Introduction
As the planet continues to warm, the effects of climate change become increasingly apparent, making the need for urgent action and transition to a more sustainable future more pressing than ever. The consequences of inaction are dire, including more frequent and severe weather events, loss of biodiversity, and global food and water shortages. This blog post will discuss the current state of climate change, explore its impacts, and highlight efforts to mitigate its consequences and embrace a more sustainable path.
Climate Change: A Global Concern
Climate change is a global issue, with average temperatures rising at an unprecedented rate due to the increased concentration of greenhouse gases in the atmosphere. This warming trend has been primarily driven by human activities, such as burning fossil fuels, deforestation, and industrial processes. The Intergovernmental Panel on Climate Change (IPCC) has warned that we must limit global warming to 1.5°C above pre-industrial levels to avoid the most catastrophic consequences.
Impacts of Climate Change
The effects of climate change are already evident around the world and pose significant risks to ecosystems, human health, and economies. Climate change exacerbates extreme weather events, such as hurricanes, droughts, and heatwaves. These events can lead to loss of life, property damage, and significant economic costs. As glaciers and polar ice caps melt, sea levels are rising, threatening coastal communities and infrastructure. The increased absorption of carbon dioxide by the oceans is causing them to become more acidic, leading to the decline of coral reefs and other marine ecosystems. Warmer temperatures and changing weather patterns disrupt ecosystems, leading to the extinction of many species and the collapse of habitats. Climate change affects agricultural productivity, causing food shortages, and exacerbating water scarcity in many regions.
Efforts to Mitigate Climate Change
To address the challenges posed by climate change, global efforts have been focused on mitigation and adaptation strategies. Governments and businesses are working to reduce emissions through policies like carbon pricing, renewable energy incentives, and energy efficiency standards. The shift from fossil fuels to renewable energy sources, such as solar and wind power, is critical in limiting global warming. Planting trees and restoring forests help sequester carbon dioxide and protect ecosystems. The adoption of sustainable agricultural practices can help reduce emissions while ensuring food security. Strengthening infrastructure to withstand the impacts of climate change can reduce vulnerability to extreme weather events.
Embracing a Sustainable Future
As the effects of climate change become more apparent, it is essential to transition to a more sustainable future. This involves not only addressing the root causes of climate change but also building a world that prioritizes social and environmental well-being. Some key principles for a sustainable future can a shift from a linear “take, make, dispose” economic model to one that reuses and recycles resources, minimizing waste and pollution. Ensuring that the benefits of sustainable development are shared fairly among all members of society. Protecting and preserving ecosystems, reducing pollution, and promoting biodiversity. Fostering understanding and action on climate change and sustainability through education and public awareness campaigns.
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Introduction
In context of the marketing practices implemented in the operation domain of airline
businesses, this essay is making an insight into the role of sponsorship in case of the Emirates
Airline (EA). The basic concentration of this paper is to understand the role of sponsorship in
terms of operations in airlines as well as related airports. The idea is to explore and
comprehend the factors of sponsorship that are responsible to paving the road of success for
an organisation. The case of Emirates Airline (EA) has been selected for the critical analysis
of the success attained by the selected company in aviation marketing.
The Case
The ownership of Emirates Airline (EA) is in the hands of the Corporate Investors working
under the Government of Dubai, UAE. The official declaration of Emirates Airline (EA) in
their Annual Report of 2015 declares that it has been recognised as the largest airline
organisation in the entire Middle East, with an operating expansion of 3,300 flights/week
from Dubai International Airport. These flights are to 78 nations spread all over the world
(Emirates Airline, 2015). As reported by Frontier Economics (2015) since 2014, the flights of
Emirates Airline (EA) are increased by 29 airports in selected 28 cities of EU28. This
operation comprises of 700 flights operating per week in both the back and forth directions.
The success story of Emirates Airline (EA) in Europe appears very important in terms of
gaining developed route network, which is responsible for connecting many cities of the
world through Emirates Airline hub in Dubai.
