Competitiveness Airports operate in a highly competitive environment and therefore encourage developments which make the airport sector more responsive to the needs of their passenger and airline customers. Competition in the airline sector has been a driver of innovation and cost reduction and has delivered major benefits for consumers in terms of increased choice and value. Effective competition between airports is clearly something to be encouraged for the same reasons. “Within the aviation industry, MRO, ground handling, catering, CRS and freight forwarding created economic profits, but these were much more than offset by economic losses by airlines and airports. Airlines were responsible for the large USD17 billion of economic losses globally.
Their key-idea is diversification, which Southwest Airlines is achieving by offering more products to more customers in the industry in the efforts of attempting to dominate the overall market share (Bradley, J., 2017). Functional strategy: Southwest Airlines is a passenger airline providing scheduled air transportation in United States and internationally. In Southwest Airlines functional structure with three layers of management, where the upper-management makes all the decisions, which gives them complete power over the company, as well as a clear career trajectory for the Southwest employees. The functional structure is providing stability and efficiency but, on the other hand, could also have a disadvantage if the communications between the departments and the upper management are not functioning (Southwest,2018).
For the customer metric, they measure the annual number of new customers, annual proportion of on-time flights to total flights, and customer satisfaction survey. The annual number of new customers is being measured because an increase in the number of customers can give the company an idea about their future and potential growth in the market. This also gives an idea about the customer satisfaction. The annual proportion of on-time flights to total flights is the basic indicator for airlines. Even if the company has a low-fare image, if their flights are late, customers still doesn’t prefer it.
Singapore Airlines’ strategy is focus on high level of customer service and business travelers as important market target. To support these high-level quality standards it is important to offer new aircrafts so the depreciation short term is fully aligned with this vision. Question 5 Does the difference in the average age of Delta’s and Singapore’s aircraft fleets have any impact on the amount of depreciation expense? If so, how much? Singapore Airlines have to renew their fleet more frequently than Delta Airlines, due to a shorter aging period for their aircrafts.
Segmentation makes the way easy for United Airlines to grow and expand, because UA uses segmentation to target those groups of customers whom it finds an opportunity to develop. Segmentation enables United Airlines to identify opportunities in the market, achieve marketing objectives and maximize the efficiency of marketing efforts by using a different strategy for each segment. Segmentation also gives the company a better understanding of its clients, the services they need and the methods of payments. In addition to that, it helps to achieve a successful targeting. For example when united airlines chooses the right variables and does a proper market search for market segmentation it will be able to select one or more segments that it will serve profitably as well as easily.
So, if prices are too high, there will be a large number of seats that are left open on flights, but if prices are too low, Southwest Airlines will have full flights, which could create aggravation among travelers as well so low profit levels for the company. So, identifying these aspects when setting their seat prices will be a huge advantage for the company. Southwest Airlines also needs to recognize the atmosphere of their flights. Having friendly flight attendants, creating a “comfy” design, and offering a number of on flight amenities will allow the atmosphere of a Southwest Airlines flight to be a positive one. Comparing these aspects to other rival companies and ensuring that they are at the forefront will give the company a high level of competitive over their rivals.
This is type of information gathering is being used by all kinds of big corporations, like the health industry, transportation, Logistics and others. This information is of great use to companies to see trends on their spending habits and even costumer contributions to the organization. Data mining example can be an Airline company, they can use data mingling to determine, things like how many costumers cancel flights, their age group and how much is the Airline Company spending to re book this eats. This information can be utilized later for Airline companies to concentrate their advertisement and budget in the correct place thus saving them money with this information. The ability to precisely gage customer response to changes in business rules is a powerful competitive advantage for any big
On the other hand countries have put measures in place such as strict visa policies and border controls in an effort to combat terrorism attacks. Economic Environment Factors such as Crude oil prices, aircraft prices, Economies of Scale may also have effect on the airline industry. Social Environment Tourists and Business travellers contribute to the growth of the airline industry. Technological The use of modern technology by the airline manufacturers can contribute significantly to the growth of the
After the world war the aviation industry also boosted allowing people to use the national airline Sri Lankan Airlines to embark into the country. After the war the GDP and economy increased allowing tourists to visit all the locations to all over the country mine free and terrorism free. Some of the more pressing weaknesses of the industry is that Sri Lanka needs to have a more specific guideline of tourism packages, hotel descriptions in terms of star ratings, better holiday promotions which will allow the tourist to make specific plans for their holiday giving them more value for their money worth. Provides access for the physically challenged people; and take measures to avoid overcrowding and pollution of famous attractions in the
Nok Air has two major hubs located in Don Mueang international airport, which is a central domestic airport, and in Chiang Mai. A key competitive advantage that leads Nok Air to be the top budget domestic airline and to gain higher market share is using the product differentiation. Nok Air differentiates itself from other competitors in terms of routes and periods. The firm offers a variety of routes and periods to passengers to enjoy with Nok Air compared to other competitors in the market of low-cost airline. Expanding flying route is one of the firm’s strategies to serve more passengers.