Data Group plc is a leisure airline that is based in UK that has a Distribution and Logistics organization that has a head office in Leeds in United Kingdom. The Dart Group grew from that of a small distribution company that floated in the London Stock Exchange. In the year 1990, Dart Group Inc purchased Fowler Welch Ltd which is a temperature controlled distribution business. The first passenger aircraft was purchased in the year 1996 and the aircrew training school was set up in the year 1998. Dart launched Jet 2 that was a low cost airline that offered low cost holidays from the year 2007. The company became recognized as the best package tour operator that could boast about best internet booking system. It has the best sales support at that of the Northern Ireland Travel Trade Awards.
The Leisure Airline wants to expand business by focusing in the arena of growth in the leisure sector of the airline along with that of the tour operator market. They have made use of their in-house capabilities in order to develop Jet2.com. They have also developed the website of Jet 2 holidays by ensuring that the customers are provided with outstanding service (Tribe 2015). They want to operate a tailored programme to different holiday destinations by using the fleet of 737-300, 757-200 along with the newly acquired 737-800. It wants to expand the operations so that its opportunities will increase. They want to develop new partnerships with that of travel guide so that holidays are available with the help of distribution channels. It wants to deliver passenger charter flights in order to serve a wide range of customers in order to maximise crew utilisation (Chan 2014). It wants to pack a large range of carefully chosen hotel that range from self catering to that of all-inclusive. The Jet2.com flight would provide flights that offer flexible holidays to a large number of destinations.
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Strength |
Weakness |
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Maximising the fuel efficiency and minimising the emissions |
Jet 2 being involved in court cases has made the company lose its prestige |
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Opportunities |
Threats |
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Family friendly, offering value for money and providing the customers with great experience and financial protection for the package holidays |
Global economic downturn has negatively affected the leisure travel and terrorist attack poses a grave threat to that of air travel |
Pest Analysis
Political
Economic
Social
Technological
The Ansoff Matrix is a tool for strategic planning that provides a framework for the executives and senior managers. The leisure Airline Jet 2 wants to grow the business by taking recourse to organic expansion by producing high quality service and make use of acquisitions in different areas. Jet 2 wants to invest in IT capabilities for the purpose of developing the website. This would help in assuring that the customers can get all kinds of detailed information about the superior facilities that are being provided by Leisure Airline Jet 2.
Jet 2.com offers the facility of low fares from that of nine UK airports- Belfast International, Birmingham, East Midlands, Glasgow, London Stansted, Newcastle, Manchester and Edinburgh. They have an expanding fleet that encompasses more than that of 50 aircrafts. They have newly acquired 34 new Boeing 737-800 aircraft that will help in expanding the business of Leisure Airlines (Blain 2017). The Leisure Airline also introduced second-hand Boeing 737-800 in the year 2011 within its fleet. This helped in providing aircraft that was larger than that of 737-300 but which was smaller than 757-200 aircraft.
It has developed passenger charter flights that can help in maximising crew utilisation. A charter flight refers to an unscheduled flight that does not form a part of regular airline routing. By taking recourse to a charter flight, one can rent an entire aircraft and on their own volition they can determine the departure and arrival locations. A chartered flight is of great advantage for the customer because the flight would depart when the passenger wants to. The passenger can determine in which cities one should fly to and from (Alderighi, Nicolini and Piga 2016).
Charter flights prove to be of great advantage when the scheduled airline service will require multiple connections. Privacy is one of the great advantages that is offered by a charter flight. It will thus help in expanding the business of Leisure Travel by providing the passengers with unique opportunities. Investment in the leisure sector of the airlines along with that of the tour market would help in expanding the business of Leisure Travel. Force Field Analysis is being made use of by the Leisure Airlines and it emphasizes on the fact that an organization is not static but ever evolving. Opposing forces help in bringing about changes in the organization (Hagmann, Semeijn and Vellenga 2015). The consumer demands for the Leisure Airlines act as a driver and the impediment is provided by the fact that it got involved in many court cases. These court cases have to a certain extent tarnished the image of Jet 2 Airlines. This has brought about changes and the sale of alcohol has been banned from the morning flights. This has led to improvements in the quality of service of Jet 2 Airlines.
The Distribution and Logistics Organisation (Fowler Welch) will provide logistics solutions from that of a network of distribution center by offering case picking along with that of national distribution of temperature controlled products. It provides flexible and reliable cost effective supply chain. They have a specialised in house IT Team that can handle different kinds of data and change it into a format that the customers need. Transparency is offered to the customers by providing them with greater control.
Speed and simplicity are the two key areas that set Fowler Welch apart from that of the competitors. The in-house team of Fowler Welch has a strong background in relation to transport and that of EDI Technologies (Hawkins 2017). The team has great experience in relation to operational roles that can help in assessing the needs of the customers. They help in providing value added technology that can help in delivering of a robust business solution. Their main focus is in the arena of investing in technology that allows quick decision making with that of guaranteed accuracy. Voice picking along with that of tablets will be used in order to increase efficiency so that the workforce can become more flexible (Rushton, Croucher and Baker 2014).
Data Group Plc can be branded as the “first mover” in terms of the innovation stance. It was the first of its kind to bring in the concept of leisure airline that offered exclusive holiday destination packages thus drawing the attention of consumers. The Jet 2 Holidays offered facility for holiday operation at extremely low cost and had a range of hotels under it. The Fowler Welch offering services of distribution and logistics stood out from the rest by the use of extensive IT services. It provided supply chain solutions to the leading supermarket of Tesco and Asda (Binz and Truffer 2017).
