Table of contents
1. Introduction
The air power industry is extremely competitory and therefore demands good planned and distinguishable schemes of air hose companies ( airlinetrends. com. 2013 ) . Crucial for the success of such a company is therefore its strategic direction. Carriers need to be cognizant of their strategic place. do strategic picks and set their formulated scheme into action ( Johnson. Whittington & A ; Scholes. 2011 ) . As this is a complex and disputing undertaking. advisers like me assist air hoses with this undertaking. We support companies with their overall operations and guarantee greater profitableness.
Our advice leads to successful and lasting solutions. This study focuses on the success narrative of Air New Zealand. which has been awarded twice as “Airline of the year” by the ATW in 2010 and 2012. The inquiry is: What are the success factors of Air New Zealand and how can the air hose stay competitory? In order to reply this job statement. we will hold a closer expression at the scheme of Air NZ and at its competitory advantage towards rivals such as Qantas. Pacific Blue or JetStar. Afterwards. it will be pointed out. what Air NZ will and should make in order to remain successful and competitory in the hereafter. 2. Methodology
This appraising research seeks to measure the success of Air NZ’s scheme. The above mentioned research inquiries will be answered with a qualitative attack and secondary informations. The issues will be analysed by using appropriate tools and models. The scheme of Air NZ will be evaluated by utilizing the SAF standards. while the competitory advantage of the air hose company will be analysed by Porter’s three ‘generic’ schemes. In order to bespeak which future actions Air NZ should take. its current place in the concern life rhythm will be identified by utilizing Greiner’s growing theoretical account and a SWOT analysis will be applied. Those stairss will take to a consequence based decision and undermentioned recommendations.
2. 1Conceptual map
3. Case background
“Air New Zealand is an international and domestic air hose group which provides air rider and lading conveyance services within New Zealand. every bit good as to and from Australia. the South West Pacific. Asia. North America and the United Kingdom” ( Air New Zealand Ltd. . 2013 ) . The company was founded in 1940 as Tasman Empire Airways Limited ( TEAL ) and was renamed Air New Zealand Limited in 1965. Since 1999 it is full member of the Star Alliance group. Air NZ is based in Auckland and focal points on flights to Los Angeles and Sydney. In entire. it has an operating fleet of 104 planes ( June 2013 ) . dwelling of Jet Aircrafts and Turbo-props. Major stockholders of Air NZ are the New Zealand Government and other investors. Since March 2006 it has a new trade name individuality. which highlights its genuineness as a “Kiwi airline” . CEO Christopher Luxon stresses that Air NZ is an air hose that focuses on the satisfaction of employees and clients. every bit good as on environmental issues ( Air New Zealand Ltd. . 2013 ) .
The working method of Air NZ pays off with high grosss ( NZ $ 4. 486 million in 2012 ) and several awards each twelvemonth. The air hose is awarded for their inventions. such as the Spaceseat or the SkyCouch. for being the best employer and for offering the best ( long-haul ) flights. In 2013. Air NZ has been announced “Winner of the Global Tourism Business Award” by the WTTC ( Air New Zealand Ltd. . 2013 ) . However. most singular is that Air NZ has become “Airline of the Year” twice in three old ages. The planetary air power industry magazine ATW ( Air Transport World ) awarded the company in 2010 and 2012 for their prima place in the industry. The standard which are set by the ATW for winning the award are the undermentioned ( ATW. 2013 ) : • Excellence. invention and leading by executive direction • Strong fiscal subject
• Consistent and first-class safety record
• Proven leading in community. eco and engineering enterprises • Consistent high criterions of client service
• Excellent labour dealingss
ATW’S Chief Editor Geoffrey Thomas stated that “the secret to its success is its changeless reinvention. polish of its merchandise and a dedication to its staff. After developing Skycouch and the Spaceseat. many air hoses would hold taken clip out. Not Air NZ. it’s on to the following project” ( van lair Bergh. 2012 ) . New Zealand’s Prime Minister John Key proudly announced that “Air New Zealand is a critical portion of our touristry infrastructure” ( The New Zealand Herald. 2012 ) . 4. Analysis
Before giving advice to Air NZ. it is necessary to understand their scheme and its ensuing competitory advantage. We will besides take a expression at the planned hereafter actions. before measuring those. 4. 1 The scheme of Air New Zealand
The scheme of the bearer is based on their vision and five guiding rules. The vision statement is: “By making a workplace where everyone is committed to our clients in a distinctively New Zealand manner. we will bask superior industry returns and be the figure one air hose in every market we serve” ( Air New Zealand Ldt. . 2013 ) . The guiding rules are about client satisfaction. competitory advantage and publicity. Besides. they see themselves as being a committed squad and offering an inspiring workplace. Following to those rules. the air hose besides acts harmonizing to their values: “Be welcome as a friend. be yourself. can-do attitude. and portion your New Zealand” . Those values sum up what makes this air hose particular. Air NZ focuses on their clients every bit good as on their employees.
