Analysis of factors that have made Kenya Airways contribute towards international business

Abstract

Getting it right in the highly competitive global airline industry depends on key factors among them competent staff, sound management and careful selection of strategic partners. Kenya Airways has come along way since 1980s when it was almost insolvent. In mid 1990s, as it was struggling to survive under market liberalisation, the government stepped in and decided to turn the national airline round with the help of outside consultants. Once the airline was put in sound footing, it got a strategic partner, KLM Royal Dutch Airlines who made financial investment as well as giving operational and technical support. From then on, the airline has consistently performed better and better and continues on profitability and expansion path. In contrast, most other airlines in Africa are not doing that well. Most have no expansion programmes or efficiency improvement and some are reporting financial losses. Globalisation was recognised as a phenomenon that has most contributed to the breaking down of trade barriers between nations thereby increasing the free participation in international business of international firms and nations themselves. Under globalisation, information technology has rapidly developed and has been widely used by companies as business support system. With e-commerce, e-mail and various accounting systems whose backbone is IT , business operation and procedures have been revolutionised, greatly contributing to the expansion of international business. It is easier, cheaper and more reliable to manage far off businesses from a central or regional office than it was 15 -20 years ago. Globalisation has also given rise to expansion in transportation systems, especially air transport where technology based aircrafts have been produced which are faster and comfortable to the passengers. Since the world is reducing into a global village, many people are easily travelling from one location to the other more frequently. Tourism has also flourished under globalisation which has directly benefited the airline industry. The underling assumption in this study was that there were factors that made Kenya Airways operate so successfully and in the process increase its participation in international business. Data was collected from selected KQ employees who are in a position to understand the state of business operations and the strategies in place to achieve corporate goals. The research design utilised a case study method since the study required in-depth details of the factors that have enabled the organisation to succeed. Questionnaire was the main instrument of collecting data with structured questions, both close ended and open ended type of questions. Content analysis method was used in analysing the collected data. The findings revealed certain factors that were repeatedly mentioned by the study respondents as being behind the success of the airline. These were taken and further ana lysed on their content for the success of KQ. Among the key factors mentioned included the strategic choice of partnerships, application of IT, staff competence through training, globalisation effects and sound top management composition.