Southwest Airlines is losing its competitive advantage of low costs and customer-focused culture due to growth and competition from airlines like JetBlue. The document analyzes and proposes solutions to address Southwest's issues, including rebuilding employee morale through committees and rewards, implementing a new IT system to improve the customer experience, and shifting from a strictly low-cost to middle-cost strategy to regain market share. The solutions aim to restore Southwest's core values while adapting to changes in technology and competition.
Southwest Airlines was incorporated in 1971 and commenced operations with 3 Boeing 737 aircraft. It has since grown to operate over 500 Boeing 737 aircraft on more than 3,300 daily flights serving over 100 destinations across the United States. Southwest is known for its low-cost, high-frequency point-to-point route network and emphasis on excellent customer service. It has achieved profitability for 36 consecutive years and has been recognized as a leader in customer satisfaction within the airline industry.
IBM has transformed its human resource management practices to adapt to changing business needs over its century-long history. It has shifted from a machine-based to technology and consulting focus, employing over 433,000 globally. Key HRM changes include promoting job sharing, part-time work, flexible hours and allowing 40% of employees to work remotely. IBM also reduced HR procedures from 8,000 to 1,000 and emphasizes global teamwork. It remains committed to diversity and providing equal opportunities across its diverse 170-country workforce.
Southwest Airlines is the largest low-cost carrier in the U.S., known for its low fares, frequent flights between short haul routes, and excellent customer satisfaction ratings. It operates over 3,400 flights per day to 72 cities across 37 states. Southwest maintains a low cost structure by avoiding fees and providing perks to customers while keeping operations simple through a single aircraft type and fast turnarounds. This strategic approach has positioned Southwest as the top U.S. airline in terms of customer satisfaction and domestic passengers carried.
Presentation1 - My thoughts on Air India RecoveryMadan Menon
Air India needs to improve its load factor, brand image, and financial health. It could increase load factor through marketing to improve its negative brand perception. Bringing back its iconic Maharaja symbol could help with branding. Separating into domestic and international brands--Indian Airlines and Air India respectively--could also help. Leasing newer aircraft and retiring old planes would lower maintenance costs. Forming subsidiary companies for ground handling, catering, cargo, and MRO could generate additional revenue streams. Overall, changes aim to make Air India competitive again through improved operations and multiple business lines.
JetBlue was established in 1998 and began service in 2000 with an initial capital of $130 million and 2 planes. Its goal was to establish itself as a leading low-cost airline offering high quality customer service. By 2003, JetBlue had grown to 40 planes and 5000 employees through an aggressive growth strategy of adding a new plane every 5 weeks while maintaining a values-based, high commitment culture focused on safety, caring, integrity, fun and passion. The key to JetBlue's success was integrating its core competencies into these shared values to drive its development and sustain its rapid growth.
Jetblue airlines: start from the scratch.case study analysisPriyanka Banerjee
JetBlue was founded in 1999 by David Neeleman with an initial capital of $130 million. It operates primarily out of JFK Airport in New York. The airline aims to bring humanity back to air travel while keeping costs low. It uses paperless ticketing and sells tickets online or through travel agencies. JetBlue employs a cost leadership strategy and differentiates itself through customer service, in-flight entertainment, and attractive employee benefits packages in a non-union environment. In its early years, JetBlue faced challenges around capitalization and attrition but was able to grow rapidly through low fares and a focus on customer and employee satisfaction.
IBM has been present in India since 1992 and offers a diverse portfolio of products and services. It provides employees with competitive compensation and benefits packages including base pay, variable pay, stock options, and awards. The flexible benefits plan allows employees to customize their benefits. IBM also offers health insurance from the first day, career development resources, childcare support, and focuses on maintaining work-life balance through flexible policies. In 2011, IBM India won an HR excellence award for its effective people management practices.
Southwest Airlines is losing its competitive advantage of low costs and customer-focused culture due to growth and competition from airlines like JetBlue. The document analyzes and proposes solutions to address Southwest's issues, including rebuilding employee morale through committees and rewards, implementing a new IT system to improve the customer experience, and shifting from a strictly low-cost to middle-cost strategy to regain market share. The solutions aim to restore Southwest's core values while adapting to changes in technology and competition.
Southwest Airlines was incorporated in 1971 and commenced operations with 3 Boeing 737 aircraft. It has since grown to operate over 500 Boeing 737 aircraft on more than 3,300 daily flights serving over 100 destinations across the United States. Southwest is known for its low-cost, high-frequency point-to-point route network and emphasis on excellent customer service. It has achieved profitability for 36 consecutive years and has been recognized as a leader in customer satisfaction within the airline industry.
