Startup Strategies - Term Paper Example

 Startup Strategies outline Current arguments on the future of the aviation industry indicate no hope of profit making but Future demand will lead to automation of aviation profits, government intervention ensures that businesses are sustained during difficulties such that retrenchments are avoided, government has drawn strict policies will safeguard the industry from terror danger, Calculation of profits does not have to include the full cost of the plane in each fiscal year and through talking bad management, qualified and efficient managers are employed in the aviation industry, then profits will automatically be realized. How to make profits in the aviation industry Future demand Government intervention ensures that businesses are sustained Strict policies will safeguard the industry from terror danger Calculation of profits Talking bad management Employment of strategy to combat competition Introduction There have been intensive debates over investments in the aviation industry, especially in this twenty first century. Many individuals have felt that it is not advisable to risk investments in the industry given its slow pace of growth and low profits made- if any- and large amounts of losses incurred. Deregulation and competition, which were introduced in the seventies, have also been identified as some of the factors that make it hard for new investments into the industry, given that they gave giant aviation companies ground for laying tough foundations for competition for which new entrants will find hard break in a very long time. Other risks associated with the airline industry have drastically brought down investment confidence and thus contributed to the idea of losses in the industry (Pilarski, 2007). The truth of the above ideology has remained a matter of intense debates. With the current implications of no hope of making money in the aviation industry, the industry’s financial trends are either stagnant or in the downward trend. Further implications indicate that with consistent stagnation, its future will remain same as the present (Matt, 2009). With incessant experiences of losses due to difficulties in making profits, the future of the industry becomes bleak and thus the industry might eventually collapse. If this is true, then there is a direct implication that in the near or distant future, the role of the aviation industry will be negligible. This is however not true, since there has been great demand for aviation services for long. It is imperative to argue against current views that support these negative views and categorically state that money can be made in the aviation industry. There is possibility of making money in the aviation industry According to Pilarski (2007), it is extremely difficult to make money in the aviation industry for various reasons. Government intervention in 2002 in funding aviation was considered as one of great indications that the aviation industry was suffering massive financial crises. Since the aviation industry is an independent body, the role of the government in the funding process became controversial. After a careful review of the state, size and influence of aviation industry, the government was forced into forming a funding body, the latter found out that it was difficult for aviations to refund the monies they borrowed due to the size of losses they experienced and thus the body did not yield as expected. This view fails to note that government intervention in business management has not only been done in the aviation industry, but also in other multinational business. The government ensures that businesses are sustained during difficulties such that retrenchments are avoided and thus, government revenues are balanced (Johnson, 2009). From a critic point, Pilarski argues that the current state of the aviation industry is an experience of massive losses over the last one decade citing numerous reasons. To begin with, fears associated with international terrorism, which have negatively affected aviation industries, especially the US aviation, have greatly contributed to the current state of losses experienced in the aviation industry. This implies that terrorism will forever remain a threat to the aviation industry, which is untrue. Given that the US government has drawn strict policies, such as the homeland policy to safeguard the aviation industry from terror danger, the threat of terrorism has been checked and thus, it bears no direct influence on the losses made in the aviation industry. With continual demand for aviation services raised by ideologies such as globalization, it is clear that the aviation industry will become expansive in terms of passenger volume and increase its annual revenue. This is an excellent example of the possibility of making great returns in the aviation industry. Although various authors have argued that the aviation industry has grown from being luxurious to a common occurrence and thus numerous aviations have flocked the market and consequently reduced the class associated with using aviations, leading to massive losses, future demand brought by globalization will automatically balance the laws of demand and supply to keep the aviation industry at profit making margins (Matt, 2009). Although competition has remarkably increased over the last few decades and companies have resorted into merging to counter the effects of unrelenting fierce competition, the possibility of making profits has not been completely erased. As identified by Johnson (2009), competition is not one dimensional. A multidimensional approach that employs strategic views of the market leads to survival of various aviations and continual earning of profits. It is possible that companies will continue to make profits in the aviation industry if they strictly observe and implement strategic planning in order to be able to avoid unnecessary losses resulting in increased competition. Competition takes into account the most favorable factors a company can make use of to keep leading others in the market. Other authors have argued that the cost of an aircraft itself is a challenge to be attained in a long duration of time and thus, limiting acquisition of other aircraft to increase competition. Although this is true, the cost of an aircraft is not recurrent and through an estimated period of few years, the full amount is achieved. Calculation of profits does not have to include the full cost of the plane in each fiscal year. Divisions can be made that may estimate the number of years to recover full cost (Matt, 2009). Pilarski (2007) argues that it is not possible to decompose the elements involved in creation of the massive losses experienced in the aviation industry. Citing high numbers of required labor in the industry and high costs of fuel brought about by conflicts in the oil producing countries and the West, he contends that profit attainment is a tough exercise to be achieved in a long time in the aviation industry. However, there is an option of reduction of these expenses. If airlines do not have high numbers of clients, there is the need to review the sizes of their human resources. Retention of unnecessary human resource may lead to increases of expenses. This leads to reduction of losses at the end of each fiscal year. Reduction provides a platform to utilize only the required human resource in the airline industry and thus achieve profits maximum (Robin, 2010). Historically, current statistics are not greatly influential of future outcomes if human intervention is possible. Thus, current losses and low profits experienced in the aviation industry do not necessary give implication of impossibilities in achievement of profits, since it is through managerial intervention that such trends may be reduced. Through this approach therefore, future high expectations of achievement of profits becomes a practical possibility. Lastly by tackling bad management in the industry, profit making will become a guarantee. Pilarski (2007) puts forth that bad management practices have made it impossible for airline companies to acquire profits. If this problem gets handled such that highly qualified and efficient managers are employed in the aviation industry, then profits will automatically be realized. The possibility of making money within the industry will be evident and the airline industry will lack questions on how to make money. Conclusion From the argument above, it is evident that there are numerous possibilities of realizing great profits within the aviation industry. From continual demands caused by ideologies of globalization, government intervention strategies to retain propitiation in industries, employment of strategic management skills in overcoming competition, utilization of only required human capital and thus, decomposition of unrequited human resources will increase chances of heavily reaping in the aviation industry and acquire great amounts of revenue and thus, profits. References Johnson, R.H. (2009). Startup Strategies. New York, NY: CIO. Print This reference was preferable because it offers insight into how companies can employ strategy in market survival and thus make the aviation industry remain profitable. Matt, E. M. (2009).How to make money in the flying industry. New York, NY: Flying, 94, pp. 3 - 102 The reference was suitable since it offers options on how to make money in the aviation industry. People with opposing views would get perception into profit making reality within it. Pilarski, A.M (2007).Why can't we make money in aviation? Aldershot, U.A: Ashgate. Print As a primary source, this reference offers a foundation for this essay. Robin, I.T. (2010). Minimizing costs associated with airline industry. Houston, Texas: Wiley. Print This reference gives further options that oversee negated views on using too much unnecessary expenses to reduce profit. These are discussed as avoidable in the book. Read More