They encourage people to be themselves. move natural and proactive and portion the alone spirit of the state ( Air New Zealand Ldt. . 2013 ) . Air NZ understood that engaged and content employees are important for fulfilling clients. Another major strong point for the airline’s trade name scheme is its changeless advanced attack. Recent inventions of Air NZ are their new self-check-in. an economic system Skycouch and a Premium Economy Spaceseat. Furthermore. the air hose benefits through presenting the Chinese gooseberry trade name experience. which is alone and sets them apart from rivals ( Marque. 2012 ) . The Koru. which is the new logo of the air hose. typify new life. growing. strength and peace and encourages employees to move with “humility. self-respect and authenticity” ( Air New Zealand Ldt. . 2013 ) .
The company clearly states what their scheme is and how they act consequently. It is suited. as it addresses cardinal chances and restraints. such as utilizing new technological developments for their inventions. Furthermore. it is acceptable. as it meets the outlooks of stakeholders ( e. g. authorities. investors. employees ) . has an acceptable degree of hazard and a high return. This can be proved with its awards and grosss. which besides indicate that the scheme is executable. It works in pattern. it can be financed through net incomes and investors and the air hose has qualified and extremely motivated employees and the needed resources. 4. 2 Competitive advantage of Air New Zealand
The rule guidelines of Air NZ province amongst others that they “build competitory advantage in all [ their ] concerns through the creativeness and invention of [ their ] people” ( Air New Zealand Ldt. . 2013 ) . Key advantages of the air hose are its inventions. which are besides good for the economic system category and the fact that they do non merely sell a service. but besides an experience to their clients. Those advantages create superior value for clients and ensuing net incomes for the company. Air NZ achieves competitory advantage through distinction. as it is invariably working on new inventions. such as the Skycouch. and on a more personal attack to their clients.
The competitory range is a wide mark. as they offer flights for economic system and premium clients. From Porter’s three generic schemes. Air NZ makes usage of the distinction scheme. which makes them superior to rivals such as Qantas. JetStar or Pacific Blue. Harmonizing to the industry life rhythm matrix of Arthur D. Little. Air NZ is in a favourable competitory place. as it still needs to be cognizant of the extremely competitory industry. but does hold a prima place ( Johnson. Scholes & A ; Whittington. 2011 ) . 4. 3 Future Actions
The award winning air hose Air NZ is clearly outstanding in the air power industry ; nevertheless. it is still in a phase of growing and in a demand to outrival rivals such as Hawaiian Airlines or the new Qantas-Emirates ( Johnson. Scholes & A ; Whittington. 2011 ) . The air hose will concentrate on developing a Pacific Rim web with bearers in cardinal markets such as Virgin Australia. Cathay and All Nippon Airways. Therefore. it needs to put in aircrafts and new merchandises. Another hereafter program is to acquire entree to the Australian domestic market ( CAPA Centre for Aviation. 2013 ) . Besides. Air NZ provinces in their interim stockholder reappraisal of 2012 that they will maintain on concentrating on “the right markets with the right capacity. utilizing the right aircraft with the right merchandise and supported by the right partnerships” in order to remain successful ( Air New Zealand Ltd. . 2012 ) . Another of import facet to see is the external environment of Air NZ. which influences the industry. Opportunities and menaces ( see Appendix A – SWOT ) are of major importance for the hereafter of the air hose. Opportunities are for illustration new partnerships. new markets or new technological developments. while menaces are for case the economic state of affairs. lifting fuel and labour costs and the strong competition in the air power industry.
5. Decision
To reason. one can state that Air NZ is one of the most successful air hose companies in the universe with strengths that lead to superior value and competitory advantage. The distinction scheme of the bearer is suited. acceptable and executable and leads to their success factors which are its changeless invention. creativeness. its attention for employees. clients and the environment and the reliable “kiwi-experience” they sell. Furthermore. Air NZ acts in conformity with their values and steering rules and achieved already a favorable competitory place in the market.
