...UNIVERSIDAD ESAN MAESTRÍA EN SUPPLY CHAIN MANAGEMENT 2012 - LA SALLE TRABAJO FINAL EMPRESA: DIVEMOTOR DETERMINAR EL SOBRE STOCK EN EL PRINCIPAL DEALER (CANADA) CURSO: MÉTODOS DE OPTIMIZACIÓN DOCENTE: ALDO BRESANI Alumno: * CALDERON MUSANTE, RODRIGO INDICE 1. Resumen ejecutivo ______________________________________ 3 2. Antecedentes ______________________________________ 4 3. Objetivo ______________________________________ 5 4. Limitaciones ______________________________________ 6 5. Análisis ______________________________________ 7 6. Conclusiones ______________________________________ 16 7. Recomendaciones ______________________________________ 17 RESUMEN EJECUTIVO Divemotor, es una empresa líder en el sector automotriz dedicada a la comercialización y servicios de post venta de autos, buses y camiones. Representa en el Perú a Daimler (Mercedes-Benz, Freightliner, Western Star, Detroit Diesel) y Chrysler Group (Chrysler, Jeep, Dodge). Para asegurar una respuesta eficaz y rápida a cualquier requerimiento del cliente, Divemotor mantiene un stock de repuestos que supera los 50000 ítems. La empresa cuenta con diferentes sucursales a nivel Nacional: * Región Centro (Lima) cuenta con el 75% de las ventas a nivel nacional * Región Norte (Trujillo). * Región Sur (Arequipa). El Dealer Canadá es el que mayor participación en ventas de repuestos tiene, contando con el 65% de estas...
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...and rude behavior consequently causing delays among flights and irate customers. In addition to the behavioral issues, several planes have had to make emergency landings due to loose seats and other incidents of insufficient inspection. In July, five AA passengers had to be hospitalized after encountering turbulence during a flight. American Airlines’ fleet of aircrafts has an average age of 15 years. These aged carriers are inefficient energy consumers and multiply costs. American Airlines has openly declared their opposition to a merger with US Airways, although, the final decision rests with AMR and negotiations are still in progress. A merger between American Airlines and US Airways would decrease competition among the market and contribute to a rise in flight prices. However, with the existing mergers already controlling the market, it seems that the merger is inevitable if American Airlines wishes to stay afloat. A merger with US Airways would mean a new network not previously accessible. Also, successful pilot...
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...court approval to combine with US Airways which will be the world’s biggest airline. This whole transaction is consider to be a merger because both Airline companies are agreeing to pool their operations and create a new entity. There are no indications that neither of these two companies are buying each other, they are just going to operate under one same management. This merging deal would be beneficial for both companies because of many reasons such as: lower cost structure, business experience, reduced rivalry and increased bargaining power over suppliers and buyers. Lower cost structure: by pooling such a two huge airline companies, US Airways and American Airlines can reach economies of scale and be more efficient with lowering their cost structure. Business experience: both of these companies have been operating for a long period of time. Few years ago, American Airlines filed for Chapter 11 bankruptcy which resulted in cutting back labor and other cost. This specific economic circumstance can be beneficial learning curve and can lead to a better business practice in the future. Reduced rivalry: after this merger is official in fall of this year, American Airlines and US Airways are going to be the biggest airline company. They don’t have to compete with one another and cash proceeds are going to go to only one bank account instead of two. Increased bargaining power over suppliers and buyers: American Airlines and US Airways combined size will give...
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...Journal of Industrial Organization Education Volume 5, Issue 1 2010 Article 1 United-Continental Merger Robert J. Carbaugh, Central Washington University Koushik Ghosh, Central Washington University Recommended Citation: Carbaugh, Robert J. and Ghosh, Koushik (2010) "United-Continental Merger," Journal of Industrial Organization Education: Vol. 5: Iss. 1, Article 1. DOI: 10.2202/1935-5041.1034 Unauthenticated | 62.189.189.132 Download Date | 6/6/13 12:08 PM United-Continental Merger Robert J. Carbaugh and Koushik Ghosh Abstract This case study discusses the nature and likely effects of the proposed merger between United and Continental. It is intended as a lecture for instructors teaching undergraduate courses in Industrial Organization or Antitrust Economics KEYWORDS: United, Continental, Merger, Antitrust Unauthenticated | 62.189.189.132 Download Date | 6/6/13 12:08 PM Carbaugh and Ghosh: United-Continental Merger United-Continental Merger On May 2, 2010, the Boards of Directors at United Airlines and Continental Airlines approved a stock-swap deal that will combine them into the world’s largest airline. The combined carrier will have 21 percent of domestic flying capacity, taking the lead from Delta Air Lines, which will lose what had been its leading 20 percent share of the domestic market. The deal still needs final approval from the U.S. Department of Justice and shareholders before being allowed to go forward. The firms hope to complete...
