Strategic Management Assignment - Airline Industry
Added on -2019-09-19
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Running Head: Strategic ManagementStrategic Management
Strategic Management 1Table of ContentsExecutive Summary...................................................................................................................2Introduction................................................................................................................................2External Environment Analysis and Competition in the Airlines Industry...............................2Competition among the Companies and Prospects for EasyJet.................................................4EasyJet’s Resources and Competencies in Gaining Competitive Advantage on Relocation....5Evaluation of Vision and Mission Statements...........................................................................6SWOT Analysis of EasyJet and Evaluation of Existing Business Strategy...............................7Recommendations......................................................................................................................8Conclusion..................................................................................................................................9References................................................................................................................................10
Strategic Management 2Executive SummaryEasyJet has achieved great success with second largest market share of about 31 % in the low-cost airline industry by providing low-cost services to the customers in the European market. Because of Britain exit from the European Union the company is facing problems that has forced them to shift their business in any one of European countries to continue its business in these countries. Austria is considered as a very potential market for the business due to high living standard of the people, if the company follows certain recommendation of expanding its business to attract the luxurious class of people.IntroductionThe Following report critically examines the external airline industry environment of Austria for EasyJet to make an entry and setup their headquarters there. In order to achieve this goal of the report, various existing and future aspects of the company, as well as the country in gaining the competitive advantage, are studied.External Environment Analysis and Competition in the Airlines IndustryIn order to analyze the external environment of Austria for airlines industry, PEST analysis can be used as it is helpful in analyzing political, economic, social, and technologicalfactors existing in the current markets which are provided below:Political EnvironmentThe Austrian State Treaty was signed in 1955 which made it possible for the airports to be developed for civil aviation in Austria. The vibrant growth of airlines in Austria is a result of continuous development in the strategy for technology, research and innovation
Strategic Management 3achieved through government and airlines industry working together. Considering this strategy in long-terms, it is aimed at strengthening the industry and improving its productivityand competitiveness by further coordination and development of the sector. Economic EnvironmentThe demand for aviation services is heavily dependent on the economic situation and growth of the country. Austria is considered as a nicely developed market with the high livingstandard of the people which definitely impacts the industry positively. The economic activities of aviation are not covered to a great extent in the international trade law of World Trade Organization. The protagonists of the industry have connections within their respectivecountries as well as internationally because of this international component of transport mode. Consequently, this makes it necessary as well as desirable for the companies to be attentive towards relevant stakeholders while dealing with aviation issues. Social EnvironmentAustria has a rich culture, high living standards, environmental quality, security, and classic dwellings, and even more while considering the day to day quality of life. Austria is regarded as one of the best business locations because of its tax system which is very business-friendly. Such lifestyle and compatible business laws are considered influential in the cross border expansion and progress of the businesses. Consequently, it has increased the travel of business managers who want their travel to be the least time consuming and most comfortable.Technological FactorsTechnology is observed to be impacting the airlines industry in many aspects. With the advent of ticket booking and tracking services through online websites and mobile apps, ithas become a lot easier and cheap for the customers to travel within the country and across
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