Figure 5.1 – Assessment of influence of factors of the external and internal environment on creation of new air carrier (Source: developed by author) As a result of the carried-out analysis it is possible make a conclusion that presently the recommended direction of strategic development corresponds to a state when it is necessary to implement the weakness - opportunity strategy (mini – maxi) directed on minimization of weaknesses of the enterprise and use of opportunities of the market of air transportation
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UNITED AIRLINES SLEPT ANALYSIS Q1: What is meant by the external business environment and what are its main components? External environment refers to the environment that has an indirect influence on the business. The factors are uncontrollable by the business. The external environment of an organization is those factors outside the company that affect the company ’s ability to function. Some external elements can be manipulated by company marketing‚ while others require the organization to
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industry have been shrinking for decades. Low Cost Carriers (LCCs) such as JetBlue and Southeast have made inroads to Delta’s Florida market which stands for 30% of Delta’s revenues. After 911 Attacks‚ the demand decreased. DeltaExpress‚ Delta’s low-cost subsidiary‚ is launched to respond LCCs threat but it is not as successful as it was thought it would be. Delta’s current Strategy: Delta mainline is a legacy airline and competes utilizing its low price and productivity. DeltaExpress tries to
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HISTORY OF AMERICAN AIRLINES American Airlines‚ Inc. (AA) is a major airline of the United States. It is the world’s largest airline in regards to accumulated passenger miles. American Airlines took off on April 15‚ 1926 when Charles Lindbergh flew a bag of mail from Chicago to St. Luis in a DH-4 biplane. A year later the first passenger flight flew from Boston to New York‚ heralding the real first passenger airplane travel by American Airlines. A subsidiary of AMR Corporation‚ the head quarters
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JetBlue is a low-cost domestic airline in the United States that utilizes a combination of low-cost and value-added differentiation as its market strategy. From its launch in February 2000 to the time of the case‚ the airline grew to become the 11th largest player in the airline industry in a short span of 4 years. Moving into the growth phase‚ JetBlue transitions from launch mode to an established product stage where it needs to focus on growth of scale. Executive leadership has determined that
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AirTran poses many obstacles for SWA’s sales strategy. The acquisition will threaten the pricing structure of SWA. It will give them the opportunity to raise its fair‚ as there is less competition in the Northeast (where AirTran serves) and major airlines have paired off leaving only five major players (Huffington post‚ 2010). Further promoting a fare increase is SWA’s refusal to charge for baggage. Although‚ this is a great sales tactic‚ it provides no source of revenue‚ resulting in a fare increase
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Industry Analysis of the Airline Industry An Industry in which I have a potential future interest for an entrepreneurial venture is the ever changing airline industry. Although facing tough numbers after the 9/11 attacks‚ I have always held an interest for this industry. There are several basic economic characteristics for this industry. There are many opportunities‚ there are also many threats. The airline industry was heavily regulated by the Civil Aeronautics Board (CAB) for close to
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As An Environment For International Business 13 2.1 Market Access 14 2.2 Growing Competition 16 2.3 Institutional Environment 18 2.4 Forms of Business 20 3 Implications For International Business Analysis 21 3.1 The Role of National Institutions 21 3.2 A Formal Analysis of China ’s Environmental Complexity5 23 3.3 Strategies for Handling Environmental Complexity 25 3.4 Internationalization of Chinese Firms 27 3.4.1 The Latecomer Perspective 27 3.4.2 Institutional Analysis and
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Valuation and Analysis of Dollar General Table of Contents Executive Summary……………………………………………………1 Overview of Dollar General…………………………………………6 Five Forces Model..............................................………..9 Rivalry among Existing Firms................................9 Industry Growth………………………………………….10 Concentration………………………………………….….10 Differentiation and Switching costs……………………13 Scale Economies and Fixed/Variable Costs…………..13 Excess Capacity and Exit Barriers………………………14 Threat
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Singapore Airlines – Case Analysis Situational Analysis Singapore Airlines (SIA) began with the incorporation of Malayan Airways Limited (MAL) in October 1947.The incorporated companies were the Ocean Steamship Company of Liverpool‚ the Straits Steamship Company of Singapore and Imperial Airways. The airline’s first flight was chartered from the British Straits Settlement of Singapore to Kuala Lumpur in April 1947 using an Airspeed Consul twin-engine airplane. SIA has remained competitive
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