廈門航空戰(zhàn)略分析課件

1、Xiamen Air Group 4 William Sophie Janice Christine Zayn ContentsProblemPESTFive forcesStrategyResources and capabilities Management preferences Evaluation and conclusionRecommendations What is the problem? Stakeholders and shareholders want XiamenAir to expand as rapidly as possible: Develop the air

2、line industry Promote the region as an international hubManagements interests are to expand sustainably:Maintain qualityControl costsComplicating the situation are other interests: XiamenAirs parent, China Southern is a primary competitorChina Southern is state owned and the state has an interest in

3、 developing the industryThe state owns various airlines making it a major player, but as the state it is also the industry regulator How does XiamenAir balance the aboveexpand sustainably, satisfy stakeholders and fulfill societal obligations? Environmental analysisWilliam & sophiePest POLITICALEcon

4、omic reformIndustry promotion by CAACPricing policy deregulationTax change to VAT “Easy Access/Restricted Exit” Anticorruption movementECONOMICSustainable GDP growth by double digitsIncreasing per disposal incomeFuel pricing fluctuationAppreciation of RMBUncertainty economic performance in the futur

5、eSOCIALPrice sensitive consumersStrong RMB encourages personal international travelDisease SARS Bird flueThreat by terrorismTECHNOLOGICALFuel saving technology spreadsAircraft is bigger with more seatsHigh speed railway popularizesFive forcesSix forcesStrategy AnalysisJaniceExpansion via differentia

6、tionContinuing to innovate its productsHigh-hot aircraft to operate in high-altitude areasDreamliners to service non-stop marketsProviding new routes both at home and abroadEstablishing a “unique, preferential, and leading” airline brandGood reputationcustomer-orientedsocially responsible reliableOn

7、-time arrivalNumerous awardsSix consecutive quarters of “The Best Airline in Mainland China” in “Airlines Service Survey”High -quality air catering serviceISO 9002 quality system certificationResources and CapabilitiesWilsan & zaynResourcesvrioPowerful parent SCAValuable (SOE influence, code sharing

8、)Rare (biggest airline in China)Not imitable (impossible unless China Southern acquires)Organized to exploit (cooperate on international marketing, loyalty programs, and pilot training)Sky Team Alliance membership CPValuable and organized to exploit BUT Not rare (19 members) and definitely imitableM

9、anagement team UCAValuable (highly profitable, efficient and visionary)Rare (there is only one XiamenAir management team) Not imitable (unless they are poached)Organized to exploit (not quiteif less constrained and given more resources could potentially do more) Brand and reputation UCAValuable, def

10、initely rare in China, and not easily imitableOrganized to exploit? Like Starbucks maybe they need to leverage their name moreSummary of R&CXiamenAirs core competencies are its:Efficient business process Ability to deliver consistently high quality serviceIt has a competitive advantage in:Its powerf

11、ul parentExcellent management team Brand and reputation But to be fully exploited the team needs more freedom and resources and (like Starbucks) the brand could be leveraged more. Management preferencesTop Management Team(CEO,CFO)ShareholdersCorporate parent-China Southern Airlines(51%)Government Ma

12、nagement preferencesTop Management Team(CEO,CFO)ShareholdersCorporate parent-China Southern Airlines(51%)Government Willing to sacrifice short-term profit for a bigger vision and bigger strategic benefits in the long term.Maximize shareholders wealthMaximize shareholders wealthDevelopment of airline

13、 industry;Development of Fujian and China.Are stakeholder preferences aligned with strategy?Top Management TeamGovernmentShareholders Corporate parentManagement preferenceNO/YESYESYESYESEvaluation Do all aspects align?Diamond E framework Strategy aligns with environmental forces (PEST) Management pr

14、eferences align with strategy to differentiate and expandStrategy and R&C have weaker alignmentRapid expansion vs. QC needed to maintain differentiationParental strategy is to expand fast but restrictions on funding and operationsManagement team will be crucial and brand will be valuable for success

15、ful int. expansionManagement preferences align with R&C for slow expansion but misalign for rapid expansionLack of fundsParental controlOrganization design is not explicitly addressedMacro levelFits from an industry, provincial and central government, perspectiveMajor stakeholders are satisfied sinc

16、e their broader macro economic goals are achievedMicro level In the short term neither sustainable nor profitableQC and costs with fast expansion? Dreamliner move will decrease profitability BUT it diversifies business away from domestic marketAND fits its mission to contribute to societyManagements

17、 concerns page 11Would the Dreamliner decision enable XiamenAir to grow to more than 200 aircraft by 2020? Possibly. Would this growth be profitable? Not in the short term, but possibly in the long term. Would the decision assist the city of Xiamen and Fujian Province in more quickly becoming establ

18、ished as the regional hub for Southeast Asia, Northeast Asia, and cross-strait transportation?Definitely with a dedicated carrier now serving the region internationally. Would the Dreamliner decision and XiamenAirs membership in the SkyTeam Alliance boost the Western Taiwan Straits economy? Yesmore aircraft and air routes means more traffic, which means more trade and commerce in the region. Managements concerns page 11Would being a member of the SkyTeam Alliance and the Dreamliner decision help speed