...Porter’s ‘Five Forces’ analysis Threat of new entrants (High – 7/10) In 1987, the European airlines industry has started to experience a major changes in the air traffic regulation when the European Commission announced a vast deregulation in the industry. Indeed, packages of deregulation measures have included (Mintel, 2008): To limit the right of governments, for example, to prevent the introduction of new fares, and gave some flexibility to airlines concerning seat capacity sharing; To open up the market further, allowing the right to carry passengers from one’s own country to another and the right to carry passengers from another country to one’s own to all EU carriers and offering greater flexibility for the setting of fares and capacity sharing. To give all EU carriers the right to take an unlimited number of passengers or cargo between their home country and another EU country; To introduce the freedom to offer services within the EU and the right to practise the transport of passengers and goods within the national boundaries of another member state; To allow airlines the full freedom to set competitive fares, as airlines were no longer required to submit their fares to national authorities for approval. This liberalised market prepared the ground for the emergence of low-cost airlines, and thus making the barriers to entry lower and the threat of new entrants high. Moreover, the access to the industry distribution channel has become easy throughout...
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...Charles Ferguson and narrated by Matt Damon, the movie is not a piece of muckraking or breathless support. It rests its infuriation on proper reason, research, figures and careful argument. Several interviews of eminent personalities from political, financial and academic backgrounds, along with news clips and aerial shots of New York, Iceland, London and other disaster areas — are all in there! Though dealing with a very complex issue, the movie has beautifully dealt with the topic and made it much easier for common man to understand the reason behind the nerve wrecking recent financial crisis that hit USA and then the world’s economy. The film is divided into five main parts, covering a wide scope- Who, what, when, why, how… it is all answered! Unlike most other documentaries that have been released over the past several years, ‘inside job’ bases its arguments on numbers and facts and doesn't just emotions. The first part of the movie- “How we got here?” Takes the viewers back to history in the 1930s when US had a strong financial system. The regular banks were local businesses and were not allowed to mess around with the depositor’s money. The investment banks were private partnerships and thus did not make risky investments. The journey of US’s finance and banking sector towards its own self destruction began under the regime of president Ronald Reagan...
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...argument. Several interviews of eminent personalities from political, financial and academic backgrounds, along with news clips and aerial shots of New York, Iceland, London and other disaster areas — are all in there! Though dealing with a very complex issue, the movie has beautifully dealt with the topic and made it much easier for common man to understand the reason behind the nerve wrecking recent financial crisis that hit USA and then the world’s economy. The film is divided into five main parts, covering a wide scope- Who, what, when, why, how… it is all answered! Unlike most other documentaries that have been released over the past several years, ‘inside job’ bases its arguments on numbers and facts and doesn't just emotions. The first part of the movie- “How we got here?” Takes the viewers back to history in the 1930s when US had a strong financial system. The regular banks were local businesses and were not allowed to mess around with the depositor’s money. The investment banks were private partnerships and thus did not make risky investments. The journey of US’s finance and banking sector towards its own self destruction began under the regime of president Ronald Reagan who introduced a lot of deregulation policies which continued under the Clinton and Bush administration as well, with the advice of the likes of Alan Greenspan, Larry Summers and Robert Rubin. Abolition of the ‘Glass Steagall Act’, banning regulation of...
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...Reagan Doctrine took the United States cold war plan into Third World Countries and provided military and economic support to various dictatorships in these countries to help aid the resistance of any revolutionary movement. He also armed oppositional armies so that they may rise up against any pro-Soviet government. The outcome of all of Reagan’s efforts was an unprecedented decline in communism throughout Eastern and Central Europe. Reagans Economic Policies Reagan’s economic policies are known as Reaganomics. His economic policies were based on the supply side economics theory. The supply side economics theory states that tax cuts embolden economic growth that ultimately broadens the tax base. The increased revenue from...