Background
In the words of the official declarations made by the The Emirates Group, the history of
Emirates comprises ‘incredible development’ and is ‘fascinating. The Emirates (2015, a)
refers the history of Emirates Airline (EA) back to 1980s. during the mid of this decade, the
Gulf Air started cutting back most of its services to channelised to Dubai. It is at this position,
that Emirates came into being in the month of March of 1985, that specifically was supported
and backed up by the royal family of Dubai. The collaboration was initiated with Pakistan
International Airlines offering a minimal of two airline aircrafts at wetlease. In order to gain
3
independent operative hold, the government subsidies were considered along with $10
million as the capital investment. These developments were initiated by Ahmed bin Saeed Al
Maktoum as the head and the current Chairperson of Emirates Airline (EA). Emirates (2015)
states that it hardly took any time for Emirates Airline (EA) to expand its destinations and
fleet. As such by October of the year 2008, Emirates made a huge shift of all its aviation
operations to the Terminal 3 of Dubai International Airport. The plans for its rapid
expansions and growth are still part of its success story and sustainability in the competitive
sky seems like a simple strategy to it.
The Success Story
Emirates (2015) depicts the trend of gaining regular success of Emirates against the
continuous regional instability and international economic volatility, as not miraculous, but
strategically well equipped. This report added the key combination of having the business
wisdom, along with savvy insight into the investment plans and perfect practical ambition. As
Emirates celebrates, the 25 th anniversary in the year 2015, the organisation marks its
remarkable sustainability and extensive growth with appropriate respect and recognition in
the international market. A critically investigated report by Mnisri (2010) notes that the secret
of success of Emirates is in its strong hold over the marketing strategy that emphasises in
terms of creating strong image of the brand and necessary awareness to be created
worldwide. The report of Mnisri (2010) adds that the role of the sponsors are very inevitable
in creating this success story. The management of sponsors sports clubs, as well as events in
the UAE and various esteem locations noted worldwide are the base for generating absolute
marketing strategy for the organisation. To this venture Emirates (2015 a) refers to the
continuous explosive growth of the organisation with continuous strive to offer best service
to its consumers in the aviation industry. The recent growth plan of Emirates Airline (EA)
comprises of –
Award winning cargo division in the international business periphery,
Management of full-fledged destination, as well as leisure division, &
IT developer for the Airline on an exclusive basis.
Role of Sponsorship: EA
The role of sponsorship initiated by any business is very significant and powerful in terms of
introducing its products, services or even itself a new market. The success story and the
extensive participation of Emirates Airline in sponsoring various events, especially those
related to sports, exemplifies the significance of sponsorship as an effective marketing tool
for creating brand image and awareness at large. In reference to the act of ‘extending brand
reach’, the Annual Report 2014 of Emirates Airline states,
“Our sponsorships are one of the most visible ways in which we connect people with
their passions”.
(Emirates Group, 2014, p. 11)
This is a declaration that confirms that Emirates Airline considered those elements for
sponsoring that are closely related to human passion, and its sports. The report adds that
Emirates in the current scenario is noted as one of the most popular brands that are involved
in sponsoring top level events of sports. Its partnership with selected football clubs in the
world, international meets in cricket, Formula 1, and other sports like golf, rugby,
horseracing, tennis, and Cup sailing of America, has actually successfully created the essence
of omnipresence of Emirates on a worldwide basis. The annual report of 2013-14, states that
a total of AED 850m has been already invested over the overall dnata business within the FY
of 2013-14, with the establishment of a new record that added the extra edge of being
recognised easily, for the airline division.
Sponsorship & Marketing
The interrelationship between sponsorship and marketing is related to the process of gaining
credible publicity in the market. These aspects are definitely interrelated, yet there is the need
to understand the distinction of publicity that is cost-effectives against the advertisement
((McChesney, 2008). Though both are tools of marketing, yet the sponsorship appears most
effective and lays serious impact of the brand image on the consumers as a whole. The
selection of sponsorship as a marketing tool by Emirates Airline has added enough essence
credibility to its brand awareness ventures, worldwide.
