The aerial shuttle has developed under the dynamic administration of Chief Executive Officer His Excellency Mr. Akbar Al Baker, delegated CEO in 1996, which has been instrumental in turning Qatar Airways in to an recompense winning bearer and the best on the planet. Under Al Baker's stewardship, Qatar Airways has developed into a main drive in local and worldwide avionics, procuring numerous admirers around the globe for its fabulous guidelines of administration. In April 2011, Qatar Airways reached a turning point coming to 100 destinations in its worldwide course delineate. After two months, the airline accomplished a momentous deed, only 14 years after its re-dispatch, being named Airline of the Year 2011 at the yearly Skytrax World Airline Awards with more than 18 million voyagers overall throwing their votes. Qatar Airways named Airline of the Year 2012-2014 clutching its title for the three successive years.
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
In such competitive industry, players must stand out with innovative strategies, paying even more attention to “the management of customers, who are not simply consumers of the service but can also be integral to its production” (Frei, 2008). In this way, it is important to be focused on the customer and be ready to respond successfully to changing customer needs (Kotler & Keller, 2000), like a low-cost airline enterprise, named Southwest Airlines, does. Southwest Airlines Co. (“Southwest”) is an American passenger airline company that provides high-frequency, short-haul (generally under ninety-minutes) and scheduled air transportation in the US and near countries, with a fleet of 735 Boeing 737 aircrafts (the largest fleet of Boeing aircraft in the world). In the fiscal year 2016, Southwest achieved historical results, with $20,425 million on revenues, reinforcing its position as the low-cost leader in
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
Market segmentation has been the positioning strategy for Intercontinental Hotels, and it is important that it is done well to consider critical features of each segment adequately. Moreover, market differentiation must promote the difference between the different brands so as to create awareness to each target consumer of the most appropriate brand. For instance, the strategy must inform the market of the difference between the Holiday Inn brand and the Holiday Inn Express brand. This differentiation is important since it will encourage business travelers to opt for Holiday Inn Express while those looking for recreation chose Holiday Inn. Consequently, each consumer will get the best service that is suited to their needs and hence create customer satisfaction in the varying
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.
On the other hand, India‘s LCCs are also moving towards a hybrid model by offering more features of a full service carrier on a user-pays basis. LCC reliability, on-time performance, consistency, ground product and cabin crew service standards, particularly on IndiGo, are comparable with or even better than FSCs. Unbundling is a technique which offers additional but optional services. This gives a greater choice of the travel experience for the passengers and added revenue for the Indian LCCs. Indian LCCs tries to achieve a significant share of the corporate market, which is evident from Indigo and GoAir airlines, both of which are moving towards a hybrid model though their themes and definitions of a hybrid model may differ.
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.
In the business world, management need to consider many factors such as competition, economic, culture, stakeholders, government policies and others. Once the strategy is made and implemented, sometime we have to correct and change the strategy when the business environment is change. Low cost airlines in Malaysia faced many challenges such as government control and intervention, the massive competition in business, the rising of operating cost and more demanding customers. In this case, implementation of strategic planning system by management, the effectiveness and efficiency of employee within an organization, and the adequate resources would increase the probability of beating your enemies or competitors by forecasting as far as possible relative strengths and weaknesses. AirAsia understands what strategy their competitors use, what is the weakness of their competitors and with this they focus on low cost which could allow everyone to fly with Airasia.
Thai Airways International Public Company Limited (THAI) ————————————————————————————————————— Thai Airways International Public Company Limited (THAI) is a state enterprise that belongs to the Ministry of Transport and Communications. THAI is located at major international and domestic airports throughout Thailand, which is also known as one of the world’s leading airline industry. Especially, the airlines acts as national airlines which always gain profit and also are in the competition among worldwide Airline Business. Besides, the overall operation is appreciated in the world’s best airline consistently. The airline was instituted by agreement of Thai Airways Company Limited and Scandinavian Airlines System (S.A.S.)