Ethiopian Airlines: Bringing Africa Together
(9 pages of text)
Ethiopian Airlines plans to expand its African market base to become a leading airline in the continent. As part of the airline’s multi-hub strategy, the vice-president of alliances and corporate strategy and his team must identify a suitable hub location and decide on the appropriate mode and level of ownership. Success in the first hub is essential as it will both validate the viability of the multi-hub strategy and set the tone for the establishment of subsequent hubs throughout the continent. The vice-president and his team need to resolve three issues: location of the first hub, entry mode and ownership level.
The objectives of the case include, but are not limited to the following:
- To discuss the challenges facing companies from developing countries as they attempt to consolidate and/or expand their market base.
- To provide the opportunity to understand organizational and environmental analysis, strategy evaluation and market-entry strategies, all in the context of the African environment.
- To develop an understanding of emerging-market companies, their strategic orientations and decision-making processes.
Ethiopia, Large, 2008
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