Market Leadership In Niche Segments Of The Aviation Industry Customer Integration And Aircraft Innovation By Embraer S A
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Market leadership in niche segments of the aviation industry. Customer integration and aircraft innovation by EMBRAER S.A. by Philip Hofbauer Pdf
Bachelor Thesis from the year 2006 in the subject Business economics - Operations Research, grade: 1,3, University of Applied Sciences Fulda, language: English, abstract: The thesis will examine how Embraer has gained a leading position in its market segment by matching product innovations to the demands of its customers, and how this position is likely to be defended in a highly-sensitive, capital-intense, hightechnology industry. Furthermore, the thesis will explore how decisions are made regarding the fleet composition of Embraer’s main customers and how their needs are integrated into Embraer’s business operations. The successful concepts of Embraer are primarily based on product families that can be offered for different markets. Thus, Embraer’s development and business practices can be critically evaluated with regard to other emerging nations, such as India and China, that will enter this or similar markets soon. As Embraer has different strategic business units in both civilian and defense markets, this thesis will focus primarily on the company’s operations in the commercial aircraft market. The second chapter of the thesis gives a short overview of the history of the aviation industry and its current situation. Chapter three shows the reader a detailed picture of particular markets and sub-markets where Embraer has operations, the state of the company, its products, and its history. The fourth chapter analyzes the primary market for Embraer, the forces of competition that occur in that market as well as the relationship between Embraer and competing stakeholders. The fifth and final chapter will describe how cost and other considerations shape airline fleet decisions, and how Embraer responds to the expectations of its main customers.
Many business sectors have been, and are being, forced to compete with new competitors-disrupters of some sort-who have found new ways to create and deliver new value for customers often through the use of technology that is coupled with a new underlying production or business model, and/or a broad array of partners, including, in some cases, customers themselves. Think about the disruption created by Apple by the introduction of the iPod and iTunes, and by Netflix within the entertainment sectors using partners within the ecosystem; think of Uber that didn’t build an app around the taxi business but rather built a mobility business around the app to improve customer experience. Airline Industry considers whether the airline industry is poised for disruptive innovations from inside or outside of the industry. Although airlines have a long history of continuous improvements and innovation, few of their innovations can be classified as disruptive innovations. The few disruptive innovations that did emerge were facilitated, for example by new technology (jet aircraft) and government policy (deregulation). Now there are new forces in play-customers who expect to receive products that are more personalized and experience-based throughout the entire journey, new customer interfaces (via social media), advanced information systems and analytics, financially powerful airlines based in emerging nations, and the rise of unencumbered entrepreneurs who think differently as well as platform-focused integrators.
The Global Commercial Aviation Industry by Sören Eriksson,Harm-Jan Steenhuis Pdf
This book provides a state-of-the-art overview of the changes and development of the civil international aircraft/aviation industry. It offers a fully up-to-date account of the international developments and structure in the aircraft and aviation industries from a number of perspectives, which include economic, geographical, political and technological points of view. The aircraft industry is characterized by very complex, high technology products produced in relatively small quantities. The high-technology requirements necessitate a high level of R&D. In no other industry is it more of inter-dependence and cross-fertilisation of advanced technology. Consequently, most of the world’s large aircraft companies and technology leaders have been located in Europe and North America. During the last few decades many developing countries have tried to build up an internationally competitive aircraft industry. The authors study a number of important issues including the political economy of the aircraft industry, globalization in this industry, innovation, newly industrializing economies and the aircraft industry. This book also explores regional and large aircraft, transformation of the aviation industry in Central and Eastern Europe, including engines, airlines, airports and airline safety. It will be of great value to students and to researchers seeking information on the aircraft industry and its development in different regions.
Aviation Systems by Andreas Wittmer,Thomas Bieger,Roland Müller Pdf
This book aims to provide comprehensive coverage of the field of air transportation, giving attention to all major aspects, such as aviation regulation, economics, management and strategy. The book approaches aviation as an interrelated economic system and in so doing presents the “big picture” of aviation in the market economy. It explains the linkages between domains such as politics, society, technology, economy, ecology, regulation and how these influence each other. Examples of airports and airlines, and case studies in each chapter support the application-oriented approach. Students and researchers in business administration with a focus on the aviation industry, as well as professionals in the industry looking to refresh or broaden their knowledge of the field will benefit from this book.
