Shaheen Air International

STRATEGIC MANAGEMENT

FINAL REPORT

Presented by: Dr. Ayesha Ayaz

TABLE OF CONTENTS:

EXECUTIVE SUMMARY 3

TIME LINE 3

THE COMPANY: PRESENT AND FUTURE PLANS 4

MISSION STATEMENT 5

DISTRIBUTION: NETWORK OF CHANNELS TO REACH END CONSUMER 5

DOMESTIC ROUTES 6

INTERNATIONAL ROUTES 7

PRODUCT LINE 7

PRODUCT LIFE CYCLE (PLC) 11

SERVICE FACILITIES 11

INDUSTRY ANALYSIS 12

MAJOR COMPETITORS 15

MARKET SIZE AND MARKET GROWTH 18

PAKISTAN/SOUTHWEST ASIA TRAVEL GROWTH FORECAST 20

PAKISTAN DOMESTIC MARKET CAPACITY, TRAFFIC & YIELD 20

AIRLINE OPERATING COSTS 21

REASONS FOR FAILURE 22

CURRENT ISSUES IN THE COMPANY 23

ANALYSIS OF EXTERNAL ENVIRONMENT 24

ECONOMIC FACTORS 24

GDP 24

WORLD OIL PRICES (US$): 27

INFLATION 28

DOMESTIC SCENARIO 29

EMPLOYMENT 30

FUEL PRICES 32

INFRASTRUCTURE DEVELOPMENTS 33

ECONOMIC BENEFITS 34

SOCIO-CULTURAL FACTORS 36

POLITICAL FACTORS 40

TECHNOLOGICAL FACTORS 47

STRATEGIC GROUP ANALYSIS 53

STRUCTURAL ANALYSIS OF THE INDUSTRY (PORTER'S MODEL) 55

THREAT OF NEW ENTRANTS/ ENTRY BARRIER 57

EXIT BARRIERS 58

COMPETITIVE RIVALRY 58

POWER OF BUYERS 59

POWER OF SUPPLIER 59

THREAT OF SUBSTITUTE PRODUCT/SERVICE 60

DRIVERS OF CHANGE 61

KEY SUCCESS FACTORS 62

ANALYSIS OF COMPETITIVE PROFILE MATRIX 64

OPPORTUNITIES & THREATS 64

STRENGTHS & WEAKNESSES 65

VALUE CHAIN ANALYSIS 66

BOARD OF DIRECTORS 68

ORGANOGRAM 69

FINANCIAL ANALYSIS 70

BCG MATRIX ANALYSIS 71

GE MATRIX ANALYSIS 73

IE MATRIX ANALYSIS 74

SPACE MATRIX ANALYSIS 75

GRAND STRATEGY MATRIX ANALYSIS 75

TOWS MATRIX ANALYSIS 77

STRATEGY TABLE: 84

ACTION PLAN 86

NEW VISION STATEMENT 87

NEW MISSION STATEMENT 87

THREE ALTERNATIVE STRATEGIES 87

FINAL STRATEGY 87

Executive Summary

Shaheen Air was founded in December 1993 and in just 10 months on account of its professional service, exceptional performance, customer support, and expertise in aviation, on October 25, 1994, it was accorded the status of Second National Carrier of Pakistan.

Shaheen Air has re-emerged with a new vision and its visibility is increasing in domestic and international skies. After the re-launch, Shaheen Air has acquired a modern fleet of aircraft including Boeing 737s and Airbus A-320. To facilitate the air travel at a reasonable price, Shaheen Air is increasing its domestic and international flight presence. Plans are afoot to introduce, very soon, more domestic flights linking smaller cities with major cities across Pakistan.

The company is also using E-commerce for the convenience of customers allowing them to view flight schedule and make reservations through www.shaheenair.com

E-tickets are generated for the consumers in both cases and the data of the consumers goes into the passenger list for each flight called the Manifest, which is updated on the Departure Control System.

The Company: Historical Background

Shaheen Air was founded in December 1993 and in just 10 months on account of its professional service, exceptional performance, customer support and expertise in aviation, on October 25, 1994, it was accorded the status of Second National Carrier of Pakistan. Since then Shaheen Air has been in a perpetual pursuit of excellence in operations and services. Since June 2004, under the new management of TAWA International Inc. of Canada, utmost priority was accorded to achieve the sole objective of making it a leading customer focused regional and international airline.

TIME LINE

* The airline was established and started in December 1993. It was formed as a project of Shaheen Foundation, Pakistan Air Force.

* In October 1994 it was designated as the second national carrier of Pakistan

* In February 1995 it began International operations, with a scheduled service between Peshawar and Dubai.

* In recent years 2004, the airline management