IBM has transformed its human resource management practices to adapt to changing business needs over its century-long history. It has shifted from a machine-based to technology and consulting focus, employing over 433,000 globally. Key HRM changes include promoting job sharing, part-time work, flexible hours and allowing 40% of employees to work remotely. IBM also reduced HR procedures from 8,000 to 1,000 and emphasizes global teamwork. It remains committed to diversity and providing equal opportunities across its diverse 170-country workforce.
Southwest Airlines is the largest low-cost carrier in the U.S., known for its low fares, frequent flights between short haul routes, and excellent customer satisfaction ratings. It operates over 3,400 flights per day to 72 cities across 37 states. Southwest maintains a low cost structure by avoiding fees and providing perks to customers while keeping operations simple through a single aircraft type and fast turnarounds. This strategic approach has positioned Southwest as the top U.S. airline in terms of customer satisfaction and domestic passengers carried.
Presentation1 - My thoughts on Air India RecoveryMadan Menon
Air India needs to improve its load factor, brand image, and financial health. It could increase load factor through marketing to improve its negative brand perception. Bringing back its iconic Maharaja symbol could help with branding. Separating into domestic and international brands--Indian Airlines and Air India respectively--could also help. Leasing newer aircraft and retiring old planes would lower maintenance costs. Forming subsidiary companies for ground handling, catering, cargo, and MRO could generate additional revenue streams. Overall, changes aim to make Air India competitive again through improved operations and multiple business lines.
JetBlue was established in 1998 and began service in 2000 with an initial capital of $130 million and 2 planes. Its goal was to establish itself as a leading low-cost airline offering high quality customer service. By 2003, JetBlue had grown to 40 planes and 5000 employees through an aggressive growth strategy of adding a new plane every 5 weeks while maintaining a values-based, high commitment culture focused on safety, caring, integrity, fun and passion. The key to JetBlue's success was integrating its core competencies into these shared values to drive its development and sustain its rapid growth.
Jetblue airlines: start from the scratch.case study analysisPriyanka Banerjee
JetBlue was founded in 1999 by David Neeleman with an initial capital of $130 million. It operates primarily out of JFK Airport in New York. The airline aims to bring humanity back to air travel while keeping costs low. It uses paperless ticketing and sells tickets online or through travel agencies. JetBlue employs a cost leadership strategy and differentiates itself through customer service, in-flight entertainment, and attractive employee benefits packages in a non-union environment. In its early years, JetBlue faced challenges around capitalization and attrition but was able to grow rapidly through low fares and a focus on customer and employee satisfaction.
IBM has been present in India since 1992 and offers a diverse portfolio of products and services. It provides employees with competitive compensation and benefits packages including base pay, variable pay, stock options, and awards. The flexible benefits plan allows employees to customize their benefits. IBM also offers health insurance from the first day, career development resources, childcare support, and focuses on maintaining work-life balance through flexible policies. In 2011, IBM India won an HR excellence award for its effective people management practices.
P. Karthikeyan has over 10 years of experience in sales and marketing roles. He is currently a Regional Sales Manager at EDS Technologies handling major accounts like HCL, TATA, BOSCH, and VOLVO. Previously he worked as a Manager of Business Development at CADES Digitech and was responsible for sales, pre-sales activities, and customer relationship management for companies like DRDL, ADE, and HAL. He has consistently exceeded sales targets and received awards for his performance.
AirAsia was founded in 1993 in Kuala Lumpur, Malaysia and began operations in 1996. In 2001, Tony Fernandes purchased AirAsia and successfully turned the company around, posting its first profit in 2002. AirAsia aims to be the largest low-cost airline in Asia, serving the billions of people with poor connectivity and high fares. It follows a low-cost business model using strategies like high aircraft utilization, low fares with no frills, and point-to-point networks to keep costs low. Information technology helps AirAsia reduce costs through systems like its website, reservation system, yield management system and ERP system.
Harvard Business School Case Study on Southwest AirlinesPramey Zode
Southwest Airlines has been successful due to its principal values, creation of a unique culture, and business model focused on operational simplicity and low costs. Some strengths that have contributed to its success include having a friendly approach with customers, innovative retention strategies, and a strong work culture. However, the airline is dependent on a single airplane producer and faces threats from increasing costs and competition from other carriers offering similar low-cost services. Overall, Southwest has created a memorable brand focused on customer service through strategies like empowering employees and prioritizing building relationships.
What is Airline revenue management?-Airline Revenue Management Zabeel Institute
Airline revenue management is a tactic used by airlines to maximize revenue from seat sales. It prioritizes passengers based on fares to allocate seats to the highest fare. While originally a tactical tool, it now requires streamlining large amounts of data for analysis. Proper revenue management training teaches pricing strategies, optimal seat allocation, and decision-making to optimize flight revenue. Zabeel Institute in Dubai, Abu Dhabi, and Sharjah provides IATA-certified revenue management courses to develop industry professionals.
