It also benefits in marketing, as their primary means of marketing is word of mouth, and boat shows. The quality and innovation they provide, their prime location, and their efficiency are all part of their strategy allowing them to exceed customer expectations, remain competitive in the business, as well as making the business profitable and able to grow. Silver Ships is pursuing focused differentiation. They make customized products, which are not widely distributed, that customers are willing to pay extra for. 2) Explain the competitive pressures facing the aluminum military and workboat industry.
If the CEO and Chief Financial Officer (CFO) would use the holistic marketing approach the airline would benefit with the change. Both the CEO and CFO are ignoring good marketing and customer relations. By ignoring both of these principals Classic Airlines revenue is suffering. With holistic marketing everything matters. If the CEO and CFO adopt this principal Classic Airlines will thrive in the future (Kotler & Keller,
Easyjet flies to mostly primary airports, where Ryanair flies to secondary airports to further cut costs (Easyjet/Ryanair, 2014). Easyjet also offers a “flexi fare” for mostly business travelers that allows for specified changes to a ticket without additional fees. (Easyjet, 2014). Ryanair has perfected the art of ancillary charges, and everything from checked luggage, reserved seats,
JetBlue's core strategy is to “provides high-quality customer service at low fares primarily on point-to-point routes" (“JetBlue”, 2005). Offering alternative choices to customers such as point-to-point routes to areas that are not catered to by most airlines as well as large metropolitan areas that have had” high average fares” is another part of their strategy. Differentiating their product and service is another part of the plan. Items like new aircraft, leather seats, free LiveTV at every seat and pre-assigned seating are just a few things that make JetBlue different (“JetBlue”, 2005). I would say that JetBlue would fall under both customer intimacy and product leadership customer value proposition.
Explain. According to the case Tango and Zip was introduced due to increased competition from West Jet. However, the introduction of these two low-cost subsidiaries only reduced Air Canada’s revenues. Although Air Canada introduced low-cost air fairs it did not
However, Lockheed testified that the number of units they were contracted to sell (including option-to-buy) would well recover the production costs and the Airbus would be an economically viable project for commercial jet production. Problem Definition The main doubt here is the sales volume needed to achieve a break-even sale figure. While the Airbus production line had solid numbers in that their revenue per unit exceeded the cost per unit, the cash inflows from the sales were spaced out over the production time period. Considering the time value of money and the generous discount rate of 10%, the cash inflows in terms of net present value may be lower than expected; thus, the overall benefit of the project may not be commercially viable. Also, with the unrealistic estimation of future growth in global demand for commercial jets, the guarantee of selling such a high number of Airbus’ units is doubtful.
Overcapacity has led the major United States airlines to compete with Southwest's low fare pricing strategy. However, due to the company's brand image of efficient and effective low fare service, Southwest has been able to ward off its competitors (e.g. Delta, United, and American Airlines) and maintain its position of market share leader in the United States. As the industry becomes increasingly commoditized and US demand slows, it is time for Southwest to consider global options so that it ensures its presence in the future, while maintaining profitability. Who are some of the major competitors?
JetBlue’s mission was to profoundly known as the leading low-fare low-cost airline. This could only be accomplished by offering customer’s high-quality efficient service and a differentiated product to stimulate the current markets demand while continuing to focus on cost-containment. What business risks does JetBlue face that may threaten its ability to satisfy stockholder expectations? What are some examples of control activities that the company could use to reduce these risks? Organizational risks are specific factors (unique to every organization) that arise within all businesses; potential risks that may threaten JetBlue’s ability to satisfy stockholder expectations are jet fuel prices, retaining sufficient staff and exceeding projected operating costs.
JetBlue believed that its web-based booking, rather than booking through ticketing agents, the company would be able to gain greater control on managing seat sales which in turn avoids customers being bumped. JetBlue also uses paperless cockpit, no meals served on any of its flights, and paperless ticket, which all reduce time and costs. They also use a single aircraft type, which in the long run keeps training costs low, and manpower utilization at a high. Another way that JetBlue utilizes it resources is by using the new A320s, which are larger and more fuel-efficient. JetBlue also has less congested airports, which helps to speed flight departures and get their passengers to their destinations in a faster manner.
• Flying to smaller airports near the major European cities and using a point-to-point service model rather than the major airlines’ model of hub and spoke through major airports. Smaller airports have lower landing and usage fees, fewer time slot restrictions or congestion delays and enable faster turnaround times. As a result of this strategy, Ryanair targets the budget conscious leisure traveller rather than the business traveller. This strategy of Ryanair runs counter to Besanko’s theory on Economy of Scope where he cites the airline industry’s hub-and-spoke model as giving the airlines Economy of Density in having more passengers