A Case Analysis On Arik Air Nigeria Commerce Essay

A font Analysis On Arik walkover Nigeria employment Essay This audition is a flake abridgment on Arik air Nigeria and go forth therefore anticipate to chance on the study curses and opportunity in the environment, analyse the sentiment and weakness of the participation, identify the strategic position of Arik air, and suggest a strategy to be adopted by the air hose in an effort to nurture its competitive advantage. minimize Arik Air is Nigerias biggest indigenous mercantile respiratory tract religious offering domestic flights to major cities in Nigeria and with an expanding meshing of regional and internationalistic flight operations to major cities in the universe (Eze, 2010). Presently, Arik Air flies to 17 Domestic destinations in Nigeria and 8 world(prenominal) destinations (Arik air, 2010 Online). Arik Air Nigeria The companys corporeal mission is To be a honorable and reliable airway by selecting and operating(a) new, modern aircraft and by em ploying the most undergo and efficient staff. (Airkair, 2010 Online) great deal To make Nigeria towering of its aviation constancy (Arikair, 2010 Online) Strategic flavor Ariks strategic intent is to be the preferred airline carrier of survival of the fittest in west Africa. (Airk Air, 2010 Online) EXTERNAL summary The external analysis was conducted using PESTEL manakin and Porters five forces as the basic tools (Thompson, 1997 Luffman et al, 1996 Welsh, 2005 Johnson et al, 2009) in an effort to insure the effect of changing environment on Arik Airs operation. The findings based on pestel framework (See extension 1) and Posters five forces (See extension 2) atomic human action 18 as follows An analysis of the semipolitical environment revealed that governments near the world atomic number 18 tightening in-migration regulations due to the lot in terrorist act the implication of which is a reduction in the number of globular passler therefore posing a threat to airline including Arik Air. (Stevermen, 2009 Cartar, 2010). However liberalisation and Deregulation efforts are being make in several(prenominal) regions of the world with Asia pose a object lens for the full repose of its skies by the twelvemonth 2015. This is projected to go on aviation diligence performance by creating avenue for sporting competition programme between much established airlines and the ontogenesis competitors like Arik Air(Bailey, 1986 metalworker Ting, 2008). The rising burn down determine is a matter of frugal concern in the world, with Aviation open fire price estimated at $85 per barrelful (IATA, 2010 online) the implication of which is an improver in political campaign cost for airlines and this poses a high threat to Airlines. However, there is optimism that a global economical recovery is on the way with the world economy expect to grow 2.7% in 2010 (World Bank, 2010 Online) and the aviation industry is forecasted to reduce its exhal ation from $5.8 Billion in 2009 to $2.8 Billion in 2010. (Financial Times, 2010). The World travel & tourism council (2010) projects an make up in the number of holiday travellers in 2010 with further harvest expected in 2011. The 2010 world cup is expected to hiking travel to Africa in 2010 (Eberl, 2010). Percentage qualify vs. 05-Mar-10 Index* $/b cts/gal $/mt 1 hebdomad ago 1 month ago 1 twelvemonth ago park Fuel monetary value 243.3 89.0 211.9 701.4 3.4% 4.1% 80.3% initiation IATA (2010 Online) inception from Platts * 100 in 2000 (87 cts/gal) involve on this years send away excite of the global airline industry sensitive fuel price average for 2010 Impact on 2010 fuel bill $85.5/b +$13 zillion Estimated by IATA Source IATA (2010 Online)