Business Report. Global Aircraft Manufacturing Industry by Stefan Lacher,Florian Roth,Clinton Graber Pdf
Seminar paper from the year 2004 in the subject Business economics - Business Management, Corporate Governance, grade: Distinction, Deakin University (Faculty of Business and Law), course: Strategic Management, language: English, abstract: The purpose of this report is to analyse the attractiveness of the aircraft manufacturing industry. Research for this report includes information from journal articles, newspapers, and analysis of actions of the main competitors. The major findings indicated that the aircraft manufacturing industry has undergone extensive changes since the late 1990’s. Despite the negative effects of environmental change like the terrorism acts of September 11, 2001 and diseases like SARS on air travel, the aircraft industry is still attractive for new entrants. The long-term growth rate caused by globalisation, governmental support, and general need for more mobility show that there is still a large demand for aircrafts of all sizes. Due to the industry’s attractiveness, it is highly recommendable to enter the industry. Companies considering this should be aware of the high volatility in the market as well as the huge capital investments needed for the development process. [...]
Flying Ahead of the Airplane by Nawal K. Taneja Pdf
Airlines willing to develop insight from foresight relating to the expected ’step phase changes’ will eventually improve their margins. However, the backward-looking airline, managed using old strategic levers and short-term metrics, will cease to exist, merge, shrink, become more dependent on government support, or become irrelevant. ’Management innovations’ are not going to deliver the required improvements; innovation within management is essential for airlines' survival. In Flying Ahead of the Airplane, Nawal Taneja analyzes global changes and thought-provoking scenarios to help airline executives adjust and adapt to the chaotic world. Drawing on his experience of real airline situations worldwide, the author concludes that there is a gulf between what executives are doing now and what they need to do to stay ahead of the curve. To close this gap, the author suggests that airline executives focus on just three relevant initiatives: a) aligning business and technology strategies, b) redesigning organization structures to centralize the role of the scheduling function, and c) developing relevant brands that integrate social networking technology. To support this third initiative, the book provides insights on branding from 20 fascinating non-aviation case studies from around the world. Flying Ahead of the Airplane will assist practitioners in airlines of every size to integrate future trends into their mainstream thinking and launch flexible business models to manage risk and compete effectively in the ’flattening world’.
Fundamentals of Airline Marketing by Scott Ambrose,Blaise Waguespack Pdf
Applying fundamentals of marketing to commercial passenger air transportation, this textbook puts the emphasis on marketing principles and illustrative ways in which airlines can distinguish themselves within the highly competitive global marketplace. Fundamentals of Airline Marketing begins with a survey of current airline business strategies and the macro forces that have shaped the airline industry in the past and will continue to do so in the future. The growing importance of technology is discussed both from the perspective of better understanding customer needs and engaging more effectively with them. The central role of the "customer" is explored through the lens of modern segmentation and branding approaches. Coverage then shifts to the tactical decision areas consisting of the 4Ps—product, place, promotion, and price—in which marketers shape and execute their strategies. The book concludes with a focus on executing marketing initiatives internally through customer-facing employee groups and externally through the measurement and management of the customer experience. Fundamentals of Airline Marketing: • is an accessible textbook on the fundamentals of marketing for commercial passenger air transportation; • chronicles the marketing innovations and controversies that have been central to the historic shift in airline fortunes; • demonstrates how airline decisions fit within the fundamentals of marketing and how the marketplace is continuing to evolve; • provides a bridge between key marketing principles and their specific application to the airline industry in each chapter. This textbook is written primarily for undergraduate college students enrolled in aviation business administration programs and related courses. It will also serve as an accessible primer on airline marketing for industry professionals not presently working in marketing and for frontline airline employees seeking to learn more about marketing.
