Preview

Strategic Analsis of Ethiopian Airlines

Satisfactory Essays
Open Document
Open Document
368 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Strategic Analsis of Ethiopian Airlines
This report is compiled for the partial fulfillment of the course entitled Global strategy
Analysis and practice, based on analysis of the Ethiopian Airlines business strategy. The
Ethiopian Airlines is a state owned enterprise which operates globally. The study will provide a brief assessment on the Ethiopian Airlines Business strategy based on analysis of data collected from secondary sources which includes data from the Internet, websites, company magazine, news papers, and annual reports. We have also conducted interview with the company senior management. The problem related to time constraints to collect raw data and access to primary data was the issues that limit the study.
The first part of the report provides a brief overview about Ethiopian Airlines. On the next step we look a computational analysis that includes the SWAT, PESTEL and Porter’s five forces model. The last section addresses the conclusion and recommendation.
For a new entrant to the airline industry the current situation is un pleasant. Whereas for
Ethiopian Airlines stayed in the market for a long time with a best safety record and operational reputability. It gives the company a strong brand name, loyal customer, big market share in the continent and has a good image in Europe and Asia. On contrary the domestic flight service has a weakness in satisfying the local customers like flight delay, flight cancellation and low service quality..
Ethiopian Airlines adopts demarcation basic strategy to get a competitive advantage by implementing electronic ticketing and online check-in. In addition, it gained a competitive advantage by focusing in new segments in the market. The airline wants to grow from 53 to around 80 destinations by 2015. Also it provides aircraft maintenance, pilot and technicians training including training by plane simulator, including for most African countries. Ethiopian Airlines sets its strategy to maximize stake holders’ interest by implementing

You May Also Find These Documents Helpful

  • Better Essays

    HMP1 000305944 Task 1 2

    • 4618 Words
    • 12 Pages

    Before David Neeleman’s non-compete agreement with Southwest Airlines expired, he envisioned the concept of starting a low-fare airline that would combine common sense, innovation, and technology and bring the humanity back into air travel (Gittel & O’Reilly, 2001). In 1998, JetBlue was born. In order for David to fulfill his goal of a “do-it-right” kind of airline, he needed to recruit superior industry veterans who were willing to start from scratch and place an emphasis on employees and customers. Each of these individuals, from the President, General Counsel, CFO, and the HR director, wanted to create an airline that was fun, had integrity, was safe, and cared for their employees, plus had a passion to get it right (Gittel & O’Reilly, 2001).…

    • 4618 Words
    • 12 Pages
    Better Essays
  • Good Essays

    The U.S. Airline Industry

    • 1205 Words
    • 4 Pages

    The U.S. airline industry provides a unique service to its customers. It transports people and goods with efficiency and convenience which is not achieved by any other service. The purpose of this article is to collect data on the U.S. airline industry and analyze the state of the industry today. Data came from sources such as the Federal Aviation Administration, scholarly articles, and websites such as dallas.culturemap.com and airwise.com. Tools used to analyze the data include P.E.S.T., and Porter’s five forces. The analysis also focuses on the industries’ drivers of change and its key survival factors.…

    • 1205 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Math 208 project

    • 735 Words
    • 3 Pages

    In order for an airline company to be profitable, it has to differentiate itself from others by focusing on customers’ comfort and safety. That being said, an airline cannot satisfy everyone as well as it cannot accommodate everyone. It has to find the best strategy to maximize the number of passengers without compromising the comfort or safety levels.…

    • 735 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    1. British Airways Plc (BA) founded in 1974, was in the control of government for thirteen years and went into privatization in 1987. The industry operates about 240 aircrafts, serving about 120 destinations throughout the U.K and Europe including the Middle East, Africa, South and North America, Asia and the Pacific. British Airways competes with various other airlines in the industry but still it has maintained its domination in various parts of the aviation industry in the United Kingdom and Europe as well. Its major competitor is Virgin Atlantic, with 10 percent market share in the airline industry in terms of kilometers logged in 2007. As the airline industries are struggling to survive in this Global Economic Downturn, which saw a huge decline in the number of passengers and flights over the years, British Airways future looks very promising. The Airline announces its aim in its latest annual report (British Airways, 2008) of becoming ‘World’s most responsible airline’.…

    • 1897 Words
    • 8 Pages
    Powerful Essays
  • Powerful Essays

    culture. Second, it is the only airline to have consistent profitability for over 30 years.…

