Ethiopian Airlines: Bringing Africa Together

Paul W. Beamish; Yamlaksira Getachew

Product #:9B14M005_P

Supplier:Ivey

Discipline:General Management, International Business

Setting:Ethiopia, 2008

Details:Case (PDF) • 14 pages • 2014-02-14 (Rev: 2014-11-18)

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Geography:

Ethiopia Africa

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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.

Learning Objectives

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.