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...How did the deregulation of air transportation in Europe foster entrepreneurial behavior and innovation in the European airline industry over the last twenty years? Case studies: SAS Airline & Ryanair Master Thesis in Entrepreneurship and Dynamic Business Contexts Spring 2007 Supervisor: Håkan Bohman Entrepreneurship Master Program Authors: Gilles Helterlin and Nuno Ramalho Acknowledgements We would like to express our gratitude to all who have contributed to the realization of this Master Thesis. A warm thank to our supervisor, Håkan Bohman from USBE (Umeå School of Business), for his guidance, his precious help and his advises during the last months. To Mr. Lundvall, from LFV (Luftfartsverket), Mr. Valinger from Scandinavian Airline and Mr. Wilsberg from SAS Braathens, Jessica Eriksson and Thomas Pettersson from USBE, thank you for your availability, willingness in answering our questions and for their so precious collaboration with interviews, comments and suggestions. Thank you also Sweden for the wonderful moments we have spent here. We will never forget your nature (your elks), your cold winter (-30°C), your long nights in winter and your short nights in late spring!! It has been a great experience and adventure up there in Northern Sweden!! We will miss you… Finally we would like to thank particularly the Studentexpedition for its kindness, without forgetting our family and friends (from Sweden, France, Portugal and Greece) for their everlasting daily support...
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...Delhi Business Review X Vol. 5, No. 1, January - June 2004 STRATEGIC INDUSTRY STRATEGIC ISSUES IN THE AIRLINE INDUSTRY AND SINGAPORE INTERNATION THE ROLE OF SING APORE INTERNATIO NAL AIRLINES Amit C. Kamath * Jonas Tornquist ** I NTRODUCTION THIS case study investigates the strategic environment of the airline industry operates. In particular, the role of Singapore International Airlines (SIA) in the global airline industry is considered. The study uses the concept of the “Three Ring Circus” (KCI , 2002), as an overarching framework, whereby the Past, the Present and the PFuture is used for studying the strategic issues in the airline industry and SIA. The past focuses on the key strategic drivers in the airline industry over the past 10-20 years and provides a historic industry overview. The present serves the role of looking at the airline industry and SIA’s present strategic drivers and what is important to consider in this environment. The Possible Futures, or PFutures, looks at what potential drivers or strategic advantages may be present in future, and how SIA is responding to some of these issues. The research in this project is mainly qualitative. It is based on interviews with key people within the airline industry, government officials, industry analysts and stakeholders. The analysis is also based on a review of the airline industry literature as well as the personal reflections of the authors in drawing together some key issues and insights that may...
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...Human trafficking is regarded as modern day slavery because individuals are put into situations where they have no legal rights whether from illegal immigration or lack of laws in the country. It is unfortunate that the United States of America is notorious for its large security and army, yet hold the world’s leading trafficking issue with “fourteen thousand people trafficked into its border every day” (Human Trafficking, para.4). The root factor affecting the victims is illegal immigration because it allows for their leaders to exploit them without repercussions because they are not in the system. Canada and developed countries have attempted to create anti-trafficking legislation which is increasing the vulnerability of women. The government legislation persuades traffickers to take risky journeys into deserts leading to the death of hundreds of individuals each year (Sharma, Yee, para 15). It is important that policies are created to protect the victims rather than enforce more problems. Moreover, it is not enough to implicate the trafficker policies to be made to help easily decriminalize these victims from illegal status. The United Nations are blameable for the growing rate of this problem as trafficking infringes on charter rights and freedoms. Both the Charter of the United...
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...Americans due to cost-effectiveness and timesaving characteristics. From 1980 to 1990 the number of passengers traveling by air increased by approximately 72%, in contrast, in the 1990-1998 period, the airline industry only experienced 36% growth. Furthermore, during 1965-1978, the government regulated the airline industry by forcing artificial wage increases and artificial price levels. In the postderegulation era, labor negotiations were the cause of many labor strikes. The big carriers have tried to cut costs, but have been constrained by strong union opposition. For example, “Unions have fought against moves to shift unprofitable routes to lower cost regional jets with lower paid pilots.” Confronted with cut-throat competition, particularly from low-cost rivals such as Southwest, now America's fourth largest carrier in terms of traffic flown, the big airlines have found themselves caught traditional fare wars that cut into their already slim profit margins. The domestic airline industry in the United States is characterized by intense rivalry and low profit margins. Through product differentiation and a strategy of low cost and no frills, Southwest has been successful in distinguishing itself from its competitors in order to sustain profitability in this aggressive industry. Industry Analysis Since the Airline Deregulation Act of 1978, the airline industry has endured a number of years of low profitability. “Deregulation sent airline fares tumbling and allowed many new firms to enter...
