21 Century Structure Completed

8/6/2019 21 Century Structure Completed

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GOL

1) History Pag. 2

2) Geographical analysis Pag. 2

3) Main market an main competitors Pag. 34) Business strategy Pag. 3

5) Financial statement Pag. 4

6) Key of success Pag. 4

7) Conclusion Pag. 5

FLYBE

1) History Pag. 6

2) Geographical analysis Pag. 6

3) Main market and main competitors Pag. 64) Business strategy Pag. 7

a) Strategies Pag. 7

5) Financial statement analysis Pag. 8

6) Most major investment made by business infrastructure Pag. 8

7) strength and weackness changes Pag. 9

MONSOON

1) History Pag. 102) Geographical analysis Pag. 10

3) Business strategy Pag. 10

4) Size of market Pag. 11

5) Main competitor Pag. 11

6) Financial statement Pag. 12

7) Possible changes Pag. 12

8) Conclusion and suggestion Pag. 12

CONCLUSION

1) Why are they so successful? Pag. 13

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1) History

The airline was established in 2000 and started operations on January 15,2001. It is a subsidiary of the Brazilian conglomerate Grupo urea(constituted 20% of the Brazilian air travel market), which has other transportinterests including Brazil's largest long-distance bus company.On June 24,2004 Gol launched simultaneous initial public offerings on the New York andSo Paulo stock exchanges.In 2007, Gol was supposed to begin a code-share agreement with TAP Portugal, opening the European market to theBrazilian airline, and the internal Brazilian market to the Portuguese airline(the largest foreign airline in Brazil).On March 28, 2007 Gol officially

purchased part of the assets of VARIG - VRG Linhas Areas, informallyknown as "new Varig", a new airline that owned the brand Varig, At that time"old Varig" was under bankruptcy protection, now it is called Flex LinhasAreas .In 2009 Gol was merged into VRG Linhas Areas. VRG LinhasAreas thus became an airline that operates two brands: Gol (domestic flight)and Varig (international chapter), although in reality flights are operated onlyunder Gol flight numbers.On March 18, 2010 Gol unveiled the expansion ofits maintenance base located at Belo Horizonte/Confins - Tancredo NevesInternational Airport.

2) Geographical analysis

Gol operates a growing domestic and international scheduled network. Itsmain hubs are So Paulo's Congonhas Airport, Rio de Janeiro's GaleoInternational Airport and Braslia International Airport - Presidente JuscelinoKubitschek. Gol also has focus operations at Rio de Janeiro's Santos Dumont

Airport, So Paulo's Guarulhos International Airport and Porto Alegre'sSalgado Filho International Airport.

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http://en.wikipedia.org/wiki/TAP_Portugalhttp://en.wikipedia.org/wiki/Flex_Linhas_A%C3%A9reashttp://en.wikipedia.org/wiki/Flex_Linhas_A%C3%A9reashttp://en.wikipedia.org/wiki/Tancredo_Neves_International_Airporthttp://en.wikipedia.org/wiki/Tancredo_Neves_International_Airporthttp://en.wikipedia.org/wiki/Congonhas-S%C3%A3o_Paulo_International_Airporthttp://en.wikipedia.org/wiki/Gale%C3%A3o_International_Airporthttp://en.wikipedia.org/wiki/Gale%C3%A3o_International_Airporthttp://en.wikipedia.org/wiki/Bras%C3%ADlia_International_Airporthttp://en.wikipedia.org/wiki/Bras%C3%ADlia_International_Airporthttp://en.wikipedia.org/wiki/Santos_Dumont_Airporthttp://en.wikipedia.org/wiki/Santos_Dumont_Airporthttp://en.wikipedia.org/wiki/S%C3%A3o_Paulo-Guarulhos_International_Airporthttp://en.wikipedia.org/wiki/Porto_Alegrehttp://en.wikipedia.org/wiki/Salgado_Filho_International_Airporthttp://en.wikipedia.org/wiki/TAP_Portugalhttp://en.wikipedia.org/wiki/Flex_Linhas_A%C3%A9reashttp://en.wikipedia.org/wiki/Flex_Linhas_A%C3%A9reashttp://en.wikipedia.org/wiki/Tancredo_Neves_International_Airporthttp://en.wikipedia.org/wiki/Tancredo_Neves_International_Airporthttp://en.wikipedia.org/wiki/Congonhas-S%C3%A3o_Paulo_International_Airporthttp://en.wikipedia.org/wiki/Gale%C3%A3o_International_Airporthttp://en.wikipedia.org/wiki/Gale%C3%A3o_International_Airporthttp://en.wikipedia.org/wiki/Bras%C3%ADlia_International_Airporthttp://en.wikipedia.org/wiki/Bras%C3%ADlia_International_Airporthttp://en.wikipedia.org/wiki/Santos_Dumont_Airporthttp://en.wikipedia.org/wiki/Santos_Dumont_Airporthttp://en.wikipedia.org/wiki/S%C3%A3o_Paulo-Guarulhos_International_Airporthttp://en.wikipedia.org/wiki/Porto_Alegrehttp://en.wikipedia.org/wiki/Salgado_Filho_International_Airport