SouthWest Airlines: In a different worldkaiwalyamisra
This document discusses Southwest Airlines' potential acquisition of gates and slots available at LaGuardia Airport following another airline ceasing operations. While operations managers were concerned about potential delays, the presentation recommends Southwest acquire the gates and slots. Doing so would allow Southwest to enter the large New York market and continue its growth. However, steps would need to be taken to isolate LaGuardia operations and prevent any delays from affecting Southwest's whole network. The presentation also examines how Southwest has maintained its success factors as it has expanded its operations and customer offerings in recent years.
Spicejet is India's fourth largest airline and low cost carrier, headquartered in Gurgaon. It has a market share close to 14% with 312 daily flights to 47 domestic and 7 international destinations. In the last fiscal year, Spicejet reported revenues of Rs. 7933 crores and net income of Rs. 557 crores. As a low cost carrier, Spicejet focuses on minimizing operating costs through strategies like using secondary airports, rapid turnarounds, online ticket sales, and baggage charges to offer lower fares. It has been successful due to strong backing, branding, and over 35 domestic destinations.
Jet Airways took advantage of unsatisfactory operations at Indian Airlines to position itself as an airline for business travelers. It hired experts to develop its corporate logo and conduct market research and feasibility studies. Jet Airways acquired new Boeing 737 aircraft through leasing and hired expatriates for critical functions. It focused on operation excellence, cost efficiency, and providing a world-class experience for business passengers. This allowed Jet Airways to increase its load factor to 67% and achieve profits of $1.4 billion on $34.4 billion in revenues.
This document discusses AirAsia, a major low-cost airline carrier in Asia. It provides background on the company, describing its business model, operations, and key strategies. These include safety-first, high aircraft utilization, low fares with no frills, streamlined operations and a lean distribution system. The document also analyzes AirAsia's low-cost carrier business model, competitive advantages, and current and potential information technology implementations to support its strategic goals.
Customers should be the top priority, and their experiences should be continuously improved. An analysis of over 10,000 words of customer reviews on Airline Quality and 55,143 words on TripAdvisor found that customers most frequently mentioned issues with operational efficiency, seat arrangement, and payment methods at Air Asia. This suggests areas where Air Asia could focus efforts to improve the customer experience and leverage their feedback.
Southwest airlines case study powerpoint presentation slidesDineshOli2
No matter either my presentation slides are good or bad but I believe that it will obviously help you to generate some ideas about southwest airlines case study
Air asia’ core competencies distinctive its success ( Nasser AL-Dhahli)Nasser AL-Dhahli
Air Asia has experienced significant growth through its low-cost business model pioneered by CEO Tony Fernandes. It operates over 400 routes across 25 countries in Southeast Asia out of hubs in Malaysia, Thailand, and Indonesia. Air Asia keeps costs low through strategies like using a single aircraft type to reduce expenses, limiting passenger services and amenities, and streamlining operations. While its no-frills approach has proven successful, sustaining this model faces threats from regulators, rising fuel costs, and established carriers adopting similar low-cost strategies.
This document summarizes Porter's Five Forces and Value Chain analyses for Air Asia. For the Five Forces, it identifies the threat of substitutes, new entrants, rivalry among existing players, supplier bargaining power, and buyer bargaining power in the airline industry. For the Value Chain, it describes Air Asia's primary activities of inbound logistics, outbound logistics, sales/marketing, and services, as well as secondary activities including technology, human resources, and infrastructure.
Southwest Airlines has been successful due to its principal values, creation of a unique culture, and business model focused on operational simplicity and low costs. Some strengths that have contributed to its success include having a friendly approach with customers, innovative retention strategies, and a strong work culture. However, the airline is dependent on a single airplane producer and faces threats from increasing costs and competition from other carriers offering similar low-cost services. Overall, Southwest has created a memorable brand focused on customer service through strategies like empowering employees and building relationships.
Hrm southwest airlines case study assignments v4leilajannati
Southwest Airlines has experienced strong growth since 1971 due to its unique corporate culture and business strategy. It focuses on frequent, low-cost point-to-point flights and emphasizes employees, customers, and shareholders. Southwest creates a fun, informal work environment that values employees and builds loyalty. It has experienced success through low costs, high aircraft utilization, and excellent customer service due to engaged employees. However, Southwest also faces some limitations such as limited cargo space and reliance on a single airplane producer.
Crm strategy of singapore & american airlinesVikhyat Khanna
CRM strategy of Singapore & American Airlines in detail, touch points and their significance, data handling techniques, parameters of importance, their correlation to a opportunity.
Feedback's requested.
