Scandinavian Airline System - Essay Example

? A Report on……….’ An Investigation into……..’ ‘An Analysis of………’ ‘Comparison of….and…’ You’re in partial fulfillment of the requirement of the ………………course. If you are a HKPU student, your students number. The date. Executive Summary. We will give you the back check, the airline industry through introduction and then we will continue to give what is accrued through the strategies given then through our finding we describe what a merit of every terminology is. TABLE OF CONTENTS 1. Introduction………………………………………………………………4 2. Methodology………………………………………………………………5 3. Findings……………………………………………………………………7 4. Conclusions………………………………………………………………...11 5. Bibliography………………………………………………………………..12 Introduction: The (SAS) that is the Scandinavian Airline System is however used to illustrate through an introduction to the company and its historical events. We will look at various measures or strategies the company took for the upcoming challenges with the increasing changes in competition, the operating cost which is relatively high, and also the strategic point off view. Norway, Denmark and also Sweden have culturally and strong tradition of cooperating and trade as the three Scandinavian countries. In 1944 in Chicago, the international rules that involved the civic aviation was passed which described that each country had sovereignty which is complete through its own territory in the air and would make sole or drastic decisions involving the rights to fly about it territory. (welingkaronline.org) Methodology When we look at the external environments and internal strategies capacities we could however see the ways the companies faced to fight its challenges. The SWOT is a brief statement of internal audit analysis. It relevantly searches ways to identify the most important factors that would hinder organization and its markets. Through this stage, internal strategies are related to external strategies having a result the organization will be notified or aware of the place the strategies would be unleashed as well with its weaknesses. (welingkaronline.org) In other words the particular point of this analysis is to however identify the particular strengths and also weaknesses which are in the companies internal sector and opportunities and the threats which may occur on level which of the external part. On the other hand, the factors in the external part deals drastically with the models of environment in it competitive advantage, with the factors in the internal part they are related in the center most capabilities and competencies of the company and could influence the future strategic enrollment orientation. With however the PESTEL analysis of the macro-environment, relevantly factors of internal and external could be interdependent and would be through this chat represented: Figure- The interdependency of internal and external factors of the SWOT analysis. In short words we can say that the SWOT analysis helps in focusing on strengths of the organizations it highlights and also the weaknesses in same very time reveals opportunities for the organization for their environments and also threats organization would be aware of. SWOT analysis however helps in supporting companies through early processes of measures taken and strategies setting. The limits of this very simple model is that it has difficulty in defining factors in certain opportunity or strength or even threat ad weakness. The boundary is the managers’ capital that elaborates the SWOT analysis stay objective in enhancing the model. SWOT analysis usefulness and its utility when doing a comparative study with competitors in terms that are of weaknesses, straight, threats, and opportunities, SAS describes a SWOT analysis a SWOT analysis on competitors and compares in order to highlight factors of external and internal. Finding The pursuit of vertical integration idea has made companies become very famous that is the appetite of manufacturing bulk products as much as possible in house rather than purchasing from subcontractors. A good example which is unique in the since is Singer company which manufactures parts of sewing machine that they use, they own not only what they made from the machines in their carpentry shops wooden base plates, and also they supplied carpenters with boards from their saw mills and logs which was supplied but the saw mills. (Karlof) Another example is in Sweden. Nordstjernan, which its center most businesses is in shipping, integrated forward to import coal and manufacture hull planting steel backward, to make tanks for chemical carriers form stainless steel. The civic aviation fissioning likewise, engine maintenance that was firmed out and external contractors from other operations one example we could give is SAS Service Partner, an function of Scandinavian Airline which was formally in-housed however is to many other airlines a supplier of in-flight meals. The contrast is that huge companies tend to have the mind set of socialist governments. The dream of planning economist is to have totally vertically integrated system. Market economies have proved their superiority to planned economies, and so is purchasing and selling in between companies which are independent more effective than advanced vertical integration. Through the strategy implementation we will describe each of every strategies which one of them is through this theoretical frame: Cost leadership it how ever describes that the company tries executes the low-cost in the sphere of the industry. This requires efficient-scale facilities, reduction of cost in all various areas of the company, over cost in tight control. In order to execute this company ventures positions which are low in the curve of learning and to discover sources of cost merit, a part from these basic requirements, companies would have a huge market or any other merit like good access to source supply. (Dobruszkes,2006) In differentiation a company finds ways to offer or to give different services or products in the industry, with the vision of creating something unique for the industry and hold more value I the view of a buyer. Various approaches in differentiating like wise designs, image, brand, technology, and many more, often companies who venture this strategy differentiates in various ways. In achieving differentiation and to have performance which is above average for the industry, the company cost premium also supersedes incurred costs for uniqueness so that the company could have performance which is superior. The strategy provides a protective position against players in the industry. In focus it implies that the firm chooses a segment which is direct of the industry to focus it’s exclusively strategy. The segment which is targeted can be a buyer group which is particular a product line segment, or a market which is geographical A company achieves differentiation in its targeted segment by exploitation needs which are specific of the customer in the segment which is also specific or by cost focus. Other generic strategies cold be based on principles that competitive merits can be fulfilled is providence from the organization of customers with services and products. A clock that strategies in brief described as options in different competitive. Position represents each generic strategies and also different positions the company in the market can assume. Focusing on requirements of two types for customers. Through the figure presents a strategy clock. Whereby position 1,2 are strategies which are pried based in 4 strategy in differentiation , in 5 differentiation in focus in 3 is position in intermediary between cost and differentiation and 6,7 are strategies of failure. (Dobruszkes,2006) Related to industries search as European Airlines the most significant characteristics and over evaluation of the last two decades that in the topic are relevant. The European industry has legacies in historical and political which can be traced back in the year 1944 at the Chicago Convention. Even though during many years airlines have played a part in public ownership which makes them preserve their character in nationalistic that their strategies are restrained benefits of money, control of new rivals by over entry. From the deregulation in EU, suffering of the industry from over capacity, cost competition non-existence, capacity for routes was agreed upon between airline companies and practicing or pooling revenues. Opportunities by the open of European market are immense: there is no reason as to why a low cost airline has to however start stamping the way of the one which exists. Opportunist seems to have been grabbed by new comers. (Gillham,2000) Through this analysis the airline industry involves fragments than any what so ever industry. It is huge market that is provided by use of standardization. For years airline companies were almost significantly the same where there were few differences did really care and currently the airline industry is rapidly changing. The economic development has been achieving before the deregulation, despite arising crisis. But since 2001 September there have been a downtum in economic through the recession world wide. Fluctuation of the environmental context was bad rather for the airline industry. For the come back years were needed, the environmental changes context and discoveries which are new from entrepreneurial opportunities that helped SAS to become influential and prestigious airlines in Europe. SAS Airlines however used observations as a source of data information for their customers in respective when they are at lounges in the airport gate. The airline thought of entrepreneurial opportunities that hey could provide. Airport lounges are essential place for passenger gestures and especially when becoming lounges accessible by customers having first class tickets or business or with huge level. It tries to give largest number of services variations than its competitors. The aim is to give a service that is tailoring to the customer and SAS is increasingly determined being the first moving through its market and to be a very competitive airline in years to come. (Gillham,2000) . Conclusions We have stated situations of the story in strategies in SAS airlines and that through the time it has innovative behavior for competition in the process of its strategic management and through the way vertical integration and thus evaluating the strategies implemented. The related industries what kind of plat form they have and how the performance has however become. Bibliography Dobruszkes, F (2006) Analysis of European Low-Cost Airlines and Their Networks, Journal of Transport Geography Gillham,B(2000) Case Study Research Methods, Continuum Read More