Virgin Australia's bargaining power and costs are influenced by the availability of aircraft suppliers and maintenance services, while the ability to attract and retain customers depends on competitive fares, superior service quality, and loyalty programs. Competitive rivalry is intense, and Virgin Australia faces direct competition from other major airlines, especially in terms of pricing, routes, and service offerings. The threat of substitution exists as customers have alternatives like trains, buses, or driving. To mitigate this, Virgin Australia must continually differentiate itself by delivering exceptional value and service. Lastly, the barriers to entry in the airline industry are high, but potential new entrants or low-cost carriers could pose a threat to Virgin Australia's market share if they can overcome these barriers and offer competitive services.
Delta Air Lines Inc. The Rich History, Financial Statements and Position in the Market Delta Airlines Inc. founded by C.E. Woolman in 1928, began as a humble little aerial crop dusting operation out of Macon, Ga called Huff Daland Duster in 1924. Later renamed Delta Air Service in 1928 and flying its first passenger on June 17,1929 has definitely come a long way. From flying living vegetable plants to now flying over 160 million passengers to their destination of choice each year, is one of today’s global giants in the airline industry. Delta Air Lines commitment to exceptional service has given them the title of trendsetters in the industry.
Assignment #1 Introduction Air Canada was established in 1937, provides scheduled and charter air transport for passengers and cargo to 182 destinations worldwide. It is the largest airline of Canada by fleet size and passengers carried. Air Canada is governed by an eleven-member Board of Directors committed to meeting high standards of corporate governance in all aspects of the Corporation’s affairs. Our Mission – “Connecting Canada and the World” Our Vision – “Building loyalty through passion and innovation” PESTEL Analysis: Political Factors: "The 'Open Skies Agreement ' between governments of US and Canada in March 2007 came into action as it liberalized the air transportation services.
The inauguration of Virgin Australia Airlines, by Sir Richard Branson, as a domestic carrier in 2000 basically aimed at the convenience of the budget travelers. The Airlines was inaugurated as relaxed informal airline. Sir Richard was open-minded, amiable, and generous with his management team, imaginative, audacious and exclusive in his thoughtfulness. Initially started as a low-cost carrier, the company improved its services to turn itself into a “new-world carrier” as described by themselves (Virgin Blue media release, 2011, para. 2).However all these faltered when Qantas’ past marketing manager took over during 2011.
Hong Kong Dragon Air is Hong Kong-based international airline, belonging to of the Cathay Pacific Group. The airline was established in 1985, and operates a fleet of narrow-body A320s and A321s, which were both powered by V2500 engines manufactured by International Aero Engines AG (“IAE”) for both passenger and cargo service to destinations to destinations across the Asia-Pacific region, and China. Their vision is to be the World’s best regional airline serving China and beyond. Their missions; places emphasis on safety and operational excellence with customer focus. The airline seeks to embrace innovation by implementing ideas that improve their business.
However, the company will have to prioritize their strategy and concentrate on a few important issues. The company should prioritize on progressively taping into market areas that remain untapped. The company has concentrated on offering cheaper fares in routes where its competitors charge high fares. However, they need to branch out their operating areas to sustain their brand for a longer time.
In today world of intense competitive marketing decisions often become vital distinguishing factors between industry leaders and other market players. The strategic marketing decision is taken based on their marketing mix i.e. 4 P'S of marketing. Controlling these parameters, companies may consider various internal and external marketing challenges. The marketing mix of the firm in a large part is the product of evolution that comes from day to day marketing, the mix represents the program that a management evolved in the ever challenging market (Bordern, 1994). This paper will study the world -known and reputable airline company, Delta Airlines to approach the context of marketing of the U.S Airline Industry.