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3) Main Market and main competitors

According to the National Civil Aviation Agency of Brazil (ANAC), between

January and December 2009, Gol had 41.37% of the domestic and 13.40% ofthe international market shares in terms of passengers/km and in relation tothe same period in 2008, it increased its share in the domestic market in14.86% and in the international market it decreased in 44.17%. In March2010, its shares were of 41.44% for the domestic and 14.59% for theinternational markets. In both periods Gol was ranked second amongBrazilian airlines.It owns the brand Varig although the name Varig refers tothe informally known "new" Varig, founded in 2005 and not to the "old" Varig,founded in 1927.

The four main competitors of Gol are: Azul Linhas Areas, TAM Airlines,Webjet, Syndicato Condor

4) Business strategy

First of all, the acquisition of VRG Linhas areas was one of the mostimportant steps in GOL's history: it allowed the company to expand its market

coverage and operating capacity, offering differentiated services to strategicdestinations with high volumes of business passengers. GOL continues toevaluate opportunities to expand its operations, launching new flights in thedomestic market and in other high traffic international centers, in SouthAmerican and the Caribbean. Knowing the market they are implemented inGol has decided to focus on the quality of its offer to seduce an increasingnumber of customers. They have invested in powerful aircraft in order to ownnowadays the most modern and sophisticated fleet in Brazils market. Theyclaim that their new aircraft travel 12% faster than the ones from their main

competitors. The company's Next Generation Boeing 737-700 and 737-800,equipped with winglets - a technology that helps keep operating costs evenlower - are a fundamental part of GOL's strategy to make air travel affordablein South America. With a new and modern fleet, comprised of the safest andmost comfortable aircraft in the class, GOL's operations are differentiated byreduced maintenance costs and low fuel consumption, which provides thecompany high use and efficiency rates.Having a modern and effective fleet isnt a guarantee for success in such acompetitive and rough sector especially in a period of global recession.Knowing that, Gol as a company made the choice to offer to its customers adifferent experience on board. The feeling that customers will have while theyare travelling might be the most important aspect of their willingness to travel

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http://en.wikipedia.org/wiki/National_Civil_Aviation_Agency_of_Brazilhttp://en.wikipedia.org/wiki/Market_sharehttp://en.wikipedia.org/wiki/Varighttp://it.wikipedia.org/wiki/Azul_Linhas_A%C3%A9reashttp://it.wikipedia.org/wiki/TAM_Airlineshttp://it.wikipedia.org/wiki/Webjethttp://it.wikipedia.org/wiki/Syndicato_Condorhttp://en.wikipedia.org/wiki/National_Civil_Aviation_Agency_of_Brazilhttp://en.wikipedia.org/wiki/Market_sharehttp://en.wikipedia.org/wiki/Varighttp://it.wikipedia.org/wiki/Azul_Linhas_A%C3%A9reashttp://it.wikipedia.org/wiki/TAM_Airlineshttp://it.wikipedia.org/wiki/Webjethttp://it.wikipedia.org/wiki/Syndicato_Condor


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with the same airline again. Two decisions were then made. The employeesare chosen for their people skills and their eagerness to please thecustomers. They are young, energetic and particularly well-behaved.Moreover the way they look has been studied and their uniforms properly

designed by the two most famous designers in Brazil.In addition to the way Gol is choosing its employees, they have decided togive an extra importance to the food offer they are providing on board.Healthy and nutritious snacks and cereals are offered to the customersinstead of the perpetual industrialised meal we find everywhere else.

