Alitalia Airline : Strategic option

Résumé du document

This report is aimed at bringing out the best strategic option for the company Alitalia. To that end, we shall drive a rigorous and in-depth analysis. The study will first determine the organization's external environment and its strategic capability. These internal and external points are then consolidated into the SWOT model. Some strategic options have been found through the TOWS model which is based on the points derived from the SWOT analysis. Further, three of the resulting strategic options have been evaluate through the success criteria tool. This enables us to identify the best option available. This strategy uses the concept of using the organizations strengths avoid any threat. This option consists of the consolidation of high quality service in order to attract new business customers. This option involves both the improvement of the value chain (which is the most important) and the creation of products that are capable of creating value for the business. To conclude, we will explain how the organization suffers a break because of the obligation to obtain a compromise for the stakeholders. Thus, it has been shown that almost all organizations are prevented from choosing the best strategic option for their growth because of the stakeholder's expectations.

Extraits

[...] 2001: Alitalia joined Sky Team. 2002: Order of Boeing 777-200, which helped in becoming profitable once again. 2003: Government divested, the government stake came below from 2003: Association with “Turnworks consultancy” (private equity firm, which specializes in turnarounds. Since 2004, due to internal turbulence, Alitalia lost nearly €600mn. 2006: Harsh strike could lead to a bankrupt. (L'expansion, 23/01/2006). Appendix PESTEL analysis. Political factors. - Worldwide Globalisation, free market. The international competition could become too hard notably against the United States. [...]

[...] All around the world the company is confronted to different policies. Thus, the conservative USA is a problem which notably increased after dramas like the WTC (World Trade Centre) disaster. However, in the 1990s, "open skies" agreements became more common, which take many of these regulatory powers from state governments and open up international routes to further competition. Open skies agreements have met some criticism, particularly within the European Union, whose airlines would be at a comparative disadvantage with the United States' because of cabotage restrictions (Wikipedia, 2006). [...]

[...] The Italian airlines market value occupied a meagre of the European airlines industry (Paul and Hartman, 2003). - Very cyclical character of the industry changing because of each environmental issues like, Tschernobyl and Libya crisis in 1986 or more recently the WTC-Disaster in 2001 (Paul and Hartman, 2003) (Appendix 3). - Rate of change and how will be the Dollar. Within the EU the unique money lead to lower cost because of the absence of rate of change. Indeed, before, the costs linked to the rate of change represented of the GDP (Gross Domestic product) (European Commission, 2003). [...]

[...] 1957: Alitalia merged with “Linee Aeree Italiane, to become Italy's single national airline, Alitalia Linee Aeree. 1964: Alitalia established another company, ATI. ATI catered to domestic airports with short runways within Italy. 1970s and 1980s, Alitalia faced intense foreign competition (due to deregulation of the American airline). Alitalia decided to diversify. 1994: Renato Riverso, the former chairman and president of IBM Europe was chosen the new chairman. 1997: Alitalia reported a net profit of Lit 438 bn 243.3 for the first time in 10 years. [...]

[...] Sociocultural factors - Growth of internet usage. - Fear of possible future terrorist assaults. - Downturn of the business demand. - The airline customers are very volatile. 1234679AI M ` a À Î Ð #2379HRvzöêÙÈêºö® h[35?6?CJOJ- Some evidence that willingness to pay premium fares has eroded. Technological - New aircrafts A-380 and Boeing 787 Dreamliner. - The Internet purchasing. - The internet and video conferencing for businessmen. Environmental - Waste disposal. - Environmental laws. Legal - European regulation on state helps. - The airports new regulations. [...]