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ASSESSING TOOLS FOR THE COMPETITIVE POSITION OF AN AVIATION ENTERPRISE
Liskovych N.
assistant of Management of Foreign Economic Activity of Enterprise Department
Faculty of Transport, Management and Logistics National Aviation University Kyiv
Abstract
The article is devoted to the study of the features of strategic positioning of air transport enterprises, which are due to the specifics of air transport services themselves, as well as the peculiarities of their organizational, legal and economic support. The strategic position of the air transport company is by its nature synthesizing, combines the positions of its product, brand and aviation business. The methodical toolkit of definition of a strategic position of the air enterprise on the basis of calculation of indices of its competitive advantages on the list of the defined competences based on branch and functional features of activity of air transport enterprises is offered.
Keywords: aviation, aviation enterprise, strategy, strategic analysis, strategic management, air transportation, SWOT airline analysis.
To develop recommendations for improving the strategic positioning of a particular aviation enterprise, it is necessary to rely on its competitive position among domestic aviation enterprises of the same type of economic activity, taking into account the general determinants of global action, macro-, micro-levels, as well as
the level of an aviation enterprise. In Table. 1 presents the results of systematization of determinants of the external and internal environment of aviation enterprises that affect their strategic positioning, determine its capabilities and effectiveness.
Table. 1
Determinants of strategic positioning of aviation enterprises
Global level of action Global trends in human development, social production, scientific and technological progress, integration, disintegration and reintegration processes at the world, regional and interregional levels, global space, environmental disasters and pandemics, etc.
Macroeco-nomic level of action Rapid changes in indicators of the development of the national economy (GDP, inflation rates, national currency exchange rate, employment, unemployment, real incomes of the population, personal income), changes in the effective demand of the population, the emergence of military-political conflicts, natural disasters and man-made disasters, etc.
Microeco-nomic level of action Monopoly power, the state of competition in the air transportation market, the development of new market segments, regulatory and tax regulation of aviation business entities, partners and competitors from other industries, requirements for flight safety, availability of sources of financing for the renewal and replenishment of the aircraft fleet, alternative models of
ownership, use, financing the modernization and development of airport infrastructure facilities, the quality of management of the aviation industry, market and other infrastructure that determines the conduct of aviation business, etc.
Aviation enterprise level Strategic management, strategic marketing, labor productivity, employee qualifications, social and environmental responsibility, efficiency of business processes, cost level, business model of activity, profitability, profitability, financial stability, economic security, as well as specific determinants:
For the airline: type and types of air transportation performed, share of scheduled flights, annual number of flights, use of global distribution systems for the sale of air transportation, fleet of aircraft, punctuality of the airline, availability of loyalty programs, etc. For an airport and partially an aviation handling company: type and class of airport by technical characteristics, number of flights, airport capacity, available annual passenger traffic, trends of its changes, state of airport infrastructure, availability of a basic airline that provides transfer passenger traffic, number of accredited airlines, etc.
Source: developed by the author
As shown in Table.1, the capabilities and effectiveness of strategic positioning of aviation enterprises both directly and indirectly are influenced by a wide range of determinants related to the global level of action, macroeconomic and microeconomic, and in different directions - both positively, neutrally or negatively.
Macroeconomic determinants determine the state and changes in the development of the national economy, while the determinants of global action reflect changes in the global processes of human development, the impact of which directly, as well as indirectly, determines the opportunities for doing business, including aviation. A painful example of the determinants of global action is the recent development of the COVID19 pandemic and the forced global anti-pandemic measures that directly stopped the growth of the global air transportation market and posed new challenges for aviation enterprises.
Such factors as strategic management of an aviation enterprise, strategic marketing, labor productivity, employee qualifications, social and environmental responsibility, efficiency of business processes, financial stability, economic security are determined by the state and level of development of the internal environment of an aviation enterprise.
Specific determinants for a particular type of activity (airline, airport) determine the available resource
and process capabilities of such an aviation enterprise in terms of strategic positioning. Such determinants as the presence of monopoly power, the development of competition in the air transportation market, new market segments, the state and changes in the regulatory and tax regulation of aviation enterprises and their partners, the availability for national airlines of sources of financing for the renewal and replenishment of the aircraft fleet, the development of alternative models of ownership, use, financing the modernization of airport infrastructure facilities, the quality of management of the aviation industry, the development of market infrastructure, determine the possibilities of conducting aviation business in a particular country and the effectiveness of positioning aviation enterprises.
When determining the effectiveness of strategic positioning of aviation enterprises, the initial stage is to assess the competitive status of a particular aviation enterprise, based on existing competencies that systematize its competitive weaknesses and advantages based on comparison with a specifically selected competitor enterprise. This may be enough to determine the directions for improving the strategic positioning, for example, of an airline, in relation to a particular air route, taking into account the status of a competitor airline. Table. 2 systematizes the main tools for assessing the competitive position of an aviation enterprise.
Orientation of the tools Evaluation tools
Assessment of threats, opportunities for the airline's activities in the market and selection of strategic decisions regarding the target competitive position Extended SWOT airport analysis, extended SWOT airline analysis
Assessment of the airline's market position where Ima - integrated indic ator of the airline's market prospects
Assessment of the airline's competitive status Matrix of competitive advantages of an airport or airline.
where Icaa - index of competitive advantage of an airline in relation to a certain competence
Estimation of the airline's market share Share of the airline's volume indicator in its total market value
Source: compiled by the author
Table. 2
Tools for assessing the competitive position of an aviation enterprise
1) Identification of threats, opportunities for the airline's activities in the market and selection of strategic decisions regarding the target competitive position (tools - extended SWOT airport analysis, extended SWOT airline analysis);
2) assessment of the airline's position in the market (tools - an integrated indicator of the market prospects of airlines);
3) determination of parameters for building competence matrices of an airline, taking into account the current industry and functional features of airlines.
4) assessment of the competitive status of the airline (tools - matrix of competitive advantages of the airport, airline; index of competitive advantage of the airline in relation to a certain competence);
5) assessment of the airline's market share (by the shares of the airline's volume indicators in their overall market values);
6) identification of strategic groups of Ukrainian airlines by types of economic activity in the aviation market (tools-cluster analysis);
7) identification of leading airlines in each strategic group (tool-diagram of average values of profile indicators of airlines);
8) drawing up a competitive map of the Ukrainian air transportation market (appropriate for airlines);
9) conducting a comprehensive assessment of the airline's competitive position (based on an integrated indicator of the airline's market prospects, indices of competitive advantages of the airline in terms of competencies, market share of the airline, belonging of the airline to a strategic group, position on the competitive map);
10) determination of the target strategic position of the airline for the future period (tools-target market share of the airline, belonging of the airline to a strategic group, target position on the competitive map of the air transportation market);
For clarity, the author's proposals are presented below in the form of consecutive stages and schematically presented in Fig. 1.:
E E
> -o
5 wc
E
~ 04
Fig. 1. Model of the process of diagnosing the competitive position of an aviation enterprise and determining its
strategic position
Source: developed by the author
Further actions include the implementation of alternative strategic positioning, in particular on the basis of benchmarking of aviation enterprises (by type of economic activity).
The presented methodology provides methodological support for diagnosing the competitive position of an airline and for determining the prerequisites for the formation (improvement) of its strategic positioning, in fact, improves the model of the strategic positioning process shown in Figure 1.
Based on the results of selecting and implementing a competitive strategy of an airline, it is also possible to assess the achieved target strategic position, that is, to assess the effectiveness of strategic positioning of such an airline in terms of the degree of implementation of the h planned results.
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