...Week Three: Classic Airlines University of Phoenix MKT/571 The economy, increasing fuel costs, and strict security measures lead to intense competition in the airline industry. In attempts to remain profitable and successful, airline company management is challenged to reinvent continually company strategies to remain competitive. Classic Airlines is currently the fifth largest airline company with a fleet of more than 375 jets, serving 240 cities, and more than 2,300 flights daily. To maintain and potentially grow profits and market share, Classic Airlines, and its more than 32,000 employees, will make complex and risky decisions in an attempt to implement problem-solving strategies. The terrorist attack on September 11, 2001 immediately affected the profitability of the airline industry. Leisure travel has been significantly affected because of initial fear of flying and continued increase in security measures. To date, Classic Airlines, although subject to a 10% decrease in market share price, remains profitable. However with low employee morale and decreasing customer loyalty, evident in a 19% decrease in the number of reward members and a 21% decrease in flights of current members, the executive leaders of Classic Airlines elect to reduce costs over an 18-month period. Challenges of reducing expenditures, increasing employee morale...
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...Classic Airlines Problem-Solving Process Barbara Terry MKT/571 – Marketing April 10, 2012 Clifford M. Lavin MSIM University of Phoenix Classic Airlines Problem-Solving Process Classic Airlines, one of the largest airline carriers in the world, servicing 240 cities, and more than 2,300 flights every day is in the service industry (UOPX Classic Airlines scenario, 2012). Classic Airlines is making a profit; however, its share prices have decreased 10% in the past year alone, and its customer base is also on the decline. This year the company had a net income of 10 million, whereas the previous year they had a net income of $71 million (UOPX Classic Airlines scenario, 2012). There are numerous internal and external factors contributing to Classic Airline’s current predicament. Decreasing stock prices, rising fuel costs, and declining consumer confidence are a few of the challenges the airline is facing. Additionally, internal disagreement among upper management is causing a direct problem to the Marketing team. Air travel around the globe is steadily increasing, and many people fly because it is necessary, however; minimal research has been conducted on how stress is related to people who fly frequently (Mawhinney, 2007). Classic Airlines management must take proactive measures, and conduct some in-depth research to determine the root cause of the current dilemmas. The purpose of this...
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...Classic Airlines and Marketing Solution Your Name Here MKT/571 December 12, 2012 Instructor Stuart Ringer Introduction The standard method for solving a problem primarily will involve defining the problem, understanding the problem in relation to the current developments, and assessing what in fact needs to change. In the case of Classic Airlines, budget restrictions, decreased sales, low employee morale, diminished customer satisfaction, and the need to cut costs are the issues that plague the organization. According to the University of Phoenix (2012), Classic Airlines has experienced a decrease in stock prices due to limited consumer assurance, rising costs of labor and fuel. In searching for solutions, this paper will employ an aggressive nine step process of defining the problem to achieve the recommended marketing solution that includes the following steps: 1) define the situation or problem; 2) frame the right problem and measure the levels of current performance; 3) describe the end-state goals that will provide direction and vision to help management make the appropriate choice; 4) identification of alternatives that determine root causes and determine the reasons the process is working or not working appropriately; 5) evaluation of alternatives and select the best strategy to solve the problem; 6) identify and assess risks; 7) making a decision; 8) develop and implement solution and appropriate changes in the process; 9) evaluation of results to stay committed...
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...Classic Airlines Marketing Solution Creating an effective business strategy includes finding ways to enforce marketing solutions for resolving or evaluating any problems that may arise in the business structure. Successful factors must be considered that are geared towards how the market and consumers response to the strategies of a companies products and services. Classic Airlines continued efforts to ensure that consumer satisfaction remains effective by applying ways to identify its problems and finding effective solutions will help build confidence in the company growth. The following paper will present a 9-step model for problem solving on the main issues of Classic Airlines. Being able to state the problem, redefine the problem, and apply a robust problem-solving process that would present the best alternative solution will help Classic Airlines achieve their sale goals. Challenges for Classic Airlines: Case Scenario The notion that customer satisfaction brings awareness as business has decreased for Classic Airlines set the company at its highest deception for a strait forward marketing goal. Increasing customer relations is the far most challenge, amongst other challenges for the company without lowering cost. Providing a positive marketing strategy that targets the consumers needs strictly identifies the company’s issues. These issues identified have an effect on how Classic Airlines fluctuates within the market, whether technology is being enforced, if the operations...
