How does Alcoa Fastening Systems in Europe sustainably achieve the North American levels of return?

Pogson, Glen Richard (2013) How does Alcoa Fastening Systems in Europe sustainably achieve the North American levels of return? [Dissertation (University of Nottingham only)] (Unpublished)

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Abstract

Air travel has become part of everyday life over the past 20 years and Alcoa Fastening Systems is an integral part in the development of how aircraft are joined together. This thesis has been written to explore and better understand the key drivers for the differences in profitability between the North American market and the European counterpart of Alcoa Fastening Systems Aerospace businesses. Using a mixed methodology and focusing on the developing area of Product Service Bundling, this paper will derive strategic recommendations to sustainability close the gap and continue to enhance the European performance and returns.

The literature reviewed from the last 50 years surrounding product service bundling has been focused, in this paper, to cover areas of basic modelling, the strategic frameworks developed to sustain market barriers and developing marketing guidelines to enable businesses to choose whether to bundle or not. The literature examined also covers the works published to understand the legalities within product service bundling that could lead to antitrust or anticompetitive behaviours.

Alcoa Fastening Systems being a newly created sub-division of Alcoa Inc is discussed at length through key leadership interviews and intertwined with financial analysis. This will be focused on the existing performance of its European businesses as a direct comparison to its very profitable North American counterpart, with Europe having been set the task to double its returns in 3 years from 2010. The forecast analysis of AFS Europe’s future in an aggressive price sensitive market will be evaluated, to enable the sustainability of its current strategy to achieve this target will be measured and critiqued.

A comparison of the literature reviewed with the AFS case study will examine and evaluate the applicability of the previous works in this market leading aerospace manufacturer. The Microsoft anticompetitive case study will be used to better understand the regional variances in legal positions between North America and Europe. This will help guide AFS use of Product Service Bundling as a strategic marketing tool to enhance its returns.

To support AFS business remit, the concluding part of this paper will explain areas that the European business need to focus and develop further in the form of strategic recommendations to be presented back to the leadership team. These either confirm the need to continue with current practices or suggest focal points to be considered in protecting or enhancing AFS future.

Item Type: Dissertation (University of Nottingham only)
Depositing User: EP, Services
Date Deposited: 15 Dec 2021 10:50
Last Modified: 21 Mar 2022 16:10
URI: https://eprints.nottingham.ac.uk/id/eprint/26285

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