The Sukhoi Superjet Essay

Custom Student Mr. Teacher ENG 1001-04 20 March 2017

The Sukhoi Superjet

The Sukhoi Superjet 100 is fly-by-wire regional jet with 75 up to 95 seats[1]. Since the jet industry faces many competitors, it is an important action to design an effective marketing strategy, which includes a SWOT analysis.

Strengths:

*Equipped with two Saturn/SNECMA PowerJet SaM146 turbofans1

*has  10-15% lower operation costs than its competitors, which areEmbraer E-Jets and  the Bombardier CSeries programs1. This will enable Sukhoi Superjet 100 to sell at a lower price and hence making it more affordable. As a result higher sales, profits and market share occurs.

*has a wider cabin and thus offers more comfort1. Not only is it cheaper but also more comfortable, hence establishing a competitive advantage for the Superjet 100.

*The Superjet 100 airliner family is being developed based on the principle of maximum standardization of frame assemblies and systems1. This will enable Superjet 100 to perform more economically while keeping expenditures at a rational level.

*The aerodynamics and design of the aircraft of the family are based on proven advanced technology to minimize technical risks at the stage of design, testing and operation1. A higher security attracts more satisfied customers, which could lead to positive publicity and thus higher demand and value of its shares.

Weaknesses:

*Completion of the deal to order 25 Sukhoi Superjet 100 with Dalivia was delayed2.

Dalivia could consider to buy from its competitors, hence this would provide Superjet’s 100 competitors with a competitive advantage, sales, profits and market share.

Opportunities:

*Air France3, Lufthansa4, SAS5, Iberia6, UTair Aviation, MDLR Airlines and Merpati Nusantara Airlines7 are potential customers.

*Malev Hungarian Airlines and Scandinavian Airlines System are reported to finalize their orders and an Indonesian airline is reported to be the airliner1.

*Alliance Air of India has also showed interest in the Sukhoi Superjet 1008.

*Armavia signed a multimillion-dollar agreement to buy four Sukhoi Superjet 100 planes for regional flights1.

These orders will offer Superjet 100 to reach more customers, since if passengers feel satisfied; hence it could lead to repeat sales an word-of-mouth advertising, which then creates higher demand, sales and profits; hence airlines will then purchase more of the Sukhoi Superjet 100.

Threats:

*Its competitors Embraer and Bombardier offer much more comprehensive after-sales and maintenance network9. After-sales service is important for maximizing customer satisfaction and it can also lead to having a competitive advantage. In fact a research showed that 1 dissatisfied customer tells 11 others who then 5 others10, which would worsen the image of the product quickly, and thus lower sales, profits and market share occurs.

[1]Sukhoi Superjet 100.[online].http://en.wikipedia.org/wiki/Sukhoi_Superjet_100, cited as ’19.5.2008’

2 Airliner World, January 2007

3 [online].http://www.flug-revue.rotor.com/FRNews1/FRNews03/FR030323.htm#RRJ, ‘cited as 19.5.2008’

4 Suchoi wants to sell 40 SuperJets-100 and negotiated with Lufthansa.[online]. http://babelfish.yahoo.com/translate_url?doit=done&tt=url&intl=1&fr=bf-home&trurl=http%3A%2F%2Fde.rian.ru%2Fbusiness%2F20070517%2F65659192.html&lp=de_en&btnTrUrl=%C3%9Cbersetzen, ‘cited as 19.5.2008’

5Scandinavian Airlines seriously mulls Sukhoi RRJ for SAS regional affiliates.[online]. http://www.sukhoi.org/eng/news/company/?id=606, ‘cited as 19.5.2008’

6 Sukhoi Chief on RRJ program.[online]. http://www.globalsecurity.org/wmd/library/news/russia/2005/russia-050405-rianovosti08.htm, ‘cited as 19.5.2008’

7  [online].http://lenta.ru/news/2007/10/24/ssj/, ‘cited as 19.5.2008’

8 Paris Air Show: Sukhoi Civil-Alliance Air talks for SuperJet 100 at an advanced stagenews.[online]. http://www.domain-b.com/aero/june/2007/20070622_sukhoi_civil.htm, ‘cited as 19.5.2008’

9 Export driven: The Sukhoi Superjet.[online]. http://www.flightglobal.com/articles/2007/02/06/211879/export-driven-the-sukhoi-superjet.htm, ‘cited as 19.5.2008’

10 2005. Stephen Chapman, Cassy Norris, Natalie Devenish, Llian Merritt.

Business Studies in Action, chapter 9

 

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