Eva Airlines Case Study
Strategic Evaluation Ansof analysis BCG matrix Pestel analysis 4. SWOT Analysis 5. Recommendations Executive Summary Eva Air Corporation is an international airline based in Taiwan with their operation base being the Taoyuan Airport in Taipei. The airline is a company specializing in dedicated cargo and passenger services in over 40 worldwide destinations in North America, Asia, Europe, and Australia. Eva airline is a privately owned company but flies in international recognized routes. The Airbus A330, 321 and Boeing 777 are used primarily in carrying passengers with the Boeings 747-400 and 777 being used as cargo carriers. In terms of classes, the carrier was among the first airlines to introduce the premium economy class. In improving the market positioning of the company, it floated its initial public offer on the stock exchange of Taiwan in 2001.
Initially, the shares traded over the counter comprised of one percent with the rest being held by Evergreen Company as the parent company. In the following year, the company experienced turbulent corporate changes with major staff layoffs and streamlined management, a process occasioned by the Asian financial crisis of 1997. This is an international airline carrier founded in the year 1946, with their headquarters being Hong Kong. The company has its operations spread out in almost 42 nations worldwide and provides cargo as well as passenger services in around 162 routes. In addition to that, the company serves a large consumer market owing to their defining consumer segments (The Journal of Commerce, 2012). This company offers similar passenger and cargo services and enjoys international carrier routes similar to Eva Airline.
The airline is also the reigning champion in the Skytrax ratings of major and best airlines in the industry. In that year also, the airline announced its expansion plan of acquiring up to 24 Boeing Dreamliners and additional jetliners in order to meet their expanding passenger networks and flights. In 2016, the airline received Skytrax-5-star rating in recognition of their ambitious plan along with other prestigious Asian airlines. Strategic Evaluation The Ansof matrix The Ansof matrix was developed in 1957, it has offered business executives and marketers a simple, and quick way of thinking about risks arising from growth. It is also referred to as product/market expansion grid and it highlights four strategies that can be used to each type of risk.
Market penetration is the first strategy and represents the safest of all the options and the focus is on increasing the sales of the existing brand, service or product in the current market (Stone, 2011). This is because a new product or service is being introduced in a new market that may not understand the use of the product. Almost every company diversifies in one way or another for it to withstand any economic downturn. Porter’s Five Forces The Porter’s five forces is a powerful yet a simple tool for understanding the level of competition enjoyed by one’s business environment. It is also suitable for identifying the possible returns from the current strategy. One of the forces in the Porter’s model is the threat of new entrants, where new players and entrants into the market bring a tilt in market force of the industry.
It assists the business in considering the various growth opportunities by reviewing the available products and thereafter decide where to invest, discontinue their services or products (Griffin, 2015). The matrix contains four symbols each representing a certain strategy. The first representation is a dog connoting products and services with low market share. The second is the question marks representing services with high growth rates but have low market segment. The third symbol is the stars showing services with high growth markets and huge market share. This factor affects the operations of a business and the profitability enjoyed by the company. Examples of economic factors include interest rates, inflation, economic growth and disposable income available to businesses and consumers. The economic factors can be divided further into micro and macro factors.
Micro factors refer to the way consumers spend their earning while macro factors refer to how the economy is managed. Eva airline continues to realise profits from their business implying that economic factors in Taiwan are favourable and both micro and macro-economic factors are well managed enabling both consumers and businesses to possess adequate disposable income. The airline has employed technology in their operations including support and maintenance of their aircrafts. Ticketing and booking is possible through online means, helping reach to more customers that are global. Since 1998, the airline has collaborated with General Electric in implementing a one-of-a kind heavy-duty maintenance and airplane overhaul service that ensures safety in the aircrafts thereby enhancing efficiency in their operations (Fleisher, & Bensoussan, 2015). The fifth component is the environment factors, and this has come into play in the last twenty years.
The environmental factors have become important due to scarcity of raw materials, and increasing pollution affecting the ethical way of doing business. Strengths One strength of Eva airline is that it is very competitive in business. The airline has managed to feud-off competition from established Asian airlines and built its market niche from scratch. This gives it is a broader appeal to the airline industry. In addition to that, the airline has managed to build an appealing brand that is embraced by various global clientele who seek to sue their services. The other strength of the airline is noble management. However, it can expand this network by flying in new areas such as Africa where they do not operate. The Africa continent is experiencing rapid growth and the world superpowers and business investors are turning their attention into Africa.
The airline can tap on this by starting flights into major African cities such as Johannesburg, Cairo and Nairobi. Threats At no one time has, ever a single company dominated the market without facing some threats in its operations. One such threat faced by Eva airline is the surge in global fuel prices that drives the cost of doing business up. To overcome this risk, Eva Airline needs to have a vibrant human resource management system that rewards hard work and innovation. The training of the workforce needs to be based on merit and contribution of each person in the growth agenda of the company. References Baumann, C. International marketing plan for volkswagen. Place of publication not identified: Grin Verlag Ohg.
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