Air France Klm Strategic Management
1 Introduction of Air France – KLM 4
1. Governance in Air France – KLM 4 1.2 Turnover and competitive position 5 1.3 Air France – KLM mission and vision 5 1.4 Risk and challenges 6
2 External diagnoses 6
2.1 The industry life cycle 6 2.2 PESTEL (external environment) 8 2.3 Porters 5 forces + 1 (Air France - KLM) 9 2.4 Opportunities, Threats and Key Success Factors 11
3 Internal Diagnoses 12
3.1 Air France, resources and competences 12 3.1.1 Core competences 13 3.1.2 Cost efficiency 14 3.2 Value chain and processes 16 3.3 Strengths and weaknesses 18
4 Strengths/weaknesses and Opportunities/threats (SWOT) 19
5 Recommendations 21
5.1 Potential alternatives 21 5.2 Feasible analysis 21 5.3 Recommendations of adapting, Implementing and planning 22 5.3.1 Cost reductions on short-haul flights 22 5.3.2 Use the strong brand in favor of the external influences 23 5.4 Develop strategic capabilities 24 5.5 Strategy implementation: turnaround vs. adaptation strategy 25
We have chosen following framework for the assignment about Air France – KLM:
What is our (Air France – KLM) competitive advantage, how to consolidate it and ensure its continued existence? How to grow on this competitive advantage?
We are aware of Air France – KLM has several different and important SBU’s in their entire organization portfolio, but because of page restrictions the assignment will mainly focus on Air France –KLM’s short-haul business unit. The matrix below illustrates the different business units. The one pointed out in red is the short-haul flights (intra Europe) SBU 1, which is the unit this assignment primarily focuses on.
[pic]
1 Introduction of Air France – KLM
Air France was founded back in 1933 through the merger of other French airline companies called Air Orient Air Orient,
1. Governance in Air France – KLM 4 1.2 Turnover and competitive position 5 1.3 Air France – KLM mission and vision 5 1.4 Risk and challenges 6
2 External diagnoses 6
2.1 The industry life cycle 6 2.2 PESTEL (external environment) 8 2.3 Porters 5 forces + 1 (Air France - KLM) 9 2.4 Opportunities, Threats and Key Success Factors 11
3 Internal Diagnoses 12
3.1 Air France, resources and competences 12 3.1.1 Core competences 13 3.1.2 Cost efficiency 14 3.2 Value chain and processes 16 3.3 Strengths and weaknesses 18
4 Strengths/weaknesses and Opportunities/threats (SWOT) 19
5 Recommendations 21
5.1 Potential alternatives 21 5.2 Feasible analysis 21 5.3 Recommendations of adapting, Implementing and planning 22 5.3.1 Cost reductions on short-haul flights 22 5.3.2 Use the strong brand in favor of the external influences 23 5.4 Develop strategic capabilities 24 5.5 Strategy implementation: turnaround vs. adaptation strategy 25
We have chosen following framework for the assignment about Air France – KLM:
What is our (Air France – KLM) competitive advantage, how to consolidate it and ensure its continued existence? How to grow on this competitive advantage?
We are aware of Air France – KLM has several different and important SBU’s in their entire organization portfolio, but because of page restrictions the assignment will mainly focus on Air France –KLM’s short-haul business unit. The matrix below illustrates the different business units. The one pointed out in red is the short-haul flights (intra Europe) SBU 1, which is the unit this assignment primarily focuses on.
[pic]
1 Introduction of Air France – KLM
Air France was founded back in 1933 through the merger of other French airline companies called Air Orient Air Orient,