Introduction 4
1. The internal analysis 5
1.1 Historical overview 5
1.2 Mission, vision, goals and strategy 5
1.3 Structure 6
1.3.1 Corporate Governance and management control systems 6
1.3.2 Leadership 6
1.3.3 Culture 7
1.3.4 Structural configuration 7
2. The external analysis 8
2.1 Current situation 8
2.1.1 SWOT analysis 8
2.1.2 BCG matrix 9
2.2 In relation to the competition 9
2.2.1 Porter's Five Forces Model 9
2.2.2 Benchmark 10
2.3 The company’s image 10
2.3.1 Quality of services and products 10
2.3.2 Image as employer 10
Sources 11
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1.2 Mission, vision, goals and strategy
Mission
KLM, Air France and Martinair Cargo are operating as one company; AF-KLM Cargo. In 2005 the Cargo section became part of KLM, because of this AF-KLM Cargo company became the world’s biggest non-integrator operator, with total revenues of 2.9 billion Euros. In December 2008 KLM Group became a sole shareholder of Martinair Holland NV and so extended their plane capacity.
“AF-KLM Cargo & Martinair Cargo offers a wide range of a air with transport services in the market, providing seamless connections throughout the world with more than 350 destinations” (AF-KLM Cargo, 2011).
Vision
The services that AF-KLM Cargo offers is close cooperation with their customers, also taking into account their transportation needs in the entire logistic process. Being a customer-driven company, they have established a presence throughout the world. With more than 150 offices worldwide there is always a motivated team with local expertise nearby. Their professional staff is dedicated to deliver the values of the company, like; responsiveness, commitment, professional capabilities and drive to perform is included in their values.
Goals
“The company is dedicated to giving the customers access to the world by expanding and improving the worldwide network, fleet and capacity. Reliability and quality are crucial in our market. The key to success
Air Canada has been in the business of air transport for an extended period of time. Due to the experience and the exposure of the carrier in the field, it has made a commendable progress through many strategies as well as customer proximity. One of the approaches taken by the airline involves the identification as well as an implementation of cost reduction initiatives in a bid to increase revenue from its operations (Air Canada, 2016). It is also attempting to connect with the existing carriers across the world to connect the current customers to the international world. This approach has been adopted to increase its competitive advantage over other existing airlines.
One reason for their success is because of the commitment of the mission statement that is that the company is dedicated to the highest quality of customer service delivered with a sense of warmth, friendless, sense of individual pride and company spirit. Their low, discount air fares and bags fly, free the point to point services, and the strong fleet base which
This has also led to reduced price due to economies of scale. It has strong financial resources and multiple supplier base. The directors of logistics in Canada and USA facilitate availability of storage, warehouse and distribution facilities. The quality human resources promote creativity and innovation within the company. The reputation of brand name and technology further facilitates quality and smooth internal process.
I have preformed an evaluation of the company and have found that with the fuel prices increasing almost weekly, we need to reduce the amount consumed by our fleet operations. I have established that the current fleet operational standards, equipment, and the routing techniques are in need of renovation. With these
8. SkyWest, Inc. must seek global markets to enter that allow joint ventures and potential for growth to strengthen the company’s competitive position. I would recommend the management stay on top of technological advances in aircraft and purchase fuel efficient jets to lower fuel costs. Also, a plan to consolidate ASA offices with the offices of SkyWest would cut down operating costs.
Provide full value of money for customers through reduce cost and enhance level of quality (Qantas Airways Limited, 2014).
Airlines operates the largest fleet in the world, which the company is buying from Boeing
Currently, Alaska Airlines ranks among the major U.S. Airlines in terms of financial performance and capabilities. The airline itself has grown from a small regional air carrier to a large passenger airline with a considerable cargo business. The culmination of years of emphasizing the customer service and generating loyalty has manifested itself through Alaska Airlines documented profitability. The success of the airline also comes on its dedication to safety, a fact backed by the FAA’s Diamond Award, which recognized Alaska’s excellent maintenance and training programs. Additionally, Alaska has been recognized for its customer service, a fact that emerged early in the airlines history as the airline offered, and still offers, a means of travel for passengers and cargo in the harsh Alaskan terrain. This along with the largest cargo operation of any U.S. airline are driving factors behind the success of Alaska Airlines.
"Delta's ability to operate service to more worldwide destinations than any other airline has created a strong platform from which to build Delta Cargo into one of the world's most extensive
* Build on the Group’s strong domestic businesses through a clear focus on the customer. (Qantas, 2012, p. 13)
This company has 69 years in the industry. It is one of the airlines that have played an important part in the
Firstly, Airborne Express chose its customer very selectively and pursued a emphasis on low price strategy. The main target customer for airborne was the high volume, frequent, service; consistent with flexible environment and price is the main competitive weapon. Airborne was essentially the custom solution logistics providing for larger companies and therefore, they did not target the masses. By focusing on large accounts, Airborne could use its ground capacity more effectively. Airborne delivery drivers dropped off and picked up far more packages per stop than do the drivers of companies that focus on serving smaller customer and individual customers. This helped boost productivity and lowers costs and make a profit at a price. Secondly, the strategy of concentrating on corporate account was strong point, since it leads to better capacity of operation and lowers the cost. The company’s incentive systems were designed to rewards employees for meeting the dual goals of high productivity and reliability. Airborne’s national and international tracking systems were the best in the industry. These assisted Airborne to tell customers at a moment’s notice where in the system there packages are. This helped improve reliability and build brand loyalty. The same information systems helped Airborne to efficiently manage its billing system, thereby lowering costs.
Air freight market is not stable and might be weak because of uncertain international trade increase (Barnard,2015). There was fluctuation in air cargo demand over the last 10 years from 2006 to 2016 which indicates that cargo demand could be changed by some external and internal influences. Some figures were released about worldwide air freight market and presented that air cargo capacity increased 2.2%, comparing to 2014. While this was the 5% growth calculated by The International Air Transport Association (IATA), the growth of cargo volumes in 2015 was much slower than 2014(Barnard, 2015). However, some experts pointed out that global air freight market get a positive growth from 2011, and it is enjoying a relatively steady growth, due to the enhanced trade and economic recovery after the global financial crisis of 2008(Huang,2016). Because of sluggish world trade growth, air cargo suppliers face a lot of challenges including alternative transportation, perspective uncertainty and unexpected policy and here are some potential solutions: improving customers service, efficiency, security and reducing negative environmental impacts.
In less than twenty years, the global industry has gone through tremendous change. Several airlines had gone out of business that had been on top of the industry for years. One of the remarkable changes had been airline alliances. The case focuses on the airline industry and how airlines are forming alliances and joint ventures. It then introduces the partner firms Air France KLM , and Delta . Air France KLM had over 25 collaborative agreements with other carriers and was a founding member of Skyteam, one of the leading airline groups. Air France KLM and Delta Airlines formed revenue
Their vision is “to become a world-class air cargo service provider with global reach”, and they believe that to achieve this vision, they need to focus on their working quality, reliability, and world-class network (QR Cargo).