Jetstar would need to invest heavily in infrastructure and advertising. The other critical issue which could be a cause of failure in the international routes is “straddling”. Given the fact that the airline industry entry barriers are quite low for existing players, bigger airlines could easily copy the “Jetstar business model” and Jetstar would have to accordingly adapt its strategy through non profitable “positioning trade-offs” which could hurt its profitability in the long
They want more! Competition is at its peak and airports are realizing that they need to find more innovative and mind captivating ways of making sure that passengers continue to travel through them and airlines find it beneficial to create a partnership with them. The production concept was the first to be implemented; airports believed that if they had more airlines and inexpensive flights then more passengers would come. Hence, they placed more focus on airlines and getting them to bring in more fleets of aircraft and dropping fare prices. It was realized soon after that the concept was no longer working; thus, the product concept was introduced.
American Airlines has a few strengths that puts the company above their competitors. Good hubs, loyalty programs, strong brand image, the largest airline fleet, good maintenance and infrastructure standard, are just to name a few. The regions dominant U.S. carrier came along with the company’s innovative mind to buy routes that encourages spreading hubs in the most tourist attracted places. Hubs increase rewards become broader redeeming meaningful awards as you fly across the globe with American. American Airlines AAdvantage program awards miles and Elite Qualifying Dollars for every airline affiliated with the oneworld alliance.
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.
The company will require developing plans that will see them increase their presence in both the domestic and international market. However, the company must first prioritize on increasing their presence in the domestic market. That plans that will involve frequent flights to all the major cities in the U.S.A. Currently, the company has six major focus cities; New York JKF, Fort Lauderdale, Los Angeles, Orlando, and San Juan. While these cities continue to be profitable to the company (CAPA Center for Aviation, 2015), they should consider increasing their access to other cities as well.
Millions of people rely on the airline industry to travel quickly and efficiently between cities in the United states and throughout the world. Since 1978 where, when laws were put in place to promote competition in the market, the nation has relied on competition among airlines to promote affordability, innovation and make service improvements. The constant improvement of airlines and airplanes would in theory lead to lower prices for consumers. In recent years, however, the major airlines have raised some of the fares and the quality of the service has decreased. Competition is essential in any market as it avoids a high market concentration which consequently almost leads to higher ticket prices to be cheaper and always causes prices to increase and consumer surplus which is defined as the difference between the total amount that consumers are willing and able to pay for a good or service and the total amount that they actually pay to decrease.
This essay purported to weigh the strengths and opportunities alongside the weaknesses and threats in order to figure out the extent to which creating the Airbus A380 contributes to the success of Airbus company. The intrinsic strengths and weaknesses that stand out are evolution and growth, high innovativeness, profound research and development initiatives, research to develop aircraft with low cost of operation and opportunity to increase customer base. The weaknesses and threats that are elaborate include increased cost of transportation, long product cycles, strong competition, high rate of fuel consumption and high rivalry between competitors. The benefits far outweigh the limitations and there is evidence of the tremendous growth that Airbus has witnessed since the showcasing of the A380. Appendices Appendix 1 Appendix 2 Appendix 3 Bibliography Books: American Psychological Association.
OPPORTUNITY WIZZ AIR COMMUNICATION STRATEGY 2015 EXECUTIVE SUMMARY Wizz Air Corporate Communications is charged with leading the external, earned communication and internal employee engagement communication efforts for the company and plays a major role in strengthening the brand. As Wizz Air evolves and grows, communication must keep pace. The size of the company, its position as a leading airline in Europe, its wider European footprint and the fact it is now a very visible public company require a change in the scope and focus of communication for both external and internal audiences. Corporate Communications should augment its normal functions that support operations – route and airport development and marketing support – with a more strategic
BA has a strong safety reputation and was ranked the fifth safest airline [Smith, 2017], this means that passengers would be more likely to fly with BA, as they will feel more secure about their safety during the flight, and result in an increase in passengers booking with BA [evidenced in appendix 4. Figure 8]. BA has some strong partnerships and alliances such as Qatar, through the One World Alliance [One World, n.d.]. This means that BA can benefit from being associated with the world’s leading airline, and further increase passengers booking with BA. Furthermore, having a partnership with Qatar could increase their bookings through transfers in the UK to long haul destinations.
Decentralization and the expansion of a larger portfolio through its proposed partnership will improve branding awareness and customer satisfaction. Competition from various airlines offering less generous terms and conditions of employment will be a tough challenge as it may arouse with several negative reactions from employees. Green technology investment is another huge challenge due to current financial instability. The organization will need the execution of change to set aside budget to compete in technological investment. 2.2 Internal drivers of