Khaja Nayyer Ahmed has over 15 years of experience in logistics, warehousing, SHEQ, and procurement across various industries in GCC countries. He currently works as a Warehouse & SHEQ Officer for Balsharaf Group in Riyadh, KSA, where his responsibilities include customer liaison, strategy and planning, developing supply chain processes, monitoring KPIs, managing equipment, overseeing human resources, and ensuring internal controls. Previously, he held roles such as Assistant Warehouse Manager and Purchase Officer for other companies in Dubai and KSA. He holds a Bachelor's degree in Commerce and various certifications in SAP, AutoCAD, and other computer programs.
1) The airline industry is a difficult business with thin profit margins due to high fixed costs, perishable inventory, and unstable demand. It has also become a commodity business with undifferentiated brands.
2) Airline marketing focuses on the 4 P's - product (schedules, service quality, network), price (dealing with competition and costs), place (sales channels and distribution costs), and promotion (building brands through loyalty programs and advertising).
3) Creating sustainable differentiation from competitors is a challenge given the commodity perception of the basic airline product and experience. Network breadth and service quality are areas the industry focuses on for differentiation.
Operations strategy and competitivenessOther Mother
The document discusses operations strategy and competitiveness. It provides an overview of key concepts such as:
- The role of operations strategy is to support business strategy through efficient use of resources and specifying policies for resource use.
- Competitive priorities for operations include cost, quality, time, and flexibility. Technology and productivity measures also support competitiveness.
- Operations strategy is developed based on the competitive priorities needed to support the overall business strategy. It focuses on developing specific capabilities.
Southwest Airlines was founded in 1966 and began operations with three Boeing 737 aircraft serving Texas cities. It pursued a strategy of point-to-point flights to underutilized airports close to cities, using a single aircraft type to reduce costs. Southwest also emphasized excellent employee engagement and a fun workplace culture. It achieved high aircraft utilization and turnaround times, along with low fares, to gain a competitive advantage in the airline industry.
This document summarizes a business plan for a company that will manufacture high precision foil resistors in India. The company aims to set the standard for on-site computer solutions through fast service and personal attention at affordable prices. It will target electronic instrument manufacturers, research labs, colleges, and the military. The plan is to raise seed capital, partner with an existing resistor manufacturer for training and technology, and market directly to colleges and industries to increase sales and gain repeat customers. The founders will contribute initial funding and ownership shares.
Indigo Airlines is India's largest low-cost carrier with a 27% market share. It follows a 3 stage approach to service marketing - stage 1 focuses on tangibility and intangibility, stage 2 examines the 7Ps of the service mix, and stage 3 provides recommendations. There are gaps in Indigo's current service including a lack of upward communication, absence of customer-driven standards, failure to match supply and demand, and lack of integrated marketing. Recommendations include improving communication, providing customer-driven training, better demand forecasting, and increased promotional activities.
Enterprise & Desk analysis For Aviation Industry mayurwadulkar1
An organizational structure defines how activities such as task allocation, coordination and supervision are directed toward the achievement of organizational aims. Organizations need to be efficient, flexible, innovative and caring in order to achieve a sustainable competitive advantage. Organizational structure can also be considered as the viewing glass or perspective through which individuals see their organization and its environment.
P. Karthikeyan has over 10 years of experience in sales and marketing roles. He is currently a Regional Sales Manager at EDS Technologies handling major accounts like HCL, TATA, BOSCH, and VOLVO. Previously he worked as a Manager of Business Development at CADES Digitech and was responsible for sales, pre-sales activities, and customer relationship management for companies like DRDL, ADE, and HAL. He has consistently exceeded sales targets and received awards for his performance.
AirAsia was founded in 1993 in Kuala Lumpur, Malaysia and began operations in 1996. In 2001, Tony Fernandes purchased AirAsia and successfully turned the company around, posting its first profit in 2002. AirAsia aims to be the largest low-cost airline in Asia, serving the billions of people with poor connectivity and high fares. It follows a low-cost business model using strategies like high aircraft utilization, low fares with no frills, and point-to-point networks to keep costs low. Information technology helps AirAsia reduce costs through systems like its website, reservation system, yield management system and ERP system.
Harvard Business School Case Study on Southwest AirlinesPramey Zode
Southwest Airlines has been successful due to its principal values, creation of a unique culture, and business model focused on operational simplicity and low costs. Some strengths that have contributed to its success include having a friendly approach with customers, innovative retention strategies, and a strong work culture. However, the airline is dependent on a single airplane producer and faces threats from increasing costs and competition from other carriers offering similar low-cost services. Overall, Southwest has created a memorable brand focused on customer service through strategies like empowering employees and prioritizing building relationships.