In order to remain competitory. it is of importance that the air hose carries on moving in conformity with their scheme and reacts to the altering environment. External chances and menaces should be considered for future programs. every bit good as internal strengths and failings. Air New Zealand is already an award winning company. which already achieved its vision to go the figure one air hose. but it still has infinite to develop farther and better its merchandises and services even more. 6. Recommendations
It is recommended that Air NZ keeps on developing their scheme and portfolio in order to remain competitory. It should put in new markets. the fleet. their environmental programs and the recruiting and retaining of staff. Besides. trade name consciousness can be improved by new selling runs and the usage of societal media and a on a regular basis updated web site. Another facet which should be considered is that new inventions which straight affect clients should remain low-cost for the wide mark. Last. unmanageable external factors need to be analysed and considered when developing and implementing the company’s corporate scheme. 7. Restrictions
Due to the limited sum of 2000 words this study has. it was non possible to reply research inquiries in deepness. More analysis tools and models could hold been applied if there had been no word restriction. In general. it was instead hard to compose a consultancy study with no experience as a adviser. particularly refering cognition about the air power industry. However. the short study gives a good overview of the chief findings. Reference list
Airlinetrends. com. ( 2013 ) . Airlinetrends. com hypertext transfer protocol: //www. airlinetrends. com/ ? s=air+new+zealand Air New Zealand Ltd. ( 2013 ) . About Air New Zealand. Retrieved from hypertext transfer protocol: //www. airnewzealand. co. nz/about-air-new-zealand Air New Zealand Ltd. ( 2012 ) . Air New Zealand interim stockholder reappraisal. Retrieved from hypertext transfer protocol: //www. airnewzealand. co. nz/assets/PDFs/Air-New-Zealand-Interim-Analyst- Presentation-2012. pdf
Air New Zealand Ltd. ( 2013 ) . Our vision and rules. Retrieved from hypertext transfer protocol: //careers. airnz. co. nz/about-us/our-vision-and principles/home ; jsessionid=36444F66D43AB91BAC7C466AE2A3D64A ATW. ( 2013 ) . ATW Airline Industry Achievement Awards – Categories. Criteria. How to Nominate. Retrieved from hypertext transfer protocol: //atwonline. com/atw-airline-industry-achievement-awards-categories- criteria-how-nominate
Bergh. new wave lair. R. ( 2012. January 10 ) . Air NZ named air hose of the twelvemonth. Business Day. Retrieved from hypertext transfer protocol: //www. material. co. nz/business/industries/6234569/Air-NZ-named-airline-of-the-year Business Plan International. ( 2013 ) . SWOT matrix for Air New Zealand Ltd company. Retrieved from hypertext transfer protocol: //swot. businessplaninternational. com/companies-swot-analysis/78758-swot- analysis-air-new-zealand-ltd-in-united-states. hypertext markup language CAPA Centre for Aviation. ( 2013 ) . Air New Zealand poised to present on “go beyond” scheme. still confronting stiff competition. Retrieved from hypertext transfer protocol: //centreforaviation. com/analysis/air-new- zealand-poised-to-deliver-on-go-beyond-strategy-still-facing-stiff-competition-103058 Johnson. G. . Scholes. K. & A ; Whittington. R. ( 2011 ) . Researching Strategy. Text & A ; Cases. ( 9th ed. ) . Essex: Pearson Education Limited.
Marque. ( 2012 ) . Air New Zealand played to an built-in competitory trade name strength that none of their rivals could retroflex: the Kiwi experience. Retrieved from hypertext transfer protocol: //marque. co. nz/air-new-zealand-best-airline-in-the-world MBASkool. ( 2012 ) . Air New Zealand. Retrieved from
hypertext transfer protocol: //www. mbaskool. com/brandguide/airlines/5096-air-new-zealand. html The New Zealand Herald. ( 2012 ) . Air NZ wins top air hose ‘Oscar’ for 2nd clip. Retrieved from hypertext transfer protocol: //www. nzherald. co. nz/business/news/article. cfm? c_id=3 & A ; objectid=10777953 Appendix
Appendix A: Swot analysis
STRENGHTS ( internal )
Particular paths to advance trade and selling
Merely air hose that circumnavigates the universe
Organizational construction
Skilled work force
Emergency issue system
Environmental friendly fuel use
Easy online engagement
Strong liquidness place
Strong market place
High gross revenues growing rate
Wide offering ( 16 states. 51 metropoliss )
Fiscal aid of authorities
WEAKNESSES ( internal )
Brand consciousness
Limited operations and market portion due to rivals
Legal proceedings
Operating public presentation
OPPORTUNITIES ( external )
Strategic confederation with Qantas ( strengthen place )
Airline of the twelvemonth award 2010 and 2012 ? trade name image
NZ as common touristry finish
Strategic understanding with Virgin Blue
Technological development in air hose industry
New markets
Turning economic system
New merchandises and services
THREATS ( external )
Strong competition from foreign participants and LCCs
Rigorous ordinances in Airline industry
Increasing fuel cost
Increasing labor cost
Economic crisis
Continued failing in European and Nipponese travel markets
Over capacity
Monetary value alterations
Rising cost of natural stuffs
Beginnings: Air New Zealand interim stockholder reappraisal ( 2012 ) . Business Plan International ( 2013 ) . MBASkool ( 2012 )
