Strategic Management in Service Industry

1. FLYWORLD CORPORATION
Course: STRATEGIC MANAGEMENT
BY SIR ZEESHAN AHMED
Group Members:
Muhammad Waqas
Abdur Rehman
Wajiullah Khan
Rahab Azhar
Hammad Ali
Muhammad Osama Zafar FWC

2. INTRODUCTION
Fly World Corporation established in
2005. Initially, we started a domestic
airline services in Pakistan. Later, our
business expands internationally with
our cargo facilities across South Asian,
East Asian, Gulf, African and Western
Countries.
Currently, our Fleet of Aircraft
comprises of 100 passenger and
private jets. Out of which 90 are for
passenger and cargo related services.

3. INTRODUCTION (CONT’D)
Head Office of the Fly World
Corporation is located in Islamabad,
Pakistan.
We have more than 20,000
employees across world with 125
regional offices.

4. CORE BUSINESS:
a. Online Ticketing & Reservation
Services (All airlines)
b. Visa & Passport Facilitation (Tour,
Visit, and Work Permit Visa)
c. Cargo Services
d. Hotel Services in UAE, Pakistan,
Malaysia and Singapore.
e. Cab Services (Airline Passenger,
Corporate)

5. VISION STATEMENT
Our vision is to be world’s reliable
airline.
Reliable means that we will always
strive to
provide our customer a reliable trip with
quality customer services.

6. MISSION STATEMENT
To deliver reliable and best air travelling
facility with high quality customer
services
domestically and internationally at
reasonable cost.

7. PRODUCT / SERVICES
A. Core Business
 Airline Service
B. Support Business
 Cargo Service
 Cab Services (Airline Passenger,
Corporate)
 Hotel Services in UAE, Pakistan,
Malaysia.
 Online Reservation & Ticketing Service
(All airlines)

8. ORGANIZATIONAL STRUCTURE
Chairman
CEO -
Airline
Ticketing &
Reservation
Unit
Visa &
Passport
Unit
Cargo Unit
Hotel
Services
(Unit)
CEO - Cab
Services
Passenger
Booking
Corporate
Booking

9. STRATEGIC ANALYSIS
Internal Factors
A. Strengths
a. Own 100 aircrafts including passenger and
private for domestic and international
b. Provide credit facility to business or private
class against bill to company (B2C)
c. Employer of Choice by provide 25% above
average salaries comparatively to market pay
d. Quality repair & maintenance facility with
certified engineering staff
e. Timely arrival & departure
f. Tourism package for all major destination with
discount facility

10. STRATEGIC ANALYSIS (CONT’D)
Internal Factors
B. Weakness
a. Average profit with high operating costs
b. Shortages of competent engineers &
crew locally
c. Low differentiation in business and
economy class
d. Charges on additional meal facility
e. Low destination on western countries
f. Heavily depend on other airlines

11. STRATEGIC ANALYSIS (CONT’D)
External Factors
A. Opportunities
a. Increasing percentage of people
preference to travel through airline
b. Increase in per capita income will
increase no of passengers
c. Opportunity to grow through alliances
with other airlines
d. Premium advertisement for airline
passengers

12. STRATEGIC ANALYSIS (CONT’D)
External Factors
B. Threats
a. High fluctuation on fuel prices
b. No control on exchange rate fluctuation
c. Different taxes imposed by the
governments will impact on revenues
d. Instability of law & order situation
globally.
e. Slow recovery of economic downfall
f. Downfall of luxury travel specifically in
Asian countries

13. INTERNAL FACTOR EVALUATION
(IFE)
Internal Factor Evaluation (IFE) Matrix is a
strategy
tool used to evaluate firm’s internal
environment
and to reveal its strengths as well as
weaknesses.
 Interpretation
The IFE score 2.550 indicates that Fly World
Corporation has strong strength comparatively
to

14. EXTERNAL FACTOR EVALUATION
(EFE)
When using the EFE matrix we identify the key
external opportunities and threats that are affecting
or
might affect a company.
 Interpretation
EFE score 2.450 indicates that Fly World
Corporation
strategies are neither effective nor ineffective in
exploiting opportunities or defending threats. We
need
to improve our strategies and focus more on how
to

15. COMPETITOR PROFILE MATRIX
(CPM)

16. COMPETITOR PROFILE MATRIX
(CPM) (CONT’D)
Interpretation
CPM matrix indicates that Emirates is the
highest performer in our industry
comparatively
to other airline. However, the difference is
not
very high against Fly World Corporation.
We need to improve our strength and
mitigation our weaknesses in order to
compete