5) Financial statement

Brazilian no-frills airline GOL Linhas Aereas Inteligentes SA's profit declinedin the first quarter due to an increase in costs in the period. Earlier Thursday,GOL reported a first-quarter (2010) net profit of 23.9 million Brazilian reals($13.3 million), down from BRL61.4 million a year earlier. "The reduction wasdue to the average 3.5% appreciation of the US Dollar against the BrazilianReal, which generated exchange variation expenses on foreign-currency-denominated liabilities, and the recognition of income tax and socialcontribution on net income as a result of taxable income during the quarter,"GOL said in a statement. The company ended the quarter with a net debt ofBRL1.74 billion, down from BRL2.94 billion in the year-ago period.

Operational costs totaled BRL1.54 billion in the first quarter, up from BRL1.4billion last year. Net revenue rose 14% to BRL1.73 billion in the first quarter.The company said its earnings before interest, taxes, depreciation,amortization and aircraft rental costs, or Ebitdar, totaled BRL405 million in theperiod, up from BRL359.3 million. The Ebitdar margin was 23.4% in the firstquarter, compared with 23.7% last year.Figures were compiled usinginternational financial reporting standards, or IFRS, accounting criteria.

Source: dowjones.com

6) key of success

Their operating model is based on a variation of the point-to-point approachused by other successful low-cost carriers worldwide. In high-densitycompetitive markets, such as So Paulo to Rio de Janeiro, they operatedirect point-to-point service at low fares. When providing service to their othermarkets, their aircraft make multiple stops on their route network linking

multiple destination points, which attracts customers who prefer to pay lowerfares even if this means making one or more stops before their finaldestination.

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7) Conclusion

In less than five years, Gol Airlines has become one of the most profitableand fastest-growing airlines in the world. Pursuing a policy of controlling costsand investing in such modern equipment as the latest generation Boeing 737-700, Gol has managed to increase its fleet of airplanes from five, initially, to108 planes now. Gol has become, during the first half of 2005, the third-largest airline in Brazil with 26.24% of the market, behind TAMThe miracle worker was Constantino de Oliveira Jr. When Oliveira decided tointroduce in Brazil the low-cost model that had done so well for Southwest inthe U.S. and Ryanair in Europe, few gave him much chance to succeed.

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1) History

In modern society, there is intense competition between producers, buyersand sellers of goods. The success or defeat of one of the competing parties inthe present situation is pre-determined ratio of their collective intelligence,information quality and management efficiency.The beginning of the creation of Flybe limited was laid on November 1979 as

Jersey European Airways. Later in 2000 it was rebranded as British Europeanand on July 2002 this name was shortening to Flybe.


Headquarter of the company is located at Exeter International Airport in EastDevon. But it is located not only in East Devon but all over across the UK insuch cities as: Manchester, Birmingham, Edinburgh, Glasgow, Isle of Man,

London Gatwick. Flybe holds a UK Civil Aviation Authority Type A OperatingLicence which permits it to carry passengers, cargo and mail on aircraft withmore than 20 seats. In 2007 it was announced about acquisitions of Flybe.The Airline is now owned by Rosedale Aviation Holdings (69%), Flybe Staff(16%) and BA (15%) as a consequence of the acquisition of BA Connect.

3) Main market and main competitors

Flybe is now one of the largest airlines in UK and offering its customers a fullrange of services passenger transportation on international and domesticflights. According to passenger statistics in 2009 Flybe is the UKs largestdomestic airline. (For 3%more than in Easy Jet for the same period of time).Flybe is also ahead of the companies such as British Airways, BMI Group andRyanair. Flybe is operating within the UK, Ireland, and continental Europe(more than 45 destinations). Flight and cabin crews of Flybe considered beingone of the best in the country. All commanders of aircraft are qualified firstclass pilots. Park passenger aircraft includes the main types of liners:Embraer E-195 and Bombardier Dash 8 Q400.

