The purpose of this thesis is to analyze SAS competitiveness and to develop a business strategy, that could help SAS optimize the business strategy. SAS is primarily a regional operator, with the majority of its production on domestic, intra Scandinavian and European routes. The aviation industry is characterized by intense competition, pressure on prices and high fuel costs. SAS has implemented a number of actions to enhance the efficiency of operations as well as to strengthen its competitiveness in service and offerings This thesis is divided into a number of chapters, which contains a description of the method used, an introduction, strategic analysis, key-ratio analysis and growth analysis for SAS. The first part of the thesis is an introductory section, where SAS (Scandinavian Airlines) is introduced, alongside their history and development through the years. Second part of the thesis is a strategic analysis, which is divided to an external and internal part. The external part is based on PESTEL and Porter’s Five Forces where it is concluded that the airline industry is highly affected by several external factors, such as the oil price, the house holdings income and the world economy. The internal analysis looks deeper into SAS resources and competences, where it is found that SAS possesses numerous valuable resources, such as know-how, service, a strong brand and more. Furthermore the thesis will look deeper into SAS competitive and growth strategy, where they focus on a specific target audience – the frequent travelers in Scandinavia. SAS faces a challenging environment in Europe. It is therefore essential for SAS to regularly perform strategic audits to evaluate changes in the competitive landscapes it operates in. In order to be more competitive, SAS could adopt a best-cost strategy with a ‘more for less’ value proposition. With the arrival of the new A320 neo fleet, SAS is in a position to offer such a value proposition to offer better pricing while maintaining its high service reputation. This paper is highly pragmatic in nature which is largely reflected by the broad range of sources utilized, the generic models and frameworks applied.
|Educations||, (Graduate Programme) Final Thesis|
|Number of pages||83|