

In order for the Philippine airlines to hold and maintain its position in the industry the company should pursue strategies focused on increasing market penetration and product development. It should also maximize revenue generation in passenger and cargo sales through increased yields by diversifying market segments and efficient management of seat inventory and cargo space.

II. Introduction

Philippine Air Lines also known as PAL, is the flag carrier and national airline of the Philippines. Headquartered...
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