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...the transport cost per km for a truck-trailer is between US$0.75 and US$ 1.25. For a typical load of 20 tonnes, this works out at US cents 4-6 per tonne km. By contrast efficient small-scale transport in rural areas using small trucks may have a cost of US$ 0.20-0.30 per tonne-km, although it is common for the rates to be expressed on an hourly rather than km basis. Inefficient operations may push these costs much higher. Main factors that affect trucking costs are • economies of scale in truck size, which favor the use of larger trucks, • back-haul possibilities, which depend strongly on the demand pattern, • empty running and idle time due to seasonal variations in demand, • restrictions on working hours, for example due to regulations or safety reasons, • road conditions such as mountainous terrain, deteriorated pavement and traffic congestion, • enforcement procedures along the road and at border posts, which can delay trucks and impose high unofficial payments, • standard of trucks, in terms of design and condition, which affects speed, availability and consumption rates for fuel, spares and other inputs, • availability of freight forwarding and other services, which is often poor in remote areas, • quality of service offered (specialized freight services may involve higher costs), • input or...
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...FUEL SUBSIDY REMOVAL AND THE NIGERIAN ECONOMY (A CASE STUDY OF ABAKILIKI LOCAL GOVERNMENT AREA, EBONYI STATE) BY NKWAGU OLUCHI WINIFRED PA/2008/182 DEPARTMENT OF PUBLIC ADMINISTRATION FACULTY OF MANAGEMENT AND SOCIAL SCIENCES CARITAS UNIVERSITY, AMORJI-NIKE, ENUGU. ENUGU STATE AUGUST 2012 1 TITLE PAGE FUEL SUBSIDY REMOVAL AND THE NIGERIAN ECONOMY (A CASE STUDY OF ABAKALIKI LOCAL GOVERNMENT AREA, EBONYI STATE) BY NKWAGU OLUCHI WINIFRED PA/2008/182 A RESEARCH PROJECT PRESENTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF BACHELOR OF SCIENCE (B.SC.) DEGREE IN PUBLIC ADMINISTRATION DEPARTMENT OF PUBLIC ADMINISTRATION, FACULTY OF MANAGEMENT AND SOCIAL SCIENCES, CARITAS UNIVERSITY, AMORJI-NIKE, ENUGU, ENUGU STATE. AUGUST 2012 2 CERTIFICATION This is to certify that Nkwagu Oluchi Winifired with Registratoin Number PA/2008/182 has successfully carried out a research work on “Fuel Subsidy Removal and the Nigerian Economy (A case Study of Abakaliki Local government Area, Ebonyi State.) in partial fulfillment of the requirement for the award of Bachelor of science (B.Sc.) degree in Public Administration ---------------------------------Mr. M. O. Ugada (Project Supervisor) -------------------------Date --------------------------------Mr. M. O. Ugada (HOD Public Adminstration) ---------------------------Date -------------------------------External Examiner ---------------------------Date ...
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...by both group members jointly. Abstract From the 1990's until the fall of 2001, Enron was famous throughout the business world and was known as an innovator, technology powerhouse, and a corporation with no fear. The sudden fall of Enron in the end of 2001 shattered not just the business world but also the lives of their employees and the people who believed that their soar to greatness was genuine. Their collapse was followed by a series of revelations on how they manipulated their success. Introduction Enron shocked the world from being “America’s most innovative company” to America's biggest corporate bankruptcy at its time. At its peak, Enron was America's seventh largest corporation. Enron gave the illusion that it was a steady company with good revenue but that was not the case, a large part of Enron’s profits were made of paper. This was made possible by masterfully designed accounting and morally questionable acts by traders and executives. Deep debt and surfacing information about hiding losses gave the company big problems and in the late 2001 Enron declared bankruptcy under Chapter 11 of the United States Bankruptcy Code. Many factors affected Enron's surge to the top and its sudden fall. In this report we will discuss and present what we think were the main reasons of their rise and fall. Enron’s surge to the top From energy to trading Kenneth Lay was one of the key spokesmen when it came to deregulation of the energy market, much because of his...