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...Classic Airlines Marketing Solution Classic Airlines is the sphere's fifth leading airline by way of a fleet of more than 375 jets, serving 240 cities (Keller & Kotler, 2007), using additional 2300 flights daily. The airline has developed into an organization of 32,000 employees from exemption of 25 years ago. The corporation has earned $10 million on $8.7 billion in transactions from the preceding year (University of Phoenix, 2010). The commercial airline industry has continuously been vulnerable to the economic and political fluctuations, typically in times of an economic calamity for that reason; Classic Airline’s tests as an airliner are not unforeseen. The corporation is a significant contender within the airline business; nevertheless, like countless airlines; Classic faces several challenges because of the increasing customer worries about flying and the current market ups and downs. Classic Airlines recognizes changes that are necessary for the business; conversely, the managing team needs to recognize the present-day marketing difficulties that are troubling the business and determine choices for solving these complications. The paper will benefit Classic Airlines by means of the nine-step problem-solving model in the direction of identifying issues and prospects that will support the airline within the current marketing problems, pinpoint the internal and external pressures contributing to the corporation's crisis. By using the nine step-problems solving model...
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...1.0 Introduction AirAsia originally was founded by government and on 2 December 2001 was bought by Tony Fernandes. AirAsia was established in year 1993. AirAsia has travel around the earth and ascend to become the world’s best in year 2001. AirAsia continues to spread out the way for low-cost aviation through the innovation, efficient and passionate approach to business with a route a network that extent through over 20 countries. There are some companies which link with AirAsia such as AirAsia X, Thai AirAsia, Philippines’ AirAsia Inc., AirAsia Japan and Indonesia. In addition, for the vision part in AirAsia, AirAsia aims to be the largest low cost airline in Asia and serving the 3 billion people who are currently underserved with poor connectivity and high fares. While for the mission of AirAsia, AirAsia wants to be the best airline company to work whereby employees are treated as part of the big family. Besides, AirAsia try to maintain the lowest cost hence everyone can fly with AirAsia. Highest quality product, embracing technology to lower the cost and improvement in service levels will be maintained by the AirAsia airline also. Lastly, create a globally recognized ASEAN brand will be the mission part of AirAsia. In the values part, AirAsia will implement trough the following key strategies which are: * Safety * Low fare, no frills * Lean distribution system * Point to point network * High aircraft utilization * Streamline operation The loyalty...
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...1.0 Introduction AirAsia originally was founded by government and on 2 December 2001 was bought by Tony Fernandes. AirAsia was established in year 1993. AirAsia has travel around the earth and ascend to become the world’s best in year 2001. AirAsia continues to spread out the way for low-cost aviation through the innovation, efficient and passionate approach to business with a route a network that extent through over 20 countries. There are some companies which link with AirAsia such as AirAsia X, Thai AirAsia, Philippines’ AirAsia Inc., AirAsia Japan and Indonesia. In addition, for the vision part in AirAsia, AirAsia aims to be the largest low cost airline in Asia and serving the 3 billion people who are currently underserved with poor connectivity and high fares. While for the mission of AirAsia, AirAsia wants to be the best airline company to work whereby employees are treated as part of the big family. Besides, AirAsia try to maintain the lowest cost hence everyone can fly with AirAsia. Highest quality product, embracing technology to lower the cost and improvement in service levels will be maintained by the AirAsia airline also. Lastly, create a globally recognized ASEAN brand will be the mission part of AirAsia. In the values part, AirAsia will implement trough the following key strategies which are: * Safety * Low fare, no frills * Lean distribution system * Point to point network * High aircraft utilization * Streamline operation The loyalty...
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...CONTENTS Section 1 - Industry Profile Overview Future Outlook European Industry Overview North America Overview Asia & Pacific Industry Overview India & Middle East Industry Overview Development of World Scheduled Air Traffic World Economic Growth and Airline Profits Rankings - Passenger services Rankings – Freight services Section 2 - British Airways Profile Overview Alliances LHR Air Transport Movements LGW Air Transport Movements Awards History Key Events (1987-2005) Board Members Leadership Team British Airways Management Team Employees Brands Departmental Analysis Section 3 - British Airways Fleet Aircraft Fleet Aircraft Delivery Schedule Mainline Fleet Profiles Regional Aircraft Fleet Maintenance Section 4 - British Airways Performance Summary Strategy Social and Environmental Performance Incentive Plans Summary Financial / Operating Statistics Principal Investments Shareholder Information Share Price History Section 5 - Global Partners Overview BA Connect Franchisees oneworld Aer Lingus American Airlines Cathay Pacific Finnair Iberia LanChile Qantas oneworld At A Glance Section 6 - Route Network British Airways Franchisees Section 7 - General Information Airport Three Letter Decodes Outside Advisors Abbreviations & Specialist Terms How To Contact Us 2 3 3 4 4 5 6 6 7 8 89 91 92 93 97 98 99 100 101 102 103 104 9 9 10 10 11 12 13 38 39 40 41 44 47 105 109 110 115 116 118 56 56 57 69 72 73 74 75 75 77 86 87 88 This document has been prepared solely...
