South African Air Airlines Case Study
1. EXECUTIVE SUMMARY
This essay reviews the challenges faced by South African Airways SAA (PTY) Ltd recently.
The company is in the airline business and carries about six million passengers annually
Over the past three years the company has been undergoing a range of restructuring initiatives to mitigate its operational challenges and loss-making position.
South African Airways (SAA) is owned solely by the South African Government and is governed through the Department of Public Enterprises. The Airline has been in operation for 80 years. The SAA brand is very strong in the domestic market and in the continent.
The airline recently expanded routes and now flies to 37 destinations in 26 countries worldwide and also has a fleet of 50 aircrafts.
…show more content…
Existing competitive rivalry between suppliers
2. Threat of new market entrants
3. Bargaining power of buyers
4. Power of suppliers
5. Threat of substitute products (including technology change)
Threat of New Entrants: looks at the extent to which new players can enter the market.
The airline catering business is a capital intensive business and it is no surprise that the biggest barrier to entry in this industry is access to financing. A large some of funds are required to cover the high costs. Therefore the threat of entry by competitive entrants is low. Solid management experience and skills are very scarce in this competitive environment.
Power of Suppliers.
There are enough suppliers to the catering companies, to dilute the bargaining power. However the limited pull of experienced management and top notch chefs places the company, in terms of salaries in a weaker position.
Power of Buyers- it’s the degree to which buyers can switch from one supplier to another. While there are not many players in the Southern African regions’, buyer power is high as switching costs are relatively
Swot Analysis Of Air Canada
1235 Words | 5 PagesAssignment #1 Introduction Air Canada was established in 1937, provides scheduled and charter air transport for passengers and cargo to 182 destinations worldwide. It is the largest airline of Canada by fleet size and passengers carried. Air Canada is governed by an eleven-member Board of Directors committed to meeting high standards of corporate governance in all aspects of the Corporation’s affairs. Our Mission – “Connecting Canada and the World” Our Vision – “Building loyalty through passion and innovation” PESTEL Analysis: Political Factors: "The 'Open Skies Agreement ' between governments of US and Canada in March 2007 came into action as it liberalized the air transportation services.
Capsim Porter's Five Forces
506 Words | 3 PagesA supplier with strong bargaining power has the advantage of charging their price higher or selling low quality of the product to them. The bargaining power of suppliers will be low as there are many suppliers in the market offers similar products and this allows courts to switch to other suppliers that offer lower cost. Intensity of rivalry within industry High Threat Competitors in the industries There are quite a number of businesses involve home furnishing and electrical appliance.
Pantry Case Study Summary
3865 Words | 16 Pages6 Bargaining Power of Buyers…………………………………………………………….. Bargaining Power of Suppliers…………………………………………………………... Threat of Substitutes……………………………………………………………………... Financial Analysis Balance Sheet………………………………………………………………………… Income Statement……………………………………………………………………… Dupont Analysis………………………………………………………………………. Liquidity Ratio…………………………………………………………………………
Walmart Environmental Analysis
874 Words | 4 PagesThreat of new entrants refers to new companies in the retail industry. Customers may switch to other grocery stores. The entrance for the grocery industry is relatively low. Therefore, threat of new entrants is a major factor that affects the performance of
Transnational Strategy Of Lufthansa
1545 Words | 7 PagesFor worldwide airline industry, opportunities can emerge from new client expectations, items, business sector structures or regulatory
What Is The Primary Market Segment For 1-D Acuvue
1137 Words | 5 Pages3Cs (Customer) The differentiation value of 1-D Acuvue is convenience and the comfort of the product and less medical complications and hence unscheduled visitors to the opticians. Taking into consideration the past experience of the patients using VCP, the most likely potential users of 1 Day Acutuve will be current disposable lens users, However, despite the high potential the trial launch in western states has proven that the majority of patients are so-called “part-time users”, those who use both type of vision correction products (VCP): spectacles and lenses, with the average use of contact lenses being 4.4 days a week. Therefore the the primary market segment for 1-D Acuvue should be the the part-time contact lens wearer (~4 million
Porter's Five Forces Model
805 Words | 4 PagesThe Porter five force model looks at the following aspects: 1. The level of rivalry in the market 2. The availability of substitute products 3. The threat of new entrants that may join the market 4. The power of buyers
Swot Analysis Of Virgin Australia Airlines
2186 Words | 9 PagesThe inauguration of Virgin Australia Airlines, by Sir Richard Branson, as a domestic carrier in 2000 basically aimed at the convenience of the budget travelers. The Airlines was inaugurated as relaxed informal airline. Sir Richard was open-minded, amiable, and generous with his management team, imaginative, audacious and exclusive in his thoughtfulness. Initially started as a low-cost carrier, the company improved its services to turn itself into a “new-world carrier” as described by themselves (Virgin Blue media release, 2011, para. 2).However all these faltered when Qantas’ past marketing manager took over during 2011.
