Order Description
Ecommerce at Yunnan Lucky Air
Lucky Air is a relatively recent entrant into the airline industry, being founded in the year 2004 in China. This company began its life under the name Shilin Airlines. The name was changed 11 international roots to locations such as Moscow, Russia (the farthest destination they serve), the Philippines and throughout Southeast Asia. Even within their home region of Yunnan, they serve a large and loyal customer base for flights around their region and to other parts of the large country of China. By the end of the year 2007, 25 airlines were operating in China and Lucky Air needed to find a way to differentiate itself from this tightly concentrated industry. Backed by the large resources of the Hainan Airlines and their extensive IT operation, Luck Air has focused heavily on e-commerce as a way to expand their profile and find an effective competitive niche in the rapidly growing airline industry. Therefore, IT and ecommerce have become nearly synonymous with the Lucky Air operation in Yunnan.
Strength and Weaknesses-
4.1. Company Resources
Financial Resources: Quantitatively/qualitatively assess the company’s current assets, borrowing capacity, and its ability to generate funds quickly either internally (e.g., move money from one business to another) or externally (e.g., additional borrowing or stock sale).
Physical Resources: Quantitatively/qualitatively assess the company’s physical resources including building and property assets (owned or leased), its business locations, geographic access to product markets, geographic access to supply markets, and/or plants and equipment.
Human Resources: Qualitatively assess the management expertise and experience of the company’s top management team. Compare the expertise and experience of your company’s top management team (i.e., Chairman, CEO, and COO, if applicable) to those of its top three rivals.
Organizational Resources: Qualitatively assess the company’s culture, reputation, brand identity, trademarks, copyrights, patents, trade secrets, other intellectual property, etc.
4.2. Company Capabilities
Operations and Distribution Capabilities: Quantitatively/qualitatively assess your company’s use and management of supply chain, distribution channels, and general logistics. For example, you might look for information on inventory costs/turnover ratios, supply chain bottlenecks, and efficiency.
Human Resource Capabilities: Quantitatively/qualitatively assess your company’s ability to attract, retain, empower, motivate and train employees. For example, you might look for information on employee turnover, workforce training programs, salary comparisons, and education benefits.
Management Information Systems: Quantitatively/qualitatively assess your company’s ability to use and deploy MIS/IT technologies for point-of-sales data collection, inventory management, customer service, etc. For example, see if you can information on IT expenditures.
Marketing Capabilities: Quantitatively/qualitatively assess your company’s ability to build and promote its brand(s), customer service abilities, merchandising, etc. For example, see if you can calculate an annual Advertising Intensity ratio (advertising expenditures / divided by total sales).
Product/Technology Development: Quantitatively/qualitatively assess your company’s ability to “see the future” of the market and/or develop new technology or products quickly. For example, see if you can calculate an R&D Intensity ratio (R&D expenditures / divided by total sales).
4.3. Strengths and Weaknesses Summary
Use the VRIN framework to identify the company’s (1) strengths and (2) distinctive competences. Thoroughly assess the value, rarity, and imitability of each set of resources and capabilities. Strengths: In a single paragraph, based on the VRIN assessment, clearly identify and summarize the top three resource strengths and the top three capability strengths.
Weaknesses: In a single paragraph, based on the VRIN assessment, clearly identify and summarize the top three resource weaknesses and the top three capability weaknesses.
5. Strategic Overview-
5.1. Current Business Level Strategy
Draw the 2 by 2 generic business strategy matrix. Be sure to label the matrix completely. Put each of your company’s businesses/brands in the appropriate box in the matrix. Then, discuss the “Source of Competitive Advantage.” Assess the extent to which each business/brand competes on the basis of low cost versus the uniqueness of its products or services. Finally, discuss the “Competitive Scope.” Assess the extent to which each business/brand exploits its competitive advantage in a broad or narrow target market. Do not talk in vague generalities. Be specific and detailed in your discussion.
So the essay is about Strength and Weaknesses for the company also Strategic Overview for the company (4.1 to 5.1) I attached the introdtuion, so you can have a general idea about what to write.
