Write 8 pages thesis on the topic strategic management at scandinavian airline systems in 1988.
Write 8 pages thesis on the topic strategic management at scandinavian airline systems in 1988.
For the purpose of carrying out the SWOT analysis of SAS, it is imperative to have a desirable objective (Barney & Hesterly 2008). The stated objective is to assure the long term viability of the company in the altered external environment, as it existed in 1988. The major strength of SAS is its strong position in Europe and its global route network (Ghoshal et al. 1988). Right from its conception, the organization had an innovative and aggressive approach towards business (Ghoshal et al. 1988). The airline has a history of striking successful alliances in areas of technology, business processes, product distribution and reservation, an approach which so far has consolidated its position (Ghoshal et al. 1988). SAS has a firm financial footing as compared to its competitors (Ghoshal et al. 1988). It has successfully managed to horizontally restructure itself through employee education and empowerment (Ghoshal et al. 1988). The airline has a stronghold over the business traveler .segment (Ghoshal et al. 1988). It has a positive reputation for efficiency, service quality and punctuality (Ghoshal et al. 1988). Through forwarding vertical integration it has developed into an “A to Z” airline in terms of product differentiation, product distribution and reservation (Ghoshal et al. 1988. Capon 2008). The organization has besides the airline, four other independent business units, which are profit earning and are high-value assets (Ghoshal et al. 1988). For the time, the airline has a worthy and diversified fleet (Ghoshal et al. 1988)
High operating costs and problems with the trade unions are one major weakness of SAS (Ghoshal et al. 1988). So far, the airline has focused on a small population base (Ghoshal et al. 1988). .The conservative elements in middle management are not open to change (Ghoshal et al. 1988). SAS Group Structure is very complex, diversified and unwieldy (Ghoshal et al. 1988). Also, a good chunk of the fleet of SAS is bound to phase out in the near future (Ghoshal et al. 1988).