Analytical research led by Reed (2013) appreciates the sponsorship activities of Emirates
Airline in the sports related activities and various international sports events. However, there
is also the reference made towards the least possible participation of Emirates Airline in the
networking of the social media. The entire approach of Emirates Airline is in meeting the
mass population on a wide ranged spectrum rather than meeting them individually through
social media. Moreover, it is important to note that the less participation of Emirates Airline
in social media actually creates the image of being on hoardings for a positive cause rather
than being restricted to the PCs (McChesney, 2008).
Sports Sponsorship
The approach of considering sports sponsorship in the marketing domain, aims in meeting
wide ranged audience in an international ground. As noted by ACL (2011), the selection of
sports sponsorship by Emirates Airline is part of its strategic marketing, whereby the
organisation successful in getting the ideological image for its brand, on a wider scale. As
identified by Aaker and Erich (2000), on a global basis sports sponsorship appears more
effective than any other marketing tool as it is strong in creating the higher competitive
margin for the competitors. Nataraja and Al-Aali (2011) confirms this theoretical declaration
of Aaker and Erich as effective in reference to Emirates Airline. For Emirates Airline, this
margin has been achieved through its promotional mix of meeting targeted consumers and at
the same time in terms of creating brand image widely. It’s role of sponsoring in various
environmental activities and community services has actually made Emirates Airline one of
the most popular organisations in the world. However, Nataraja and Al-Aali (2011) still
emphasise that the omnipresent and strong brand image of Emirates Airline has been
established mainly through sports sponsorship, along with its equal conscious about the
comfort and profit of its employees as well as stakeholders in international business arena.
EA Aviation Marketing
The marketing sponsorship of the aviation business in sports domain by Emirates Airline has
been identified in diversified events. According to the list enlisted by Wilson (2015) sports
sponsorships led by that Emirates as an organisation stands immense. Sponsorship of
6
Emirates Airline is distinct in football as they were involved in World Cup, Arsenal in EPL,
Real Madrid in La Liga, Paris St Germain in Ligue Une, AC Milan in Series A, Humburger
FC in Bundesliga, and even Olympiacos in Super League. Banners and hoardings of Emirates
Airline are also very distinct in the Saudi League, in Asian Football Confederation, and New
York Cosmos. Sponsoring popular games like rugby in USA Rugby, Emirates offered stylish
eye-catching helmets and pads to the players. ATP World Tour, followed by US Open, World
Rankings, Rogers Cup and BNP Paribas Cup, are the tennis game series that are also
sponsored prominently by Emirates Airline. The marketing impression established by
Emirates Airline is also very tactful. As for instance, the relaxed, comfortable and luxurious
first class leather seats in the US open are the keys to make the spectator feel that the similar
comfort will also be made available in the Airline services.
Following the same thread, while sponsoring F1, the Emirates Airline even created a
specialised TV channel dedicated to F1 extensively. Innovation and creativity are thus
integral to the marketing of aviation business for Emirates Aviation. These are also seen in
the sponsorship activities with sports like horse racing, as in the Melbourne Cup; 18 events as
the Ryder Cup in Golf; being part of rugby union through the means of sponsoring the IPL,
official ICC match, as ICC World Cup as well as Twenty20 World Cup.
Marketing Strategies
By the implementation of right marketing strategies, by 2018, Emirates Airline has planned
to have more than 320 aircrafts and more than a count of 400 aircrafts by 2020. Considering
the growth rates of Emirates Airline these assessments appears very practical.