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4) Business strategy (Internal and external environment)

The external (business) environment of the organization is all that interactswith it and has a direct influence on it. The external environment is formed in

the process of the organization and changes within period of time. Theexternal environment of the organization is formed under the influence ofpolitical, legal, socio-cultural, economic, technological, national andinternational processes.In 2008/2009 different external factors had a major impacts on companyactivities. They were:

Oil doubling in price;

Sterling collapsed against US Dollars for 30%;

Crises in global banking sector;

Recession.

The internal environment is a set of internal elements of the organization,which include:

Division of labor (horizontal and vertical); (vertical in Flybe)

Technology activities;

Organizational procedures;

Relations in the team.

a) Strategies:

1. Staff development for better performance. Flybe is planning to openTraining Academy by the end of 2010;

2. Minimization of impacts to environment;

3. Good and recognized expertise in the regional aviation sector whichsupport existing operations, manage the introduction of regional aircraftoperations for others and participate in new joint ventures;

4. Support provision to the Operating and Group Board and the teamcontinues to be developed and strengthen;

5. Development in production and pricing portfolio to meet latestcostumers demands;

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6. Loganair franchise from January 2008;

7. Safety takes the primary place for Flybe, its operates across allactivities and now is well established.

5) Financial statement analysis

Year 2008-2009 compared with 2007/2008.According to the chairmans statement at the end of March 2009 Flybesheadlines are the following:

1. Growth of turnover of 6.8% to 572.4 million pounds (2007/2008 535.9million);

2. Growing passenger volume to 7.3 million passengers (2007/2008 7.0million);

3. Growing revenues from passengers of 30% to 10.37 million (2007/20087.97);

4. Operating profit 6.1 million (2007/2008 30.8 million) , after netexceptional, integration and restructuring charges;

5. Adjusted profit before tax was 12.8 million, compared with adjust profitof 35.4 in previous year.

Over that 6 year period Flybe has developed a strong track record of delivery: Passenger growth of 24% compound per annum;

Turnover growth of 25% compound per annum ;

Ancillary revenue growth of 63% compound per annum;

Business growth and turnaround financed without resource toshareholders funds since Jan 2002;

6) Most major investments made in business infrastructure

Modern $2 billion fleet purchased and financed - the right fleet for our

regional business Biggest European regional aircraft engineering business

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50m+ invested in the brand

30m+ invested in IT infrastructure.

7) Strength and weaknesses changes

Strength:- Work according to the interests of customers;-Flexible business policy;-Saving time to clients, due to the convenient location of the territorialoffices;

- Safe flight;

-Improving distribution system and delivery of service;-Modern equipment;

Flybe aircraft In service On order

Bombardier Dash 8Q400

58 8

Embraer E-195 14 0

Total 72 8

-An expanding range of quality services;-Introduction of advanced airport technologies.

Weaknesses:-Limited number of countries where unable to travel;-Competitors (with wider type of services);Company main goals:-Expansion of its activities by opening new offices and representatives;

-Strengthening the market position;-Staff development;-Rising provision in a range of aviation services;- Increase efficiency in current competition.

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1) History

Monsoon was founded in 1972 by Peter Simon. The original focus was onclothes with ethnic origins, which were sourced from India and the Far East.Combining modern design expertise with traditional materials and techniques,the company launched a range of colourful hand-block printed clothing in

natural cotton. In May 1973, the first Monsoon shop opened in BeauchampPlace, Knightsbridge, London.In 1984,Monsoon launched Accessorize, an exciting and stronglydifferentiated High Street concept for fashion accessories whose productrange has a distinctive handwriting.


Monsoon plc is a leading women's clothing and accessories retailer in theUnited Kingdom, operating three retail store concepts. The company'sflagship retail store is its chain of some 150 and growing Monsoon clothingstores, nearly all of which operate in the United Kingdom in Ireland. Monsoonhas built up a loyal follow in its core U.K. market, which represents more than90 percent of company sales, with its Asia-inspired designs and coloursoffering customers what Monsoon calls 'delux bo-ho chic.' Monsoon's fastest-growing chain is its Accessorize retail store and in-store boutique formatsfeaturing home designs and other goods inspired by the company's clothingcollections.

3) Business strategy

The cost leadership strategy which give their a competitive advantage isbecause the company started to use items imported from primarily Asianresource. The company also began designing its own fashions, sticking toAsian-inspired designs and natural materials, while developing its owndistinctive styles and colours and incorporating techniques ranging from

embroidery and batik to beading.

