Simba Airways Strategic Plan

Student’s Name
Institutional Affiliation
Simba Airways
Product Situation
• Fleet Overview
• 50+ aircraft including Boeing 787s
and Embraer jets.
• Services
• Passenger and cargo services across
50+ destinations in Africa, Asia,
Middle East, and Europe.
• Core Strengths
• Strong regional presence
• Modern in-flight entertainment
systems.
• Challenges
• Fleet management issues leading to
operational inefficiencies.
 Financial Situation

Financial Situation – 3-Year Comparison (2018-2020)

Financial Metrics (Kshs. millions) 2018 2019 2020
Total Revenue 85,000.00 90,000.00 50,000.00
Operating Costs (55,000.00) (60,000.00) (40,000.00)
Fleet Ownership Costs (12,000.00) (15,000.00) (18,000.00)
Other Operating Costs (15,000.00) (17,000.00) (12,000.00)
Total Operating Costs (82,000.00) (92,000.00) (70,000.00)
Operating Profit / (Loss) 3,000.00 (2,000.00) (20,000.00)
Finance Costs (2,500.00) (3,500.00) (4,500.00)
Interest Income 100.00 80.00 60.00
Profit / (Loss) Before Tax 600.00 (5,420.00) (24,440.00)
Income Tax (300.00) 500.00 1,200.00
Net Profit / (Loss) 300.00 (4,920.00) (23,240.00)
 Simba Airways vs Competitors

Competitive
Situation 10%

20%

• Main Competitors
• Other African airlines like
Ethiopian Airlines and Kenya
Airways.
• Market Position
• Competitive regionally but
weak on international long- 45% 25%

haul routes.
• Challenges
• Expensive ticketing and lack
of market penetration in Africa
affecting competitiveness.

Simba Airways Kenya Airways Ethiopian Airlines Other Competitors

Marketing
Situation
• Current Strategy
• Focused on offering premium
services e.g. advanced in-flight
entertainment (IFE) and
customer service.
• Weaknesses
• Limited promotional activities
• Uncompetitive pricing
• Opportunities
• Focus on Kenya's booming
tourism sector
• Expand loyalty programs
 Factor Details
Political· Changing government regulations on
aviation
· Changing visa policies affecting
international travel.
Economic · Economic instability in key markets e.g
Europe and Asia
· Fluctuating currency values,
· Rising fuel prices.
Social · Increased preference for travel within Africa
· Growing middle class in African countries.
Technolo · Need for better technology integration
gical

Environmental
· Automated systems for booking and
customer service.

Analysis- Environm ·
ental
·
Pressure to adopt greener technologies
Net Zero by 2050.
PESTEL Legal · International aviation standards and
· Labor laws in different regions.
Opportunity and Issue Analysis

Opportunities Issues

• Expansion into • High operational

under-served costs.
African markets • Sub-optimal route
• Strategic management.
partnerships • Poor employee
Growing tourism relations.
SWOT Analysis
Simba Airways SWOT Analysis
Strengths Weaknesses
· Strategic location: Nairobi as a hub · High operational costs
· Extensive route network · Poor fleet management leading to inefficiency
· Strong regional presence · Uncompetitive pricing strategy
· Modern in-flight entertainment · Poor employee relations

Opportunities Threats
· Intense competition from Ethiopian Airlines
· Expansion into under-served markets
and Kenya Airways
· Growing tourism sector in Kenya · Economic instability in key markets
· Strategic partnerships · Rising fuel costs
 • Fleet optimization

Crisis • Review and renegotiate current

fleet leases

Manageme • Review fleet size and routes

• Competitive pricing models
nt Plan • Reassess pricing strategy
• Offer value for money
• HR policy changes
• Improve employee engagement
• Offer career growth
opportunities
• Route restructuring
• Identify profitable routes
• Eliminate underperforming
routes.
5-Year Strategic
Plan – Overview
• High-level goals
• Achieve profitability through
cost reduction and revenue
growth.
• Expand route network in
Africa and beyond.
• Improve customer service
and retention through
loyalty programs and
enhanced services.
• Slogan
• “Roaring High”
Strategy Map
Operational
efficiency Market expansion
• Improve fleet • Introduce new routes in
under-served regions in
management
Africa
• Reduce operational • Increase flight frequency in
costs profitable routes

Customer experience
• Enhance customer service
• Reduce flight cancellations
• Improve loyalty programs
5-Year Strategic Plan –
Competitive Advantage
• Market Leadership Strategy
• Enhanced customer service
• Become the airline of
choice for premium and
regular travelers.
• Brand repositioning
• Focus on being Africa’s
most reliable airline.
• Technology upgrades
• Implement state-of-the-art
booking and customer
service systems.
 Kshs. 50 Billion Investment Plan
5-Year Strategic Plan
– Financial Plan
Route Ex-
pansion
20%
• Breakdown of Ksh. 50 billion
Fleet Renewal
40% investment:
• Fleet renewal- Ksh. 20
billion.
Operational
• Marketing and rebranding-
Improvements Kshs. 10 billion.
20%
• Operational improvements-
Marketing & Rebranding
20%
Kshs. 10 billion.
• Route expansion- Kshs. 10
billion.

Fleet Renewal Marketing & Rebranding

Operational Improvements Route Expansion
5-Year Strategic Plan – Proposed
Organizational Structure
Board of
Directors

CEO

GM Director,
HR
COO CFO CMO CTO Customer Legal
Director
Experience Affairs
Implementation Plan & Change
Management
Resource
Lead
Objective Activity s Timeline Expected Outcome
Person
Required
Reduced operational
Fleet Renew and Ksh. 20 6-12
COO & CFO inefficiencies, cost
Optimization modernize fleet billion months
savings
Invest in flight
Streamlined
Operational planning Ksh. 5 9-12 CTO &
operations, improved
Efficiency systems and billion months COO
customer experience
CRM
Route Expand into New routes
Ksh. 10 18-24 CEO &
Expansion & under-served established, increased
billion months CMO
Partnerships African markets market share
Launch
marketing CMO & GM Increased brand
Marketing & Ksh. 5 12-24
campaigns and Customer awareness, higher
Rebranding billion months
loyalty Experience customer retention
programs
Enhance
 • Simba Airways has significant
potential for growth and
profitability
• Crisis management plan to stabilize
finances.

Conclusi • The Ksh. 50 billion investment will

• Drive fleet renewal

on • Expand the route network

• Improve customer service.
• Simba Airways to regain market
leadership
• Improved customer experience
• Market expansion