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这个报告主要关注英国-亚洲长期战略合作做采用的相关策略,一个独立的英国航空公司的运营方式总是极具灵活性和创造性的。在全球化的背景下，不断调整其营销策略。这份报告从以下四个方面为我们展示了英国和亚洲长期业务合作的光辉历程：在激烈的市场竞争环境中，什么样的战略业务单位才能够生存?影响一个企业长其发展的重要因素有哪些?有哪些变化?一个企业如何增加其商业价值,如何保持业务的可持续增长，如何稳定企业的战略地位?在这份报告中,你会发现每个方面的关键因素。通过深入分析战略措施、竞争特点、框架结构和行业分析,我们将能够更好地理解企业的业务发展和战略计划。
本文内容 概要。1 前言。3 亚洲市场竞争中企业的运营策略。3 结构框架。3 外部条件的改变影响整个企业全局的发展。6 行业分析。 企业增加市场价值的方法。8 可持续性业务单位的战略地位。9
结论。11
This report focus on the strategies carried out by UK-Asia long haul strategic business unit, an independent unit of British airways conducting its normal operation in the manner of flexibility and creativity. It continually adjusts its marketing strategies under the background of globalization. This report gives us a bright picture of UK-Asia long haul strategic business unit mainly from the following four aspects. What kind of strategies SBU implements to compete in the competitive market. What are the key external drivers of change affecting the SBU. How does the SBU add value and how sustainable is the SBU’s strategic position. In this report, you will find some key findings on each aspect. Through thorough analysis of strategy clock, example of competitive characteristics, as well as PESTLE framework and industry analysis, we will have a better understanding of SBU. Table of Contents Executive summary. 1 Introduction. 3 The Strategies Carried Out by SBU to Compete in the Asia Markets. 3 PESTLE framework. 3 The Key External Divers of Change Affecting the SBU. 6 Industry Analysis. 6 The approaches the SBU employed to add value. 8 The Sustainability of the SBU’s Strategic Position. 9
Conclusion. 11 Introduction
Under the sound speculation that Asia will become the center of global air transport industry before 2020, in particular, China acts as the main driver in pushing such increase. British Airways now shifts its attention on Asian markets. This report gives us some information about UK-Asia long haul strategic business unit especially in the 21st century. Here some strategies adopted by SBU to compete its competitors in penetrating into Asia markets are listed. These strategies mainly involves in political, economic, environmental and educational factors. Also, we should grasp deep information about our potential competitors for the sake of identifying their advantages and disadvantages s well as ours. This reports also displays us SBU adds value by lowing the costs, improving customer services and some key external drivers of change affecting SBU, such as advancement of technology, high quality of the SBU’s competitors’ staff, demanding for airport transportation, and diverse management. Finally this report provides us with some achievements the SBU so far has obtained which proves that how sustainable is the SBU’s strategic position. The Strategies Carried Out by SBU to Compete in the Asia Markets
First, let us perceive strategies adopted by the SBU from economic perspective, in the harsh reality, with the devastating impact of rising oil price in recent years, reduction in the cost has been a necessary for the airline. As for the SBU, great efforts have been made to cut down cost on each structure. For example, the SBU lays emphasis on reducing labor cost. A series of airplanes with huge capacity and great efficiency have been imported to lower the cost on airplane operation. Meanwhile, the SBU expand actively its industry in the emerging markets in Asia with an enormous demand for airline transportation. The SBU avails itself of this commercial opportunity to increase operation revenue. (Goolsbee & Syverson, 2008) Here are some data on the cost of oil in the past ten years and this year. Ten years ago, the cost of oil was approximately 10 percent to 13 percent of the total operation costs. At that time the oil price was 25 dollars. However, today’s oil cost accounts for 30 percent of the total operation costs of IAG. It is forecasted that the total oil cost will increase by 1 billion Euros. Therefore, facing with the SBU is still a tough challenge. (Bathgate, 2003)
From political perspective, to penetrate into Asian markets, the SBU has conducted a series of successful polities to establish friendly relationship and business cooperation between Asian countries. This year, on May 21, the SBU made an official announcement of its renewal of air route direct from Seoul to London after ceasing this route in 1998 due to Asian financial crisis. This decision was made on account of increasingly growth of passenger flow volume especially in tourism. Therefore, free trade agreements have been reached between British and South Korea. A few days later, joint operation of Japan-European route by British Airways and Japanese Airways was approved by Japanese government against monopoly. On some certain gold routs, joint operation has been conducted to establish coordinated flight schedule, fixed tickets fare and reasonable allocation of revenue to realize the maximum of profits. Except for Japan and South Korea, China is definitely a crucial linkage in the SBU’s UK-Asia long haul strategy. In recent years, with the rapid development of Sino-British trade and tourism, British policy of issuing visa to Chinese citizens has been gradually loosened with an annual growth rate of 30 percent and more than 90 percent of the Chinese citizens have gained approval from British. All these provide huge developing chance for the SBU. Beijing and Shanghai are still the prime