Porter's Five Forces For Bicycle Industry
724 Words | 3 Pages2.2 Industry Analysis - Porter’s 5 Forces Analysis Threat of Substitutes Bicycles and services from unknown manufacturers can provide huge substitution threats. Just as alarming for bicycle manufacturers is the internet: it is developing as an excellent medium for cheap marketing services. The price that consumer are willing to pay for a product is depends the quantity and the availability of substitute products. When a close substitute for a product is exist, industry profitability is suppressed because consumer will pick out if the price are high. Example consumer will compare the price of other bicycles with this bicycle in terms of quality and appearance, a customer can easily get another bicycle which is less difference but in more cheaper
Political Factors Affecting Apple Inc
2108 Words | 9 PagesThe framework is designed to identify the opportunities and threats within an industry. The five forces are mainly the threat of new entry, supplier power, buyer power, threat of substitution and lastly, competitive rivalry. Apple portrays a significant role in four major businesses, more specifically, the “communication equipment industry, the music and video industry, the mobile phones industry and the personal computer industry” (UKEssays). In terms of
Porter's Five Forces In The Oil And Gas Industry
1601 Words | 7 PagesThreat of Substitutes 4. Bargaining Power of Buyers 5. Power vested by Suppliers 1. Competitive Rivalry: According to Porter the competitiveness in any sector is significantly increased by the number of players operating in the field and their major competencies.
External Factors In The Hospitality Industry
1245 Words | 5 PagesEvery industry to include the hospitality industry is impacted by external factors which directly influence organizational behavior and decision making. There are numerous factors to be considered, but political, economic, and social are three of the most influential. These outside factors sway managerial operational decisions daily regarding personnel, spending, policy, and short-term and long-term strategic planning concerning both core and exterior operations. As within every industry, the hospitality industry has unmanageable elements that affect management or ownership of hospitality establishments (Lewis 2017). Understanding these factors is important because it provides an opportunity for contingency planning (Lewis, 2017).
Singapore Airlines Case Study
3552 Words | 15 Pages1.0 Introduction to Strategic Management Strategic management practices the formation; achievement and reaching the major objectives executed by the management of the company, by considering the capital and a task of the internal and external environments in which the company wishes to compete. 1.1 Introduction to Singapore Airlines Singapore Airlines (SIA) is established in year 1972 with remarkable performance among its competitors in the industry throughout its 35-year-long history till date (Heracleous & Wirtz, 2009). According to Singapore Airlines (2014), SIA is one of the youngest aircraft fleets worldwide to destinations crossing a network of more six continents, with its iconic Singapore Girl providing excellent standard of service to customers. Throughout the years of operations, SIA has an impressive ever-growing list of industry 's leading innovations such as offering free headsets along with a choice of meals and drinks in Economy Class in the 1970s, followed by introducing satellite based in-flight telephones in year 1991, involving an ample panel of renowned chefs, the International Culinary Panel, to provide lush in-flight meals in year 1998, developing audio and video on demand (AVOD) capabilities on KrisWorld in year 2001, and lastly flying the airbus of A380 from Singapore to Sydney on 25 October 2007 (Singapore Airlines, 2014).
Malaysia Airlines Case Study
893 Words | 4 PagesUntil today, this incident is still affecting Malaysia Airlines in different aspects. Especially, on their corporate image, reputation and finance. Not only Malaysia Airlines, but the image and reputation of our country are also being affected because Malaysia Airlines have strong bonding with the government and they as a representative role stood out to speak for Malaysia Airlines. Malaysia government had given a very bad impression to others on their crisis management and crisis communications. Experts criticized their crisis management by saying “crisis in managing crisis” and “make a crisis worst” due to their failure in crisis communications.
Swot Analysis Of Wimpy
1862 Words | 8 PagesSecondly, Porter’s Five Forces Model is used to analyse the level of rivalry in the market, the attractiveness for potential new entrants, the power of suppliers, the power of buyers and the threat of substitution. This will allow us to see a holistic view of the industry in the market environment. Thirdly, the PESTLE framework is used to analyse the factors within the macro environment that are influencing
More about South African Air Airlines Case Study
Swot Analysis Of Air Canada
1235 Words | 5 PagesCapsim Porter's Five Forces
506 Words | 3 PagesPantry Case Study Summary
3865 Words | 16 PagesWalmart Environmental Analysis
874 Words | 4 PagesTransnational Strategy Of Lufthansa
1545 Words | 7 PagesWhat Is The Primary Market Segment For 1-D Acuvue
1137 Words | 5 PagesPorter's Five Forces Model
805 Words | 4 PagesSwot Analysis Of Virgin Australia Airlines
2186 Words | 9 PagesPorter's Five Forces For Bicycle Industry
724 Words | 3 PagesPolitical Factors Affecting Apple Inc
2108 Words | 9 PagesPorter's Five Forces In The Oil And Gas Industry
1601 Words | 7 PagesExternal Factors In The Hospitality Industry
1245 Words | 5 PagesSingapore Airlines Case Study
3552 Words | 15 PagesMalaysia Airlines Case Study
893 Words | 4 PagesSwot Analysis Of Wimpy
1862 Words | 8 Pages