Garuda Indonesia Essay Example

View point

Mr. Mohammad Soeparno, President Director of Garuda Indonesia Airways.

Areas of consideration (SWOT analysis)

A. Strengths:

1. Low cost manufacturing capabilities
2. Technological know-how
3. Proprietary technology / superior technological skills
4. Superior intellectual capital
5. Better product quality
6. Market share leadership
7. Strong financial condition
8. An attractive customer base
9. Product Innovation skills
10. An attractive customer base
11. Reputation of good customer service
12. Fruitful collaborative partnerships with suppliers and marketing allies

B. Weaknesses:

1. Systems in all aspects: sales, preparation, flight, supervisory.
2. The quality of preflight, in-flight, and post-flight services which are still low.
3. The biggest international market segment is low yield.
4. Spareparts and other aircraft equipment are still imported; this needs longer time.
5. The company’s organization is still unsteady. This situation makes “organizational behavior” incompetent in supporting the company.

C. Opportunities:

1.  “Political will” of the government in tourism.
2. As, BUMN, Garuda is based on UUD’45 article 33, paragraph 2.
3. The still-abundant-available seat capacity
4. Government Regulation on Tariff.
5. The strengthening currency of the countries from where tourists come to Indonesia.

D. Threats:

1. Protection from certain countries, especially in traffic rights.
2. The development of the other means of transportation, especially for near-distance transportation.
3. The more increasing competition.
4. The uncertain economic situation.
5. Technology development in aircraft, manufacture. As the result of this development, the old aircrafts are no longer economical enough to be marketed.