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Situational Analysis for New Zealand International Airlines (NZIA)

   

Added on  2020-03-23

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Situational Analysis for New Zealand International Airlines (NZIA) 1SITUATIONAL ANALYSIS FOR NEW ZEALAND INTERNATIONAL AIRLINES (NZIA)NameCourse: Professor’s NameInstitutionCityDate

Situational Analysis for New Zealand International Airlines (NZIA) 2Situational Analysis for New Zealand International Airlines (NZIA)DescriptionThe aviation industry is highly competitive and creates the need for industry players toadopt effective strategies to remain competitive and achieve the desired objectives. With the risein the number of airlines, competition continues to grow to create the need for airlines toestablish strategic positions to achieve their overall objectives (Abeyratne, 2014). Focusing oncustomer service quality is one of the key aspects of the aviation industry that significantly helpsretain and attract new customers as well as effectively addressing competition problems (Tsiakis,2015). NZIA is also a low-cost carrier based in Auckland and operates scheduled passengerservices using 10 leased Airbus A330-200 aircraft which has an all-economy cabinconfiguration. The case demonstrates that the airline is not a full-service network carrierincreasing the possibility of experiencing competition in the market; hence the need to create anew strategic focus and strategic positioning to expand the current routes and product offering toachieve profits and market optimization (Bruce, 2011). The situational analysis of NZIA presentsunderstanding on the strategic objective of the airline, the fleet, and network coverage to enhanceunderstanding of the competitive position and the given routes. Besides, the situational analysiswill focus on the future route opportunities for the airline which can help in the long-termperformance or success of the organization as well as the market trends and products.NZIA Strategic ObjectiveAccording to the case, NZIA is not a full-service network carrier which is one of the keyaspect limiting its ability to maximize profits or success in the industry. As such, the strategicobjective of the airline involves becoming a full-service network carrier which involves focusingon increased passenger flights rather than the scheduled only. The strategic objective is alsobased on expanding the existing routes in order to position the airline in the competitive industry.

Situational Analysis for New Zealand International Airlines (NZIA) 3The strategic objective is based on enhancing the ability of the airline to optimize new marketopportunities as well as increasing the company's profitability. Additionally, the strategicobjective will see the company expand its routes and product offering in order to increase theoverall number of passengers and gain a competitive position in the market (Mahadevan, 2009).Fleet & NetworkAccording to the case scenario, NZIA is a low-cost carrier and has been previously basedon operating scheduled passenger services which limited their fleet number and network.Currently, NZIA provides its passenger services using 10 leased Airbus A330-200 aircraft whichhas an all-economy cabin configuration and a capacity of 260 seats. The airline's network in bothdomestic and international routes involves Auckland-Sydney, Christchurch-Sydney, Auckland-Cook Islands, Auckland-Nadi, Auckland-Noumea, Wellington-Sydney, and Auckland-Wellington-Christchurch. The fleet and network for the airline are limited based on the idea thatthe company only operated as scheduled passenger services. However, in the achievement of thenew strategic objective, the airline is bound to increase the fleet number in order to meet thegrowing demand and competition in the market as well as achieve the desired profits. The airlinemust also expand the network cover to enhance the chances of serving passengers from differentareas as well as maximizing the profits. Competition on Given RoutesAs earlier identified, the aviation industry is one of the most competitive which createsthe need for airlines to have unique services of product offerings to meet the competingdemands. Competition is a key challenge that will be experienced by NZIA in given routesowing to the existence of other key players in the industry (Ireland, Hoskisson & Hitt, 2012). Inthis regard, NZIA should adopt product differentiation strategy and service quality in order toaddress the competing demands as well as achieve the desired objectives (Odoni, 2015). For

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