Alitalia Airline : Strategic option

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Alitalia Airline : Strategic option

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Abstract

This report is aimed at bringing out the best strategic option for the company Alitalia. To that end, we shall drive a rigorous and in-depth analysis. The study will first determine the organization's external environment and its strategic capability. These internal and external points are then consolidated into the SWOT model. Some strategic options have been found through the TOWS model which is based on the points derived from the SWOT analysis. Further, three of the resulting strategic options have been evaluate through the success criteria tool. This enables us to identify the best option available. This strategy uses the concept of using the organizations strengths avoid any threat. This option consists of the consolidation of high quality service in order to attract new business customers. This option involves both the improvement of the value chain (which is the most important) and the creation of products that are capable of creating value for the business. To conclude, we will explain how the organization suffers a break because of the obligation to obtain a compromise for the stakeholders. Thus, it has been shown that almost all organizations are prevented from choosing the best strategic option for their growth because of the stakeholder's expectations.

The organisation's external environment
1. The macro-environment analysis
2. Porter's matrix
3. Competitor analysis
The organisation's strategic capability analysis
1. Resource audit
2. Value chain analysis
3. Core competences
4. Stakeholders
SWOT analysis
Strategic option
1. Detection of three possible strategic options
2. Strategic options definition
3. Success criteria of the strategic options
4. Final choice

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[...] Alitalia Airline: Strategic option Summary The report has the objective to bring out the best strategic option for Alitalia (Appendix 1). For that, a rigorous and deep analysis has been driven. Firstly, it has been provide the analysis of the organization's external environment and the organization's strategic capability. Then, these internal and external points have been summarised into the SWOT model. Thanks to this model, some strategic options have been found through the TOWS model which is based on the points of the SWOT analysis. [...]

[...] Thus, can deal with landing rights, related time slots. Also, can do some European request to obtain funding. SkyTeam members - This partnership lead to cost saving and brand awareness. Labour unions and employees - The labour unions, notably because of the government involvement, is very powerful and the current strikes are a significant loose of money for Alitalia (in the 2006 strikes, each strike day = € 20 million). Essential element of service quality. Shareholders - It is an important one because it cans se a useful way of raising large sums. [...]

[...] Suitability is concerned with whether a strategy addresses the circumstances in which an organization is operating – the strategic position (Johnson, Scholes and Whittington p. 357). The suitability leads to see if yes or not the future trends and changes in the environment, exploit the strategic capability of the organization and meet the expectations of stakeholders (Johnson, Scholes and Whittington p. 357). However, the TOWS matrix has identified strategic options directly from the SWOT analysis. Therefore, it has provided an assessment of suitability. Thus, the three strategic options respond to the suitability criteria .2) Acceptability. [...]

[...] Sources and explanations: (Appendix 2). ➢ Thanks to the PESTEL analysis we have brought out the key drivers of the airline industry. In a matter of fact, the airline industry is and will be influenced by an important range of factors. Indeed, none of these factors can be discredited. This explains surely the cyclical character of this industry. It will show how these influences will or will not influence the strategic options, and how to get profit of these influences through the chosen strategy. [...]

[...] All around the world the company is confronted to different policies. Thus, the conservative USA is a problem which notably increased after dramas like the WTC (World Trade Centre) disaster. However, in the 1990s, "open skies" agreements became more common, which take many of these regulatory powers from state governments and open up international routes to further competition. Open skies agreements have met some criticism, particularly within the European Union, whose airlines would be at a comparative disadvantage with the United States' because of cabotage restrictions (Wikipedia, 2006). [...]

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