1. Amsterdam Business SchoolGulcin AskinMichelle DonovanMarketing Strategy Kivanc OzuolmezMarch 21st, 2013Peter Tempelman

2. Facts main international airport, in AmsterdamNetherlandsWorlds 5th largest by international passenger traffic49.8 million passengers passed through in 2011136,000 passengers on 1,016 flights on a dayHighest peak hour capacity in EuropeOne terminal conceptGeographically one of the worlds lowest airports 3. Core CompetenciesDeveloping airport capacity and making money from it by adding valueAttracting travelers and non-travelers, and seduce them to buy asmuch as possibleProviding services as a package and varietyBuilding airports and Airport Citiesanalogy with cruise ship formulae.g. shopping, amusement, parking, offices, hotels and cafeterias all under the same roof. 4. Schiphol is the City Without Citizens 5. Strategic AmbitionExpansion (internationally) to achieve economies of scale by combinedprocurement and improve customer service. Analogy with telecom: it is imperativeto build networks.To be the preferred airport for travelers and attract non-travelers too.Expansion by acquiring shares in other airports.Having strong position in the competition of privatization. 6. CustomerHome base for 5 airlines 7. CustomerIn 2011, Schiphol provided continuous service for 106 airlines 8. CustomerCompanies renting office and shop spaces 30+ Before passport control20+ After passport controlMany office spaces and hotels 9. Customer136.000 daily passengersAirline passengers and shoppers People passing through the terminalPeople who work nearby 10. The Value for CustomerInfrastructure and Maintenance Facilities for Airlines 11. The Value for Customer Low prices for Airlines 12. The Value for CustomerLow prices for Passengers 13. The Value for Customer ConvenienceAll kinds of shops and services under one roof Easy transport links Convenient parking 14. Money for SchipholAirplane services, passenger and cargo handlingOffice and shop space rentalsRetail estateParkingCost cutting by sustainability projectsrecycle and be energy efficient as much as possible 15. Weaknesses and Threats of Schiphols strategyLow-cost airlines from other airports could attract more travelerse.g. Eindhoven, Brussels, Cologne/Dsseldorf etcAirlines could decide to use another (cheaper) hub less transferpassengersKLM could go bankrupt or be bought by another airline who could focus onanother hub e.g. AirFrance in ParisKLM would break up with Northwestern accordingly whole transatlantictraffic would collapse and other airlines would not be able to fill up thespace. 16. Weaknesses and Threats of Schiphols strategyPeople could stop travelling by air.e.g. due to environmental concerns, fuel costs etc.They are outbid for other international locations so unable to expandGovernment regulations currently favorable, but a new government couldrenationalize the airports? (Even more of a risk in international locations)Could become a victim of own success.e.g. no space left to expand, no parking spaces, etc.Another airport can be started in nearby location that can steal all Schipholstraffic 17. Weaknesses and Threats of Schiphols strategyLosing airlines that are based on Schiphol, and not having an airline thatuses Schiphol as their home base.Majority of investments located in and around Schiphol Airport. Thesedensely located assets might be risky and vulnerable to naturaldisasters, fire, and war-alike threads. 18. Strategies To Overcome The ThreatsInvest/become partner in other airportsairports nearby to have monopolistic powerairports overseas to diversify the risksPartner with local and national governmentStrategic alliances, cooperation Combined investments to decrease costs Combined procurement to decrease costs Build a network of airports to increase traffic between these airportsImprove customer service and experience through standardization 19. Strategies To Overcome The ThreatsIntroduce dynamic pricing to attract low cost airlineslow cost carriers pay less but also receive lower servicee.g. docking far away from main building, early/late hoursRollout the knowhow to ports, railway terminals, shopping centersMore effective usage of means of productionPosition well to expand to the other airports even if the tenders lost.If the tender winner lacks experience, there could be need for Schiphols knowhow. 20. Questions?