Strategic Management - AIR NEWZEALAND

Topics: Airline, Air New Zealand, Avianca Pages: 13 (4164 words) Published: March 28, 2014
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. Limitations and assumptions……………………………………………..5
1.5. Plan……………………………………………………………………….5 2. Discussion……………………………………………………………………....6
2.1. External Environment…………………………………………………….6
2.1.1. Five Forces in Porter’s Model………..……………………………..6
2.1.2. Other Forces…………..…………………………………………….9
2.2. Internal Environment…………………………………….………………..10
2.3. Strategy Used……………………………………………………………...12
2.4. Strategy Evaluation………………………………………………………..13 3. Conclusion……………………………………………………………………….15 4. Recommendations……………………………………………………………….16 5. References……………………………………………………………………….18 6. Appendix A....…………………………………………………………………...20

1 Introduction
1.1 Purpose and Objective
This report analyses Air New Zealand with various strategic management theories and concepts developed that determine the competitiveness and attractiveness of Air New Zealand.

1.2 Background
This report is based on Air New Zealand, an airline company which was founded in 1940, originally known as TEAL (Tasman Empire Airways Limited). It is based in Auckland, New Zealand and is the national carrier. With its humble beginning of just two flying boats, Air New Zealand changed to its present name on 1 April 1965 and is regarded as a symbol of national pride. Air New Zealand now has a fleet of 99 aircrafts serving domestic, regional and internationally across the globe to 52 destinations. It has ordered 12 new aircrafts which will be delivered from 2009 through 2016 to boost its domestic, regional and specifically its international long-haul operations. The arrival of the new aircrafts would bring the average fleet age to 6.8 years. Air New Zealand carried around 6.59 million passengers in the financial year 2007/2008, which saw a 6.4% increase in passenger capacity served compared to the previous year. Air New Zealand also has operations subsidiaries in consultation, holiday and cargo services. It is also investing in the research and development of biofuels in order to reduce...

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)
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Strategic Management Essay
  • Strategic management Essay
  • strategic management Essay
  • Essay on Strategic management
  • Essay on Strategic Management
  • Strategic Management Essay
  • Strategic Management Essay
  • Strategic Management Research Paper

Become a StudyMode Member

Sign Up - It's Free