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...British airways Executive Summary: British Airways is one of the International Airlines that provides its flights to 570 destinations in 133 territories. It mainly operates from the Heathrow and Gatwick. It faces many problems like 531 million pounds loss in revenue because of lack of international market study, employee relationship (strike problem) and many more. Hence an effective strategy is the only chance to overcome these problems. The strategy of British Airways includes the innovation in technological accessories, customers relationship, employee relationship, safety and security of stake holders and so on. Introduction: Any business has challenges from different elements like globalisation, information and technology, socio and cultural factors, political factors and so on. To meet these challenges a clear strategy is very crucial for any organization. A strategy is a clear vision of what the organisation will be based on a sustainable competitive advantage. Actually, strategy is a road map for future directions and scope. It is a long range plan for five years and more. It develops mission, objective and goals for an organisation. To develop an effective strategy any organisation must set an account with different factors. Environmental analysis, present analysis, strength, weakness, opportunities and so on are the factor through which a strategy can be developed. Part 1 1) Identify the mission, Values and key objectives of an organisation within its environment...
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...logical arguments. Contains some excellent elements of independent thinking. A critical appraisal of up to date literature. The report is well written. Students please note that this assignment was graded in the range 70% and above. Students: Please note there is no need to place the basic strategy models in the appendices e.g. Porter’s (1985) Five Forces, SWOT analysis, etc.. It would be more beneficial to apply the models directly to the organisation and place them in the appendices and discuss the main identified issues in the main text. 2 Corporate Strategy: Emirates Airline By Student How has Emirate airline managed to remain competitive in such a saturated industry? Emirates Airline “An exceptional journey from start to finish” (Emirates, 2010). 3 Introduction: ............................................................................................................................... 4 Background to Emirates Airline: ............................................................................................... 4 Competitive Advantage: ............................................................................................................ 5 Porter’s five forces: .................................................................................................................... 5 Competitive Rivalry: .............................................................................................................. 6 Threat...
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...STRATEGIC ALLIANCES IN THE GLOBAL AIRLINE INDUSTRY Abhishek Goel1 Abstract Strategic alliances are common to any industry. Their presence is felt quite significantly in the airline industry. Starting in the US in 1978 deregulation of airline industry has since brought about sea changes in functioning of the industry. This paper attempts to understand the developments and strategic alliances that have occurred in the airline industry since deregulation. These strategic alliances exist in various forms and differ widely in scope and no consensus on classification was found. The advantages and disadvantages of strategic alliances with respect to the airline industry have been discussed. It is felt that the industry is getting increasingly concentrated. However, no conclusive remarks can be made about consumer welfare. “Airline Business Alliance Survey of 2000 reports that there are 579 alliance agreements in place, up from 280 agreements (more than double) in 1994 when the survey was first conducted. Five major alliances (Star, Oneworld, Qualiflyer, Sky Team, and Wings) account for some 60 percent of all air travel.” (Mason, 2002) The lines above make the issue important enough to understand the phenomenon that is guiding the industry. Almost a decade back Oum, Taylor and Zhang (1993) argued that the airline industry will be marked by strategic alliances and these alliances will be global in nature. The guiding factors will be several that include formation of blocs, resource...
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...Introduction: Inside job is a movie produced and written by Charles Ferguson mostly recognized as the founder and president Representational pictures, Inc. In this film he has produced he is able to make people understand how the most outstanding leaders of finance and the government itself have contributed to the financial crisis of the world with a clear view of how it began emerging up till today’s financial world. However, with the help of Matt Damon narrating the story through the documental it is possible to see the reaction of some of the major head finance representatives of the United States whom still today continue contributing to the collapse of the global markets. Nevertheless, the documentary in five enriching parts, blackmails the procedures, interferences, and, provisions that crashed the markets in the USA causing a major impact in global potencies such as Iceland. Inside Job opens up with a tremendous case study of Iceland unfolding how the market crash has caused three of its major banks to collapse. Iceland used to be a stable nation with low levels of criminality, a wise and strong educational system, and powerful in both stability and its financial systems. However, the global crisis of 2008 cost 10 million people to loose their jobs, savings and even their homes. Basically what was causing it wasn’t only its financial crisis but also overpopulation of over 320,000, a GDP of 13 billion and bank losses of 10 billion. In this way comes Alcoa into the...
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