The airline industry is in a state of radical restructuring as its markets and key stakeholders (customers, airline labour and management groups, governments, and the financial community) adjust to the new aviation realities. Airline executives can be forgiven for being overwhelmed by technology proliferation, zestful new paradigm airlines, September 2001, business cycles, Iraq, SARS, and animal diseases. The leadership challenge for all carriers is now to select and execute appropriate business models, thinking both 'inside' and 'outside' the 'box', to turn conventional wisdom upside down to achieve dramatic increases in productivity. Some legacy carriers still need to create an effective strategy for much larger cycles that encompass major discontinuities. Burdened by past decisions, they are forced to fight with one hand tied behind their back to 'convert volume to value', to survive and prosper. Some new airlines have been at the forefront of shaping change, developing a vision of the mass-market, assessing the customer value of their core processes, and using a 'back-to-basics' business approach. Both groups should take a sideways glance at what works in other industries and implement those insights into actions. Some examples featured in this book include: ” Wal-Mart's virtually real time inventory system; ” Target's business model based around a unique customer experience; ” Dell Computers' business model based around direct sales and mass customization; ” Unilever's organizational structure around value creation and value delivery departments; ” Shell International's development of scenarios of alternate futures; ” Harrah's Entertainment's use of information technology to recognize and reward valuable customers; ” The Warehouse's communication system with its suppliers to produce efficiency at both ends for the common benefit of the customer; ” Nissan's cross-functional teams; ” DoCoMo's management of human passion in customers; ” Nike's innovation resulting in 'industry-transforming' products; ” Toyota's 'Construction of Cost Competitiveness for the 21st Century'. Written by an experienced airline business strategist and international in scope, this wide-ranging book identifies challenges and problems, presents comprehensive analyses and suggests some solutions. Key features include: ” a comparison with 14 other business sectors (unique amongst aviation books); ” examples of airlines who have changed their business models; ” a detailed study of branding, including mistakes and critical success factors; ” how to manage risk by transforming supplier relationships; ” plausible scenarios for the future to prepare for major transformation; ” the emerging role of passenger management systems to identify, serve, and retain high value passengers. The author identifies the new realities and the obstacles to change, the need to revitalize product development and renew the customer experience. He deals with public policy and the need to revise supplier relationships, especially with aircraft maintenance providers, and looks at successes and failures in other industries. This is rounded off with a clarion call to governments, labour unions, airports, manufacturers, suppliers and above all airline management, to shake off the past, and to address the challenges and opportunities. His approach is to provide impartial analysis and pragmatic insights into vital enablers of change, potential business models, execution strategy, ways to make stakeholders more influential, wisdom from other businesses, and to present scenarios to make busy executives stop and think. The readership includes the broadest cross-section of practitioners in the global airline and related industries, as well as those affected by the industry and seeking a deeper understanding of it. This includes including airlines, government civil aviation departments, the aviation divisions of the financial community (investment banks and leasing companies), aircraft manufacturers and their suppliers, airports, information technology companies, as well as customers and other stakeholders.
"This paper began with a brief history of the development of the airplane and the airline industry in the United States and Europe. Use of aircraft for mail delivery and passenger travel was discussed as well as political environments and stages of development which led to the emergence of airlines themselves. As airlines developed and international travel became common, international political considerations of this activity were examined. This activity impacted the development of use of strategic alliances in the airline industry. Market-based economics were discussed, and the permitted level of cooperative effort among the airlines was examined from a historical and current point of view. To determine the impact of strategic alliances in the air transport industry, a detailed examination of the structure and operational aspects of two member airlines in a newly formed alliance was conducted using historical and current information from industry sources in English and French. Each member airline, Delta Air Lines, and Air France, was examined with comparative reasoning in order to evaluate their operations in a standardized fashion. The analysis chapter, an evaluation of the effectiveness of the strategic alliances the member airlines had formed, was conducted using objective, industry-wide criteria. This analysis led to a conclusion that strategic alliances in the air transport industry are beneficial and essential to provide an Anywhere to Everywhere service to customers."--Abstract
Innovation in Commoditized Service Industries by Maximilian Rothkopf Pdf
The passenger airline industry is a prominent service industry that is becoming increasingly commoditized. As little empirical work in this field exists, this study contributes to research by exploring how passenger airlines leverage innovation in such market conditions from a strategic and organizational view. Comprehensive case studies of a sample of eight passenger airlines constitute the empirical basis. The analysis detects patterns of innovations and draws conclusions on the strategic innovation behavior in the airline industry. The study proposes an organizational concept and a strategic approach for airlines to innovate in an increasingly commoditized market.
