AIRLINE FINAL STRATEGIC AUDIT REPORTCompany 4 Team members: Danay Sarduy - Isis G. RamirezIntroduction In the current contemporary world, most global airlines faces allot of challenges that result from a competitive environment as well as the global recession. However, SARAM Airlines have neither had an aspect of downsizing in either of the departments or the overall organization’s structure. This is due to the competitive advantage gained over time since the diversification of its operations. As a result, a sustainable competitive advantage of the company has been built up by efficient management of ridership in financial activities.
Thank to the corporate governance headed by the president and its board of directors of the company. Position analysis that will be discussed down in this report, considerably received much attention particularly during market examination and determination of growth of the company. It adopted relative positions that explored new avenues for operations for instance, according to the mission statement of initial strategic plan; the company was to explore new routes, under served or poorly served ones. This is where Company’s operations were comparable with the others in the industry and therefore the differentiation position that based on quality led to success.
This enhanced high returns on revenue depicting good financial performance. For example, provision of good travelling services (provision of water to the travellers) at a reasonably priced allowed the company to exhibit a business advantage over the others in the market. Competitive Positioning Strategy of SARAM Airlines Like any other competitor in the market, SARAM Airline had to position itself favourably in order to confront the competitive environment in the global market.
Therefore, during analysing of the competitive position strategy of SARAM Airline, two schemes were used; Simple Correspondence Examination: In this scheme, the relationships between SARAM Airline and service attributes were examined. However, it is important to note that this analysis cannot relate customers’ attributes and their preferences when choosing airlines. Also, choice depends on socioeconomic aspects as well as tour characteristics of the customers. Multiple Correspondence Analysis: This type of analysis merely interprets the relationship between service provision and the long term results dignified by these services. The two mode of competitive positioning strategy analysis will explicitly describe the relationship of service provision and customers’ preference that would determine the overall performance of the Company in the competitive environment. Simple Correspondence Examination The graph bellow shows the profit performance of SARAM in the last four quarters On the first quarter, the company emphasised much on improving the standards of service provision to the customers.
Promotion budget of $2,500 as well as provision of in-flight magazines was among the service rendered to the travellers. Also, training was in the agenda during the 1st quarter and was valued at $1,000.
At the end of the day, these services among others recorded 104 business index and an increase of $10.71 in the stock price. The net profit therefore as indicated by the graph relatively increased. Looking at the flight record in the 2nd and 3rd quarter, reliability was exceptional with a record of 92.4%. Generally, the Company raised its competitive position over the last 4 quarters through on-time performance especially on service provision before, on and after the flight.