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Airline Industry Analysis
1. Airline Industry Analysis
Analysis of the
Airline Industry
Marketing Management
Fall II
December 8, 2003
Table of Contents
Environment . .. 3
Demand . .. 6
Competition .. .. 7
Product .. .. 9
Pricing . 11
Placement/Distribution .. . 14
Promotion 16
Conclusions . 17
References ... 19
The airline industry is facing one of its most challenging environments in history. A global economic
recession coupled with the terrorist attacks of September 11, 2001 have led to a decrease in
passenger traffic, reduction in revenue ... Show more content on Helpwriting.net ...
However, some believe that fares may also rise, as any open skies treaty would yield massive
consolidation among European airlines and lower the number of competitors in the marketplace
(Michaels, 2003, p.A3).
To get around national laws and regulatory problems, airlines have formed global alliances such as
Star (United Airlines and Lufthansa), Oneworld (American Airlines, British Airways, etc.), and
SkyTeam (Delta Air Lines, Air France, and AeroMexico). Through such alliances, airlines benefit
from each other 's resources, which include additional routes and marketing strategies as well as
code–sharing agreements, without incurring the high costs of expansion. The costs involved with
increased security precautions and route changes will force the airlines to examine their agreements
and consider expansions of the same. For customers, airline alliances offer broader frequent flier
programs, streamlined travel, and simplified systems for purchasing tickets, but those benefits may
do little to allay passenger concerns regarding safety.
Advances in communication technology have also played a role in the airline industry 's recent
troubles. Advances such as video conferencing, internet chat and internet telephones allow firms to
conduct business without having their executives get on the plane and visit their customer 's site.
2. Further, "coast to coast business class" era has become a thing of the past. Businesses are currently
focusing on cutting costs
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6. E Commerce Retailing And Services Essay
E–commerce Retailing and Services 1. Describe three techniques retail merchants use to integrate
their online and offline sales channel beyond having an online store. The offline retailers diversify
their marketing strategy to succeed on the web. Consumers use computers, tablets, and mobile
devices to find the lowest–cost products and to complete a retail transaction. Thus, the retailers have
developed a marketing strategy to integrate the online and offline experiences. The three techniques
that the retail merchants use to integrate their online and offline include the interactive kiosks;
online order of in–store pick–up or home delivery; online order with in–store returns. The self–
service retail kiosks use a numerous of methods that include the interactive products' location in the
store, the mobile–friendly payment methods, and the remote location. First, the kiosk has a large
screen that allows the users to interact directly with the store website and to locate the products in
the store. Second, the kiosk allows the user to scan their products and to make payment via the
mobile devices. Finally, the system gives customers the opportunity to reserve the transaction
through the website and complete through the in–store kiosk. Consumers order the product through
the website and pick it in the store. Moreover, they can buy the product through the web and receive
it via home delivery. In the same convenience, customers order the product through the website and
return it to
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7.
8. Netw600 Capstone Paper
NETW600 Telecommunications Capstone Table of Contents Executive Summary 3 Project
Background 3 Industry 3 Trends and Projections 4 Competition 5 Strength 5 Weakness 5
Opportunity 5 Threats 5 Problem and Definition 6 Problem 1: Infrastructure 6 Problem 1.1 Cabling
6 Problem 1.2 Disaster Recovery 6 Problem 1.3 Equipment Life Cycles 6 Problem 2: Security 7
Problem 3: No Internal VoIP 7 Problem 4: Inability to Switch to Telecommute Employees 7 Project
Overview 8 Goals & Objectives 8 Assumptions 9 Identification of Issues & Requirements
10 Findings and Recommendations 14 Budget Requirements 14 Recommended Approach –
Telecommute 14 Alternative Approach 1 – High Availability (On–Site) ... Show more content on
Helpwriting.net ...
can create flexibility, better customer service, and increased productivity. This will also create a
home–based virtual office environment. This will help with employee retention, especially those
that are experienced and skilled. Travel Agency, Inc. ultimately wants to move to a leaner and
smaller footprint to save costs and to help service their customer base. However, to do this, Travel
Agency, Inc. will need to overhaul their network to meet the requirements of a telecommuting
business model. This business model will ultimately serve to help Travel Agency, Inc. grow and
thrive in this highly aggressive and competitive market. Project Background Industry Before the
days of the Internet, if a family wanted to travel to a far–off, exotic locale, they would have to either
find a local travel agent or call a travel agency and plan their getaway. In the 1990's, the Internet
became a staple of everyday life and began entering many homes. As the availability of the Internet
increased, so did the services available to clients. With the increasing availability of the World Wide
Web the travel industry found itself faced with revolutionizing changes. All of the tools that were
once solely available to travel agents now became readily available to anyone with access to the
Internet and a search engine. Websites quickly formed around the idea of providing consumers with
quick vacation planning ideas at low costs. Getting
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9.
10. Swot Analyses for Tui
Porters five forces for Expedia
Chapter 1 – American Airlines * PEST Analysis
The utilization of a PEST analysis with regard to American Airlines takes into account the political,
economic, social and technological (NetMBA, 2004) environment the industry is embroiled in and
how this has, is and will threaten to impact its operations and profitability. It must be remembered
that the number of possibilities concerning macro–environmental aspects is almost limitless, thus
concentration will be paid to those areas perceived to have the highest impact. * Political
The political stability of the United States was severely shaken by the terrorist events of September
11, 2001, and this directly resulted in a catastrophic drop in ... Show more content on
Helpwriting.net ...
In the airline industry the excess supply has been attacked by low–fare carriers who have
continually gained market share.
