MASTER´S THESIS based in the “Amadeus’ Practical Case”. The aim of this work is to prepare a detailed Business Plan of the CheckingRoute© project. Different sources have been consulted. The main consulted sources are all the contents that have been studied in this Master, public information available for Amadeus Group as the Global Reports of the company, the Amadeus’ website and the financial results. The Business Plan includes the sections listed just below:
- General deion of the business/project idea.
- Analysis of the environment, sector and strategical group.
- Analysis of the consumer
- Analysis of the competitors.
- Commercial research
- Strategic analysis.
- The sections of the Business Plan as the Marketing Plan, Product/Service Plan, Prices Plan, Distribution Plan, Communication Plan, Commercial Plan, HR Plan and Financial-Economic Plan.
- The summary of the project idea is below:
CheckingRoute© Project deion: the aim of this Project is to develop and supply an IT tool that receives and processes, historic and in real time, own information and hub’s information to decide the viability of any route. The tool will carry out 3-year projections of the route with enough reliability for the ed and parameterized criterion of the client company’s investment ion. So the final result is market information, profitability and positioning of the client company after the decision about any route by the tool, if the studied route is viable or not viable.
The project duration is 4 years. Project’s start is on Jan/2016. Project’s completion is on Dec/2019.
This service is mainly addressed to the Airlines as basic tool for their decisions making process for the new routes to take and invest or what routes should be abandoned.
The Global Macroeconomic indicators that a period of continuous growth is starting after the years of crisis. Furthermore, the sector’s indicators are very positive.
Amadeus is the top-leading company in the sector. Amadeus’s strategy is to strengthen their Technological Solutions Division. The main difference between Amadeus and their competitors is that Amadeus is not only in the Distribution Business, Amadeus also has a very powerful Technological Solution Division, mainly for the Airlines. This project fits with the Amadeus’ Business Strategy and it will help in the Amadeus’ positioning as Premium consultor specialized for the Airlines. This project will help to increase the average margin as the service will have a high price because it is a Premium Service type.
This service will be offered first to the current customer portfolio among the Airlines. The main strength of Amadeus is that it is the top-leader in the sector, Amadeus is financially stronger than their competitors and Amadeus is also leader in R&D investment.
The project team will be composed by 5 persons: the Project Manager, the Product Manager, Sales person 1, Sales person 2 and 1 person for the Administration tasks.
The financial needs are: CAPEX – investment in fixed assets: 1 MEUR. Operational needs of funds: 4 MEUR.
All the budgets, forecasts, balance sheets that are in this work, have been calculated by taking an IRR of 15%.
The only competitors for this service are the Airlines that are able to develop internally by their own this kind of solution. But the costs for the Airlines if they develop this solution will be very high compared to get the Amadeus’ solution that will be offered at lower price with a higher quality. All the goals and budgets are feasible and a list of specified controls and a very strict follow-up will be implemented during the project development.
To sum up, the main advantages of this Project are listed below:
- Amadeus will be clearly differentiated from the competitors that are mainly focused on the Distribution Business. This fact will provide a key advantage comparing to competitors.
- Business diversification and a key project for the growth of the company in the next decade.
- Follow and take advantage of the global sector trend. The sector trend is a business decrease in Europe and high growth in the Asia-Pacific area.