Swot Analysis for Air China
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BIJ 13,1/2
SWOT analysis for Air China performance and its experience with quality
A.M. Ahmed
The European Centre for Total Quality Management, University of Bradford School of Management, Bradford, UK
160
M. Zairi e-TQM College, Dubai, UAE, and
K.S. Almarri
The European Centre for Total Quality Management, University of Bradford School of Management, Bradford, UK
Abstract
Purpose – To report on the lessons learned during the implementation of TQM principles in Air China as a response to the dramatic changes in both international and domestic markets. Design/methodology/approach – This research work is based on analysing secondary case studies in the airline industry to identify best practice and critical success factors of total quality management implementation. The use of SWOT analysis was selected in the case of Air China. Findings – Air China is the largest air carrier in China in terms of traffic volume and company assets. It own most updated fleet and competent repairs and maintenances expertise. It owns good reputation in both international and domestic market, quality service and keeps the number of loyal frequent flyers rapidly increasing. Distracted by domestic operations in term of resources, organizational concentrations and management time, the international business get to be mediocre. China airline industry is growing faster than GDP increase, and the trend will continue in next five years. Air China faces imminent aggressive competition from world leading airlines and price wars triggered by domestic player, when Civil Aviation Administration of China has to deregulate under requirement of WTO agreements. Originality/value – This paper is a case study reporting of the strengths, weaknesses, opportunities and threat analysis technique. The paper provides empirical data to identify those factors that play key role in
BIJ 13,1/2
SWOT analysis for Air China performance and its experience with quality
A.M. Ahmed
The European Centre for Total Quality Management, University of Bradford School of Management, Bradford, UK
160
M. Zairi e-TQM College, Dubai, UAE, and
K.S. Almarri
The European Centre for Total Quality Management, University of Bradford School of Management, Bradford, UK
Abstract
Purpose – To report on the lessons learned during the implementation of TQM principles in Air China as a response to the dramatic changes in both international and domestic markets. Design/methodology/approach – This research work is based on analysing secondary case studies in the airline industry to identify best practice and critical success factors of total quality management implementation. The use of SWOT analysis was selected in the case of Air China. Findings – Air China is the largest air carrier in China in terms of traffic volume and company assets. It own most updated fleet and competent repairs and maintenances expertise. It owns good reputation in both international and domestic market, quality service and keeps the number of loyal frequent flyers rapidly increasing. Distracted by domestic operations in term of resources, organizational concentrations and management time, the international business get to be mediocre. China airline industry is growing faster than GDP increase, and the trend will continue in next five years. Air China faces imminent aggressive competition from world leading airlines and price wars triggered by domestic player, when Civil Aviation Administration of China has to deregulate under requirement of WTO agreements. Originality/value – This paper is a case study reporting of the strengths, weaknesses, opportunities and threat analysis technique. The paper provides empirical data to identify those factors that play key role in
References: Puffer, S. and McCarthy, M. (1996), “A framework for leadership in TQM context”, Journal of Quality Management. Weihrich, H. (1982), “The TOWS matrix: a tool for situational analysis”, Journal of Long Range Planning, Vol. 15 No. 2. Further reading Raynor, M.S. (1992), “Quality as a strategic weapon”, Journal of Business Strategy, Vol. 13 No. 5, pp. 5-9. Scholtes, P. and Hacquebord, H. (1988), “Beginning the quality transformation”, Quality Progress, pp. 77-83. Schonberger, R.J. (1992), “Is strategy strategic? Impact of total quality management on strategy”, Academic of Management Executive, Vol. 6 No. 3, pp. 80-7. Spitzer, R.D. (1993), “TQM: the only source of sustainable competitive advantage”, Quality Progress, Vol. 26 No. 6, pp. 59-64. Tata, P. and Prasad, S. (1998), “Cultural and structural constraints on total quality implementations”, Total Quality Management, Vol. 9 No. 8, pp. 703-8. Corresponding author A.M. Ahmed can be contacted at: a.m.ahmed1@bradford.ac.uk SWOT analysis for Air China 173 To purchase reprints of this article please e-mail: reprints@emeraldinsight.com Or visit our web site for further details: www.emeraldinsight.com/reprints