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Strategic Management Spring Instructor: Jongtae Shin Prepared by: It involves the integration of many aspects of the supply chain management system such as inventory, information and processes to name a few.
The market continues to grow at a rapid pace Porters five force model analysis of spicejet airlines an ever increasing number of emerging regions Myanmar, inland China, Africa and South America become accessible for trade.
It is also an industry where sustainability and innovation go hand in hand. The past few years have been challenging for the air courier services market with numerous global uncertainties.
However, despite political gridlock in the United States of America US leading to continuous turmoil in the financial markets, economic chaos in Europe, accompanied by a slowdown in the vibrancy of the Asian economy, instability in energy prices and the threat of substitutes in the form of electronic delivery features such as email, Skype and cloud computing, the movement of goods and services around the world continues to accelerate.
This demand has been aided by improvements in production scheduling, increasing real-time reliability from logistics information systems and better visibility of the supply chain network through e-freight which have optimized the use of delivery systems and made enhancements possible, thus improving the leverage of the vendors within this industry.
To meet the ever changing needs and expectations of the market and counter the growing power of the consumers, and moreover, to ward off the threat of new entrants into the market, older, less efficient aircrafts 3 and equipment are being replaced with more fuel efficient ones such as the Boeing s and Airbus s with long range and non-stop capabilities for faster processing.
In light of the global uncertainties and intense competition among the major players within the market, the strategic focus has always been on lowering costs, improving efficiency in the chain and seeking existing and emerging markets for growth to garner continued success.
The air courier services industry continues to evolve with significant changes within the global supply chain network. Even though shortfalls such as insufficient capacities and inadequate infrastructure tend to hamper progress in this sector, on the other hand, globalization, GDP expansion and population growth are rapidly driving demand for the efficient and effective delivery of goods and services.
The industry participants and would-be entrants are closely monitoring the growing strength of existing markets such as China, Vietnam and India which are rapidly becoming consumers in addition to producers, thus driving demand in the regions.
Additionally, a renewed focus is developing upon manufacturing in the US due to rising wages and operational costs within Asia, in particular, China where the cost of production will equal that of the US by Sirkin.
It is also following developments in newly emerging nations such as Myanmar, positioned in the center of a dynamic region, which is now quickly opening its borders for trade and Foreign Direct Investments FDI following political change for the better Barta.
After all, the goal is definitely to arrive early and sustain the stay by changing the game within the industry in these regions. In terms of projections, global trade continues to accelerate even in light of the tough economic conditions over the last few years.
Additionally, the key players within the industry have been revamping and strategically positioning themselves during this period in order to take full advantage of the impending uptake in the economy with major investments in supply chain and human resources training customer serviceprincipal infrastructure facilities, information technology and equipment upgradesand aggressive marketing.
As the US economy begins its recovery, the Asian markets slowly rebound and other regions Africa and South America enter the fray, consumers and businesses are now once again looking towards the air courier service vendors for more and improved versions of their solutions in terms of products and services delivery solutions.
Whichever company is at the forefront of innovative process solutions such as e-freight will end up with the major portion of the market share.
Today, for both the vendor and consumers, time is of the essence, and improvements on their current delivery systems could overshadow the financial benefits with the intangible benefits being priceless to the image of the vendors.
The international logistics delivery solution market is expected to triple from its baseline by which, when compared with the anticipated global increase in GDP, is more than double Kirkeby. Recognizing this huge potential, the vendors must be prepared in earnest and continue investing in infrastructure and equipment while striving to focus on penetrating and solidifying their 5 presence in the regions.
In the Far East and Southwest Asian regions, the major players have been engaging vigorously in acquiring and securing partnerships with local carriers and outlets. They have taken advantage of their technological innovations and huge financial resources to strengthen their positions and elevate their partners in the regions.
In return, the insights into the local markets through these partnerships and acquisitions have been extremely valuable and effective in strategic delivery solutions planning, development and implementation. At the same time, companies are also promoting their brands heavily through advertising.
This is a key opportunity to differentiate its brand name from its main rival UPS.
Using this differentiation strategy to secure business-to-business partnerships is one way of developing brand loyalty especially in terms of long term contracts. Major passenger airlines such as Etihad and Qatar Airways are also coming onto the scene with freight delivery divisions of their own.
With aggressive acquisition and expansion strategies and financial standings that continue to entice investors and customers alike, all the more so, in a tough economic climate, and even if the investments tend to be massive, the challenge is now to seek new frontiers such as Myanmar and sustain their presence there.
If the headlines from all the major publications around the globe are of any indication, Myanmar, known previously as Burma, is due for a banner year in terms of massive FDI in the coming years Brady. The western nations are also clamoring to conduct business here in a country with massive economic potential.
Its location is prime to be an economic hub with deep-water natural ports on the Indian Ocean and geographically and strategically positioned between India and China; in a way, it is the backdoor to the Chinese and Indian economic markets.
The challenge here for the air courier services industry is to create a strategy for this region which can be implemented successfully and emerge as a gateway to bigger and better opportunities for all the stakeholders involved in this venture.
In terms of competition, it allows the players to see where they stand with their strengths and weaknesses and the steps they can choose to withstand threats while grasping opportunities.The sixth force is an extension of Porter’s five forces analysis.
According to Nicholas Carr there is a sixth force, the public. Carr argues that the public influence the generation and distribution of profits. Strategic Management: Porter Analysis for Civil Aviation We present here the porter ﬂve force analysis of Civil Aviation Industry and hance try to ﬂnd out whether it these include low cost carriers such as Deccan Airlines, GoAir, SpiceJet etc, who have made air travel aﬁordable.
The Porter’s 5 forces analysis for airline industry is a sample of the academic papers we handle. Get more on our blog but if you need assistance in writing one feel free to reach us.
We offer affordable academic paper writing help online at all academic papers. Senior managers need to utilize several conceptual models like BCG matrix, Porters Five Force model etc., in order to be efficient particularly in the decision making processes.
Strategic management models can be said to be as the mode of the strategic management. This model shows the five forces that shape industry competition; threat of new entrants, bargaining power of buyers, threat of substitutes, bargaining power of suppliers, and competitors. In order to analyze the airline industry we have look at each of these forces.
A financial analysis of Southwest Airlines is presented in the report which includes a ratio analysis, basic profit and loss analysis, presentation of the company balance sheet, and much more.