Mckinsey 7s airline industry

Skills Shared Values Strategy is a plan developed by a firm to achieve sustained competitive advantage and successfully compete in the market. What does a well-aligned strategy mean in 7s McKinsey model?

Mckinsey 7s airline industry

Write an essay on Malaysia Airlines.

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Malaysia Airlines is the national airlines of Malaysia whose flights have connectivity from Kuala Lumpur to destinations all around Oceania, Europe, and Asia. Despite winning numerous awards from the aviation industry, the airline had been struggling to cut its cost in order to compete with the upcoming airlines that portray themselves as low cost carriers in the region since the early years of Inthe company, unfortunately, lost two of its aircraft- Flight 17 and Flight in less than five months of the difference in time which has dealt a huge blow in the face of the company, crippling it with various kinds of financial troubles and also ushered in the process of renationalization of the company.

It has been stated by a lot of business analysts that the Malaysia Airlines are on the verge of a downfall which must immediately be taken care of by the management if they want their company to win back its reputation and position in the global market Dixon Competitive Rivalry This signifies the number of competitors and capability in the market.

If there are numerous competitors offering almost the same kind of products and services, the market attractiveness will be reduced. The Airline industry is highly competitive in nature due to some reasons which include the threat of low cost airlines and the strict regulations pertaining to the safety of the passengers which leads to excessive operating expenses Homosombat et al.

A major point to be noted is that the fixed cost of production is exceptionally high in this industry which makes it difficult to leave the industry because the players might be under long-term agreements of the loan.

The competition is, Mckinsey 7s airline industry, lessened by the exclusive brand identity of Malaysia Airlines, which offers its customers the best hospitality services.

Threat of new entrants Attractive markets lure new entrants into the industry, which eventually decrease profitability. The Airline industry has a massive barrier to the entry of new players in the market.

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The company cannot easily leave the business arena once it has made an entry, or it will lead to huge losses. The new entrants mainly focus upon inviting customers to its side and building their loyalty towards the company Dhandapani and Upadhuyla The Malaysia Airlines had always enjoyed brand recognition among its customers until the MH and MH 17 tragedy that hit people all around the world.

The company needs to revive its image as soon as possible to win back its customers. The threat from the low cost carriers is a constant to the Malaysia Airlines. A new entrant into the industry, Malindo Air is posing a difficult challenge to the Malaysia Airlines.

Malindo Air attracts customers by offering them appreciable services at low costs. Bargaining power of buyers In the airline industry, the bargaining power of the buyers is driven by the size of the buyers in the industry in numeric terms Dixon It is also driven by the significance of each individual customer in the market and the cost which the buyer has to pay when he switches from one company to the other.

The buyers of Malaysia Airlines can be classified into the following type of travelers: The Malaysia Airlines can enhance loyalty among their customers by initiating frequent flyer incentives which will refrain them from switching to other Airline Companies in the market.

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The substitutes with reference to Malaysia Airlines could be a car, train, bus, or even a cruise that the customers can take to reach their destination. But these substitutes can only be a threat to Malaysia Airlines when domestic flights are concerned.

When overseas traveling come into question, Airplanes are the most convenient and time-saving option among all the choices available to the customers Grunig and Kuhn However, with the development of technology in today's era, the consumers have an option not to travel at all.

Businessmen, especially, in this case, opt for video conferencing sitting at their office, hence saving a lot of time and money in traveling. Bargaining power of suppliers In an airline industry, it is often easy for the suppliers to escalate their prices. This is possible due to the following reasons: The number of suppliers that are available in the industry for each significant input required; The uniqueness of service or product that is supplied; The concentration of suppliers; The cost paid by the company to switch suppliers Dhandapani and Upadhuyla The bargaining power of the suppliers is not so strong in case of fuel since the price is set and regulated by the Malaysian Government.

There are presently two aircraft manufacturing companies which are competing against each other- Boeing and Airbus. Since the Malaysia Airlines are Boeing's client, it automatically has increased its airline prices. It is difficult for Malaysia Airlines to switch to another company since it involves high costs and also that its staff is acquainted with Boeing's airplanes.

The power of powers is not a negative one in the case of Malaysia Airlines depend on only one manufacturer Dale et al. The loss was even bigger in the previous year amounting to Three Hundred and Seventy-five Million Ringgit.

The revenue of the company also fell drastically from The reason behind being the missing episode of Flight and Flight 17 has scared the passengers and has been keeping them away from boarding the Malaysia Airlines. The company had been making a financial loss each year since Value Chain Template in PPT | By ex-McKinsey Experts Collection by Slidebooks Consulting Go to to Download and Reuse Now a Value Chain Template in Powerpoint | Created By ex-McKinsey & Deloitte Strategy Consultants.

The McKinsey 7-S model shows why you can't change any one aspect of an organization in isolation. Find out what the Ss stand for, and how to use the model.

Use the 7S Framework when things aren't quite working in harmony. one that has persisted is the McKinsey 7-S framework.

Developed in the early s by Tom Peters and Robert Waterman. The 7S model, developed by Mckinsey Consulting, can describe how affectively one can organise a company, holistically.

It is based around seven key elements of any organisation, with the view that in order for it to operate successfully, all the elements in this model must align synergistically together.

The GE matrix / McKinsey matrix (MKM) is a model to perform a business portfolio analysis on the Strategic Business Units of a corporation.. A business portfolio is the collection of Strategic Business Units that make up a corporation. The optimal business portfolio is one that fits perfectly to the company's strengths and helps to exploit the most attractive industries or markets.

Mckinsey 7s airline industry

Dec 29,  · McKinsey is clearly one of the best around. Usually they advise many, including me, so I thought this time I do the reverse! McKinsey’s 7-S model has been developed in the late s to evaluate organizations by focusing on seven ‘S’.

airlines. Changes in customer demand were softened by the unique staff that Southwest had. Customer service took the place of meals that would be served on short flights.

Strategy: McKinsey 7S Framework and Telenor Example | Craeser