HNA case study

 HNA case study Essay

HNA Case Study

1 . What contributed to HNA's success inside the China Air travel Industry? 1 ) China's successful market circumstances

Rising middle section class (rising per capita income)

Entrance into WTO � expansion in imports and export products

Migration of rural population into urban cities

Inflow of overseas investment

installment payments on your Deregulation of civil flying market

several. Strategic Decisions:

Unconventional way for a local start up air travel – chose to compete as being a trunk range feeder Development of feeder routes in European China – consistent with govt plan to develop the " Silk Road” Effective acquisitions that helped them to increase faster

5. Effective using capital marketplaces (internal and external) to expand functional scale and lower operating costs five. Culture

Encompasses Chinese culture and European modern managing

Lazy Ish Theory and Swapping Program

6. Top quality

Excellent trip safety requirements

Punctuality level is first in China

six. Clear Strategy: To be low cost provider

Centered on cost framework and operating efficiency

Cost per REQUEST was suprisingly low

Lower protection cost

Comparable model of aircraft

Ran aircrafts longer

Purchase in technology

Lower staffing requirements cost every ASK

eight. Started outside CAAC – did not have to adhere to authorities standard. Compelled them to become more aggressive on the lookout for. Strong Interrelation among the obstructs of businesses leads to increasing income for their aircarrier business 2 . What are the challenges the fact that company confronts at the business and corporate levels? Business Unit

Selling price of Essential oil (airline)

High financing costs (airline)

Entry of budget lodge competitors (hotel)

Entry of upscale international franchise (Hilton etc) in to hotel sector (hotel) Credit ranking firm downgraded the aircarrier to second lowest score

Corporate level

High financial debt level sets the company in difficulty of raising money to grow Relative sectors block – important to preserve relevance to its flight business 3. Was the company's increasing breadth a...