Strategic Management: Air France

Thèmes abordés

management stratégique, air France, analyse

Résumé du document

Air France is a founder member of the Skyteam Alliance, created in June 2000, which till date brings together airline companies such as Aero Mexico City, Korean Air, KLM and others. Since 2003, Air France has been one of the two subsidiary airline companies of Air France-KLM, one of the leaders in the world of air transport and in terms of sales turnover (€21.4 billion). Air France is a company with 185 destinations distributed in 83 countries. Its sectors of activities are the transport of passengers, freights, maintenance and the restoration on board.

In this part, we will study, using various supports, the general and competitive environments of Air France in order to conclude from it the various threats and opportunities of this environment. In order to have a better understanding of this environment that surrounds Air France, we will shape this study into three parts.

PEST analysis consists of studying the environment of a company according to four different factors: Political, Economic, Sociocultural and Technological factors.

Deregulation and liberalization of air transport made this market an international market. Moreover, the policy of “Open Sky” as well as globalization has created a strong rivalry in this market. Europe created a “Single European Sky” in order to obtain a common management of its airspace. In addition, the geopolitical context of these last years required a reinforcement of the standards of safety.

Extraits

[...] French environment French market is the most important domestic air market in Europe. With 100 million of passengers transported in and out of France in 2003 of the world transported passengers), France has an important place in the international air transport. The airports of Paris, consisted of Orly and Roissy CDG, are the 5th world airport group with a turnover of 1,7 billion. The airport of Roissy CDG connects Paris to more than 100 countries. The airport of Orly reinforces these connections with a strongly developed interior network and a complementary international network. [...]

[...] Strategic Management: AIR FRANCE Strategic review of Air France International airline industry is a complex world. To study the environment of an international airline company can help us to understand this industry. The analysis of this unsafe environment allowed us to suggest some changes that Air France could make in order to improve their strategy. This study is supported by different tools such as : Pest analysis, Value chain . The researches helped us to analyse this environment and to see in which world Air France was growing. [...]

[...] The macro environment A. Pest Analysis Pest analysis consists to study the environment of a company according to four different factors: Political, Economic factors, Sociocultural factors, Technological. Source: Johnson G., Scholes K., Whittington R. (2005), Exploring Corporate Strategy, Essex, Prentice Hall. Political Dereglementation and liberalization of air transport made of this market an international market. Moreover, the policy of “Open as well as globalisation created a strong rivalry on this market. Europe created a “European Single in order to obtain a common management of its airspace. [...]

[...] All the airline companies have launched some plans of economies in order to find a healthier financial standing after the successive crisis of air transport, or to preserve their margins faced with the degradation of some costs. Sociocultural factors Many offers proposed by the travel agencies increased the consumption of air transports. Technological The e-ticket, the automation of the recordings as well as the employ of RFID labels should allow to save approximately 5 USD billion per year. These new technologies will progressively replace the old processes. B. [...]

[...] Porter's Five forces Framework Threat of entry Bargaining power Bargaining power Threat of substitutes Source: Adapted from M. E. Porter, Competitive Strategy: Techniques for Analysing Industries and Competitors 1980, Free Press. Competitive Rivalry Competitive rivalry is strongly important in the airline industry. Indeed, there exist more than 140 airline companies in the world. The partnerships to extend the air network are multiplying by the intermediary of a code sharing: more than 400 agreements of posting and division of flights were concluded between rival companies. [...]