Pakistan International Airlines, Pia: Strategic Report
Pakistan International Airlines, Pia: Strategic Report
Pakistan International Airlines, Pia: Strategic Report
AIRLINES, PIA
STRATEGIC REPORT
VISION STATEMENT
‘’To set the standard of excellence for flying across the globe by
always striving hard to provide unmatched services to all our
prestige guests when it comes to safety, entertainment and
punctuality and the most state of the art airplanes gives us an extra
edge to meet our customer needs consistently and to grow more’’
COMPONENETS OF MISSION STATEMENT
CUSTOMERS .
• People who want their flying experience to be memorable each time.
SERVICES .
• Taking guests from one destination to another with safety, punctuality and entertainment.
TECHNOLOGY .
• State of the art airplanes.
…
PHILOSOPHY .
• organization believes in giving utmost flying experiences on consistent basis to the guests and by
reaching out an extra mile to meet their needs.
SELF CONCEPT .
• The determination to set excellence standards covers the self-concept aspect.
MARKET .
• Across the globe.
STRATEGY FORMULATION
• IFE
INPUT STAGE • EFE
• CPM
• SWOT
• SPACE
MATCHING STAGE • BCG
• IE
• GRAND STRATEGY
MATCHING STAGE
SPACE GRAND
BCG SWOT IE
MATRIX STRATEGY
MATRIX MATRIX MATRIX MATRIX
SPACE MATRIX
TOTAL 100
…
INTERNAL EXTERNAL (IE) MATRIX
• Score from the EFE matrix is plotted on the y-axis i.e. 2.2
• Score from the IFE matrix is plotted on the x-axis i.e. 3.08
IE RESULT:
Having a look at the graph of IE MATRIX on the next page, PIA falls in the 4th cell which
suggests grow and build strategy for PIA so the strategies available for them are,
intensive integrative strategies and intensive market penetration, market development
and product development.
…
SWOT MATRIX
STRENGTHS-S WEAKNESSES-W
1. STRONG BRAND 1. HIGH MAINTENANCE COSTS
2. MONOPLY AT HAJ FLIGHTS 2. OVER STAFFING
3. GREATER ACCESS TO DESTINATIONS WORLD WIDE 3. CORRUPTION
4. FINANCE W.H.O GOVERNMENT 4. UNION HOLD
5. HUGE JET FLEET 5. LOW MOTIVATION OF EMPLOYEES
OPPORTUNITIES-O SO WO
1. USE OF ALTERNATIVE FUEL (S4, O3), Acquire Shaheen airways to get its share. (W1, W4, W5, O3), Merger could be a way to get rid of
2. INCREASED TRAVELLING IN ASIA aging crafts resulting in high maintenance costs, new
(S3, O5), Focus on the Asian market more to benefit from
3. MERGER AND ACQUSITIONS employees coming over would help the existing
increasing demand and wider access to worldwide
4. NEW DESTINATIONS employees in getting motivation and to weaken the
destinations.
5. GLOBALIZATION OF FED-X union hold.
(S4, S2, O1), Make the haj flights more profitable by saving
on fuel costs.
THREATS-T ST WT
1. FOREIGN EXCHANGE RISK (S4, T3), the threat of poor security situation in our (W2, T5, T2), Introduce culture of merit in HR
2. WORLD WIDE WEAK ECONOMIC country can be overcome by adding advance practices.
CONDITIONS security systems and equipment.
3. TERRRORISM
4. INNTENSE COMPETITION (S1, T4), Marketing the strong brand name properly
5. POLITICAL INTERFERENCE can reduce the competition.
GRAND STRATEGY MATRIX
• With reference to BCG matrix the growth rate of the four destination routes are as
follows:
• DESTINATION GROWTH RATE
• LHR-KHI 19%
• LHR-ISB 10%
• ISB-USA 16%
• KHI-DUBAI -9%
•
• And the competitive position with reference to space matrix is -2.2
…
Rapid Market Growth
Quadrant 2 Quadrant 1
LHR-KHI 19%
LHR-ISB 10%
ISB-USA 16%
Strong
Weak Quadrant 3 -2.2 Quadrant 4 Competitive
Competitive
KHI-DUBAI -9% position
position