What is Airline revenue management?-Airline Revenue Management Zabeel Institute
Airline revenue management is a tactic used by airlines to maximize revenue from seat sales. It prioritizes passengers based on fares to allocate seats to the highest fare. While originally a tactical tool, it now requires streamlining large amounts of data for analysis. Proper revenue management training teaches pricing strategies, optimal seat allocation, and decision-making to optimize flight revenue. Zabeel Institute in Dubai, Abu Dhabi, and Sharjah provides IATA-certified revenue management courses to develop industry professionals.
SouthWest Airlines: In a different worldkaiwalyamisra
This document discusses Southwest Airlines' potential acquisition of gates and slots available at LaGuardia Airport following another airline ceasing operations. While operations managers were concerned about potential delays, the presentation recommends Southwest acquire the gates and slots. Doing so would allow Southwest to enter the large New York market and continue its growth. However, steps would need to be taken to isolate LaGuardia operations and prevent any delays from affecting Southwest's whole network. The presentation also examines how Southwest has maintained its success factors as it has expanded its operations and customer offerings in recent years.
Spicejet is India's fourth largest airline and low cost carrier, headquartered in Gurgaon. It has a market share close to 14% with 312 daily flights to 47 domestic and 7 international destinations. In the last fiscal year, Spicejet reported revenues of Rs. 7933 crores and net income of Rs. 557 crores. As a low cost carrier, Spicejet focuses on minimizing operating costs through strategies like using secondary airports, rapid turnarounds, online ticket sales, and baggage charges to offer lower fares. It has been successful due to strong backing, branding, and over 35 domestic destinations.
Jet Airways took advantage of unsatisfactory operations at Indian Airlines to position itself as an airline for business travelers. It hired experts to develop its corporate logo and conduct market research and feasibility studies. Jet Airways acquired new Boeing 737 aircraft through leasing and hired expatriates for critical functions. It focused on operation excellence, cost efficiency, and providing a world-class experience for business passengers. This allowed Jet Airways to increase its load factor to 67% and achieve profits of $1.4 billion on $34.4 billion in revenues.
This document discusses AirAsia, a major low-cost airline carrier in Asia. It provides background on the company, describing its business model, operations, and key strategies. These include safety-first, high aircraft utilization, low fares with no frills, streamlined operations and a lean distribution system. The document also analyzes AirAsia's low-cost carrier business model, competitive advantages, and current and potential information technology implementations to support its strategic goals.
Customers should be the top priority, and their experiences should be continuously improved. An analysis of over 10,000 words of customer reviews on Airline Quality and 55,143 words on TripAdvisor found that customers most frequently mentioned issues with operational efficiency, seat arrangement, and payment methods at Air Asia. This suggests areas where Air Asia could focus efforts to improve the customer experience and leverage their feedback.
Southwest airlines case study powerpoint presentation slidesDineshOli2
No matter either my presentation slides are good or bad but I believe that it will obviously help you to generate some ideas about southwest airlines case study
Air asia’ core competencies distinctive its success ( Nasser AL-Dhahli)Nasser AL-Dhahli
Air Asia has experienced significant growth through its low-cost business model pioneered by CEO Tony Fernandes. It operates over 400 routes across 25 countries in Southeast Asia out of hubs in Malaysia, Thailand, and Indonesia. Air Asia keeps costs low through strategies like using a single aircraft type to reduce expenses, limiting passenger services and amenities, and streamlining operations. While its no-frills approach has proven successful, sustaining this model faces threats from regulators, rising fuel costs, and established carriers adopting similar low-cost strategies.
This document summarizes Porter's Five Forces and Value Chain analyses for Air Asia. For the Five Forces, it identifies the threat of substitutes, new entrants, rivalry among existing players, supplier bargaining power, and buyer bargaining power in the airline industry. For the Value Chain, it describes Air Asia's primary activities of inbound logistics, outbound logistics, sales/marketing, and services, as well as secondary activities including technology, human resources, and infrastructure.
Southwest Airlines has been successful due to its principal values, creation of a unique culture, and business model focused on operational simplicity and low costs. Some strengths that have contributed to its success include having a friendly approach with customers, innovative retention strategies, and a strong work culture. However, the airline is dependent on a single airplane producer and faces threats from increasing costs and competition from other carriers offering similar low-cost services. Overall, Southwest has created a memorable brand focused on customer service through strategies like empowering employees and building relationships.
Hrm southwest airlines case study assignments v4leilajannati
Southwest Airlines has experienced strong growth since 1971 due to its unique corporate culture and business strategy. It focuses on frequent, low-cost point-to-point flights and emphasizes employees, customers, and shareholders. Southwest creates a fun, informal work environment that values employees and builds loyalty. It has experienced success through low costs, high aircraft utilization, and excellent customer service due to engaged employees. However, Southwest also faces some limitations such as limited cargo space and reliance on a single airplane producer.
