Airline Industry Strategic Management Assignment

1983 Words8 Pages
MBA: Strategic Management

Assignment

Introduction

Markets differ in a variety of ways including the degree of concentration and competitiveness, a fact which is reflected in the concept of ‘market structure’. Economists’ models link the structural characteristics of a market to the behaviour of firms in that market and subsequently to their performance. A key question therefore is how far a firm’s strategic decisions are shaped by the structure of the market in which it operates.

You are required to undertake a detailed examination of the changing nature of the long-haul transatlantic airline market. The market you are required to investigate comprises only the international passenger market (i.e. excluding the movement of goods by air) and will require you to discuss the existing market structure, examine the changing external environment and consider the emerging strategy of the airline operators in this sector.

A recent article is attached for your information; “Zoom to Gloom”, which provides one illustration of the current turbulent environment for the industry sector.

Attempt all the four tasks below and present your findings in the form of a report (3,000-4,000 words) divided into appropriate sections. Your report should also contain an Executive Summary (250 words) and a bibliography. Further details on the procedure you are required to follow are set out below. You might also find the attached article useful in providing background information on recent developments.

Tasks

1. Having looked at the recent turbulent environment in the long-haul transatlantic sector, you are required to undertake a comprehensive examination of the macroeconomic business environment, using appropriate tools of analysis which...

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...major Canadian and British cities plus Paris. Zoom Airlines Ltd is formed in Gatwick for US-UK routes.

2006 The Boyle brothers strike a £5.7m deal with Bank of Scotland Growth Equity to open up longer-haul routes from London to the US, Mexico and Bermuda.

2007 As revealed in Scotland on Sunday, brokers Collins Stewart and Panmure Gordon are asked by the management of Zoom to explore the possibility of a flotation. The plan is for the starting price to be around £85m.

January 2008 At the beginning of January, oil breaks through the landmark $100 a barrel, driven by a slumping dollar, geopolitical instability and worries over a winter fuel supply crunch. The price of aviation fuel soars.

August 28, 2008 Zoom Airlines files for bankruptcy, grounds planes stung by sky-high fuel costs and cancels all flights, leaving hundreds of passengers stranded at airports.
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