Company Amadeus is a world leader in central reservation systems known as Global Distribution System (GDS) technology. The leadership in this market is supported by two areas, distribution (74,7%) and technological solutions (25,3%). In the technological solutions department, most research and development (R+D) is integrated.
Amadeus has identified a business opportunity in the area of feasibility analysis of air routes and intends to launch a new product – CheckingRoute ©. The CheckingRoute © project will provide a semi-instant solution for making commercial routes viable. This tool feeds on macro data from the market in real-time. This is a product intended for the aviation industry.
This business plan is elaborated, in order to the viability of the CheckingRoute © project as well as the dissemination strategy. The assumptions and objectives for the business plan are:
• Budget: 5.000.000 €
o 1 Million euros – Fixed Assets.
o 4 Million euros – Cash Flow.
Beginning – January 1, 2016,
Ending – December 31, 2019.
o Profitability: IRR: 15% per year.
o New market share: 25%.
o Current customer share: 75%.
o Positioning: consulting partner specialized in client quota
The business analysis plan has four main analysis vectors that may influence the business:
-Market study, including competition and potential customer needs
-Operation and organization
-Marketing, promotion and sale of the product
The analysis of the business model is supported by the CANVAS model. This model allows in a very instinctive and visual way to check on a single map: the value proposition (central point), customer segments, customer relationship, channels, key resources, key partners, key activities, cost structure and revenue streams.
Traditionally, Amadeus has a perspective to proactively study the market and its trends. The existence of different studies carried out by Amadeus allows you to have a holistic view of your business. These studies are carried out in different areas of the tourism sector and are able to cover almost 360º the needs of all players in the tourism market. In order to prepare the studies, Amadeus ends up cooperating with companies, and external institutions, for an impartial analysis.
During the development of the business plan, a competitive analysis is carried out on the main competitors using available information in different official bodies, namely in the financial component. The market analysis is done through the different reports made available by some of the main organizations related to tourism and aviation, among others the World Tourism Organization (UNTWO) and the International Civil Aviation Organization (ICAO).
The study presented in the business plan s its profitability. In parallel, several scenarios are studied, two negative and one positive. From these scenarios, it is possible to conclude that even in the worst scenarios the project´s profitability continues to exist.
Amadeus´ financial health is also analysed. Amadeus´ account reports and financial studies carried out by external entities are reviewed. Due to the high value of the investment, the business plan is complemented by an analysis of the debt and its maturity.
As a final master´s work (TFM), for the Master in Busines Administration – Tourism and Leisure (Dirección e Gestion de Empresas – Especialidad en Turismo e Ócio), follows the structure provided by the guidelines for the TFM. This is also a theoretical exercise and part of the assumptions of reality in 2014. It is an interesting work because at the time it is being made (2020) there are new challenges, challenges that will be taken into account in the preparation of the final master´s work as they were not expected in the year under analysis (2014). Thus, and as far as possible, existing data up to 2014 will be used and when there is no adequate information and/or literature there may be analysis from other dates but always keeping the spirit, that is present in the business plan’s development.