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Strategic Marketing Course Work-Final Copy-Scholars
Strategic Marketing Course Work-Final Copy-Scholars
THE EXTERNAL ANALYSIS (PESTEL) FACTORS THAT INFLUENCE THE OPERATIONS OF UGANDA AIRLINES
ANALYZING THE COMPETITIVE FORCES WITHIN THE AIRLINE INDUSTRY (USING PORTER'S FIVE FORCES MODEL)
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HOW TO GO ABOUT SOLVING THE CHALLENGES ARISING OUT OF THE FIVE FORCES
A CASE STUDY OF UGANDA AIRLINES
(INTRODUCTION)
Uganda Airlines is the national flag carrier of Uganda. It started operations with a fleet of Boeing 707 and Fokker
F27 aircraft, serving domestic and regional routes. Over
It was originally established in 1976 and operated
the years, the airline expanded its network to include
until 2001 when it ceased operations due to financial
destinations in Africa, Europe, and the Middle East.
difficulties.
Unfortunately, Uganda Airlines faced several challenges
However, in 2019, the airline was revived and
during its initial operation. Political instability,
relaunched with new aircraft and a renewed focus on
mismanagement, and economic difficulties in Uganda
providing air travel services.
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affected the airline's performance.
A CASE STUDY OF UGANDA AIRLINES
(INTRODUCTION-CONT’D)
Analyzing these PESTEL factors, Uganda Airlines can better understand the external environment, anticipate changes,
identify opportunities, and mitigate potential risks to enhance its operational performance and strategic decision-
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making.
ANALYZING THE COMPETITIVE FORCES WITHIN THE
AIRLINE INDUSTRY
The characteristics of
Uganda's market, including
As the national carrier of demographics, travel
Uganda, Uganda Airlines has preferences, and economic
a unique relationship with the factors, can influence the
government. The model may applicability and relevance of
need to incorporate the the model. Factors like
specific dynamics of Regional income levels, tourism trends,
government influence and and cultural preferences may Unique Selling
Industry support, including regulations, Competition require additional analysis to
policies, and potential
fully understand the Proposition
Structure subsidies or protectionism that
competitive dynamics faced
by Uganda Airlines. a
can impact the competitive professional hierarchy
landscape
Uganda Airlines operates within the Uganda Airlines competes Uganda Airlines can
broader airline industry, which is differentiate itself based on
characterized by high capital Government with both regional and
international carriers. While
Market its unique selling
requirements, significant regulatory Characteristics propositions, such as its
oversight, and intense competition. The
Influence the model can help analyze
national carrier status,
competitive rivalry, it's
model can help assess the competitive important to consider the network connectivity,
forces at play, such as the threat of new specific dynamics of the service quality, and
entrants, supplier power, buyer power, regional market, including customer loyalty. These
the threat of substitutes, and the factors such as route networks, factors may impact the
intensity of competitive rivalry. alliances, and regional relative strength of the five
aviation policies that can forces and require a
influence the intensity of customized analysis to
competition assess their influence on the
airline's competitiveness.
HOW TO GO ABOUT SOLVING THE CHALLENGES ARISING OUT OF
THE FIVE FORCES
If the threat of new entrants is high, Uganda To manage the bargaining power of To mitigate the bargaining power of
Airlines can focus on strengthening its suppliers, Uganda Airlines can adopt buyers, Uganda Airlines should focus on
competitive advantages and barriers to several strategies. This includes delivering superior customer value. This
entry. This could involve building strong diversifying the supplier base, negotiating can be achieved by offering exceptional
brand recognition, developing strategic long-term contracts to secure favorable service quality, personalized experiences,
alliances, improving operational efficiency, terms, exploring alternative sources of competitive pricing, and loyalty
and enhancing customer loyalty programs. supply, and developing strategic programs.
Additionally, maintaining good partnerships with key suppliers. By understanding customer needs and
relationships with regulatory authorities and Additionally, investing in supplier preferences, the airline can tailor its
leveraging government support can help relationship management practices can offerings and engage in targeted
create entry barriers for potential help build mutually beneficial and marketing efforts to create customer
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competitors. sustainable partnerships. loyalty and reduce price sensitivity.
HOW TO GO ABOUT SOLVING THE CHALLENGES ARISING OUT OF
THE FIVE FORCES
To address the threat of substitutes, Uganda To manage competitive rivalry, Uganda To overcome industry challenges,
Airlines should stay informed about Airlines needs to continuously assess the Uganda Airlines can consider
emerging trends and potential substitutes in competitive landscape and identify areas collaborations and partnerships
the transportation industry. It can where it can differentiate itself. This includes with other airlines, both
proactively adapt its services and offerings offering unique services, exploring new regionally and internationally.
to meet changing customer demands and routes, investing in technology to enhance Strategic alliances can enable
preferences. Furthermore, enhancing the operational efficiency, and continuously code-sharing agreements,
unique advantages of air travel, such as improving service quality. By focusing on its expanded route networks, and
convenience, speed, and connectivity, can core competencies and leveraging its national cost-sharing initiatives, enhancing
help mitigate the attractiveness of carrier status, It can maintain a competitive competitiveness and market
substitutes. edge. reach.
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