Strategy of the Japanese airline ANA

Résumé du document

The entire airline industry is currently facing several severe issues such as the September 11th 2001 attack, the Iraqi crisis and the more recent SARS (Severe Acute Respiratory Syndrome) scare. Most of the companies across the world have not performed with profits since the last several years. In such a scenario, how can All Nipon Airways (ANA), which employs 29 000 people, improve its net income (loss) keeping in mind these negative impacts on demand for both domestic and international flights? How can the Japanese airlines company attract customers in this declining market and boost sales? How should they change their strategy?
As a member of Star Alliance, the largest worldwide airline alliance group, ANA's strategy is interesting to analyze. How does ANA take part in the Japanese industry? How does the company face internal organizational issues? What strategic direction should be recommended in order for it to perform successfully in this industry?

Extraits

[...] Strategy of the Japanese Airline ANA Table of contents Introduction 1. A comprehensive strategic analysis of the industry Error! Bookmark not defined The external strategic analysis of ANA Error! Bookmark not defined Synopsis of the Japanese airline industry : Macroenvironment and trends . Error! Bookmark not defined The competition in the Japanese airline industry: immediate industry and competitive environment Error! Bookmark not defined The Key Success Factors of the airline industry and ANA Error! Bookmark not defined The SWOT analysis of ANA Error! [...]

[...] To propose attractive prices (airfares). To develop a website with up-to-date online booking. To have an excellent and famous branding image: customers should identify with the brand and its values. To expand the network to the most important hubs and routes of the world. We can evaluate if ANA meets these key success factors, by analyzing the strengths and the weaknesses of the company The SWOT analysis of ANA In order to summarize the results of this strategic audit, a SWOT analysis is useful. [...]

[...] These strategies will change with the implementation of two other activities: ANA Travel and ANA Travel online. We recommend that ANA launch a subsidiary: ANA Travel with hotels, travel agencies and websites. This diversification strategy has to be planned and implemented rigorously. The target is to take advantage of this strategy in order to reach the objectives of increasing sales, market share and profitability. References Du Plessis, PJ., Jooste, CJ. & Strydom, JW Applied strategic marketing. Sandton: Heinemann. Hayes, D., Kuniyoshi, K., Terada, K. & Togashi, M “Japan's ANA”. [...]

[...] To reach a high-performance in order to improve the utilization and the payment process. To be clear in order to locate without difficulty the most suitable products on the website To be attractive in order to attract a maximum of internet users (for instance, by the auction process). In the last few years ANA has had to invest in resorts in the Asian area (not only in Japan because of the bad international image and high prices). However, because the current financing aspects are not very hopeful, the best strategy is to create ANA Travel online without any shop assistants; just a telephone line. [...]

[...] According to them, differentiation is defined as process whereby the organization's market offering is adapted physically or psychologically from competing products, in such a way that the customers regard it as a completely different product or service”. When the organization succeeds, it has created a “sustainable competitive advantage”. In this way, in order to create value, ANA will create new market possibilities, to increase sales, and thereby profitability. In order to succeed in this new market, ANA Travel has to manage key success factors: product attributes, competencies, competitive capabilities and market achievements, with the greatest impact on future competitive success in the market place” (Thompson Jr. et al. 2005: 80). [...]