The success story of Emirates Airline is not limited to mere publicity. The activities of
publicity and advertisements through sponsorship are the means to show the world that the
EA is very active and strong in meeting all those rules that can add authenticity and
credibility to its services. As for instance, EA is very particular in supporting the IATA
(International Air Transport Association) norms, like (Emirates, 2012)-
investment make for the use of improved technology in airlines and airports
effective means of managing operations at fleet & airports
maintenance of efficient and hi-tech infrastructure for convenience
approval of positive measures for economic development
These are grass root strategic implementations that make the entire programme of
sponsorship, a success without any major challenge. The keys of managing strategies for
successful sponsorships are all based on the practical declarations and operational
management of EA in the international market of aviation.
First Key: The very basic step is to have comprehensive and clear communicational
objectives, initiated by the organisation for respective brand. For EA, this is done through the
collaboration of responsive communication facilities maintained with the consumers. EA is
very particular about its visibility by appearing in various popular sports event, worldwide.
Its brand awareness and developmental associations with community services, says it all
(Nataraja and Al-Aali (2011).
Second Key: The second key is to remain proactive. The proactive initiation of EA is
managing sponsorship has been well acclaimed already as the company selected the domain
of sports to reach the ‘inner passion’ and every corner of human society through international
9
display of its participations (Emirates Group, 2014, p. 11). Considering sports as the ground
for developing sponsorship makes EA a common and popular brand, globally.
Third Key: The third key is to identify the gap to ‘fit in’ exceptionally. As marked by Aaker
and Erich (2000), the process of fitting exceptionally between a particular event and the
respective brand is though dicey, yet can offer instant success. EA is very bold and strong in
taking this initiation. Even after being a brand from aviation industry, its presence in different
kinds of sports events created room for its awareness among global population. It appears
strange, yet amazing the way Emirates gained hold over the act of ‘fitting in exceptionally’.
Fourth Key: The fourth key refers to own sponsorships, and for EA the huge back up is
Emirates Group itself. The logo in general is strong enough to offer an incorporated banner to
EA.
Fifth Key: The 5 th phase refers to the act of being analytical to the publicity opportunities. It
is here that EA refuse to remain active in the social media networking and concentrate more
in international sports events (Reed, 2013). The motive is simple. EA through Emirates, just
wanted to gain extensive recognition in public rather than meeting people individually on
personal grounds. The approach is open and popular.
Sixth Key: Sixth key is that of payoffs multiple sponsorship, which is very systematically
managed by the Emirates group. The financial security and meeting the challenges of
economic risks, are considered as a family matter by Emirates group and this EA gains the
opportunity to maintain payoffs through multiple sponsorship.
Seventh Key: The last key is to manage sponsorship actively and that is definitely gained by
the inhouse management services of Emirates Group.
However, apart from these key strategies, whereby Emirates Airline is much supported by
Emirates Group; there are individual initiations noted for gaining exclusive dominance over
the market and laying serious impact on the consumers. These keys are operational
management leadership and necessary alliances, wherever needed.
Management Leadership
The tactics and approaches of leadership for the attainment of a successful business have
attained innumerable definitions. According to Bass, the aspects of organisational leadership
in terms of accomplishing management practices needs to get structured in the form of “an
10
interaction between two or more members of a group that often involves a structuring or
restructuring of the situation and the perceptions and expectations of group members” (1990,
p. 19). Under the pressure of cross cultural management structures, there is the need to
consider an admixture of transformational attributes, sharing of power as well as authority
and responding to every issue in accordance to the current situation. In reference to Emirates
Airline, the core consideration is for phenomenal growth that is made possible by the
typically structured strong and very stable traits of leadership. As identified by Mnisri (2010)
the key note to the trend of gaining success for Emirates is its capability to manage a stable
continuity of the team of management. With a combination and team work of talented and
experienced executives, Emirates Airline is very successful in gaining mutual management
approaches in all its branches spread all over the world. Under the efficient guidelines of the
CEO, Sheik Ahmed Bin Saeed Al‑Maktoum, the leadership of Emirates Airline is open to
transformational, power-sharing, and situational combination of management structure. As
for instance, Emirate Airline in Dubai gets transformed into more contemporary style in
European nations. Being the fastest developing intercontinental carrier, the management of
EA is flexible enough in considering the cultural differences of all the six continents, yet
adding the developmental growth and sustainable services to the consumers.
