Strategic Management Assignment - Airline Industry

Added on - 19 Sep 2019

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Running Head: Strategic ManagementStrategic Management
Strategic Management1Table 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 Management2Executive SummaryEasyJet has achieved great success with second largest market share of about 31 % inthe low-cost airline industry by providing low-cost services to the customers in the Europeanmarket. Because of Britain exit from the European Union the company is facing problemsthat has forced them to shift their business in any one of European countries to continue itsbusiness in these countries. Austria is considered as a very potential market for the businessdue to high living standard of the people, if the company follows certain recommendation ofexpanding its business to attract the luxurious class of people.IntroductionThe Following report critically examines the external airline industry environment ofAustria for EasyJet to make an entry and setup their headquarters there. In order to achievethis goal of the report, various existing and future aspects of the company, as well as thecountry in gaining the competitive advantage, are studied.External Environment Analysis and Competition in the AirlinesIndustryIn order to analyze the external environment of Austria for airlines industry, PESTanalysis 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 airportsto be developed for civil aviation in Austria. The vibrant growth of airlines in Austria is aresult of continuous development in the strategy for technology, research and innovation
Strategic Management3achieved through government and airlines industry working together. Considering thisstrategy 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 andgrowth 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 economicactivities of aviation are not covered to a great extent in the international trade law of WorldTrade Organization. The protagonists of the industry have connections within their respectivecountries as well as internationally because of this international component of transportmode. Consequently, this makes it necessary as well as desirable for the companies to beattentive towards relevant stakeholders while dealing with aviation issues.Social EnvironmentAustria has a rich culture, high living standards, environmental quality, security, andclassic dwellings, and even more while considering the day to day quality of life. Austria isregarded as one of the best business locations because of its tax system which is verybusiness-friendly. Such lifestyle and compatible business laws are considered influential inthe cross border expansion and progress of the businesses. Consequently, it has increased thetravel of business managers who want their travel to be the least time consuming and mostcomfortable.Technological FactorsTechnology is observed to be impacting the airlines industry in many aspects. Withthe 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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