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Individual Assignment

Case analysis

Name: Md. Johirul islam

ID: 1320407030

Subject: Mgt 489

Section: 03
US Bangla airlines has decided to expand their business globally

US Bangla Airline is a subsidiary of US Bangla group, a United State Bangladesh joint

venture company. It is one most successful domestic airlines company of Bangladesh. It has

the reputation to be the first ISO certified airline company in Bangladesh. It has started its

operation in 17th July, 2014. Initially the company launched with only two destination flights,

Chittagong and Jessore from its core in Dhaka. In august 2014 it launched flights to Cox's

Bazar from Dhaka. Flights to Saidpur is launched in October. For its reliable and effective

operation in the domestic sector, the airline company received the Best Airline of the Year-

2015 award by The Bangladesh Monitor, a travel-based newspaper. Bangladesh Travelers

Forum gave Best Domestic Airline of the Year 2014 and 2015 award to the company.

Within two years of operation US Bangla airline had experienced great success and have

achieved a large portion of the domestic airline market share. From the beginning of their

operation the company always tries to adopt new ways to provide quality services through

being innovative in applying technologies, processes, and methods. It has always focused on

improving its operations efficiency without decreasing its strength of relationship and

commitment to its customer. US Bangla Airline has achieved a positive market response due

to their consistent quality service since they started their operation in airline market. Their

slogan is Fly Fast-Fly Safe and they have successfully proven that through their effective,

reliable and customer satisfactory service. Strong corporate bonding and relationship has

created an effective corporate culture within the organization which have helped a lot to

achieve corporate success for the company. Moreover a strong corporate culture and

commitment to provide quality service to the customer has been the key to success for this

airline company. And after two years of successful operation the company has decided to

launch their operation beyond the border. According to a statement given by Mohammed

Abdullah Al Mamun, managing director of the carrier to daily star, US-Bangla Airlines has
always been focusing on improving the standard of service to an international level. He also

said that, their next goal is to stablish the company as the best airline company in Asia as they

have already achieved the best airline title for the domestic operation, and this achievement

will surely increase the reputation of the aviation industry of Bangladesh. In 2016 the US-

Bangla Airlines decided to launch their first Boeing 737-800 to fleet internationally. This

decisions opened up the door to start international operation for the company. Now they are

offering flights to 8 different foreign destination.

This is a proactive decision for the company. They wanted to use their strength and brand

reputation to grow their business internationally. According to a statement given to Daily

Star Mohammed Abdullah Al Mamun, managing director of the carrier said that, the

management of the company wanted to inter into the international market before its too late

because in todays airline market competition and rivalry is too high. So they wanted to gab

the international market share as soon as possible. Few external and internal factor have

influenced the management to make this decision.

The most important external factors that influence the decisions are economic factors,

competition, technology, market factors. Economic factors includes increase in number of

passengers due to global economic reclamation and our domestic economic and business

growth. Increased number of international travelers. There are lots of new travel agencies are

growing up to serve the increased number of travelers. According to a report the management

of company believes that this is the right time to build up relationship with new increasing

number of customers through offering them international flight service. Technological

factors include, the opportunity to offer new technology and service to the customer.

According to a report the management always focuses on providing new service through

mobile service and adding the new Boeing 737-800 aircraft they offering the customer new

level of comfort and service to their flight. This new aircrafts is the sign that the company
want to offer new technological service to their customer. Market factors include, grabbing

the opportunity as soon as possible. The main rivals for US Bangla Airline are GMG

Airlines, Best Air, United Airways, Zoom Airways, Novo Air, and Regent Airways. All of

these rival companies were also planning to inter into the international market at that time

and among them GMG Airline first entered into international operation but with the old

aircraft. US Bangla airline no longer wanted to wait anymore they also decided to offer

international flight to their customer but with new technology and new aircraft. They didnt

want to lose any market share.

Internal factors include, financial factors, experienced human resources. The company has

got success in most of their operation due to expert, skill full human resource and strong

management body. The company wanted to use these experience and dedicated workforce to

expend their business globally. And the corporation has the belief on its human resources.

Financial factors, US Bangla airline wanted increase their profit and cash flow and create

strong financial base through expending their business internationally, according to news

report published in daily star. According to a statement given by Mohammed Abdullah Al

Mamun, managing director of US-Bangla Airlines to daily star and some other news media,

after adding two new aircraft the company will have four aircraft in total. He farther added,

the new Boeing 737-800 aircraft has 158 revenue seats and each of the three Dash8 Q400

aircraft have 76 seats. Through the new aircraft the company is increasing their revenue seats.

And these increased number of revenue seats will be the key to increase their profit and cash

flow.

With this case we can connect the globalization concept of business strategy. Operating

business not only with in national border. US Bangla Airline has taken the step to achieve

global market share through this decision.


As we discussed earlier US Bangla group is a joint venture company with a US company,

management personnel of both of the company involved in making this this decision.

So far US Bangla airlines has taken decision based its strengths brand reputation. But they

have to also actively take care of the possible threats and new comers new big companies to

take any further strategic decisions.


Reference

1. US-Bangla Airlines adds first Boeing 737-800 to fleet. (2016, October 12). The Daily

Star. Retrieved from http://www.thedailystar.net/business/us-bangla-airlines-adds-

first-boeing-737-800-fleet-1297678

2. US-Bangla Airlines adds first Boeing to its fleet. (2016, October 12). Retrieved from

http://www.dhakatribune.com/business/2016/10/12/us-bangla-airlines-adds-first-

boeing-fleet/

3. Bangladesh: US-Bangla Airlines adds first Boeing 737-800 aircraft to its fleet. (2016,

October 12). Retrieved from http://www.business-standard.com/article/news-

ani/bangladesh-us-bangla-airlines-adds-first-boeing-737-800-aircraft-to-its-fleet-

116101200750_1.html

4. Environmental Factors in Strategic Planning. Retrieved from

http://www.leoisaac.com/planning/strat016.htm