Allied Sponsorship
It is the leadership trait of EA under the formulation of combining transformational, power-
sharing, and situational approaches that the company is successful enough in establishing its
allied sponsorships with much ease. The reports of Repucom (2015) declares that Emirates is
very specific in selecting its sponsorship partner and it is this keenness and preciseness that
the company earns a lot in gaining brand awareness in respective nations. As for instance,
Repucom states that in the Arsenal FC, Emirates chose to be with Arsenal and this dual
sponsorship appeared very beneficial to the company. The following graph shows the success
rate in this matter –
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Abstract
Contents
Abstract 2
Table of Content 2
List of Figures and Tables 2
- Introduction 2
1.1 Research Question 3
1.2 Research Purpose 3
1.3 Research Rationale 3 - Literature Review 4
2.1 Strategic HR Management 4
Common Global Practices, SHRM at IBM: A Case Study 4
2.2 Theory to Praxis 4
SHRM Theories, Implementation at IBM 4
2.3 Current Issues 4
Recruitment, Training & Motivation, and Retention 4 - Methodology 4
3.1 Research Philosophy 4
3.2 Qualitative and Quantitative Approaches 4 - Selected Research Methodology 4
4.1 Research Approach 4
4.2 Sampling 4
4.3 Data Collection 4 - Findings and Analysis 4
5.1 SHRM Approaches at IBM 4
5.2 Recruitment and Training at IBM 4
5.3 Motivation and Retention 4
5.4 Analytical Overview 4 - Conclusion and Recommendations 4
References 8
Appendices 9
Table of Content
List of Figures and Tables
- Introduction
According to the Annual Report 2015 of IBM, the current strategic imperative revenue mix
of the company, against the market get noted as follows –
Figure 1 IBM: Strategic Imperative Growth
Source: IBM (2015)
It has been clearly marked in the current competitive market scenario, IBM has considered its
strategic imperatives as significant elements to its management process. Its expansion in the
fields of analytics, cloud, mobile, security, and social context remains successful in gaining
27% of its total revenue of $25 billion in the year 2014. With the establishment of 3,000
patents in 2014, the company acknowledges that it is the capacity and efficiency of its human
resource (HR) that integrated technology in accordance to the business proceedings the
clients, and adding success to the company on a worldwide basis.
Considering developmental approaches of IBM as the core subject, this research is offering a
research on the ways the Human Resources are recruited, generated, maintained, and further
retained in IBM. The approach is in gaining information about the strategic management
formulations as considered by IBM in being able remain competitive in the global market.
For this purpose the official declarations of IBM, like Annual reports and news articles will
be considered. Further analytical overview will include various theories, peer-reviewed
journal articles, and literary sources for the understanding of Strategic Human Resource
Management, with close study of the practices in IBM.
1.1 Research Question
In the domain of HRM, why IBM can be idealised by a company, to gain knowledge about
sustainability and growth in the current global market?
1.2 Research Purpose
The core purpose of this report is to analyse the SHRM of IBM, in order to gain necessary
knowledge about the implementation of strategic theories and practices in the HR domain for
organisational success. As under the intensive pressure of globalisation, the companies are
facing enormous hurdles in recruiting the right employees, training and motivating them, and
get most strenuous in retaining valued employees; this research aims to offer the tips and
tricks of IBM in resolving these issues in particular.
1.3 Research Rationale
As against many competitive software companies, like Accenture, Hewlett-Packard, Apple,
etc., IBM with 379,592 employees, excels itself in the process of recruiting, training &
motivating, and retaining employees for organisational growth and long term sustainability in
the market (IBM, 2014). Its achievements and growth makes it one of the most best place for
generating a good career for an employee (IBM, 2015 a). This is the reason that IBM has
been selected here, as an ideal company to understand its HR strategic management for the
upliftment of those companies that still strive to gain more potentiality in global market.