17. BCG MATRIX
Stars
I. Cab Service
II. Cargo Service
III. Visa & Passport
Facility
Question Mark
NIL
Cash Cows
I. Airline Service
II. Ticketing
&Reservation
System
Dogs
I. Hotel Service
MarketGROWTHRate
MARKET SHARE

18. BCG MATRIX (CONT’D)
INTREPERTATIONS:
 Hotel Services falls under DOGS due to low
market share and low growth comparatively to
competitors and operate in slowly growing
market.
 Airline service and Online Ticketing &
Reservation System falls under CASH COWS
which has low market growth rate and high
market share. These are most profitable SBUs
which doesn’t requires investments.
 Cab Services, Cargo Services and Visa &
Passport facility falls under STARS as having
high market growth rate and high market share.
These SBUs requires high marketing and
investment and generates profit accordingly.

19. PERCEPTION MAP
PRICE
QUALITY

20. PERCEPTION MAP
Interpretation
Emirates are using differentiation
strategy and having advantage due to
branding. PIA having cost leadership
strategy due to affiliation with
government agencies in Asia and West.
Fly World Corporation is having
integrated strategy (cost &
differentiation).

21. GRAND STRATEGY MATRIX
Quadrant 2
Cab Service
Quardrant 1
Cargo Service
Quadrant 3
Passport & Visa
Facility
Quadrant 4
Flyworld Airline
Online Reservation
& Ticketing
Hotel Service
WeakCompetitivePositions
StrongCompetitivePositions
Slow Market Growth
Rapid Market Growth

22. VALUE CHAIN

23. STRATEGIES
Functional strategies
o Fly World gave best services to its customers
that were like providing world class interiors, and
in-flight entertainment systems.
o Fly World came up with unique private class
facility for a business trip.
o Having a single class freed up more leg space
for passengers when compared to normal
economy class flights.
o Fly World started addressing its customers as
“GUEST” rather than passengers.
o Fly World made its mark by providing its guests
with more legroom and bigger seats so as to
provide better comfort.

24. STRATEGIES (CONT’D)
Promotional & Marketing Strategies
o It came up with a very appealing promotional
line “Fly with world” and it reflected in
experience the company offered to its
passengers.
o Fly World is also launched Online Ticketing &
Reservation facility and Passport and Visa
Service to ease our customer and get more
market share.
o Organized events and Social Media
Marketing Campaign to create our brand
awareness.
o We have a slogan “Timely Depart & Arrive”

25. STRATEGIES (CONT’D)
Financial strategies
o Fly world came up with many new
financial strategic moves that made it
one of the leaders of aviation industry
the company had adopted following
strategies:
o Fly World is planning to spend close to
Rs 100 Million on various media and
below-the-line marketing activities for the
year 2015-16.
o Opening new businesses related and
unrelated to generate more than 30%
revenues to support our core business.

26. STRATEGIES (CONT’D)
Expansion strategy
o Expanding airline and cargo business
for 200 western countries by the year
2020
o Opening SBUs in operational business
countries to balance human capital
investment and fleet management
cost.

27. STRATEGIES (CONT’D)
Human Resource Strategies
o Prior to launch, Fly World signed a
“Simulation Training” with PAF.
o We pay above 20% to industry
average pay to our employees.
o We have excellent administration,
senior management and general
management executive for facilitation /
support of our corporate and business
unit’s staff.

28. DIVERSIFICATION
Unrelated diversification
I. Passport and visa services
II. Cargo services
III. Online ticketing reservation
Related diversification
I. Cab services
II. Hotel services

29. NON EQUITY ALLIANCES
i. Contract agreement with Boeing
Aircrafts
ii. Contract agreement with PAF
Training Facility
iii. Contract agreement with Most of the
well known airlines for business trip /
vocational trip

30. Strategy Evaluation
(Matrix Analysis)

31. Strategy Evaluation
(Matrix Analysis) (Cont’d)
Interpretation
BCG, Grand, and Space Matrix suggest
that
Related and Unrelated Diversification is
recommended for evaluation in keeping
view to our industry and firm.

32. Quantitative Strategic
Planning Matrix
The Quantitative Strategic Planning
Matrix or a QSPM approach attempts
to objectively select the best strategy
using input from other management
techniques and some easy
computations.
In other words, the QSPM method
uses inputs from stage 1 analyses,
matches them with results from stage
2 analyses, and then decides
objectively among alternative
strategies.

33. QUANTITATIVE STRATEGIC
PLANNING MATRIX (CONT’D)
Interpretation
QSPM indicates that unrelated
diversification strategy is more attractive
than related strategies.

34. THANK YOU