    • 4497 Words
    • 17 Pages
    Powerful Essays
  • Powerful Essays

    This report on JetBlue identifies how they have become an innovator in the airline industry by targeting customers who value a low-cost, customer conscious airline. They have formulated strategies that have enabled them to operate in a highly efficient and effective manner while realizing the importance of aligning their strategies with their environment. The report thoroughly discusses the strengths and weaknesses that the company possesses in their internal environment, followed by an in-depth analysis of the threats and opportunities of existing within their external environment. The strategy of the company is analyzed in comparison with both their internal and external environment in order to formulate possible strategic recommendations. Proper implementation strategies of the recommendations are also given to identify how the company can be better aligned with its environment and continue to grow as a highly successful company in the airline industry.…

    • 1706 Words
    • 7 Pages
    Powerful Essays
  • Powerful Essays

    This report also investigates the significant factors driving change in the airline industry, and while it may seem unattractive, JetBlue has the capabilities and resources to continue its growth and profitability.…

    • 2141 Words
    • 9 Pages
    Powerful Essays
  • Best Essays

    TAM Airlines is the largest airline in Latin America in terms of number of annual passengers flown.[16]Along the first countries to have regular airlines in Latin America were Colombia with Avianca, Chile with LAN Chile (today LAN Airlines), Dominican Republic with Air Dominicana, Mexico with Mexicana de Aviación, Brazil with Varig, and TACA as a brand of several airlines of Central American countries (Honduras, El Salvador, Costa Rica, Guatemala and Nicaragua). All the previous airlines started regular operations before World War II.…

    • 4400 Words
    • 18 Pages
    Best Essays
  • Powerful Essays

    Airline and Indigo

    • 6317 Words
    • 26 Pages

    The success of Indigo is a mix of a clear brand promise of "on time" and supported with slick branding and signage, smart technology support and a passionate and young work force who multi-task.…

    • 6317 Words
    • 26 Pages
    Powerful Essays
  • Good Essays

    There are some opportunities like; THY sees itself as a competitive enterprise rather than a government agency . Secondly, THY has the confidence of financial markets , also, THY has a year or two before foreign discount airlines are allowed to fly to Istanbul and other Turkish markets . Finally, the expected rise in world airline passenger traffic can be an opportunity for THY.…

    • 926 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Even though, collaboration with other airline companies could increase the profit margin of MAS, it does not work well in long term. Human capital is the biggest obstacle faces by MAS. Salaries of the 20,000 employees are higher than other companies and free flight tickets are issued to their families. This leads to a higher expense cost. Besides that, an employee works more than 15 years in average and consequently, new staffs could not enter into the workforce.…

    • 361 Words
    • 2 Pages
    Satisfactory Essays
  • Best Essays

    Facilitating international trade, economic relations between countries as well as stimulating exchange of people and ideas, the airline industry has proven to be a vibrant and dynamic industry, playing a key role in the development of world economy. Increasing demands for mobility, globalization of society and the constant change of consumer needs lead to growth in traffic flow and segmentation of the airline industry.…

    • 3442 Words
    • 14 Pages
    Best Essays
  • Powerful Essays

    Comair is South Africa’s longest non-national carrier (Comair Airways Limited, 2012). Comair Limited is an airline that operates two brands: British Airways and Kulula.com. British Airways is aimed at business travellers and the high class society while Kulula.com is aimed at leisure and middle class passengers. British Airways has two offerings, Club (business class) and Traveller (economy class). Club facilitates for the more elite customer and Traveller is for the less elite providing fewer facilities compared to Club. Kulula, being aimed at the middle class society, offers a simple package that is at a low cost and that is affordable (Comair Airways Limited, 2012). Comair’s mission statement states that “Comair aims to be Southern Africa’s leading business airline” ( Lubbe, 2000: 20). Its core values are to be professional and maintain ethical values, to deliver safe and quality services, to be reliable and to be honest in its business. It aims to provide affordable prices and aims to meet the expectations of its customers. Comair, as it seeks to satisfy its customers and is focused on providing a good service for its consumers, is a market orientated company. This assignment will look at why business people would choose to fly on British Airways and will analyse the opportunities and threats faced by Kulula. It will discuss the environmental implications which affect British Airways’ marketing department in South Africa and seek to conclude that Comair has a promising future.…

    • 2381 Words
    • 10 Pages
    Powerful Essays
  • Satisfactory Essays

    air asia

    • 477 Words
    • 2 Pages

    Setting up airline industry needs a high capital so it has high barriers, for example purchase aircraft, set up services, hire staff and….…

    • 477 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Low Cost Carries in India

    • 15511 Words
    • 63 Pages

    SYNOPSIS The aim of this dissertation is to investigate the “Challenges facing Low Cost Airlines in the Indian Aviation Industry”. The Indian Aviation Industry is currently one of the most active in the world, with a number of new airlines looking to start up and aircraft orders increasing substantially. This presents many job opportunities for pilots and cabin crew across the world as well as ease of travel across India. The…

    • 15511 Words
    • 63 Pages
    Powerful Essays

Related Topics