Formulating Your Airline's Strategy
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u1a1-strategy-team.docxRUNNING HEADER: AIRLINE STRATEGY 1
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AIRLINE STRATEGY
The Initial Strategy of Eastern Airlines
August 30, 2015
Introduction
Eastern Airlines was established and implemented in 2013, headquartered in Cary, NC. The federal government deregulated the airline industry, all companies were afforded the opportunity to compete for passengers by utilizing creative thinking by creating competitive fare structures and tempting routes. Eastern Airlines was implemented since the NC Airlines stopped servicing the local region. During Eastern Airlines first year, the company transported 2,700 passengers, has grown to a regional airline, transporting 20,000 passengers last year. Eastern Airlines has a financial history of profitability, which we would like to see this grow throughout the years.
Purpose
Eastern Airlines is looking to compete and to gain more of the market by redesigning our air crafts and providing the highest type of customer service to all consumers. Eastern Airlines will have a complete make over to utilize the most up to date electronics, informational and aviation technologies to ensure low operating and marketing costs, which will maximize the efficiency of the highest level of customer service and convenience. This will provide the needs and wants in the highest regards to all of our customers. Eastern Airlines wants to become the number one choice in transportation throughout all market segments.
Strategy Statement
‘To implement the best experience to our customers by providing the best customer service and lowest fares within the United States.’
Mission Statement
‘To Provide the best value, best customer service and the lowest fares within the airline market. To achieve this, our employees are part of the company, and customer service is their number one priority. So make it your number one priority and fly with Eastern Airlines.’
Vision Statement
‘Our dedication prevails of striving towards being the best airline in the eyes our customers. Eastern Airlines will provide different and distinctive products that would bring us closer to being number one in our customers, our family. Which in turn Eastern Airline employees and shareholders are considered family, Eastern Airlines would not exist if it was not for the shareholders and employees.’
Rationale:
The evaluation of competing futuristic technology solutions for all of our aircraft; rational of this strategy is to determine the best technology that best fits Eastern Airlines that will offer the best growth opportunity in the future.
The Operating Environment-Tony
Analysis of Eastern Airline’s competitive and operating environments
SWOT Analysis
Strengths
Air Travel
Safety Record
Staff is highly trained
Utilize different types of marketing segments.
Weaknesses
High spoilage rate
Expensive to operate
Bad communication and monitoring
Unable to change schedules due to climate change
Opportunities
Market growth offers opportunities of leisure and different destinations.
Technology can bring cost savings
Possible links to other airlines would increase passenger volume.
Threats
Global down spiral would affect travel
Upward spike in fuel
Government could bring laws and guidelines that cost, or bring international competition in the market
Courses of Action-Tony
Considerations for Achieving Mission, Goals, and Purpose
Eastern Airline’s Competition Framework
PESTE Analysis
· Political Factors
(a) Impacted by issues, such as: war, terrorism, and outbreak of diseases
(b) Deregulation Act of 1978
(c) Antitrust Division’s Civil Enforcement Program past in August, 2013.
· Economic Factors
(a) Fluctuation in oil prices
(b) Industrial output & business confidence
(c) Growth in gross domestic product (GDP)
(d) Disposable income
(e) Consumer confidence
· Social Factors
(a) Retiring baby boomers
(b) Forecasting demand shrinking
(c) future travel preferences decreasing
· Technology Factors
(a) Latest Technology results in lower fuel consumption.
(b) Implementing innovative technology solutions that are utilized by the major regional airports that cut costs in half.
· Environmental Factors
(a) Global Aviation Industry processes 2% of all human –induced carbon dioxide emissions.
(b) Alternative fuels are expected to reduce the aviation carbon footprint of fuel by 80%.
Preliminary Courses of Action
Review current routes: determine- viability, value, and profitability
Review fare structure
Review finance and the possibility of expansion
Review marketing and advertising departments and budgets
Review fuel purchasing-past records
Review employee and training records
Implement charitable foundations
Goals & Objectives
How to accomplish mission?
Shareholder value
Increase Capital
Invest more into employees
Facilities
Innovation
The Rationale
Action Plan
List management and their functions within the company.
Policy and Standard Operating Procedures (SOP)
Go in to a little detail of what the SOP is at a 50,000 feet level
Monitoring progress
What methods would be used?
Summary
References
