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Airline Business Approach to Corporate Strategy Essay

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Updated: Mar 9th, 2022

Introduction: brief data about airline business

Nowadays, airline business encounters the peak of crisis thus losing enormous amounts of money. This is a burning problem for the whole world due to the increase of large-scale catastrophes in the twentieth century and at present time. The above greatly affected the airline industry, as the security matter is the major challenge this business encounters. In improve the present situation, it is necessary to consider the new strategies and the way they influence the plane industry and services. Now, there exist the six airline companies that are considered as the most powerful businesses in the world. Among them are: American Airlines, United Airlines Northwest Airlines, US Airways and Continental Airlines. These six Airlines based in the USA were founded in the beginning of the twentieth century (Johns 2001).

Main body

As the any corporate business, it has subsequent stages of implementation of this type of strategy. Airline business approach to corporate strategy has certain steps beginning from formulating the strategy up to it implementation. In particular, it is necessary to shape the corporate strategy and to distribute them among different functional areas. Then, after the analysis of the results of those areas such as marketing, finance and distribution, it is necessary to unites all the functional strategies in one goal and resort it to project unit strategy again (Miltenburg 2005). These companies are the most successful in developing the corporate strategy.

Considering the corporate long-termed business strategy for the airline business, it should be stressed that it has many advantages. There are several techniques used in long-range strategies. To foster the fulfillment of the plan, it is necessary to make a plan of some ideas that could grant a better understanding of the situation. It is worth mentioning that the presentation of ideas should be given separately. The isolated ideas would more objective so that the final decision would more up to the point. Another effective technique is the distribution of obligation that could make the process more efficient. Finally, the most effective part of the strategy is discussion, and negotiation that could generate the alternative decisions (Miltenburg 2005).

Conclusion

Currently, the corporate planning process of present airline companies varies due to numerous factors. To start with, as companies’ are located in different areas, the geographical also greatly influences the market segmentation and aircraft utilization. Second, each company has its own image and aircraft standards that captured the credence of their clients. Here, the social factor plays a significant role in increasing the level of respectability of the company. Next, as the companies have unequal market segmentation, and different distributors, companies’ revenues also differ. That fact is closely connected with the capital investments and further strategy planning of the companies. Considering the present situation, business airlines are more concerned with security and safety of their passengers due to the terrorist acts and recent disasters. In order to preserve the high level of service and to guarantee the appropriate level of security, each airline company should plan its corporate business strategy taking into consideration the social and geographical factors. In that regard, the corporate long-range strategy provides the businesses with favorable conditions to work out the project that could not only preserve the might of the company at the high level; it also give the opportunity to reconstruct the organization. Finally, this type of strategy is more relevant to the aircraft field, as the airline industry is rather time-consuming and complicated.

Reference List

Johnsm, G. (2001). The big Six: US airlines. US: Zenith Imprint.

Miltenburg, J. (2005). Manufacturing strategy: how to formulate and implement a winning plan. US: Productivity Press.

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IvyPanda. 2022. "Airline Business Approach to Corporate Strategy." March 9, 2022. https://ivypanda.com/essays/the-six-in-developing-corporate-strategy/.

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