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Essay / Research Paper Abstract
This 10 page paper examines the strategy of Air New Zealand. This airline company has had a difficult history, especially with the collapse and bankruptcy of Ansett. The paper uses Porters Five Forces model to examine the strategy and progress of the company and consider its position in the airline industry. The bibliography cites 11 sources.
Page Count:
10 pages (~225 words per page)
File: TS14_TEAirNZ1.rtf
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Unformatted sample text from the term paper:
are still difficulties such as low profits and changes with an increasing demand for low cost airlines. Air New Zealand started up in 1940 and was known as TEAL
(Tasman Empire Airways Limited) and in the first year of operation the company made a NZ $62,958 profit. However, not all years were as profitable and the decision to purchase
Ansett and its subsequent failure brought the company into wide scale disrepute and to the edge of bankruptcy. The beginning of the new and most recent stage of Air New
Zealand starts in October 2001 when the government made the announcement of a rescue package worth NZ $885 million in return the government took an 80% share of the company
(Air New Zealand, 2006). However Air New Zealand has had some major problems to overcome. We can consider the strategy and position of Air New Zealand along with the
structure-conduct-performance paradigm. If we use Porters Five Forces as a basic model we can consider the company in more detail. Porters five forces model considers the external macro
effects on an organisation in a business environment (Goett, 1999). His five forces model is designed to show how the external environment can effect the way a business operates, and
that any strategy a business undertakes should take these factors into consideration when analysing their position and possible future (DAveni, 1999). In
understanding these external forces we will be better placed to deal with them, understanding their combined impact, when they come to play. The five forces Porter identifies are the existing
competitors, the threat of new entrants, substitute products (or services), and the power of purchasers and suppliers (Porter, 1985). Porter does not
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