Strategic Management Project Module 4

Strategic Management Project Module 4 - Project Module 4...

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Project Module 4 Strategic Management - MAN 6721 Team 7: Copa Airlines 11 April 2009 Q 6-2: Discuss how your company has attempted to develop strategies to protect and strengthen its business model. For example, if your company is operating in an embryonic industry, how has it attempted to increase its competitive advantage over time? If it operates in a mature industry, discuss how it has tried to manage industry competition. Copa Airlines operates in the mature airline industry, concentrated in the low cost Latin America airline market. Copa uses two main strategies to set itself apart from the competition and discourage new competitors from entering its territory. Copa strives for maintaining a low operating cost structure while providing a high level of customer service. For example, Copa has firmly established its central hub, "The Hub of the Americas," in Panama City, Panama. This allows Copa to centralize its facilities, and allow customers the ability to easily travel between the Americas with a single airline. As a result, the company has earned wide respect from its client base. Copa has also used technology to innovate and to stay ahead of the improvement curve within the industry. To manage operations, Copa adopted Microsoft® Windows Server® 2008 with Hyper-VTM and System Center Virtual Machine Manager 2008 (1). This lead to a significant savings in hardware costs and provided key applications for the appropriate personnel. In addition, Copa uses technology to develop synergies between crew members and aircraft. Copa has modified the cockpits of its new and modern fleet to make them as uniform as possible, reducing crew training times. Copa has also engaged in code sharing schemes with other airlines. This collaboration makes it easier for the customers to travel further, and for the airlines to share customers to create more business for mutual benefit and profit. Copa Airlines manages industry competition mainly via price competition and provided an easy to use service for passengers and those sending cargo. The company has achieved heavy market penetration, developed its product to differentiate itself from others through cost effective transport and good coverage in across Latin America, developed the market via "The Hub of the Americas" and other trails blazed, and proliferated itself across wider global networks. However, Copa has recently began to feel competitive pressure from lower-cost carriers entering the Latin American market, including Spirit
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Strategic Management Project Module 4 - Project Module 4...

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