Finnair’s competitiveness from 2014-2019
Ilomäki, Ida; Karhu, Anna (2020)
Ilomäki, Ida
Karhu, Anna
2020
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2021102118828
https://urn.fi/URN:NBN:fi:amk-2021102118828
Tiivistelmä
Nowadays, aviation has become intense industry, with companies constantly being challenged to compete against each other and improve their competitiveness. The case company Finnair was chosen for this study, due to its well-known image and the significance of the company on the economy of Finland.
The objective of the study was to determine reasons for variations behind Finnair’s competitiveness during two time periods. The first section focused on the years 2014 to 2017 and studied the increase in the company’s competitiveness, followed by the decrease in competitiveness from the years 2018 to 2019. The study was executed by gathering secondary data from news articles and databases. This information was then analyzed with the chosen framework: Porters Five Forces. The framework was utilized by comparing Finnair’s changes and occurrences with the company’s biggest competitors to see if the cause of fluctuations in competitiveness were inflicted by internal or external factors.
The results of the study implicated that the company is constantly affected by the changes in the economy, retailers and the increment of supplies and increasing costs inside the company. Reduction in internal costs such as the cost reduction program and the decline in the jet fuel market price between the years 2014-2017 helped to generate an increase in Finnair’s competitiveness. Lower costs can be contributed to lower ticket prices resulting to growth in number of passengers. Starting from 2018 company was challenged with substantial growth in personnel costs and market jet fuel price as well as adversity in accelerating competition.
The objective of the study was to determine reasons for variations behind Finnair’s competitiveness during two time periods. The first section focused on the years 2014 to 2017 and studied the increase in the company’s competitiveness, followed by the decrease in competitiveness from the years 2018 to 2019. The study was executed by gathering secondary data from news articles and databases. This information was then analyzed with the chosen framework: Porters Five Forces. The framework was utilized by comparing Finnair’s changes and occurrences with the company’s biggest competitors to see if the cause of fluctuations in competitiveness were inflicted by internal or external factors.
The results of the study implicated that the company is constantly affected by the changes in the economy, retailers and the increment of supplies and increasing costs inside the company. Reduction in internal costs such as the cost reduction program and the decline in the jet fuel market price between the years 2014-2017 helped to generate an increase in Finnair’s competitiveness. Lower costs can be contributed to lower ticket prices resulting to growth in number of passengers. Starting from 2018 company was challenged with substantial growth in personnel costs and market jet fuel price as well as adversity in accelerating competition.