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Running Head: FLYBE PLC Flybe PLC Name Institution Date Running Head: FLYBE PLC Flybe PLC Name Institution Date 2 FLYBE PLC Table of Contents Overview of the organization.......................................................................................................... 3 Current strategic approaches ........................................................................................................... 5 Rationale for conducting the analysis ............................................................................................. 7 Choice of models ............................................................................................................................ 7 Application of relevant models of strategy ..................................................................................... 8 Porter’s five forces ...................................................................................................................... 8 Threat of new entrants ............................................................................................................. 8 Threat of substitute products ................................................................................................... 9 Bargaining power of customers ............................................................................................... 9 Bargaining power of suppliers ................................................................................................. 9 Intensity of competitive rivalry ............................................................................................... 9 Pestle ......................................................................................................................................... 10 Political .................................................................................................................................. 10 Economic landscape .............................................................................................................. 11 Social landscape .................................................................................................................... 11 Technology ............................................................................................................................ 11 Legal landscape ..................................................................................................................... 12 Environment landscape .......................................................................................................... 12 SWOT analysis .......................................................................................................................... 12 Critical evaluation of the chosen strategic models in terms of their usefulness ........................... 14 Porter’s five forces .................................................................................................................... 14 Pestle analysis ........................................................................................................................... 14 SWOT analysis .......................................................................................................................... 15 Recommendations for development and change for the company and the strategic models ....... 15 References ..................................................................................................................................... 17 Appendices .................................................................................................................................... 20 3 FLYBE PLC Overview of the organization In this report, the model of strategies that will be highlighted will be based on Flybe PLC which is a British airline majoring on low-costs airline. This company is based in Exeter and it is the largest regional airline, which has its base in Europe. The company was formed after the merging of Express Air Services and Intra Airways in 1979 going by the name Jersey European Airways (Flybe, 2015). The Walker Steel Group later bought the company in 1983 and since it owned Spacegrand Aviation, the two airlines merged. In the year 2000, the airline renamed itself to British European but in 2002 received its current name. It is in the year 2002 that this company positioned itself to be a regional low-fare airline. Through acquisitions Flybe has been able to expand in Europe, expanding its staff members as well as assets owned as demand for its services have increased (Wright, A. J. (2001). For instance, after the company acquired BA connects, it was able to increase its route network in both the United Kingdom and the continental Europe establishing the company as the largest regional airline (Digital strategy, 2014). In 2010, the company floated an IPO, which traded in shares on the London Stock Exchange (Flybe, 2014). After this release the company was valued to be worth £215 million after the share price was set to be 295p, in turn raising £ 66 million where half of this money was used to pay for the expansion of the fleet (Dan, 2014). Since early last year, the company has been able to put in place numerous strategies, which are aimed at ensuring the company enhances its growth. The company has already announced that it will start international and domestic flights from London after it successfully signed a deal with Docklands Airport. Out of this, the company expects to carry approximately 500,000 passengers each year (Digital strategy, 2014). The main shareholder in the company has 48.1% being the Rosedale Aviation Holdings Limited (Flybe, 2014). The largest base of Flybe in the United Click Here to Buy Now. Instant Delivery in Your Mailbox. Click Here to Buy Now. 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