–––––––––––––––––––––––––––––––––––––––––––––––––
Top of Form
Order Now. It takes less than 2 minutes. 1. * Name 2. * Email 3. * Phone 1. * Your essay question
(please give as much detail as possible)
Bottom of Form * Buyer Power
The airline industry suffers from oversupply as well as fixed costs which served as the foundation
for low fare carriers who offer no frill flights in return for discounted fares. This approach
effectively pulled the casual traveler and spread to frequent travelers and some classes of business
travel for companies seeking to cut costs. Buyer demand is re–shaping the airline industry as a result
of these options. * Supplier Power
In terms of this category, fuel is the single largest airline cost expenditure item which affects all
firms equally. Low Fare carriers by eliminating frills lower their per flight operating costs which
have and is attracting scores of travelers to their fold. * Barriers to Entry / Threat of Entry
Traditionally, the high cost of entry in the airline industry reduced the treat of entry by competitive
companies. However the business model offered by low fare carriers exploited the lower end
segment of the market via price and provided a foundation for
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11.
12. The Global Online Travel Agency
Orbitz Worldwide Inc. (NYSE: OWW) is a leading global online travel agency (OTA) that uses
state–of–the art technology to allow leisure and business travelers to research, plan, and book a wide
range of travel services. Orbitz maintains and operates a group of consumer brands that includes
Orbitz, CheapTickets, ebookers, HotelClub, RatesToGo, the Away Network, and the corporate travel
brand Orbitz for Business. In their Chicago headquarters Orbitz has 800 employees and 1,500
employees worldwide with offices in 20 countries
Orbitz was initially created by a group of leading U.S. airlines in 1999 to take part in the quickly
growing online travel industry. The airline investors in Orbitz comprised of American Airlines,
Continental Airlines, Delta Air Lines, Northwest Airlines and United Air Lines. The Orbitz website
was introduced in 2001. In November 2004, Orbitz was bought by Cendant and undertook
responsibility for Cendant 's domestic online travel business, which included CheapTickets, a
leading online travel brand directed on the value–conscious traveler, and for Flairview Travel, which
managed the international online hotel websites HotelClub.com and RatesToGo.com. In February
2005, Cendant bought ebookers, a leading international online travel brand with an online existence
in 13 countries in Europe. Orbitz Worldwide was formed through the blend of Orbitz and the online
travel benefits of Cendant 's travel distribution services division and became a public company in
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13.
14. Porter's 5 Forces on Orbitz
Report 3: Organization Structure and Strategy of Orbitz Worldwide, Inc. (OWW)
––––––––––––––––––––––––––––––––––––––––––––––––– Orbitz Worldwide Inc. (NYSE:
OWW) is a leading global online travel agency (OTA) that uses innovative technology to enable
leisure and business travelers to research, plan, and book a broad range of travel services. Orbitz
owns and operates a portfolio of consumer brands that includes Orbitz, CheapTickets, ebookers,
HotelClub, RatesToGo, the Away Network, and the corporate travel brand Orbitz for Business.
Orbitz has 800 employees in their Chicago headquarters and 1,500 employees worldwide with
offices in 20 countries. In this report we discuss the organization structure of Orbitz from a strategic
perspective. ... Show more content on Helpwriting.net ...
Most of its functional groups have come from acquisitions of stand–alone websites. However, with
components of a divisional form structure and a machine bureaucracy in place, Orbitz has to make
sure that it isn't duplicating efforts in different divisions. For instance, Orbitz's' demand strategies
focus on increasing brand awareness and marketing. In Orbitz's current structure, there is a
marketing function, but also marketing teams that sit within the Partner Services division doing
product marketing, as well as with the separate website divisions (ebookers and Orbitz for
Business). As long as there is strong communication, this might not be an issue, yet Orbitz could
still try to find ways to capitalize from economies of scale and consolidate these duplicate
departments. Recommendations for an Improved Organizational Structure With Orbitz's dipping
stock value and net profit margins, is competing against highly innovative online travel agencies,
including Expedia, the winner of World's Most Admired Companies in Fortune 2011, and Priceline,
the most profitable company for the last two years in OTA. Thus, to enhance its profitability, Orbitz
needs to work with the suppliers for preferential treatment and lower prices, increase the traffic on
its various sites, raise booking conversion rates, and expand its market globally offering services in
more countries. Orbitz needs to consider three major steps
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15.
16. The Discount Travel Websites Of Kayak.com And Sidestep.com
With the country in the financial shape that it is presently in, consumers are looking for any and
every way to save a buck. Therefore, thoughts of a recession on the horizon makes travelers
reconsider their summer vacations. This brings up methods that families and the like can still have
some form of vacation. Enter the discount travel websites of Kayak.com and Sidestep.com. Before
making a comparison, it is best to take a look at both sites individually. Kayak Kayak.com is a
website that enables potential travelers the opportunity to search for flights, hotels, cars, and cruises
from one convenient site. This eliminates the need for a consumer to visit multiple sites to gather
this information. It also offers deals that are available for users to take advantage. One is able to
look at pricing for any flight available to a destination, and is able to check the price for it on several
different sites, including Orbitz, CheapTickets, and even the airline itself. This site offers a listing, a
matrix, and a chart in which to view the selected flights. For hotels it offers a listing, a map, or
photos. The other unique thing about the site it that it has sliders allow one to move them left or
right to narrow the options. One also can remove check marks to omit specific carriers or star rating
from the search results. The one downside of using this for flights is that it does not include
Southwest Airlines in search results. Sidestep Sidestep.com is another website that
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