Classic Airlines Marketing Solution - Essay Example

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Executive Summary The Classic Airline carrier is currently facing a very tough operating environment. It is currently working in a mature industry, having large number of competitors. This creates a hostile competitive environment for the company. This competitive environment of the company has been augmented by a shift in the operating paradigm of the industry…
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Classic Airlines Marketing Solution
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Download file to see previous pages The airline’s CEO is under immense pressure to turn around the fate of the company. The most problematic situation for the company is that it is currently incurring a large cost per customer per mile, and, to add to this problem, the company has just made a mistake in its marketing program. Thus, in this scenario, a new and a fresh marketing approach is required, implications of which should trickle down to the entire organization. This marketing strategy should keep customers as its focal point, because current customer satisfaction level is very low for the organization. Another important crisis which this marketing strategy should resolve is that of positioning. The current positioning statement of the company is taking it nowhere in terms of differentiating its services. Another implication of this is that the employees of the company are feeling an identity crisis. This situation is further made complex by the inability of the airline’s CEO act effectively regarding the utility of the functional areas of the airline. Her focus on numbers is creating a friction between her and the various departments of the organization, especially the marketing department. This friction is being felt at various levels of the organization and thus is a reason of worry because of its potential negative impact on the airline’s organizational culture. This report recommends a market driven strategy to be adopted by the airline. The major aspects of this strategy are the customers and the market; the company is required to tailor its business processes keeping customers as its focal point. In order to effectively implement this strategy, the airline needs to identify its distinctive capabilities and match them with the needs and aspirations of the customers. The company needs to identify all of its distinctive capabilities so that it can come up with a sustainable value proposition. The airline needs to make considerable efforts to align its various business processes. It needs to build systems which help in the coordination of different organizational activities and facilitate the flow of information. Last but not the least, an articulated vision from the CEO of the airline can do wonders for it. 9-Step Problem Solving Model and its application on Classic Airline Problem Definition Today’s airline industry is undergoing or has undergone a paradigm shift. This paradigm requires from airliners to seek operational excellence and nurture customer loyalty. The fundamental variables defining this new face of the industry are increased fuel cost and rising level of inflation. These two variables have severely hurt the profit margins of airline companies. By increasing the cost per mile per customer for these airliners, these variables have dried the operating profits of these airliners. As a result of this, many airlines have declared bankruptcy. These dynamics show that those airlines which are not operationally efficient and lack customer loyalty are bound to be eradicated from the industry. Framework of the Problem As mentioned above, the two variables which have changed the face of airline industry are fuel cost and inflation level. Due to these variables, airlines have to come up with strategies which allow them to absorb these costs. Airlines also need to come up with some ...Download file to see next pagesRead More
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