"Competitive strategies on the international air transport market" 2. Theory Successful marketing depends upon addressing a number of key issues. These include: what is the company going to produce; how much is going to charge and how is going to deliver its products or services to the customer; how is going to tell its customers about its products and services. http://www.cim.co.uk/files/7ps.pdf 2.1.1 Services Service is intangible commodity, which offers benefits without ownership. We consume a service as a part of our everyday life, a day in your life involve, for example, listing to radio programs, travelling on a train, by bus or by airplane. You pay for the service, but you do not own it. (Baron, 2003) 2.1.2 Three-stage Model …show more content…
Natural development bolstered by codeshare and value cooperation associations in the third quarter of 2014, conveying an estimated 1.1 million passengers onto Etihad. Airways flights (+41 per cent year-on-year) and contributing income of US$352 million, which represented 27 per cent of the airline’s traveler income. Future: Like regional rivals Emirates and Qatar Airways, the airline is quickly extending its system, expending the amount of cash it takes in. Etihad is additionally seeking a strategy of collaborating with other airlines through codeshare arrangements and value stakes, and it says those tie-ups are altogether boosting deals. Infrastructure: Through Etihad Airways’ limitless worldwide route network, the airline will play a leading role in promoting Expo 2015 to a global audience, concentrating on key markets across the Gulf region, Australia, Asia, and the Indian Subcontinent. Etihad Airways’ fleet comprises 110 Airbus and Boeing aircraft, and more than 200 aircraft on firm order, including 70 Boeing 787s, 25 Boeing 777-X, 62 Airbus A350s and nine Airbus …show more content…
(Aviation Pros, 2013) The Service encounter stager initially starts from check in and boarding to gates, check in is the area in which new technology changes the way Emirates serves its customers. In the last few years they have introduced, E-tickets, Internet check-in and quick baggage drop units and self-service kiosks. May soon Emirates customers see check-in and boarding via barcodes and mobile phones. Ultimately, it is possible that an IRIS scan (eye scan) will be the check we use for our customers, from check-in to flight boarding, right now this is available for selected
American Airlines and US Airways are in the aviation industry. Both companies provide air transportation services for passengers and freight. Together they have formed American Airlines Group, Inc., the world’s largest airline, as measured by revenue passenger miles (RPMs) and available seat miles (ASMs). In 2012 the U.S. airline industry was worth approximately $195billion in operating revenue, up from $154billion in 2009, including an operating fleet of 3,451 aircraft.1
- April 2009: strategic alliance with Delta Air Lines. Expected 150 million improvement in operating result over three years of this network.
International passenger traffic to and from Australia in December 2103 was carried by forty-eight international airlines that were in operation in that month, offering seats to over three million passengers. The number of realised passengers represents a growth of 7.8% over the number of booked seats in December 2012 (BITRE, 2014). Passenger utilisation however is on the decline, with December 2013 passenger utilisation being 80.2%, a fall from 82.4% at the same time the previous year (BITRE, 2014).
According to the International Air Transport Association, 2001 was only the second year in the history of civil aviation in which international traffic declined. Overall, it is believed that the IATA membership of airlines collectively lost more than US$12 billion during this time (Dixon, 2002).
Marketing is the process of searching for options for accumulating profits by identifying the demands of the people and satisfying their needs with appropriate products. In today’s globalized business world, marketing can play a vital role in establishing trade blocks all over the globe with competitive and cutting edge market, research, policies, strategies and activities.
Twenty-two consecutive years of profitable operations which is unmatched in the US airline industry.
Marketing is that broad area of business activity that directs the flow of services provided by the carrier to the customer in order to satisfy customers’ needs and wants and to achieve company objectives. Marketing is more than selling: it involves a number of business activities, including forecasting, market research and analysis, product research and development, price setting, and promotion, including advertising. Marketing also involves the finance activities such as credit and collection that are associated with ticket sales. Marketing is customer oriented…Without marketing and sales, there would be no airlines. (p. 274)
The new entry is likely from rich Gulf nations, China, and India of low budget planes around the globe. The airlines from the Gulf nations have placed orders with Airbus and Boeing that are valued in the billions. The deliveries are expected in the next decade. The demand will grow in the production of advanced narrow-body airplanes, such as Airbus, A321 and Boeing, B737 Max. The growth that is expected in the next decade, more consumers will be flying to their destinations. The airlines in the United States are expected to have a profit margin over the next decade. Resulting, from economic growth, and the demand for aircraft service. Buyers are expected to have a lot of power in the next decade, resulting in bargain prices for buyers. The competition will increase with intense rivalry in the aviation industry. The contracts for the aircrafts are totally from airplane
The International Air Transport Association (IATA). 2014. Airline Cost Performance. IATA Economics Briefing. [report] IATA, p. 31.
Overall, these are all marketing strategies that can be utilized both locally, and on a larger scale. Two additional factors must also be considered when using effective marketing strategies. Determining areas where marketing will be most effective, as well as methods to organize and keep track of existing, and new clientele are imperative to successful
When a business aims to be as successful as possible in selling its products and services, it must examine in detail whether or not the products will be attractive and necessary; if the price is optimal; if the product is being distributed in the best locations; and finally, how interest and awareness can be created for the products. In order for a business to target all of these elements at the right people at the right time, it must employ the right type of marketing mix: Product, Price, Place and Promotion.
Porter stated; “for an airline to succeed in the marketplace, it must have a sustainable competitive advantage” (Porter M. E., 2008). The airline industry is the highest competitive industry, and I believe a sustainable completive advantage is essential to succeed in the future of the aviation industry. The competitive advantages that an airline embrace, needs to be based on the airlines strategy and differentiation to competitors. Emirates displays how it has a strategy and how the airline gets ahead of its competitors through how unique it is.
Marketing is a vital component in the success of businesses. Smaller businesses rely on business advertising, expenses, knowing if the business is networking with the right people, or joining the best organisations that lead to success (EStartup business blog, 2010). Marketing concentrates on customers and what the customers want. Customers are the source of sales and profits. Many small businesses are faced with remarkable hardships due to not developing the right marketing plan (EStartup business blog, 2010).
In general, there are numerous definitions of marketing as it has various features to involve, and the one below has concluded main factors of it:
The ability of the management in positioning and establishing the product is a success in any company that operates for marketing and profit acquisition. Furthermore, the ability of the company and its management to complete and maintain a competitive edge among its competitor throughout the product differentiation is another basis to say that is successful. Also, innovation and the constant development on the product lines and the growing number of customers also define the corporate standing of a company. Effective branding strategy and strong brand name are an important part of the profitable business. But, all the strategies and all marketing theories can be worth nothing without the compliance of the desires of consumers.