operation targets and the SBU’s priority is given to increasing the frequency of flights in both cities. (Peter & Tomi, 2012) The SBU will add one flight to each city with the arrival of winter. What’s more, plans with huge capacity were put into operation in place of the previous ones, such as substituting Boeing 747 for Boeing 777 on the route from Beijing to London, and replacing Boeing 777-200 with Boeing 777-300ER on the route from Shanghai to London. Under such circumstance, capacity has been increased by 30 percent. The SBU also plans to import Boeing 787 in the next year, which offers Chinese second-tier cities, such as Chengdu, Chongqing and Guangzhou the chance to operate airline flights. Now the SBU is considering cooperating with Chinese Airlines and keeping an intimate relationship with Chinese Airlines including China Southern Airlines and China Eastern Airlines. (URL, 2012) This is one of its competitive advantages and relatively difficult for its competitors to imitate because of the advanced technology the SBU acquires.
In terms of quality service, the SBU plans to make investment in upgrading hardware and software facilities in the coming five years with 5 billion pounds to improve service. Specific measures include importing the latest Boeing 777, upgrading seats in tourist class and business class and upgrading entertainment system.(URL, 2012) Meanwhile, it has established long-term cooperation with five-star hotels aimed to offer more humanization service. Such kind of service is relatively less competitive compared to the services provide by our competitors. It is relatively easy for them to imitate the SBU’s outstanding customer service. Resource/Competence Framework
As we can see in the above analysis, one of the key external divers is the rapid advancement of technology. The presence of new Boeing 777-300ERs with the improved fuel efficiency and environmental performance promotes necessary change affecting the SBU. Another key external driver is the improved customer services of its competitors around the world. To attract more customers, many Airlines continually to improve their premium customer services by offering customers unique outstanding services. To catch up with others, we, despite the tough environment and challenging industrial see a huge commitment to the success of UK-Asia long haul strategic business unit including high levels of volunteering to support the operation. The SBU works hard to boost the engagement right, rallying its staff with a drive toward even greater customer service. (Dobson & Piga 2008) It enshrines the customer-centric outlook service into the mind of its staff. Correspondingly, it increasingly adopts the performance-related payment. Last but not least, the huge demand for air transportation in Asian markets with the increasing number of people who prefer this transportation on their business trip or travel spurs the SBU to penetrate into Asian markets.
The approaches the SBU employed to add value To achieve the maximum of profitability, the SBU initiates a series of innovative measures. Great emphasis has been placed on improving customer services. For instance, the seats of the air planes are now more comfortable than ever before and the entertainment system has been all the time upgraded. Whilst, more humanization services have been served, for example, one huge investment made by the SBU is to integrate different information systems. In the past, airline tickets booking system, frequent customers system and customer service system were separate. Now the integration of these systems provides customers with more convenience. This can be seen in the IPAD system which records all the necessary information about passengers such as their names, seats numbers and likes, special requirements for food, drinks as well as all the details during the tour.( Peters 2006) All these quality services aim to add value. Here is the strategy clock which gives us a better comprehension of how to add value for the SBU.#p#分页标题#e#
From this strategy clock, it is safe to arrive at the conclusion that the SBU should lay great emphasis on differentiated tickets fare. To augment profitability, differentiated services are priced at different levels. (Nicoletta & Marco 2009), According to different needs of passengers, some price-sensitive passengers are only intent to get to the destination. As for these customers, the SBU offers low transparent fare providing them with basic service. In this way it is able to sustain high passenger volume. To drive revenue, ancillary services have been provided by the SBU selling food, drinks, merchandise and in-flight entertainments on a user-pay basis. For other core passengers with higher requirement for quality services and no care for spending, the SBU offers them first-rate services as much as possible, fully exploiting its capabilities and assess.( Rajan, 2010). The infrastructure in their planes is the best. For these passengers, the SBU gives them a high price. Another approach to add value is to lower the cost. As for the SBU, great efforts have been made to cut down cost on each structure. For example, the SBU lays emphasis on reducing operation cost. A series of airplanes with huge capacity and great efficiency have been imported to lower the cost on airplane operation. Furthermore, for long haul flight, the SBU reduces the number of landing during the whole flight for landing needs much oil.