- Literature Review
2.1 Strategic HR Management
Common Global Practices, SHRM at IBM: A Case Study
2.2 Theory to Praxis
SHRM Theories, Implementation at IBM
2.3 Current Issues
Recruitment, Training & Motivation, and Retention
- Methodology
3.1 Research Philosophy
3.2 Qualitative and Quantitative Approaches - Selected Research Methodology
4.1 Research Approach
4.2 Sampling
4.3 Data Collection - Findings and Analysis
5.1 SHRM Approaches at IBM
5.2 Recruitment and Training at IBM
5.3 Motivation and Retention
5.4 Analytical Overview - Conclusion and Recommendations
Appendices
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EXECUTIVE SUMMARY:
This report is the outcome of a consultancy assignment contracted to the author by the senior leadership of Wizz Air PLC, a European Low Cost airline( LCA). The brief given : ‘Wizz wants to be the no 1 airline in Europe”. Thus this report is essentially in the domain of strategy. The current position (strategic) of the Company is assessed in relation to the industry( Low Cost Airline industry in Europe). The aspirational position( No1 among European LCAs) is mapped in the strategic space. The gap between the current and aspirational position( the strategic gap) is assessed. Various strategic alternatives to close the strategic gap considered are discussed and evaluated. Finally a few strategies are recommended and implementation strategies outlined.
Methodology: The information and data for the analysis has been drawn by extensive research in the aviation space, economy, socio- political environment, annual reports of Wizz Air and other competitors ,brainstorming sessions, and focus group discussions. Tools like SWOT analysis, Balanced score card , value chain analysis have been used under a the Internal Reporting Framework has been used.
Introduction :
Wizz Air is a low Cost airliner mostly operating in Central and East Europe(CEE)- Poland, Romania, Bulgaria, Hungary, Check R, Slovakia and 11 such others. It was established in 2003. became operational in 2004 and is one of the fastest growing airline( being 4th in terms of capacity growth) in world, with capacity increase 18.9% in the year 2015-2016, to become 50 th largest airline in terms of capacity, carrying 23.8 million passengers in 2016. It has constantly added new routes and bases . As of now it operates in 500 routes from 28 bases and connects 141 destinations in 42 countries. It has continuously added to its fleet of air crafts . It has around 79aircrafts of A320 A family. In terms of market share, it is a leader in geographical segment it operates ie- Central and east Europe, where it has reported market share of 39.08% Financially it has done well , earning profits on a regular basis.It reported a net profit of € 225.3Million at a net profitability margin of 14.3% in year 2017.
Business Environment : The Business environment for the European positive industry has been very promising after deregulation of the European commercial market in the nineties. No of paasengers carried by the industry is around 900 million per year and is growing 5% annually. The number of airports served are over 400 and . The demand for travel across Europe has been ever increasing. The low oil prices and consequent low fares have helped spur the demand. The environment favours the low cost airlines and the share of the LCAs in passenger traffic is 38% . This is more than double the figure of 17% in Year 2015
Current strategy : The Wizz’ strategy is to be ultra-low cost air service provider. In trying to be attain cost leadership. It does so by increasing operational efficiencies. It[s average load factor is high at 90.1% and aircraft utilisation is 12.5Hrs per day.It aggressively hedges on fuel prices to keep fuel costs low. All these measures contributed to reducing the total air line unit cost at € 3.75 per ASK.( available Seat kilometre). It is a niche player operating in a small geographical area- the CEE. It has achieved volume growth by increasing its network ( routes) in this area.
Competitor Analysis: Ryanair is the leader in the aviation industry in Europe in terms of passenger carried as well as by market capitalisation( value of the company). It is also a low cost carrier. Its average fare charged per passenger is as low as €40.5, which makes its break even load factor high at 73%. Nevertheless it’s able to be cost leader by being operationally highly efficient with a passenger load factor of 94% and aircraft utilisation rate of 9.33 hrs.per day. It has increased its network in Europe as well as in specific markets across Europe( eg Israel). It is not averse to growth via joint ventures and acquisitions. Acquisition of Aer Lingus, proposed offer for Alitalia takeover and investments in China are prime examples.