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Also the firms have a differentiation strategy because changing fashion trendsled the company to adapt, moving its growing number of stores into a moreup-market bracket and evolving its clothing into more sophisticated designs.

4) Size of market

The company was later to describe its fashions as 'deluxe bo-ho chic.' Yet thecompany's ethnic-inspired origins remained the centerpoint of its designs andretail ambiance. At the same time, Monsoon remained committed to usingnatural fibres, while also being among the first retailers to adopt stricterrequirements from its producers for their working conditions. Monsoonattempted to bring its successful retail formula to the World Wide Web in2000, opening an e-commerce-capable web site.The company hoped to build up yearly sales to that of one of its bricks-and-mortar stores. Yet the site's sales quickly proved a disappointment, as thecompany recognized that its customers preferred the physical experience ofin-store shopping. The company announced that it was pulling the plug on itse-commerce operation, using its web pages instead as a promotional site.The company also has suggested that it intends to double its network of U.K.stores. At the same time, Monsoon has been targeting an ambitiousinternational expansion in order to secure its future growth, favouring afranchising concept over extending its company-owned stores, in fact the

company set up a joint venture with the United States' Charming Shoppes tobring the Monsoon and Accessorize names to that market.Another keys reason of they success is monsoon has been working withonline marketplace sellers. Today Monsoon enables several hundred milliondollars in transactions on online marketplaces each year and many of the topmarketplace sellers use Monsoon to manage their online marketplace sales.Monsoon's dedicated teams are committed to the continuing development ofthe Monsoon product ranges. They plan to grow the company further throughcontinuing expansion in the UK and Ireland, combined with careful expansion

overseas, involving joint ventures and co-owned outlets. A key factor inMonsoon's success to date is that it is both people and product focused. TheMonsoon team believes that this approach will continue to be a strategicdriver in the future and are determined to maintain this distinctive companyorientation.

5) Main competitor

Something that proved Monsoon is at the top end in this sector is the fact thatPrimark, one of its main competitor copied last year its clothing design, forthis reason their went in legal issue and Primark paid 24k pound

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After admitting that it had copied the firms Brittany top of the girl and abutterfly dress.After this episode the firms chairman said We take any infringement of ourdesign and copyright very seriously," Monsoon said its reputation was built on

"the individuality of its designs and the flair and ability of its designers".

6) Financial statement

They have climbed by more than 20% last year to record levels, buoyed bystrong earnings. The company reported record pre-tax profits of 28m ($52m)- an improvement of 32% on the previous year.

7) Possible change

The Groups business objective is to continue to build their reputation forconsistent and sustained profits growth.The strategy to achieve this growth is to: continue to develop and improvetheir product in order to exploit the full potential of the Groups existing andestablished Brands: Monsoon and Accessorize. Grow sales in the UK andEire by both substantially increasing square footage and by delivering strongsales densities in existing stores. Also establish the Monsoon and

Accessorize brands internationally and become the most successful retailerof accessories worldwide by developing and supporting our network offranchise partners and, where appropriate, making direct investment.

8) Suggestion and conclusionContinue to develop the full potential of their employees so that our customerservice is perceived to be of the highest standard; develop their infrastructure

and to modernise their processes; and reduce their operating costs in order tobe a lean but responsive organisation capable of delivering our strategyeffectively.According with our search the reason why Monsoon have increase the profitsduring the recession period are : the use of unique products with high qualityand different design also another key aspect is the huge amount of turnover,which represents the sale of merchandise to, and royalty income fromfranchisees, and the net retail sales of our subsidiary stores

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Conclusion

1) Why are they so successful?

The importance of understanding peoples psychology and the shift inbehavior that took place.

