Ethiopian Airlines Case


A. Internal Analysis Ethiopian airlines

1. Current Situation

Identify/Calculate Key Benchmark Metrics

            Current Performance

             Assess Key Success Facto

2. Value Chain Analysis

     Primary Activities: Inbound logistics, operations, outbound logistics, marketing/sales/service

     Support Activities:  Firm infrastructure, Human resource mgmt., technology development, procurement

     Identifying competitive assets: capability/resource, valuable, rare, costly to imitate, substitutable  

      Competitive Strength Assessment compared to rivals

3. SWOT Analysis: Strengths, opportunities, weaknesses, threats

B. External analysis Ethiopian airlines

1. Analyze following factors: political, economic conditions, sociocultural, technological, environmental, legal/regulatory

2. FIVE Force Model: Barriers to entry, bargaining power-supply, bargaining power-buyer, substitute, rivalry

3. Strategic Group Considerations

4. Drivers of Industry Changes

C. Why Ethiopian Airlines has been so successful?

D. Ethiopian Airlines core strategy (how they developed competitive advantage and exploit competitive voids)

F. Growth Goals Ethiopian airlines

G Strategy toolkit applied to Ethiopian airlines case

1. Porters Diamond Model

2. Challenges of global strategic orientation: aggregation, adaptation, and arbitrage

3. Diamond Porter Model

4. CAGE analysis

5. Institutional Voids Analysis

H. Were Ethiopian airlines the right goals?

1. ADDING Value Framework

2. Global Competitive Advantage

3. AAA Framework

4. R&D Strategies/Capabilities (exploitive vs explorative)

I. Implementation Strategy Ethiopian airlines

1. CAT/RAT Analysis

2. Effective Entry Mode: role of synergy, resources, market conditions and competition (Dyer’s Model)

3. Cross border collaboration (motive and opportunities, benefits vs risk)

4. What type of alliance strategy? Strategic logic, partnership fit

5. Role of subsidiaries (support strategy, role of strategic leader, contributor, implementer)

L. Decisions to make for Ethiopian airlines

            1. Where and why to locate the new Hub?

2.  Should Ethiopian go it alone or should it partner with others and jointly own the first hub?

3. If the company elected to go with the latter option, what share of ownership should it aim for?

4. Should Ethiopian go for a majority share, a 50 % share or a minority share?

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