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MGTS3301 - Business Policy and Strategy
Transcript of MGTS3301 - Business Policy and Strategy
Strategic issues for REX
-Crude oil prices
-Monopolistic routes Introduction Higher Demand
& Limited Resource Crude Oil Prices Boosts Ticket Prices Passengers travelling Companies Profit Margin = MAJOR STRATEGIC ISSUE CRUDE OIL PRICES So what does this mean for REX? 4.3% over 5 years Substitutes Background . Formed in 2002
.Came in effect after the downfall of the Ansett group
.Created as a merger by Hazelton and Kendell Airlines
.Regional Express (REX) is Australia’s largest independent regional airline (REX AR, 2012)
. Fly to 35 niche destinations
.Bypass trunk-routes to avoid majority of competition Overview Awards .Outstanding safety ratings and superior service
.Most profitable airline group in Australia (REX Media, 2012)
.“Regional Airline of the year 2010” by Air Transport World
.CHOICE award for “Best regional Airline” Competition . Qantas group
. Virgin Australia
. Tiger Airways
. Jetstar Causes 2008 pilot shortage Lost 30% of total pilots in 6 month Solution? REX PILOT ACADEMY SO WHAT IS THE
PROBLEM? Problem Regional
Express One of Regional Expresses Core Competencies is the monopolies they hold on many of their regional routes! Opportunity for Expansion New Zealand Asia Pacific