Hna Case

HNA Case Paper

Executive Summary:

Our corporate strategy will now be focused on becoming the main airline carrying people in and out of China, while not staying out of the major international airline industry. Our business strategy must now be updated in order to focus our plans on competing in this industry. We will be using an integration strategy in order to provide our customers a cheap, diverse, “one-stop shop” to flying. We have many options but we recommend: cancelling out everything that does not relate to carrying passengers in and out of China; strategic alliances; acquiring and restructuring airports. These recommendations will help us attain our corporate strategy of becoming the biggest airline provider servicing customers that want to fly in and out of China.

Table of Contents:

Page 3 Current Strategy

Page 3- 6 Resource Explained (VRIO Analysis)

Page 6- Options

Page 7-Recommendations

Page 7 Evaluating Industries

Page 8 Tourism

Page 9-10 Alliances

Page 10 Conclusion

Page 11 Bibliography

Page 11-12 VRIO Model Chart (Appendix A)

Page 12-14 Porter’s 5 Forces Analysis (Appendix B)

Page 14 SWOT Analysis (Appendix C)

Page 15 HNA Domestic Routes (Appendix D)

Current Strategy:

Since our humble beginnings in 1992, we have played an important role in the Chinese airline industry. The airline industry is currently the fastest-growing transportation mode in China over the past five years, which has led to strong competition, and low margins for most airlines. In order to compete in the regional airlines industry, we started as a trunk-line, rather than a feeder-line, carrier. We chose this strategy because of the unique geographic location and conditions of Hainan Province, as well as the growing tourism market.  Based on challenges we faced after initial success, we decided to acquire and restructure other airlines to expand.

Then in 2000, we reorganized in order to offer our customers a “one-stop shopping” experience for low cost...