Air New Zealand. Strategic Analysis and Recommendations

Seminar paper from the year 2003 in the subject Business economics - Business Management, Corporate Governance, grade: 2,0, UNITEC New Zealand, course: Strategy & Change, language: English, abstract: Since the appointment of RALPH NORRIS as Managing Director and CEO of Air New Zealand in February 2002 Air NZ has been working on its new strategic direction. Structural changes in the marketplace made a new direction indispensable and Air NZ is now turning away from inflexible service offerings to align its route and service standards to customer needs. In fact, Air NZ is developing from a full service airline into the direction of a 'value-based-plus' airline (Airline to put profit on menu, 2002) which involves lower fares and more customers. Reduced revenues (per customer) should be offset by lower operating costs mainly achieved by simplification of product bundles and services. (UBS Warburg Conference, 2003, p.11 ; Airline to put profit on menu, 2002) This essay gives an overview of Air NZ strategic direction. It analysis its strengths and weaknesses (SWOT). Moreover a recommendation for a new strategy is worked out and strategy implementation issues discussed.