case study

Topics: Airline, Philippine Airlines, Avianca Pages: 81 (8626 words) Published: October 13, 2013


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The Philippine Airlines (PAL) is the national airline of the Philippine and Asia’s first airline. Philippine Airlines has been the dominant air carrier in the Philippines since its creation in 1941. Philippine Airlines rebranded itself as “Asia’s sunniest airline” to cap its new marketing and advertising trust.

We have identified the three (3) major competitors of Philippine Airlines which are Cebu Pacific, Cathay Pacific and Zest Airlines.

Our recommended strategy for Philippine Airlines is Product development strategy this includes providing more services to attract the customer as well as improving the products and services that they offer to gain more profit and to satisfy the customers. Many airline companies offer lower fares to gather customers. We suggest that PAL focus on differentiation by making their customers experience the “class” of flying to remind them the pleasure of taking flight in the skies. This strategy will require extensive employee training in proper etiquette and quality service, to ensure the portrayed brand image lines up with the experience of customers. Second to our priority is increasing the number of salespersons, increasing advertising expenditures, offering extensive sales promotion items, or increasing publicity efforts to enhance market share especially for the local flights.

The Philippine Airlines must know the strengths and weakness of the management for the strategists to know what things to improve and maintain. Based on the result of the competitive profile matrix, Philippine Airlines fall behind the Cebu Pacific and this is due to the fall of its local flight segment. Garnering a decrease of total market share from 50% in May 2009 to 35.4% in late December of 2009

According to the SPACE Matrix that Philippine Airlines is financially a strong company that has achieved major competitive advantages in a growing and stable industry. Market Development, Product Development, and Horizontal integration is the suited strategy that can be used by PAL.

In the Boston Consulting Group Matrix, the Philippine Airline is in the position of “star” because Philippine Airline remains stable with the market growth and continues to be successful in the field of airline industry. PAL is in the quadrant II that represents the organization’s best long-run opportunities for growth and profitability. Horizontal Integration is appropriate strategies for these divisions to consider. PAL should increased control over their competitor and takeovers among competitors allow for increased economies of sale and enhanced transfer of resources and competencies.

Base on the internal- external matrix of Philippine Airline that the company should hold and maintain. The company should pursue Intensive (market penetration and product...
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