Strategic Alliances in the Aviation Industry by Hendrik Vedder Pdf
Bachelor Thesis from the year 2008 in the subject Business economics - Business Management, Corporate Governance, grade: 1,9, European Business School - International University Schloß Reichartshausen Oestrich-Winkel (Chair of Strategic Aviation Management), course: Bacheloarbeit, 62 entries in the bibliography, language: English, abstract: “Companies are just beginning to learn what nations have always known: in a complex, uncertain world filled with dangerous opponents, it is best not to go it alone” (Ohmae, 1989, p. 143). This statement emphasises the significant developments in firms’ corporate strategy in the 1980s. As a response to the rise of globalisation, and thus, increased competition, companies throughout the world started collaborating with partners with interfirm cooperation. Their cooperative practices, though, were not equally relevant in all branches, but concentrated mainly on industries that were affected most by the in-creasing environmental dynamic and complexity. Therefore, firms in various industries, such as the automotive or telecommunication industry, established alliances with their competitors in order to stay competitive and to jointly expand into world markets. However, the aviation industry, in particular, has experienced downright alliance frenzy since that time. With the gradual liberalisation of international air transport, collabora-tions between carriers have steadily gained importance. Therefore, airline alliances have developed from purely horizontal links into more complex and integrated strategic alliances. These strategic alliances have been established mainly to bypass existing regula-tory restrictions and to adapt to customers' altered preferences by extending the airlines’ networks. However, with the incidents that occurred during the first years of the 21st century, such as the terrorist acts of 9/11, partner airlines were forced to react to the changed external conditions. This development highlights the high dependence of air-lines and their strategic behaviour on the external environment. Therefore, this thesis aims to analyse the external conditions that persuaded the airlines to align in complex strategic alliances, and how these factors influenced their objectives. Furthermore, the thesis reveals the extent to which the changes in the external environ-ment have induced a reorientation in the airlines’ alliance strategy.
Airline Marketing and Management by Stephen Shaw Pdf
Stephen Shaw's study examines the principles of marketing and demonstrates the way in which these principles can be applied in today's airline industry. The book is full of up-to-date and relevant examples drawn from world-wide aviation sources.
The Airline industry has been under increasing pressure recently, from the increased competition of low-cost airlines and the terrorist events of 2001 to name but a few. Various US airlines, including Delta and Northwest, have been declared bankrupt, oil prices have soared, and seat prices are still being forced down, the supply far outweighing the demand. This e-book looks at recent case studies of airlines in crisis (Continental Airlines), and also airlines which have excelled at expansion during this turbulent time such as Easyjet and Ryanair, and offers examples of successful strategies previously used. The collection also features interviews with high-profile figures from airlines such as Go!, Qatar Airways and SWISS International Airlines.
Managing Airline Networks: Design, Integration and Innovative Technologies is a fully comprehensive description of state-of-the-art network management practices at airlines. Designed as a compendium on current practices and future trends in the field, the book offers an instructive guide through the complex world of non-linear production systems. Written by a renowned consultant and aviation expert, the book discusses the impact of network management on airline resource planning and performance, and examines the interplay between network management and adjacent functions. The book includes a practical case study and is enriched with academic perspectives. Discussing upcoming trends in the sector, the book provides an outlook on advanced technologies that may play a role in next-generation network management. Features include: a description of basic network types, performance indicators for profitable networks, efficient processes and success factors for network management, and common optimisation models and tools; descriptive overviews, supported by practical examples, and leading to a deep-dive case study; a section on trends in network management, outlining new demand forecasting models, ‘big data’ applications, machine learning and AI use cases, and alternative optimisation models for airlines. Managing Airline Networks: Design, Integration and Innovative Technologies is designed as a comprehensive compendium and is essential reading for both aviation practitioners and students of airline management.
Driving Airline Business Strategies through Emerging Technology by Nawal K. Taneja Pdf
In the rapidly evolving airline industry, new technologies play an increasingly critical role in the delivery of real and perceived value in reducing costs, enhancing revenue, and improving customer service and customer safety/security. This book focuses at a senior executive level, examining the key forces affecting the airline business and their potential in terms of short and long-term strategies. The author discusses the role of emerging technology on the airline industry, defined very broadly and including computers, information, databases, aircraft, telecommunications, Internet, wireless, speech recognition, face recognition, etc. His argument is that technology should not only be an enabler of business strategy but crucially the driver of business strategy. The central theme is the vital interaction between technology and business strategy across a wide spectrum of functions - executives sharing their insights of what is needed in terms of revolutions in consumers, technologies, and productivities. What has held airlines back are not so much legacy systems but legacy mindsets, organizational structures and processes, as well as the intelligent selection, investments, and implementation of value-adding technologies. The book is the outcome of the author's own experience while working with a number of airlines and his participation in many discussions with practitioners in the airline and technology firms.
