Ground Handling Performance Based Clustering for Vietnam Airlines Strategic Management

Abstract

Vietnam Airlines (VNA) can add more value to its offerings to pursue differentiation strategy as a competitive advantage by maximizing effectiveness of the ground handling service network it hires. This paper aims at making recommendation to VNA on using a set of managerial tools to monitor and continuously improve its service network being operated at 29 international airports. The tools include cluster analysis, ANOVA and Scheffé post hoc to assist the top managers (1) to have an overview of VNA ground handling service quality at worldwide airports by monitoring the performance of airport clusters instead of an individual airport; (2) to clearly observe its effective and ineffective airport clusters on every certain criterion. With this set, the management board can decide strategic management for ground handling service not only to be more effective and more feasible but also to be in line with marketing strategy to differentiate its offerings to excel in the fierce air industry competition.