Looking at the respective case studies, SIA, EA and Lufthansa have shared similar challenges like striving for cost effectiveness and differentiation from competitors. Despite these similarities, SIA and EA seem to have survived throughout as an individual highly recognized brands while being involved in Star Alliance overshadows Lufthansa. As well, Lufthansa also operated with higher labor costs than low-cost players or emerging market competitors – years of union advocacy, pension fund obligations, and industry regulations forced these airlines to devote a larger share of revenues towards labor benefits. EA advantage mostly comes from government support and their self sufficient in fuel compared to the other two airlines. External factors like fuel prices or government factors may affect the airlines, but the root of sustaining competitive advantages still lies within the organization’s strategies and core values in order to gain
However, in the recent years, Ryanair keep changes and make a development on its brand image and made a lot of efforts to attract more customers and use the past bad experienced to teach them to become better in future. After Ryanair faced all the challenges in the airline business for many years, it is managed to become a biggest low-fares airline in the Europe and use the low fares as a competitive advantage of Ryanair. In this report, we are required to perform a SWOT analysis, evaluate four criteria of sustainable competitive advantage, discuss the two primary value chain activities which are operation and sales and marketing, and finally we need to discuss the impact of two external environmental factors that challenge Ryanair company to remain competitive in the airline industry. 1.
Objectives 3.1 Focus on airport resources and technology to improve on time flights, arrival, baggage handling. Caribbean Airlines objectives are to have a flowing routine, by allowing customers to check in their baggage at any time and remove the fixed time according to the customer’s flight. The customers can enjoy the freedom of having lunch with families without the hassle of dragging multiple bags behind them. Another objective would be to improvement of flights scheduled, meeting each and every customers boarding time and even arriving to their destinations before time 3.2 Continue to develop and deploy travel innovations Caribbean Airlines will focus on a more innovative aircraft interior, giving passengers more leg room and better
1.0 Introduction to Strategic Management Strategic management practices the formation; achievement and reaching the major objectives executed by the management of the company, by considering the capital and a task of the internal and external environments in which the company wishes to compete. 1.1 Introduction to Singapore Airlines Singapore Airlines (SIA) is established in year 1972 with remarkable performance among its competitors in the industry throughout its 35-year-long history till date (Heracleous & Wirtz, 2009). According to Singapore Airlines (2014), SIA is one of the youngest aircraft fleets worldwide to destinations crossing a network of more six continents, with its iconic Singapore Girl providing excellent standard of service to customers. Throughout the years of operations, SIA has an impressive ever-growing list of industry 's leading innovations such as offering free headsets along with a choice of meals and drinks in Economy Class in the 1970s, followed by introducing satellite based in-flight telephones in year 1991, involving an ample panel of renowned chefs, the International Culinary Panel, to provide lush in-flight meals in year 1998, developing audio and video on demand (AVOD) capabilities on KrisWorld in year 2001, and lastly flying the airbus of A380 from Singapore to Sydney on 25 October 2007 (Singapore Airlines, 2014).
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.
For instance, with the global financial crisis and later the Eurozone crisis, the number of travellers has significantly reduced due to economic hardships. This has affected the profit levels of the airline as well as slowed down its growth prospects. The airline also faces intense competition from other low cost airlines forcing it to extensively invest in product differentiation to counter the competition. This is an expensive
Answer: (a): Market segmentation is the first step in defining and selecting a target market to pursue and penetrate. Basically, market segmentation is the process of splitting up an overall market into two or more groups/classes of consumers. Each group of consumers is called as a market segment. Each group (or market segment) should be similar in terms of certain characteristics or product/ service needs. In business world, market segmentation is considered to be a most important tool in enabling marketers to better meet customer needs and requirements.
> Founded in 1941 and based in Pasay City, The Philippine Airlines is the country 's ultimate flag carrier and oldest airlines. The monopolization of the airline occurred in 1995 when Lucio Tan, an affluent Chinese-Filipino businessman purchased the airline and became its chairman and CEO. . Global competition in the industry > Threat to new entrants: In spite of the low switching costs and the absence of proprietary goods and services, generally speaking, there is a low threat to new entrants in the airline industry. The huge amount of capital make reprisals against new entrants through a price drop.