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...Business Model and Strategic Framework – IndiGo Airlines Business Model and Strategic Framework – IndiGo Airlines 2013 7/24/2013 2013 7/24/2013 Introduction IndiGo began its operation in 2006 and after being into business for six years, it has become India’s largest airline services overtaking Jet Airways in November 2012. Through this project report, we aim to understand the business model that is used by IndiGo and their marketing strategic framework which would help us to understand the enormous growth shown by IndiGo. Porter’s 5-Force Analysis for Airline Industry and GoIndigo in particular 1. Threat of New Entrants New entrants in the aviation industry face intense competition from the existing players and these new entrants themselves act as a huge competition to the settled players in the market. Barriers for new entrants: 1. High initial setup cost- The initial setup costs for the entrants include the airbus costs, setup costs, licensing costs, costs to airports, inventory costs, and many other costs including taxes. This increases the entry barrier to the new entrants who are willing to enter the market. 2. Existing player’s defence of market share- The existing settled players have a loyal set of customers, an established brand name and an extensive value chain. With the entry of a new entrant, the existing companies can easily defend their market share from the former. Additionally, the existing companies have an advantage of the economies...
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...A low-cost carrier or low-cost airline (also known as a no-frills, discount or budget carrier or airline) is an airline that generally has lower fares and fewer comforts. To make up for revenue lost in decreased ticket prices, the airline may charge for extras like food, priority boarding, seat allocating, and baggage etc. The term originated within the airline industry referring to airlines with a lower operating cost structure than their competitors. While the term is often applied to any carrier with low ticket prices and limited services, regardless of their operating models, low-cost carriers should not be confused with regional airlines that operate short flights without service, or with full-service airlines offering some reduced fares. Some low-cost carriers operate aircraft configured with a single passenger class, and most operate just a single type of aircraft. In the past, low-cost carriers tended to operate older aircraft, older models of the Boeing 737. Since 2000, fleets generally consist of smaller, newer, more fuel efficient aircraft, commonly the Airbus A320 or Boeing 737 families, reducing training and servicing costs. Airlines often offer a simpler fare scheme, such as charging one-way tickets half that of round-trips. Typically fares increase as the plane fills up, which rewards early reservations. Often, the low cost carriers fly to smaller, less congested secondary airports and/or fly to airports in off-peak hours to avoid air traffic delays and taking...
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...Title of the case: United Airlines Time Context: 2003 Summary United Airlines is the world’s largest air carrier and the second largest in the U.S. United is owned and controlled by its parent company UAL Corporation. United has hubs in San Francisco, Chicago, Denver, Los Angeles, and Washington D.C. and also has key international gateways in Tokyo, London, Frankfurt, Miami, and Toronto. During 1995, United was experiencing profit and cash flow problems at that point and in order to achieve an operating cost reduction of $ 4.8 billion, specifically in salaries, Gerald Greenwald, CEO and chairman of the UAL, created an agreement with the pilots, machinists, and non-union salaried employees to accept the wage cuts provided they were given 55% ownership of the airline and each group was awarded one seat on the board of directors. United Airlines experienced a turbulent journey while traveling in its goal to be the top in airline industry. It was December of 2012, when Glen Tilton, CEO and Chairman of UAL, himself drove to Chicago’s O’Hare International Airport to personally assured UAL flyers that notwithstanding the previous day’s filing of bankruptcy, United will be flying its usual routes and guaranteed the employees that their jobs are secured, for the time being. The company’s financial problems are speculatively and frequently viewed as a result of the 9/11 hijack attack. The terrorists’ attacks of September 11, 2001, draw a major blow to the airline...
