Ryanair ensures that all the staff is well trained and experienced. This enables Ryanair to offer high quality services to the passengers (Grob and Schroeder, 2007) To sum up it is evident from this analysis that Ryanair have developed an effective value chain. This ensures that the company can charge less and still make a profit. This low cost approach has appealed to many customers and has allowed Ryanair to grow to become one of the biggest airlines in the world. 4.
What sets competitors apart in the airline industry is how they get their customers to their destination. When coming out ahead of their competitor’s airline companies must focus on three areas; competitive differentiation, service quality and productivity. When an airline company focuses on improving in these three fields they can increase their outreach and customer preference. The airline industry is also known for its nonlinear pricing because they sell economy, first class, business class etc. tickets and at different prices before a flight.
In the same time, our company is moving towards a performance management system as other organization. Hence, I recommend new strategy that call “new world” strategy. Since our company is doing on low-cost airfare and high quality facilities to make passengers satisfy and also increase the popularization of status. Our company also makes available a service which can provide customer to make privilege card at our company in order to collect privilege points to redeem the flight ticket in the following flight booking. While customer needs to get this free privilege card they need to purchase our company airfare RM300 above.
Another factor is the amount of consumers that purchase airline tickets came from middle class income. Due to individual earning, they will tend to choose airlines that offer cheap and affordable ticket fees compared the one who sell it in expensive and indirectly it will lead to high bargaining power of buyers. Next, nowadays with the advancement of technology and social media make the consumers easily to access the current information regarding the tickets, package, promotion, discounts and others from airlines. They will keep getting the notification and will be alert regarding the airlines. Of course the power of buyer will be
Lufthansa leveraged big data in order to manage the entire customer engagement cycle by predicting and meeting the customers’ needs beyond their expectations from pre-travel to post-travel experience. CIO of Lufthansa stated that “Travel is a trigger for the opportunity to provide services to customers. We are competing, in this way, with Google and Amazon”. Aside from personalizing the passenger’s experience, big data is also used to improve operational efficiency and disruption management (handle irregular situations and predict departure delays and proactive recovery), discover innovative service provision and operational optimizations (predictive and preventive aircraft maintenance). By utilizing big data Lufthansa was able to predict what their customer is going to need or want and to do or buy.
Furthermore, Executive Pod, International Business class, Economy class, North America economy class are some of the finest examples of services offered to different target market by Air Canada (Air Canada, 2018). Price: Air Canada assure the consumer 's that it 's price the best in the region as it states, "Stop searching far and wide. You’ll always find the lowest Air Canada prices right here on aircanada.com. Air Canada along the way has set itself as brand that is focused on its consumer 's affordability aspect. With its pricing guaranteed approach, the Airline can draw consumers to travel with airline with faith that they have spend their dollar in a smart
Although they charged for the services, these attract more customers as they are available at single platform. Ryanair knows that the more the customers, the lower the cost and no doubt that the profits would be high. Ancillary services include trip managements, hotel reservations, car rentals, priority boarding, food, infant equipment, sports and musical instruments. Apart from that, Ryanair has decided to use only a single aircraft model which is the Boeing 737-800 and this is the modern and low cost fleet aircraft. The jet is one of
Expanding flying route is one of the firm’s strategies to serve more passengers. As a result, Nok Air is often the first choice in customer’s mind. In addition, by reaching the destination where its competitors cannot, Nok Air can gain valuable benefits. Since there is no competitor in that destination, Nok Air is the monopoly in that specific area. As a consequence, the firm can compete in price and can set any level of price that Nok Air prefers.
In addition, the availability of information is really high and with the emergence of travel portals who guarantee that they can search for the lowest fares out of all the options available and book it for the client with just a click which even provides the ease of purchase, the bargaining power of the buyer is increasing Frequent flyer programme and online duty free purchase services can create customer loyalty and reduce the threat of customer switching over to other airlines to some extent. Low buyer concentration can also reduce the power of buyers. Competitive Rivalry (High