Crm strategy of singapore & american airlinesVikhyat Khanna
CRM strategy of Singapore & American Airlines in detail, touch points and their significance, data handling techniques, parameters of importance, their correlation to a opportunity.
Feedback's requested.
Khaja Nayyer Ahmed has over 15 years of experience in logistics, warehousing, SHEQ, and procurement across various industries in GCC countries. He currently works as a Warehouse & SHEQ Officer for Balsharaf Group in Riyadh, KSA, where his responsibilities include customer liaison, strategy and planning, developing supply chain processes, monitoring KPIs, managing equipment, overseeing human resources, and ensuring internal controls. Previously, he held roles such as Assistant Warehouse Manager and Purchase Officer for other companies in Dubai and KSA. He holds a Bachelor's degree in Commerce and various certifications in SAP, AutoCAD, and other computer programs.
1) The airline industry is a difficult business with thin profit margins due to high fixed costs, perishable inventory, and unstable demand. It has also become a commodity business with undifferentiated brands.
2) Airline marketing focuses on the 4 P's - product (schedules, service quality, network), price (dealing with competition and costs), place (sales channels and distribution costs), and promotion (building brands through loyalty programs and advertising).
3) Creating sustainable differentiation from competitors is a challenge given the commodity perception of the basic airline product and experience. Network breadth and service quality are areas the industry focuses on for differentiation.
Operations strategy and competitivenessOther Mother
The document discusses operations strategy and competitiveness. It provides an overview of key concepts such as:
- The role of operations strategy is to support business strategy through efficient use of resources and specifying policies for resource use.
- Competitive priorities for operations include cost, quality, time, and flexibility. Technology and productivity measures also support competitiveness.
- Operations strategy is developed based on the competitive priorities needed to support the overall business strategy. It focuses on developing specific capabilities.
Southwest Airlines was founded in 1966 and began operations with three Boeing 737 aircraft serving Texas cities. It pursued a strategy of point-to-point flights to underutilized airports close to cities, using a single aircraft type to reduce costs. Southwest also emphasized excellent employee engagement and a fun workplace culture. It achieved high aircraft utilization and turnaround times, along with low fares, to gain a competitive advantage in the airline industry.
This document summarizes a business plan for a company that will manufacture high precision foil resistors in India. The company aims to set the standard for on-site computer solutions through fast service and personal attention at affordable prices. It will target electronic instrument manufacturers, research labs, colleges, and the military. The plan is to raise seed capital, partner with an existing resistor manufacturer for training and technology, and market directly to colleges and industries to increase sales and gain repeat customers. The founders will contribute initial funding and ownership shares.
Indigo Airlines is India's largest low-cost carrier with a 27% market share. It follows a 3 stage approach to service marketing - stage 1 focuses on tangibility and intangibility, stage 2 examines the 7Ps of the service mix, and stage 3 provides recommendations. There are gaps in Indigo's current service including a lack of upward communication, absence of customer-driven standards, failure to match supply and demand, and lack of integrated marketing. Recommendations include improving communication, providing customer-driven training, better demand forecasting, and increased promotional activities.
Enterprise & Desk analysis For Aviation Industry mayurwadulkar1
An organizational structure defines how activities such as task allocation, coordination and supervision are directed toward the achievement of organizational aims. Organizations need to be efficient, flexible, innovative and caring in order to achieve a sustainable competitive advantage. Organizational structure can also be considered as the viewing glass or perspective through which individuals see their organization and its environment.
The document compares the promotional schemes of Indian Airlines to its competitors. It outlines Indian Airlines' schemes such as coupon packages, co-branded credit cards, contest schemes, and holiday packages. It also discusses Jet Airways' promotional fares and schemes. The document recommends that Indian Airlines focus on data-based marketing, relationship marketing, weekend schemes, and inflight marketing contests to remain competitive against other airlines. Competition is forcing airlines to use promotional schemes and fares as important marketing tools to attract customers in the Indian airline industry.
Air Asia was founded in 1993 in Malaysia with 3 planes for local routes. It has since expanded to over 350 aircraft serving over 150 global destinations. While initially focused on low costs, Air Asia has grown to over 20,000 employees across Asia. Though a cost leader through efficient aircraft utilization and direct online booking, Air Asia faces risks of price wars, reduced quality, and safety issues from cost cutting that could impact its strategy. Future focus on lean management, digital innovation, and employee training may help Air Asia sustain its low cost approach.
Air India - ERP Implementation Case StudyArgha Ray
This document provides a history of Air India, including its founding in 1932 as Tata Airlines and subsequent nationalization. It discusses Air India entering financial distress in 2005 due to escalating fuel costs, fewer premium passengers, and the rise of low-cost carriers. A turnaround plan was implemented from 2010-2012 to focus on cost reduction, revenue generation, and adopting best practices. It also describes Project Sangam, Air India's SAP implementation from 2009-2013, which aimed to integrate business processes. The project faced challenges including management changes, delays, and lack of coordination.
