Strategic Analsis of Ethiopian Airlines

This report is compiled for the partial fulfillment of the course entitled Global strategy Analysis and practice, based on analysis of the Ethiopian Airlines business strategy. The Ethiopian Airlines is a state owned enterprise which operates globally. The study will provide a brief assessment on the Ethiopian Airlines Business strategy based on analysis of data collected from secondary sources which includes data from the Internet, websites, company magazine, news papers, and annual reports.

We have also conducted interview with the company senior management. The problem related to time constraints to collect raw data and access to primary data was the issues that limit the study. The first part of the report provides a brief overview about Ethiopian Airlines. On the next step we look a computational analysis that includes the SWAT, PESTEL and Porter’s five forces model. The last section addresses the conclusion and recommendation.

For a new entrant to the airline industry the current situation is un pleasant. Whereas for Ethiopian Airlines stayed in the market for a long time with a best safety record and operational reputability. It gives the company a strong brand name, loyal customer, big market share in the continent and has a good image in Europe and Asia. On contrary the domestic flight service has a weakness in satisfying the local customers like flight delay, flight cancellation and low service quality..

Ethiopian Airlines adopts demarcation basic strategy to get a competitive advantage by implementing electronic ticketing and online check-in. In addition, it gained a competitive advantage by focusing in new segments in the market. The airline wants to grow from 53 to around 80 destinations by 2015. Also it provides aircraft maintenance, pilot and technicians training including training by plane simulator, including for most African countries.

Ethiopian Airlines sets its strategy to maximize stake holders’ interest by implementing latest aviation technologies, skilled manpower, provide aircraft maintenance which leads increasing its market share to become a world class African Airlines. RECOMENDATIONS In addition to the existing strategy of the company the study recommends the following shall be incorporated. Reduce operational costs Ethiopian Airlines should reduce the operational costs by improving maintenance processes, having high aircraft utilization, perform effective flight scheduling, out