Wednesday, May 6, 2020
Aviation Management Air Algerie Cargo
Question: Discuss abot theAviation Managementfor Air Algerie Cargo. Answer: Analysis It is important to consider proper strategies and consultation before one tries to start-up an organisation. Mission and Vision of Air Algerie Cargo Air Algerie cargo aims to enter into the market of China in order to increase the market base and gain higher profitability margins. The company intends to enter into the market by implementing pricing strategies that help to attract more customers towards the brand. The airlines considers the implementation of the price skimming strategy in which it decides to sell its services to the customers of the China market at a comparatively lower rate than that offered by its competitors (Wittmer and Douglas 2013). Strategy and Risk Analysis of the Company The market of China in which Air Algerie cargo intends to enter is a highly competitive market and thus sustaining in the market becomes difficult. In addition to that the cultural difference is another risk factor that affects the international marketing of the company. The authorities of the company consider several strategies such as direct exporting, franchising, joining ventures and considering GreenField investment. In the opinion of Budd, Griggs and Howarth (2013), the proper implementation of the strategies helps the organisation to easily enter and sustain in the market of China. Moreover, the market trend of Air Algerie cargo over the last few years indicate that the company has been gaining high profit margin and have a stable financial and market position. The analysis of the company and the market in which it tries to enter is necessary for the company as it helps the potential investors to decide whether it is profitable to invest in the start-up business activity of the company or not. According to Halford (2016), the company should consult its different stakeholders regarding the start-up business plan to understand the strength, weakness, opportunities and threats of the company. The company has a strong brand name and a high market value that will help to sustain in the market. In addition to that the company follows cost effective methods in the workplace that reduces the operational expenses of the company. This further allows the company to achieve the objectives of the price skimming strategies. The company has poor marketing mix strategies that need to be properly addressed before starting up the business. The high market demand provides scope for international marketing in the market of China (Kinnison and Siddiqui 2012). H owever, the changing and the innovation in the technology and the high competition is a threat to the airline. Conclusion The mission and the vision statement of Air Algerie cargo indicate that the start-up plan of the company is achievable if properly implemented and followed. The trend analysis of the company and the current market position of the company infer that the investors are capable of earning higher return from the investment made on this particular project. However, the risk factors and the pros as well as the cons are to be considered by the managers of the company before it tries to enter into the market of China. The identification of the potential risk will allow the managers to consider strategies that will efficiently address the issues of the company and thereby achieve the goals and the objectives. References Budd, L.C., Griggs, S. and Howarth, D. eds., 2013.Sustainable aviation futures(Vol. 4). Emerald Group Publishing Halford, C.D., 2016.Implementing Safety Management Systems in Aviation. Routledge. Kinnison, H.A. and Siddiqui, T., 2012.Aviation maintenance management. Wittmer, A. and Douglas, I., 2013. International Journal of Aviation Management: Challenges in Aviation Management and Regulation.