It is evident that both Wizz Air and leader – Ryan Air are competing on the same variable Cost Leadershp. Table 1. gives a comparison of underlying variables which drive the strategy.
|
|
Table
1
|
|
|
Particulars:
|
Wizz Air
|
Ryanair
|
|
Av. Passenger fare (€0
|
65.73
|
40.5
|
|
Load factor (%)
|
90.1
|
94%
|
|
Air craft utilisation
rate (BHrs/ day)
|
12.5
|
9.33
|
The low cost strategy requires a high operating efficieny in which the operating costs are the lowest. A comparison of ratio operating costs /operational revenues of the two airlines are given below
|
|
Table
3
|
|
|
Particulars
|
Wizz
Air
|
Ryanair
|
|
Total revenues
|
100%
|
100%
|
|
Scheduled revenues
|
58.27
|
73
|
|
Ancillary revenues
|
41.73
|
27
|
|
Total operating
expenses
|
84.3
|
77
|
|
Fuel and oil
|
23.88
|
29
|
|
Airport and
handling charges
|
24.82
|
13
|
|
Others/ Route
charges
|
3.34
|
10
|
|
Staff costs
|
7.19
|
10
|
|
Depreciation
|
3.66
|
7
|
|
Marketing,
distribution and other
|
1.78
|
5
|
|
Maintenance,
materials and repairs
|
4.75
|
2
|
|
Aircraft rentals
|
14.89
|
1
|
|
Operating profit
|
15.7
|
23
|
This shows that Wizz Air is able to match the leader Ryanair in many aspects of operational efficiency. However it looses out in the items of airport handling charges and air craft rentals. This indicates that Ryanair is able to keep these over heads down because of higher volume of passengers carried and favourable lease agreements
A comparison of .fare wars of different air lines in Europe can also be gauged from the graph. Fig .1
Figure 1 shows the airlines carrying capacity versus fare per kilometre charged.
From Fig.1 it is clear that Wizz Air and Ryanair are charging the same fare per km but Ryan has almost 6 times greater capacity than Wizz Air.
The other comparisons are as follows;
|
|
Table
3
|
|
|
Particulars:
|
Wizz Air
|
Ryanair
|
|
Fleet size
|
79
|
400
|
|
Average seat / plane
|
190
|
189
|
|
Area of operations
|
Central and east
europe
|
Entire Europe +
others
|
|
Routes
|
500
|
2000
|
|
Bases
|
28
|
86
|
|
Airports served
|
141
|
210
|
|
Employees
|
3000
|
15000
|
|
|
|
|
|
|
|
|
Thus though the cost advantage of Ryan air is negligible , it has competitive advantage having a much greater coverage of operations and higher volume of passenger traffic. Though the fare charged per Km is almost same for both airlines, it is possible that public perception is Ryanair is cheaper compared to Wizz air as the share of revenue from fares is higher at 73% for Ryan air and only 58% for Wizz air.
Thus the wide gap in competitive advantage that lies between the the No1 eurpean airliner and the aspirant for the No.1 position is in size – size of operations, size of area of routes and coverage, and larger capacity.
Situational
analysis:
As part of the process of strategic mapping a SWOT analysis of WiZZ air is made on the framework of internal reporting.
The internal reporting framework considers the processes of the organisation lead to changes in capital. Capital is a collective concept – aggregate of all the resources used by the organisation as well as the relationship with all its stake holders which goes into create value both to the organisation as well as to the stakeholders. Value is said to be created when there is a positve change/ transformation in the capital and value is said to be destroyed when such change is negative. The framework categorises capital into six types-1) financial, manufactured, intellectual, human, social and relationship.
As WizzAir aspires to be the no1 in Europe, an assessment of each of components of capital in the lines of SWOT analysis.
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