FN ISI Export Format VR 1.0 PT J TI Repositioning Strategy for Cyprus Airways AF Socratous, Andreas AU Socratous, A AB The objectives of this report is to penetrate a plan for Cyprus Airways based on which the airline would position itself in such a way so as to improve its trading position and increase it revenues. Extensive research has been carried out within the scope of this project. Primary research essentially focused on the Cyprus market and examined the dynamics of the industry, the various competitive pressures and customer’s trends in order to assess the opportunities for Cyprus Airways. Secondary research (internal and external) complemented the environmental and situation analysis. The outcome of the first part of the project (Environmental and Situation analysis) showed that Cyprus Airways focus a situation that classical strategists call «stuck in the middle». On one extreme there are the differentiated and resource-rich scheduled carriers and on the other hand the low-cost charter operators. Cyprus Airways is unable to much the charter’s costs or the large carrier’s resources economies of scale and scope. Therefore the concept Cyprus Airways following a third strategy «a focus strategy» has been explored. Cyprus Airways will be competing as a niche carrier, using its distinctive capabilities of landing slots, routes and country related strategic asset to satisfy the requirements in its geographical area. In this connection three main of recommendations have been made: 1. Embark upon a continuous program of costs reduction 2. Develop brands for specific target customer segments 3. Pursuits various long-term initiatives that aim to create the infrastructure necessary for Cyprus airways to effect change and more on the next century. In the core of our recommendations three main issues are being highlighted to form the backbone of the propose strategy: 1. Create cost-consciousness through out the company 2. Improve the quality of service by addressing successfully process and culture issues 3. Introduce and pursuit relationship marketing not only as a way to augment the product offering, but also to manage competition in the industry Ultimately, success will depend on the effort, persistence, and commitment of all the stakeholders towards action. ER