haneda presentation
TRANSCRIPT
Jason Badgley
Peien Liu
Nina Motamedi
Ann Pham
Agenda
• Haneda Airport and Industry Landscape
• Competitive Advantages
• Opportunities
• Recommendations
• Risks
• Retail in Japan
Japan Airport Terminal Company
Haneda: Premium Domestic and Int’l Airport
• Top 5 Best Airports in the World
• Proximity to Tokyo: 30 Mins
• Int’l Terminal built in 2010
JATCO
• Focus on Premium Retailing: leased and direct vendors
• Government Regulations: Flight Slot Restrictions
• Focus on Technology: Cyberdyne
• Developing Revenue Streams Externally: Duty Free Shop in Ginza and Wedding Venue
SWOT
STRENGTHS• High Customer satisfaction
• Strategic Partnerships: BIC Camera, Cyberdyne
• Focuses on Hospitality and High Customer Satisfaction
WEAKNESSES• Connecting flights
• Ease of connecting terminals
• Standardization of Policies
• Marketing
OPPORTUNITIES• Huge Air Travel Market, Duty Free shopping
• Weak Yen, High Tax & Relaxation of Visa Rules
• 2020: Tokyo Summer Olympics
• Increase of US/NY flights Autumn 2016
• Expansion of Haneda arrival & Departure Slots
• Strengthening Japanese Tourism
• Transfer of more airport terminals to private sector spaces
THREATS• Time slot restrictions
• Allocation of flights & Airline Feuds
• Profit loss due to capital expenditure
• Volatility of Tourism Industry
Industry Environment
Diversified, global players: Heathrow, Hong Kong Int’l, Dubai
• Global players leveraged economies of scale and scope from centralized R&D, sales and marketing, and low-cost component manufacturing and distribution facilities worldwide, to lower their manufacturing costs and improve operating margins
• Airport as a primary retail operation, drop in prices for airline operations to increase passenger numbers
Smaller regional players: Kansai, Osaka, Chubu
• Serves domestic flights only with quick turn around time for passengers
• Lower airline operation rates for airlines
Opportunities
•Internationalization
• Fluid connection between domestic and Int’l terminal
• English as a standard language at all vendors
• Expand Marketing Campaign
•Enhanced Revenue Streams
• International cargo handling operator
• Customer Loyalty Program
Opportunities Continued
• Future Business Development
• Acquiring Regional airports in Japan
• Expand retail operations to China, Bangkok, Thailand, and Myanmar
• Organizational Change and Human Resources
• Reevaluate labor force for important vs. pivotal talent
• Standardize training and leased vendors
Recommendations
Ongoing Projects & Improvements
• Cyberdyne Robotics
• Shop Expansion
• Arcade
• Salon
• Gym
• Grocery Store
• Operational Improvements
• Multi-Lingual/Visual Menus
• Standardize vendor lease policies
Proposed Projects
• Loyalty Program
• Big Data
• Frequent Shoppers
• Advertising in Airline or Travel Magazines
• Celebrity Endorsements/Movies
• Partnerships with Olympics/Sponsors
• Replication of Business Model to other Airports
Desired Outcome:
• “Omotenashi” Hospitality Principle
• Increase Customer Satisfaction
• Repeat Customers
• Operational Efficiency
• Ease of use and access
• Mega Mall – One stop shop
• Strengthen HR & Organizational Capabilities
Risks
Potential Risk Description Risk Management Plan
Changes in
economic
conditions
The weakening Yen may drive visitors to Japan, but it may discourage frequent local shoppers
from shopping.
Ensure the consumer mix is internationalized to hedge against such
risk. Also increased duty free stores can offset consumption tax
hikes as it can incentivize consumers to shop at Haneda.
Restriction of Time
slots
Changes in political parties and policies makes Haneda susceptible to huge risk on their business Maintain ongoing communication with Japanese government and
invest in lobbying measures if necessary to advocate for Haneda
Unmet target
profits
High capital expenditure and unforeseen circumstances such as lawsuits, fines and natural
disasters can deplete projected profit margins.
Have disaster recovery plan in place and extra funding in budget,
estimated by historical averages
Airline Feuds &
Strikes
As airline allocation is determined by JATCO, forces outside of Haneda’s control, they are
susceptible to backlash from disputes over pricing and preferences with Narita
Court back up airlines to have back up customers in case one airline
withdraws business.
Fluctuation in
Tourism
Tourism is a highly volatile industry and can drop rapidly due to global environments. Airlines
respond to this with leased aircrafts whereas airports have fixed operating costs
Increase airport appeal as a retail destination beyond passenger
travel. Allocate marketing dollars to aid in advertising for Japan
tourism specifically through Haneda over Narita.
Retail in Japan
Department Stores
*Complex Infrastructure*Segmentation by Brand*Food Offerings in Basement
Convenience Stores
Convenience Stores
***
Supermarkets
*Serves a larger demographic vs. US targeted towards lower income
*Large Rice Ball Selection
*Prices slightly higher than US
*Busy
*Busy
•xx*
Fast Food Chains
*Frequented during one’s daily commute or return home
*Large ready made food section
*Higher prices than US, particularly for American itemsFast Food Chains
Supermarketstion by Extinction
Termination by Integration
*Cultural Arbitrage
*Catered to local taste ie: Tuna Muffin, Tomago Burger
*Slightly lower prices than US
*McDelivery
Questions