MBA: Strategic Management
Assignment
Introduction
Markets differ in a variety of ways including the degree of concentration and competitiveness, a fact which is reflected in the concept of ‘market structure’. Economists’ models link the structural characteristics of a market to the behaviour of firms in that market and subsequently to their performance. A key question therefore is how far a firm’s strategic decisions are shaped by the structure of the market in which it operates.
You are required to undertake a detailed examination of the changing nature of the long-haul transatlantic airline market. The market you are required to investigate comprises only the international passenger market (i.e. excluding the movement of goods by
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Draw upon market data which is available, to support your conclusions on “Market Structure” with in this industry sector. (30% of marks)
3. Given the conclusions drawn on Market Structure above, examine the level of competition within this market sector with the use of Porters 5 forces model to reinforce your explanation. (20 % of marks)
4. Discuss the strategic decisions that firms in this sector may be facing. What future strategies can firms pursue to try to secure their competitive advantage and long term survival? (25% of marks)
Procedure
1. This is an individual project, leading to the production of an individual report.
2. All the data and information you need to complete this assignment is in the public domain and is easily accessible via electronic means. Please do not approach the companies for help with this project.
3. Your project should be presented in report format and should contain an Executive Summary and a Bibliography. Use of Appendices would be appropriate.
4. Your report should be a maximum of 4000 words (excluding Appendices and Bibliography).
5. Submit your report to the Graduate School Office no later than 12th of January.
6. The assessed report will be returned to you within 3 weeks. Your grade will be subject to ratification by the External Examiner and the
3. What does your strategic group map of this industry look like? How attractively is Netflix positioned on the map? Why?
c. If you complete the evaluation form and return it within two weeks, you will receive a free breakfast during your next stay.
With operating income of $801 million and revenue of $8.55 billion, American Airlines was the largest airline in United States as of 1988. As Airline Deregulation Act changed the environment of airline competition, American Airlines had to make some radical changes in its business. Because deregulation made the market more competitive than ever, American Airlines still has many strategical and tactical decisions to make in order to be one step ahead of its competitors. Although there are many issues that airline companies deal with in order to create competitive advantage such as costs, route structuring, distribution channels, customer service and marketing activities like loyalty programs, the most important decisions are to be made regarding revenue management activities.
Choose a specific industry (e.g., grocery retailing, the airline industry, etc.), and apply Porter 's Five Forces Model to discuss that industry 's competitive forces and their relative influence.
A summary of your project. Identify your topic and describe what you will be looking at in terms of the topic. Include some key terms and additional questions that will guide your research.
To better understand a firm and its placement of its strategies, we must conduct an analysis of factors that might affect its selection of strategies.
l. How much competition does the firm have? Is the competition powerful? List the firm and the competition’s current market share if given in the case.
5. What is competition like in the industry? Which of the five competitive forces is the strongest? Which is the weakest? What is the industry’s potential for profitability?
This section of the report will discuss how each trend mentioned will affect the airline industry. It will also
Those who travel through the skies using the different airline companies, choose their carrier for various reasons. Some consumers are loyal to one airline, others may choose the airline due to price, and then others may choose it based on takeoff and land times, and then there are those who do not have a choice as only one airline services the location they need to arrive at. Regardless of the reason, when we all choose our next airline to travel, the majority of travelers will not choose Southwest Airlines for their heart shaped logo being installed on the seats of their latest 737-800 aircraft built by Boeing (SOUTHWEST, 2016). Southwest employees commit themselves to their jobs and are proud to put on their newest uniform with a heart logo to show every passenger the love they have for their employer. Companies with a good culture can change an employee’s behavior and attitude due to their surroundings and be far more successful, than a company who does not value the work or personal sacrifices their employees make. Sometimes a company’s success can draw attraction from another company looking for a takeover with the intension of increasing their bottom line. When this type of action occurs; they may be two different in the type of industries, just as night is to day, both organizations need to share a common ground to be as successful as they are separately. Nonetheless, there are some investors who would have expected Southwest to buy one the
The output market structure for this business is monopolistic competition, what means that it is in a market in which many firms
(6) What is the five-year forecast for global annual growth in the athletic footwear industry? In which regions of the world is growth expected to be highest?
Southwest uses a strategy that keeps their costs low, while maintaining similar value. Southwest’s strategy greatly helped them gain a competitive advantage in the U.S. domestic flights market because at the time, most other airlines offered flights at higher prices and with three different classes of airfare. This allowed Southwest to be the first movers into the idea of cost friendly flights. And because no one else could compete with Southwest’s low cost, their innovative idea allowed them to be cost leaders in this market. Southwest’s main policy is providing the cheapest flights with only one class of flight. They kept costs low through their use of cost drivers. And by keeping the costs low, Southwest created a competitive disadvantage
Currently RA is answering one call every 3.75 minutes during 10:00 a.m. to 11:00 a.m. time period (λ (average arrival