This document provides information about Airblue airline's marketing strategies. It discusses the marketing mix of product, price, place and promotion. It also includes a PESTEL analysis, SWOT analysis and competitive analysis. The marketing mix section outlines Airblue's range of services, pricing strategies, distribution channels and promotional methods. The PESTEL analysis examines political, economic, social, technological, environmental and legal factors. The SWOT analysis identifies strengths, weaknesses, opportunities and threats. The competitive analysis looks at rivals like PIA and the competitive environment.
The document discusses how companies can achieve operational excellence by choosing to focus on and dominate a specific dimension of customer value. It recommends that companies narrow their focus to excel in delivering superior value in one area, such as best total cost or best total solution, rather than trying to be the best in all areas. This allows companies to build an optimized operating model dedicated to delivering unmatched value in their chosen area.
Converting Global Presence Into Global AdvantageArun Kottolli
The document discusses how global companies can convert their global presence into a competitive advantage. It outlines five opportunities for value creation: adapting to local markets, exploiting economies of scale, exploiting economies of scope, tapping optimal locations, and maximizing knowledge transfer. However, pursuing each opportunity also presents challenges that must be addressed, such as increasing costs, isolation from markets, and overdependence on single locations. The document advocates for systematic analysis and continuous adaptation to local needs in order to successfully leverage a global presence.
1 Chapter 7. Supporting Business Strategy through Funct.docxaryan532920
1
Chapter 7. Supporting Business Strategy through Functional Strategies
In 2015, India’s packaged fruits drink market was valued at Rs. 11 billion (~US$200 million).
Dabur held a 55% share of the market, followed by PepsiCo at 30%; up from 50% and 25%
respectively a decade back. Fewer than 20% of the people in India consume fruit juices as part
of their diet, as compared to ~40% who consumed bottled water and ~60% who consumed coffee
and soft drinks. Over the past decade, the market has grown by 15-20% annually because of the
rising health-consciousness, and is expected to sustain that growth over the coming years. The
government of India has set targets to triple the size of processed food sector, by increasing the
level of processing of perishables from 6% to 20%, and value addition from 20% to 35%, as a
way to raise farm incomes (Sharma, 2015).
Dabur has been sourcing mass-produced lychee, guava, grapes, and mango juices from
the domestic vendors, and orange, apple, and pineapple concentrates from the overseas suppliers.
To be more responsive to the consumer needs, Dabur has been buying fruits directly from
farmers since 2004, and is processing them in-house in a new plant it set-up in Siliguri, West
Bengal. It has also migrated to a flexible production system to offer fruit in a variety of
specialized forms, such as juice, sauce, puree, smoothie, paste, and ketchup.
To grow its share of the overall market and grow even faster than the market, Dabur has
used customized Research and Development to boost the share of the under-served institutional
segment in its total sales from a fourth in 2003 to a third now. Amit Burman, the then CEO of
Dabur, noted, ‘Often, products are created when our [institutional] buyers tell us about their
culinary problems, which could range from getting pre-chopped onions in bulk to mixing the
best juice and yoghurt smoothie. As we have the experience and the network, and there is ample
capacity available in the country, it is easy for us to offer solutions (Srinivas, 2003).’
More flexible operations and sourcing system, and institutionally led marketing and
research effort has also helped Dabur realize its strategic intent of becoming a leader in the
broader processed fruits market, beyond just juices and concentrates.
In the previous chapter, we learnt about the three different types of business strategies –
cost leadership, differentiation, and growth mindset (besides ‘focus’). In addition to deciding
the overall strategy for their business, executives also need to develop and align functional core
competencies. Dabur’s growth business strategy has required new competencies in supply chain,
research and development, operations, and marketing. Each function relies on different and
specific techniques and technologies to achieve the common business objectives of cost
efficiency, customer and quality ...
Indigo Airlines - International Marketing - Met Students Rajesh Shetty
The document discusses Indigo Airlines and provides information about its operations, performance, and strategy. It includes details about Indigo's market share, fleet size, destinations served, and financial performance. Additionally, it outlines topics like SWOT analysis, PESTEL analysis, segmentation, targeting, positioning, and Porter's five forces that were analyzed for Indigo Airlines' market entry into international markets. Logical flowcharts and frameworks are presented to evaluate potential foreign target markets and choose an appropriate entry mode.