The business model of Data Group Plc Leisure airline is a great innovation that was designed to take the passengers from one place to another place. The company is facing innovation dilemma on account of the fact that its huge physical infrastructure, legacy information system along with the bad economic conditions is acting like a big barrier and is forcing the company to face budget constraints.
The purchasing of Fowler Welch that was a distribution controlled temperature business added to the profits of Data Group Plc. It expanded the business by focussing in the arena of growth in both the leisure sector along with that of the tour operator market. Philip Meeson owns around 37.95 % of the share of the company and the other large shareholders are that of Schroder Investment Management, Silver Point Capital and that of Acadian Asset Management (Albers, Wohlgezogen and Zajac 2016).
The Distribution and Logistics is a growing business domain and Fowler Welch would help in adding to the business profitability and the food and drink distribution would greatly benefit the growth and add to the revenue of Data Group Plc.
Suitability
The suitability of Data Group Plc will arise owing to the fact that it provides low cost airlines (Jet 2) .They offer low cost holidays that is affordable for all classes of people.
Acceptability
Data Group Plc extensive use of IT capabilities and the developing of the websites Jet 2.com along with that of Jet 2 Holidays helped in ensuring quality service to the clients. People can make the bookings from the comfort of home thus making it accessible for a wide range of population (Tjemkes, Vos and Burgers 2017).
Feasibility
Data Group Plc made new partnerships and developed passenger charter flights that made their business feasible even in the competitive airlines industry. The Distribution and Logistics Division Fowler Welch was instrumental in providing supply chain solutions to the leading supermarkets of Asda and Tesco. The association of Data Group Plc with these retail giants will ensure that it has an advantage above the other companies of their kind. Their competitive strategies will make their business feasible and help in the growth of their company.
The BCG Matrix analysis is of great help in determining relationship between that of relative share of product portfolio and the market growth. The primary constitute of Dart Group plc is its Leisure Airline along with that of Distribution and Logistics organisation. The low cost airline (Jet 2) offered holiday packages and it was recognized as the best package tour operator. Dart Group Inc expanded the portfolio by the purchasing of Fowler Welch that is a temperature controlled distribution business which added to the profit and led to the growth of Data Group Inc (Liberatore et al. 2014).
The annual reports of Data Group Inc has showed that worldwide trend towards the sector of tourism is increasing. Data Group Inc can be marked as a star because of the high market share along with that of the high market growth. It has newly acquired 737-800 aircraft that has helped in expansion of its operations and helped in developing opportunities. The holiday operation Jet 2 Holidays has a number of holidays under its purview that ranges from self-catering to that of all-inclusive. The leisure airline Data Group plc provides quality service to the Royal Mail for whom four 737-300 quick change aircraft is operated. They have a strong presence in the market on account of their strong market share. Large amount of cash is consumed by Data Group Inc on account of their on account of its high growth rate. In the event of Data Group Inc being able to maintain the market share, it will become a cash cow in the event of decline of market growth.
The main strategy of Data Group Inc is to grow the business by taking recourse to organic expansion by providing high quality service. Their vision is to meet the expectations of the customers in each sector of the business. They want to expand the business of Leisure Travel by focussing in the arena of growth in the leisure sector along with that of the tour operator market. They have brought out programme of flights to that of popular holiday destinations by deploying fleet of 737-300 along with that of 757-200s. The holiday operations Jet 2 holidays has a wide range of chosen hotels under its purview and the Jet 2.com scheduled flights that help in offering flexible holidays. The Logistics industry is trying to keep pace with the scenario of changing market and that of customer dynamics (Wang et al. 2017).
With the advancement of technology, customers have opted for innovative ways for the transaction of business. The companies related to logistics and have to face challenge in relation to delivering of exceptional customer experience on very thin profit margins. The omni-channel experience of Fowler Welch can help in providing services across web, mobile and e-mail that has greatly helped in increasing the scope of Fowler Welch. Interactive voice response is being implemented by Fowler Welch in order to bring improvements in customer service (Xie and Zhao 2016). The business of logistics is booming and Fowler Welch with the help of innovations in IT can help in pleasing the customer. The acquisitions of Fowler Welch can help in extending the capabilities of the company and facilitate in the organic growth of the company. It has focussed in the arena of food and drink distribution and provides solutions to the leading supermarkets that include that of Tesco and Asda. The logistics solutions that are provided by Fowler Welch like storage along with that of national distribution of temperature controlled products has made it viable in the market and contributed to the soaring popularity of Fowler Welch (Jia, Li and Jia 2015).
Conclusion
The Leisure Airline wants to grow by making use of the tour operator market. They have made extensive use of in-house capabilities so that they can develop the Jet2.com website. They are also providing holiday destination packages by making use of fleet 737-300 and 757-200. The open skies agreement has greatly helped in liberalization policy in respect to the aviation industry. Free market environment has been created within airline industry and it has facilitated in the expansion of business of Data Group Inc. The Charter Flights of the Leisure Airlines will greatly help in providing some customers with extensive service and it proves to be advantageous when the scheduled airline service will require multiple connections. Value added technology will be provided that can help in the arena of delivery of robust business solution
References:
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