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Growing Skywest Airlines - Essay Example

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The airline company serves the following countries Mexico, United States, and Canada. The company is boosting its innovative mechanisms that have made it vibrant in the airline industry. In the…
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Download file to see previous pages SkyWest Airline has a number of opportunities that it can leverage. These opportunities includes planes that can carry double or triple the capacity of the smaller planes , seasonal increase in number of travels, the company has its own fueling terminals which makes it enjoy low fuel prices, and the ever increasing cost in other means of traveling including car and train (Thomas, 2011). The company can utilize this opportunities to improve its market share as well as the profit margin. The following explanations illustrate a number of inroads that the company can use towards improving its profit.
The load capacity of the larger planes predisposes the company to expand its market. The company can make inroads into the new market by promoting the services offered by these large planes. Presently, the company is leading in providing airline transport services to its consumers. Arguably, promotion would increase the consumer awareness about the existence of the planes. Further, the company can utilize the promotional opportunity to open its market. Marketing critics believe that promotion helps in improving the market brands (Palepu, 2007). Similarly, the company can tap this opportunity to not only market its services in the greater North America, but also improve the general market share.
The large capacity planes can enable the company to enjoy the economies of scale. This means that when these planes ply in the same routes as the previous planes, the company would be incurring less production or maintenance cost as opposed to the use of many small capacity planes. SkyWest Airlines can use the pricing strategy as a marketing tool to enjoy a larger market share. As stated above the large planes have large load capacity, which makes the company to enjoy a big profit margin. Therefore, a move to reduce or use pricing ...Download file to see next pagesRead More
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