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...Business Case Study: American Airlines 1. Perform a five-forces analysis of the US airline industry focusing on entry barriers and pricing rivalry Threat of new entrants: Though it might appear to be hard to get into, entry into the airline industry depends on whether there are substantial costs to access banks and credit. If borrowing rates are cheap, then there is more of a likelihood that new competitors will enter and the more saturated it will become for all competitors. However, an airline with a strong name brand like US Airways, combined with the offer of incentives, can lure customers away from new entrants, even in prices are higher. Power of Suppliers: In the airline supply industry, there is a duopoly between Boeing and Airbus. Because of this, there is not much cutthroat competition between the two. Moreover, suppliers will not likely vertically integrate in order to start offering flight service in addition to building planes. Power of Buyers: The bargaining power of buyers in the airline industry is very low. There are high costs for the buyer if he wishes to switch airplanes. Secondly, the service between airlines is practically identical. The seats won’t be any more comfortable nor will the food be any better. Threat of Substitutes: For those who need to travel internationally for business or leisure, the threat of substitution is low. For regional travel however, one might opt out to take a train or simply drive. For those that need to conduct business...
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...Vice President Joseph R. Biden Jr. on Feb. 6th in Philadelphia describes LaGuardia Airport as "a third world airport." His speech may be considered insulting. However, according to Marc Santora, the writer of Some See Biden’s ‘Third World’ Description of La Guardia as Too Kind in the New York Times on Feb. 7, 2014, some people think that this comment is the truth. Most of the basic public facilities in LaGuardia Airport are outdated and travelers can't find any hotels nearby or any spas to relax in. That's why Vice President Mr. Biden uses the expression to illustrate the unpleasant situation in LaGuardia Airport. Gov. Andrew M. Cuomo agrees with Mr. Biden since LaGuardia Airport is ranked as the worst airport in America. Although sometimes it is annoying to wait in a long check-in line, some airports are more enjoyable for visitors to be there. For example, Hong Kong International Airport provides a golf playing field for passengers in transit; it takes less than 28 minutes to travel from downtown to the Kuala Lumpur International Airport by Express Rail. In contrast, it is inconvenient to travel to LaGuardia Airport by public transportation and it takes about 90 minutes. Cindy Josseran, a legal assistant at the International Criminal Court, adds that even though some airports in Africa may have fewer comforts, other amenities could make travelers feel delighted. In addition, Nina Sudarsan, a Columbia law student, complained that modern facilities in Third World Airports...
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...Name: Course: Professor: Date: Compare strategies between Air Canada vs. WestJet Introduction These report focuses on comparing the strategies between air Canada and WestJet. It does this by first discussing a brief background of the airlines together with their objectives. In addition, the paper goes a mile further to discuss how the two airlines carry out their market research and also the marketing tools they apply. Furthermore, it also gives an opinion on whether their strategies are in line with their objectives. Moreover, it also discusses the similarities and differences between the airlines’ strategies not forgetting the influence of the national or local government on their strategies. The conclusion gives a brief summary of the entire report. Air Canada Air Canada is a the largest full service airline in Canada and also the largest schedule provider of passenger services for fights within Canada, to U.S. and to all other major international destination to where it operates. Today the airline serves more than 32 million customers every year and its flies to more than 170 destinations in five continents. In a member of Star Airline which is the world’s number one air transport network. Nevertheless, it is the 15thlargest commercial airline in the globe and has approximately 23,200 full time employees. It has a market share of about 80% in Canada and its prime competitor is WestJet Airline (Air Canada 12) Major objectives ✓ To protect...
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...MARKETING OF SERVICES MKT 815 GROUP PROJECT COMPARITIVE MARKET ANALYSIS BETWEEN AIR ARABIA & AIR INDIA EXPRESS SUBMITTED TO DR. ABDUL WAHEED DATE OF SUBMISSION: SUBMITTED BY: 13.04.11 Reema Badlani Yogesh Badlani AIR ARABIA Air Arabia operates one aircraft type, the Airbus A320 and it is one of the few low fares airlines that has a young fleet. Air Arabia’s aircraft are all configured with a single cabin and offer customer comfort with the largest seat pitch in the market - that of 32 inches in comparison to 29 and at the most 31 inches offered on most airlines in the region. The A320 is the preferred choice in the single-aisle market, known for its wide seats, aisles and overhead stowage that holds 10% more carry-on baggage, as well as the technological innovation that brings enhanced performance and reliability. Air Arabia ’s A320 also provides passengers the option of in-flight entertainment with a selection of audio and video channels on both short and long haul flights. Spacious, airy and appealing - that is the opinion of the passengers who have regularly voted the A320 family into the top spot for comfort in the single-aisle airliner category. From cabin comfort, technology and efficiency, the A320 class of aircraft are renowned for setting...
