The paper "Apple Airlines Strategic Plans and Outcomes" is a great example of a business case study. In order to bounce back into profitability, Apple Airlines decided to design a strategic plan in a span of eight quarters by introducing and implementing various parameter variations. The main goal of the airline was to increase the targeted profitability by converting itself into a luxury airline that offers super-premium services to its clients. In return, Apple Airlines expected increased revenues by charging its passengers slightly higher fares. To kickstart the strategy, the airline disposed off its Beechcraft aircraft in order to leave luxury aircraft.
Apple Airlines also decided to invest in its employees by increasing the overall expenditure on their wages, stock bonuses, and training. This strategy led to a loss in Quarter 2 which prompted cost reduction through a reduction in training and wage costs. This is what brought the airline into the continuous path of profitability up to Quarter 8 which ended with a name change from Apple Airlines to Apple Plus Airlines. This report, therefore, discusses in detail this unique strategy by analysing and assessing the various decisions made, the performance evaluation criteria, their outcomes through the eight quarters, and a retroactive analysis.
A personal reflection on the entire strategic planning process is also presented at the end. Company Strategic Plans and Outcomes Strategic Plan Review The main goal of the Strategy Plan by Apple Airlines was to become the crè me of the airline industry in so far as premium service delivery is concerned. In that regard, its two main objectives were: To become the leader in premium service delivery segment of the global airline industry To provide excellent service and client experience through a highly motivated workforce The airline's decision to enter into the premium-service airline industry was informed by a SWOT Analysis that was performed on the company just to weigh on the options Apple Airlines had for its turn-around.
According to Rothaermel (2015), an analysis of a firm’ s strengths, weaknesses, opportunities, and threats is fundamental in determining the course that a firm can take (Ebene & Smith, 2015). Apple Airline’ s SWOT Analysis was enumerated as shown below: Internal Analysis Strengths Lower labour costs A unique market niche Weaknesses A small niche for the elite Huge capital requirement High competition from established airlines High fares External Analysis Opportunities Rapid population growth; more passengers Long term competitiveness Threats Wars and terrorism may hinder progress Jet fuel fluctuations Natural disasters like storms, earthquakes Porter’ s Five Forces and PESTLE were also used to assess the airline industry environment and the associated parameters to be considered in the success of an airline in the airline industry (He, 2012; Rothaermel, 2015). Fares Decision In Apple Airline’ s strategic plan, the fare amounts and structure was modified to suit the new luxury characteristics of the airline.
The slightly higher charges were to take care of the free drinks and meals that were offered before the flight.
This fare decision was retained all through the eight quarters. It was decided that fare be calculated per every mile travelled. This decision was largely informed by the desire for most passengers to have excellent experience regardless of the fare charged. Apple Airlines capitalized on this to raise its revenues as it strives to offer luxury service to its clients. Marketing Decision The airline decided to invest heavily in marketing and advertising especially in Q1, Q2, Q3, and Q4 before reducing this allocation significantly in the latter quarters.
This was informed by the obvious need for a lot of awareness creation especially in the early days of the new strategic plan (Wit & Meyer, 2014; Hakkarainen, 2006).
Adair, J. E. (2010). Strategic leadership: How to think and plan strategically and provide direction. London: Kogan Page.
Ebener, D. R., & Smith, F. L. (2015). Strategic planning: An interactive process for leaders.
Hakkarainen, K. (2006). Strategic management of technology: From creative destruction to superior resilience. Vaasa, University of Vaasa.
He, N. (2012). How to maintain sustainable competitive advantages: Case study on the evolution of organizational strategic management. International Journal of Business Administration, 3(5).
Morrill, R. L., & American Council on Education. (2010). Strategic leadership: Integrating strategy and leadership in colleges and universities. Lanham, Md: Rowman & Littlefield Publishers.
Myrmingos, R. (2011). Apple, Inc. strategic management and the global environment: a case study for Lewis University, Romeoville, IL. Lexington, KY, Apples, Inc.
Rothaermel, F. T. (2015). Strategic management. New York, McGraw-Hill.
Rothaermel, F. T. (2015). Apple (in 2013): How to sustain a competitive advantage? New York, McGraw-Hill.
Stringham, S. (2012). Strategic leadership and strategic management: Leading and managing change on the edge of chaos.
Tan, J. (2013). A Strategic Analysis of Apple Computer Inc. & Recommendations for the Future Direction. Management Science and Engineering, 7(2), 94-103.
Wit, B. & Meyer, R. (2014). Strategy: an international perspective.Strategy Content, Fifth edition, Andrew Ashwin, United Kingdom.