The airline industry has grown rapidly over the past few decades, recording a ten-fold rise in
passenger numbers and a fourteen-fold increase in cargo volumes. This growth has created
overwhelming value to airline passengers, employees, suppliers and the broader economy.
Unfortunately, this industry has been affected by terrorism attacks, wars, revolutions, pandemic
fears, earthquakes, volcanoes, failing economies and skyrocketing fuel prices all of which have
negatively impacted on profitability and resulted in intense competition. Consequently, airlines
have spent the last decade in survival mode having to adapt to harsh changes.
Air Zimbabwe, a state-run organisation which operates in this highly regulated and turbulent
industry, is faced with numerous micro and macro environmental challenges and has been
purposively selected for this study. According to company statistics, the airline’s annual
passenger uplifts have declined from a peak of over 1 million in the 1990s to less than 200 000
in 2011, with revenue generation declining in correlation. Whilst Air Zimbabwe has experienced
depressed demand for its services, competitor airlines are recording brisk business. The aim of
this study was to investigate how a struggling organisation, which operates in a turbulent
environment, can improve its competitiveness and profitability by better understanding the
impact of industry role players and adapting organisational strategies to industry variations.
This study examined, from the point of view of the industry players themselves, the extent to
which customers, suppliers, competitors, regulatory authorities, substitute products and new
entrants have impacted on the competitiveness and profitability of the airline. Major findings
reveal that an organisation cannot operate in isolation and be competitive or profitable, but
constantly needs to analyse the industry environment in which it operates in and to amicably
interact with other industry role players. The research outlines the need for competition in
certain areas and cooperation in others. / Business Management / M. Com. (Business Management)
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:unisa/oai:umkn-dsp01.int.unisa.ac.za:10500/10192 |
| Date | 25 July 2013 |
| Creators | Muli, Mary Goreti Shingirai |
| Contributors | Pellissier, Rene |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Dissertation |
| Format | 1 online resource (xi, 161 leaves) |
| Rights | University of South Africa |
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