The Sustainability of the SBU’s Strategic Position The following is value chain which displays how the SBU sustain its strategic position from different aspects.
Considering this issue from different lights, the SBU’s position is sustainable in the present fierce marketplaces. To gain the leading position in the world, especially under the background of globalization, the SBU tries to acquaint some accurate information about their competitors with themselves. By comparing and analyzing the strategies of their counterparts, the SBU is able to put forward more innovative and constructive strategies which bring forth much more profitability. Put it in detail, the SBU meticulously studies the competitive advantages and competence of its counterparts, which aspects its competitors do better, while which fronts its competitors put less attention to and so far still being untapped.(Betts.2001) Correspondingly, it makes reasonable strategies which can fully exploit its capabilities and resources. From this regard, the strategies are feasible and suitable for its long-time development, allying with the SBU’s strategic direction. For instance, the reduction in cost by cutting down the number of stops during long haul flight, putting latest airplanes with fuel efficiency and huge capacity into operation is an advisable tactic. Other tactics such like adopting differentiated tickets fare and establishing cooperation with other domestic Airlines are initiated and executed under the SBU’s strategic direction. They all instill vigor into the sustainability of the SBU’s strategic position. Conclusion
Taking what have been discussed above into consideration, the strategies of the SBU are in the right strategic direction. From the lights on which the SBU put tremendous energy when it works on concrete measures, there are a lot for us to learn from. Adding value by lowering the costs and providing ancillary service of high quality is a successful strategy. It is the humanization service that is worthy of being employed by other companies whatever businesses they do. Through thorough analysis of strategy clock, example of competitive characteristics, as well as PESTLE framework and industry analysis, the SBU has a profound comprehension of what the situation is now in the world and which position it is. Taking advantage of advanced technology and information technology is another light spot in the SBU’s strategies. The advanced technology allows the SBU to use new Boeing 777-300ERs with the improved fuel efficiency and environmental performance, which bring about huge profits. The updating information technology gives the SBU access to install latest IPAD system which records all the necessary information about passengers such as their names, seats numbers and likes, special requirements for food, drinks as well as all the details during the tour. Meanwhile, the key external divers of change play a significant role in affecting the SBU, such as the advancement of technology, the high quality of its competitors’ staff, the demanding for airport transportation, and diverse management. All in all, the SBU’s strategic position is sustainable. Reference list Bathgate I. (2003), “Designing pricing and strategies and programs”. Lecture notes, University of East London Dobson, P. & Piga, C.(2008) "Mergers and business model assimilation: evidence from low-cost airline takeovers.” RePEc Discussion Paper Series, N.2008-12, Loughborough University, UK. Goolsbee, & Syverson,(2008) “How do incumbents respond to the threat of entry? ” [J], p.23-45 J.T.Betts.(2001), “Practical methods for optimal control using nonlinear programming”, SIAM Press, Philadelphia Nicoletta Corrocher & Marco Guerzoni (2009), “Product variety and price strategy in the ski manufacturing industry”, [J], Volume 19, Number 4, p.37-45 Peters (2006) “Evaluating the performance of merger simulation: evidence from the US airline industry", Journal of Law and Economics, 49 (2006), pp. 627–649 Peter Gabrielsson & Tomi Seppälä. (2012) “Marketing Strategies for Foreign Expansion of Companies Originating in Small and Open Economies: The Consequences of Strategic Fit and Performance”. [J], Volume 23, Number 3 Rajan Varadarajan. (2010). “ Strategic marketing and marketing strategy: domain, definition, fundamental issues and fundamental premises” [J], Volume 38, Number 2 (2010), p.119-140 |
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