As we know the Western World is still in recession but we have threeastonishing examples of companies who actually have increased their profitsand their markets shares in very competitive environments. The Skybusiness and the clothing sector faced a tremendous earthquake since thebeginning of the recession. Monsoon, Flybe and Gol managed to developtheir activity and secured a reliable basis of customers, while their maincompetitors are suffering dwindling sales and revenues. After havingdescribed in the past pages the several strategies used by those companiesto achieve such good results, it is now time to think a bit of the box and try tounderstand how those given facts could be explained in a kind ofpsychological way. In order to do so we have to focus on the behavior ofcustomers in an economy that is going backwards.As it usually does, the recession has brought very interesting changes toconsumer behavior and a lot of experts even think that it could survive therecession and that customers will actually carry on to think more about theway they are spending money. It is very understandable to notice

consumerism changes in such a period of time. Indeed people feelthreatened by the economy, they are scared about the possibility of loosingtheir jobs and then be unable to maintain their standard of living or worseobviously.

We could imagine the hypothesis that fear would be a reason to spend moremoney and to consume products we dont really need to make us feel betterbut the pressure of the medias combined to the one of the governments isdefinitely killing this animalistic struggle of having always more. For example,

we see that countries who were thought to be economically advanced likeGreece or Spain are now depending on the IMF and the European Union tosurvive and allow their citizens to regain confidence in their economy.

People are the spectators of what is known to be the worse recession periodin more than eighty years. Not only are they spectators but they are theactors as their confidence and support into the economy is the lever thatGovernments need to use to put their plan of action into motion. It appearsclear to the public that we need to invest the money gained and produced into

our economy to help it start again. But if we are as frightened from the globalsituation as we are now, we are less willing to spend money and buy newthings. This is why our behavior as consumers has changed because if we

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have less income and less job security we want every penny to be wellspent. It seems obvious that it is impossible to not consume anymore fromone day to the other; the solution in the middle would then be to think morebefore buying and this is what is happening nowadays.

If consumer behavior is changing, it is up to the companies to understand itand to try to meet the new needs and expectations. As explained, we arepassing from a consumer way of buying to a customer approach. Thecustomer will less likely consume just for the sake of having more. Thecustomer expects to be placed at the very centre of the businessesconcerns. They need to feel that everything is centered on them and that theiropinions and expectations have been heard. Monsoon with its unique designand natural materials took the right path. They are giving the to people whatthey want, a product which is worth the money you are spending. The buyingexperience in their shops and even online is focused on the customer. As weare more cautious with our consumption, we are looking for a company whichwill demonstrate that we have been heard and that our needs and concernsare fully integrated to their process. If those important concerns arecombined, the customer will then agree on spending money, even a littlemore than planned. Monsoon success shows that it is possible to grow at anastonishing pace in the clothing industry if you respect the customer values.As we saw in the in depth analysis of the three companies, the focus onpeoples needs seems to be the link between them. They understood the

period and the behavior that will result from this new-born customer. Theyorganized their business in such a way that their customers actually feel goodabout using their services (transport and clothes). They have foreseen thissort of cultural change from extravagant consumer behavior to a morerestrained, thoughtful and responsible way of spending.For example, Flybe and Gol noticed that should give more for the same priceor even better more for cheaper prices than their competitors. They madeclear that their services were created for thinking customers and did their bestto provide a good and proper experience. Moreover they are marketing about

their environment friendly aircraft and on the savings of fuel they are making.They invested money in planes that pollute less and such action is definitelyworth it if we look at their results.

If we have a glance at another well-known low-cost airline we will observe avery different approach to the same period. Ryan Air has been trying tomaximize its profits, which obviously is the priority but they didnt give anyimportance to the psychology of their clients and possible future ones. RyanAirs ideas were to make the customer pay the toilets, make bigger

customers pay more for their seats and they tried to implement a newcheaper kind of seat on which you are not properly seated. Those threepropositions combined had a terrible effect on the companys image and its

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results in terms of acquiring new customers were very poor. They continuedto think their clients as simple consumers.

The recession has brought new needs for the people in their everydays life.

The expectations are different and companies who understood that are ableto sustain an important growth of their market shares. The consumer hasbecome a customer who is far more interested in where his money goes andwho has a more thoughtful approach to his budget.

If we have the feeling that our concerns in terms of price, customersexperience, eco- friendly products and services are integrated to the offer, wewill then be willing to buy and become a regular client of the company. Thethree companies we have studied definitely did understand this change inbehavior. They are successful and doing better than their competitorsbecause of the interest and investment they have put in peoples psychologyand noticed the shift in their behavior that occurred.

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Documents

21 Century Structure Completed