Strategy of the Japanese airline ANA

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Strategy of the Japanese airline ANA

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Abstract

The entire airline industry is currently facing several severe issues such as the September 11th 2001 attack, the Iraqi crisis and the more recent SARS (Severe Acute Respiratory Syndrome) scare. Most of the companies across the world have not performed with profits since the last several years. In such a scenario, how can All Nipon Airways (ANA), which employs 29 000 people, improve its net income (loss) keeping in mind these negative impacts on demand for both domestic and international flights? How can the Japanese airlines company attract customers in this declining market and boost sales? How should they change their strategy?
As a member of Star Alliance, the largest worldwide airline alliance group, ANA's strategy is interesting to analyze. How does ANA take part in the Japanese industry? How does the company face internal organizational issues? What strategic direction should be recommended in order for it to perform successfully in this industry?

A comprehensive strategic analysis of the industry
1. The external strategic analysis of ANA
2. The SWOT analysis of ANA
The development of strategies to face the main current issues of ANA
1. The differentiation strategy in an vertical integration
2. The business model of ANA: evaluation and perspective
3. The most critical aspects that the executive management of ANA should change

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[...] All these services have to answer the needs of each customer, every time.” 1 The differentiation strategy in an vertical integration Thus, in order to reach the detailed goals, ANA has to emphasize two businesses: the travel agency and the internet activities. With the growth of tourism (previous part) and the development of the so called e-tourism, these two strategic activities will become important. Thus, we propose to launch a subsidiary: ANA Travel and its website (ANA Travel online). The aim is to propose a differentiation strategy by launching a new activity. [...]

[...] The development of strategies to face the main current issues of ANA According to the comprehensive strategic analysis of ANA and its industry, it is important to develop competitive strategies as well as related organizational strategies for the Japanese airline company to face these main issues: Non-profitability of the airline company Non-competitiveness of the company in the international market, in terms of pricing strategy and products Non-globalization of ANA in terms of marketing and sales Powerful growth of relevant substitutes for flights (Shinkansen) The development of the hotel and travel agency business on the one hand and internet on the other should be included in the strategy to compete successfully. [...]

[...] Furthermore, in creating a website in order to sell online flight tickets for ANA and travels for ANA Travel, ANA Travel online must follow these objectives, in order to succeed in the e-tourism segment: To have good references in order to be easily found on the World Wide Web. To reach a high-performance in order to improve the utilization and the payment process. To be clear in order to locate without difficulty the most suitable products on the website To be attractive in order to attract a maximum of internet users (for instance, by the auction process). In the last few years ANA has had to invest in resorts in the Asian area (not only in Japan because of the bad international image and high prices). [...]

[...] After analyzing the external environment of the Japanese airline company (major trends of the industry, driving forces, competitors), it will be pertinent to study its key success factors and its strategic issues (external and internal) in order to provide a SWOT analysis The external strategic analysis of ANA To analyze the industry in which ANA performs, it is relevant to study its major characteristics by using an analysis of the macro environment, the competition, the driving forces and the key success factors of ANA Synopsis of the Japanese airline industry: Macro environment and trends Thinking strategically about the environment of ANA is useful to understand the general strategy of the Japanese airline company. [...]

[...] After analyzing the current model, and the recommended model, it is interesting to identify and discuss the five most critical aspects that the executive management of ANA should change The most critical aspects that the executive management of ANA should change The executive management of Air Nippon Airways needs to perform competitively in the domestic and international markets of airline, tourism and e-tourism. Five main internal issues that ANA faces are: The bad management of the financial department. Risk management needs to be taken [...]

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