The document discusses how companies can achieve operational excellence by choosing to focus on and dominate a specific dimension of customer value. It recommends that companies narrow their focus to excel in either best total cost, best product, or best total solution and standardize processes across departments to optimize efficiency and minimize costs and hassle for customers. Operational excellence requires measuring and rewarding quality objectives, tying compensation to goals, and forging the company into a single focused instrument dedicated to unmatched value in the chosen dimension.
The document discusses key concepts related to the modern business environment including just-in-time (JIT) production, total quality management (TQM), kaizen costing, target costing, value analysis, value engineering, business process reengineering, supply chain management, and gain sharing arrangements. It explains that JIT aims to produce the required items at the required quality, quantity, and precise time through flexible production and strong supplier relationships. TQM seeks the highest quality through continuous improvement approaches like kaizen costing and target costing. Value analysis identifies unnecessary costs while value engineering enhances value for customers.
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Vistara Airlines is marketing its premium services to business travelers and high-end customers while keeping prices competitive. It aims to create brand awareness and increase its customer base through innovative advertising campaigns. Vistara offers various seating classes with inflight entertainment and catering options. Its marketing strategies focus on visibility through events and partnerships, highlighting its premium product offerings, and building strong customer relationships.
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Cost plus pricing sets the price of a product by taking the full cost to produce and market the product and adding a desired markup. The full cost includes costs across the entire value chain from design to distribution. Both the costs and markup are influenced by efficiency in managing costs and customer demand. Ratan Tata aimed to launch the Tata Nano car at a target price of Rs. 100,000 by predefining a low margin and working backwards with suppliers to reduce costs through innovative design changes and efficient sourcing arrangements. This allowed for a car that met safety and emissions standards while achieving the target price point.
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2. Objective
• This is a sincere professional unbiased attempt to look into a
national asset associated with our identity.
• Looking into the business where national wealth has been
invested over the years
My Introduction
• I am a qualified and experienced strategist primarily
experienced in Pharmaceuticals, investments (as an investor)
and a regular traveller using various air lines
5. Financials
Major variable components of fuel and other operating expenses to Revenue
ratio is 43% and 41% respectively
Controlling variable cost makes business viable for long term not just debt
reduction by asset or stake sale
6. Comparison with Indigo
Major variable components of fuel and other operating expenses (including
lease rentals) to Revenue ratio is 29% and 40% respectively
Wish to highlight that Whole Indigo staff has become very 2 strict on extra baggage in
last two years
7. Operational issues and opportunities
Some of the world class facilities
– Excellent food from “TajSats” A Taj group company
– Extra baggage carrying facility
– More comfortable and spacious seats
– Caring staff with facilities like cushions and shawls for passengers
– Excellent lounges on airports (which are mostly unoccupied)
– Star alliance Reward programme – overshadowed by Jet Miles in
last one decade
Weaknesses clouding our strengths
– Tag / image of Govt. company
– Doesn’t feature as lowest cost carrier in major routes because of all in
built facilities
8. Marketing issues and Opportunities
Marketing is a world of
perception
• What is the current
perception
• What it should be in future
9. Current perception
Air India
• Govt. Airlines
• Old Airlines
• Govt. Style of
functioning
• Suffer with delays due
to VIP travellers
Indigo
• Low Cost Airline
• On time arrival
(highlighted in every
flight before landing)
• Young and active staff
• Good services ( A
misnomer as compared
to Air india in reality)
Indigo and spice has lighter Seats as compare to Air India that helps in improving
efficiency but not noticed by many travellers
10. Possible Solutions
• Revamping Perception
– “Experience in the Air” or something
highlighting services along with food from Taj
Group of hotels
– Image Revamp - Changing color pattern or even
logo
– Highlighting “on time” arrivals
– Broadening our reward and lounge programme
with the help of credit cards, e-commerce and
other possible partners to reduce costs and
generate extra revenue if possible
11. Capturing Frequent domestic business travellers
• Frequent domestic business travellers look for lowest
possible fares on major routes as a company policy
or save their cost
Solution - Air fares to be shown without food, it will
bring down Base Air fare & will make it more
competitive on major routes
– Addition of “Food from TAJ group of hotels” at nominal
extra cost, Anybody will proudly pay Rs. 500 for that and
market it to those who don’t pre-book the meals as a
strategy to create a differentiator.
It will help in reducing variable cost, additional revenues
and most importantly “Creation of a Differentiator”
12. Possible Solutions
• Removing “Muda” a Japanese word for wastefulness
• Removing all the extra expenses which are not
associated with the USP of Air India
– Extra baggage carrying facility on domestic routes,
frequent travallers don’t need it
– No Complementary food in domestic airlines
– Lighter weight seats to improve fuel efficiency
– Lesser cushions and shawls for passengers in domestic
airlines
– Not to offer anything which does not add value
in our business & in the consumer’s mind
Bringing down variable cost near Indigo and creating a
differentiator going forward