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...Article Review Airlines have become an important form of transportation since the prices of airlines have gone down. People are traveling more with JetBlue, Southwest, Air Tran (low-cost carriers) than US Airways, Continental, Delta (network airlines). As mentioned in Planning Airport Access in an Era of Low-Cost Airlines an article from Journal of the American Planning Association (JAPA) 2006 written by Richard de Neufville; air transportation industry is changing fundamentally. Richard de Neufville is a professor of engineering systems and environmental engineering at Massachusetts Institute of technology. He has consulted on airport related projects in many cites which led him to write this article. Neufville presented the elementary good business practice which is planning for airport access that focuses on the companies that have resources and avoid taking long term obligations for clients that have neither money now nor good future. Big airlines such as Delta and US airways are funding the construction of luxurious airports in major cities, but not taking into consideration the business they are losing to low-cost airlines. United States competitors (low cost airlines) accounted for only 8% of the market in 1995 and a decade later these competitors now control the future of air travel in the United States. Research shows that 50% of the U.S. revenue passenger-miles were flown on either the low cost airlines or on network airlines for the fare rate. The average cost...
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...companies airlines by reducing costs. Vision: expand MS from 45% to 55% and expand to new markets. By the 3rd quarter in 1995 we expect to reduce the cost per available seat mile to 6.9 cents of dollars. We expect to increase our total revenues per 10% every year within the next 3 years. We shall get a return on average stockholders equity of 20% in 3 years. We shall increase the size of our fleet to 250 in 3 years and expand our traffic to the east cost. Strategic objectives: -Expand to……. -Maintain…… | Cost per Seat | Return For Shareholders | Total revenues | Fleet Size | 1995 | 7.01 | 17.5% | | 200 | 1996 | 6.95 | 18.5% | | 225 | 1997 | 6.90 | 20% | | 250 | Sector definition: Low cost airlines in the west of the US, competitors such as USair, continental, united, American airlines, Delta etc and road and rail transportation. External Analysis: PEST: Political/legal: Government laws regarding aviation safety or airport hubs, customer service. Safety requirements. Economic: The economic situation, higher price of fuel, unemployment rate, price of private transportation etc. Socio-cultural: Ecological factors, reusing tickets as an ecological initiative. Cultural factors. Technological: Wireless technology that could be used to reduce the turnaround time. R&D could come up with a type...
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...A) Introduction B) The Strategy with Environment One of the best strategies that US Airways has is to provide a safe, reliable and convenient service. According to US Airways 10k report, US Airways offers 3100 flights daily to more than 200 communities in the United States, Canada, Mexico, Europe, the Middle East, the Caribbean and Central and South America. US Airways has dominated the Customer Service Key Survival Factor (KSF) by achieving six first place baggage handling, first place on time-performance by also offering a program that allows passengers to earn mileage for each paid flight. US Airways utilize a system that helps to attract more customers, generate more revenues and saves cost that are not necessary. US Airways makes contracts with smaller carriers agreeing that these small carriers would transfer the passengers from a low-density market to their main hubs. The small carriers acting as suppliers to US Airways also benefit by carrying the name from a recognized company and also getting more customers. There is a connection between the strategies that US Airways use and the key survival factor. According to the US Airways 10K report, one of the largest costs for the business is the high cost of fuel. The cost of a gallon of fuel increased by 1.28 billion from 2010 to 2011. This big increase can affect the ability to maintain or increase fares and the passenger demand. We cannot control the environment that we live in political, economical, government...
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...------------------------------------------------- American airlines leadership American Airlines Leadership American Airlines has a very unique history being the first “major airline” in the United States. The original name of the company was American Airways, which was conceived through the acquisition of 80 different airlines in 1930. The smaller airlines that were acquired included, Southern Air Transport in Texas, Southern Air Fast Express (SAFE) in the western United States, Universal Aviation in the Midwest, amongst a few others. With the airlines working under one name they were able to provide a much simpler way to travel and like many early carriers then, American earned it’s the most by carrying U.S. Mail. By 1933 American Airways operated a transcontinental route network serving 72 cities. In 1934 American Airlines was created by E.L. Cord who acquired American Airways and renamed it. The new owner, E.L Cord, hired C. R. Smith a Texas businessman. Smith began to work Donald Douglas in a project where they would pioneer a new phase of airline industry. Smith and Douglas worked and developed the DC-3, exclusively for American Airlines. This new plane was known as the flagships and the American Airlines’ DC-3 allowed for the company to be made the first airline to be able to operate a route that could earn a profit solely by transporting passengers, instead of relying solely in mail transportation. American Airlines was not only the first to profit from...
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