GMF Aero Asia: aiming for the Middle-East base

Abstract

Learning outcomes This case study focuses on four main areas. By the end of the study, the students are expected to meet the following objectives by answering several assignment questions: understand the general business of a maintenance, repair and overhaul (MRO) company and why this business is a central player in the air transportation industry; understand and integrate certain strategy analysis tools, particularly Porter’s Generic Strategies, Ansoff Matrix, GE/McKinsey Matrix and International Market Entry Modes, to use later as justification for any recommendations about strategy; and prepare a systematic elaboration to use to recommend the company’s strategic plan. Case overview/synopsis This case study discusses PT GMF Aero Asia, Tbk. (GMF), a company that is based in Tangerang, Indonesia, and involved in the MRO for airlines. At the time of writing this case, the CEO was Iwan Joeniarto. The case elaborates on GMF’s competitive business operations in Indonesia and Southeast Asia, with the main focus being a discussion of Iwan’s visions for GMF’s expansion into the Middle East. This case study challenges students to think critically on the strategy level about the expansion plans of a local company into the international market. The main research questions the study attempts to answer are: What is an MRO in the aviation business? How does it relate to airport megahubs? Is the option for business expansion into the Middle East feasible for GMF? If not, are there any alternatives for that international expansion? Moreover, what recommendations can this study provide Iwan for entering that international market successfully? The students are expected to gain exposure to the international market entry in an MRO business. The students are also expected to understand and integrate the different strategy analysis concepts and tools, such as Porter’s Generic Strategies, Ansoff Matrix, GE/McKinsey Matrix and International Market Entry Modes. Complexity academic level This case study can be used as teaching material in several programs, including – but not limited to – the followings: Bachelor’s Degree program in Management, Business and Marketing (usually final year students), Master’s Degree in Business Management or Business Administration and Executive Education Program/Workshop/Seminar/Training for Business Development/Marketing Managers, VPs, Directors and Aviation Management Professionals. This case study can be used in the following classes/subjects: strategic management, strategic marketing management, international marketing, international business, global marketing, operations management and aviation management. Supplementary materials Teaching Notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes. Subject code CSS 11: Strategy.

Market entry strategies in the Middle East: unveiling the sponsorship strategy

“…Nevertheless, its benefits exceeded its drawbacks since the industry in the Middle East was expected to grow by almost 4 percent annually. The bloom increased morale and performance that lead to a forecasted increase of $300 million in just one year, thus GMF realized the potential of the region that promoted a sustainable competitive advantage (Saragih and Sinaga 2019). It is worth mentioning that in spite of its potential in market mechanism, the structure barriers are still under the control of the state in many areas in the Middle East; as a case in a point, Saudi Arabia still relies on the Islamic Sharia Law in many of its activities, including investments (Kappen et al 2019).…”