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...Abstract Brands rushed into social media, viewing social networks, video sharing, online communities, and microblogging sites as the panacea to diminishing returns for traditional brand building routes. But as more branding activity moves to the Web, marketers are confronted with the stark realization that social media was made for people, not for brands. In this article, we explore the emergent cultural landscape of open source branding, and identify marketing strategies directed at the hunt for consumer engagement on the People’s Web. These strategies present a paradox, for to gain coveted resonance, the brand must relinquish control. We discuss how Webbased power struggles between marketers and consumer brand authors challenge accepted branding truths and paradigms: where short-term brands can trump longterm icons; where marketing looks more like public relations; where brand building gives way to brand protection; and brand value is driven by risk, not returns. # 2011 Kelley School of Business, Indiana University. All rights reserved. 1. The party crashers: Marketers and the Social Web Brands today claim hundreds of thousands of Facebook friends, Twitter followers, online community members, and YouTube fans; yet, it is a lonely, scary time to be a brand manager. Despite marketers’ desires to leverage Web 2.0 technologies to their advantage, a stark truth presents itself: the Web was created not to sell branded products, but to link people together in collective conversational...
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...Boston, MA 02115, U.S.A. KEYWORDS Branding; Brand management; Social media; Web 2.0; Co-creation Abstract Brands rushed into social media, viewing social networks, video sharing, online communities, and microblogging sites as the panacea to diminishing returns for traditional brand building routes. But as more branding activity moves to the Web, marketers are confronted with the stark realization that social media was made for people, not for brands. In this article, we explore the emergent cultural landscape of open source branding, and identify marketing strategies directed at the hunt for consumer engagement on the People’s Web. These strategies present a paradox, for to gain coveted resonance, the brand must relinquish control. We discuss how Webbased power struggles between marketers and consumer brand authors challenge accepted branding truths and paradigms: where short-term brands can trump longterm icons; where marketing looks more like public relations; where brand building gives way to brand protection; and brand value is driven by risk, not returns. # 2011 Kelley School of Business, Indiana University. All rights reserved. 1. The party crashers: Marketers and the Social Web Brands today claim hundreds of thousands of Facebook friends, Twitter followers, online community members, and YouTube fans; yet, it is a lonely, scary time to be a brand manager. Despite marketers’ desires to leverage Web 2.0 technologies to their advantage, a stark truth presents itself:...
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...Marketing Communications | Syndicate assignment Case 1 Prius Launch: Harmony Installations 2011 Bronze | Media Innovation Case 2 Canon Eos Cameras: Photography beyond the still 2011 Silver | Consumer Electronics Case 3 Southwest Airlines: Grab your bag it’s on/ Bags fly free 2011 Gold | Transportation Case 4 Ocean Spray Cranberries: Straight from the Bog 2008 Gold | Renaissance 2011 Silver | Sustained Success Case 5 Sears: Don’t just go back. Arrive 2010 Gold | Retail¬ Case 1 Prius Launch: Harmony Installations 2011 Bronze | Media Innovation GET: Echo/Tech friendly minded people WHO: Are environmentally and technologically aware and enjoy innovation. TO: Think Prius is the car they should buy versus the car they want to own. See Prius as an Icon of progress. Encourage consumers to put a Prius in the mainstream consideration set. BY: Outlining that hybrid motoring is good for the environment, endorsing the idea of being proud to own a Prius. LIKE THIS: By highlighting the “harmony between man, nature and machine”. Happiness, Optimism, Pride, Imagination SUCCESS: Desired 20% increase in sales of Prius. Increase hybrid vehicle market share. Engage social media metrics. $4.5m in earned media desired through Solar flower installations/social media. Market/Commercial insight The reported market decline in the Automotive Industry for passenger cars has declined by 37% in FY2011. Financial modelling of passenger...
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...AirAsia Berhad (284669-W) Annual Report 2010 Annual Report 2010 welcome on board. AirAsiA BerhAd AnnuAl report 2010 A Promise mAde, A Pledge KePt When AirAsiA stArted out As A loW-cost Airline in 2002, We pledged to mAke Air trAvel AffordAble for everybody. todAy, nine yeArs doWn our corporAte journey, We knoW We hAve kept to our initiAl promise. in october 2010, we flew our 100 millionth guest, a young, newly married indonesian housewife who was going to visit her husband working in india. Just as we made her travel dream come true, we are delighted to have done the same for more than 100 million guests. We have kept our fares down thanks to our disciplined focus on keeping our operating costs the lowest among the world’s airlines. We offer a million free tickets every year. While enabling everyone to fly, we are also connecting people to places that were never connected by air before. We have achieved our Vision of being the largest low-cost airline in Asia, serving those who previously had no access nor the means to enjoy air travel. We have done this by staying close to our Mission of: • • • being the best company to work for, treating each Allstar as a member of our extended AirAsia family creating a globally recognised ASEAN brand maintaining the highest quality product, embracing technology to reduce costs and enhance service levels Central to our promise is our great team of Allstars who have proven time and again that hard work, creativity,...
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...AirAsia Berhad (284669-W) Annual Report 2010 Annual Report 2010 welcome on board. AirAsiA BerhAd AnnuAl report 2010 A Promise mAde, A Pledge KePt When AirAsiA stArted out As A loW-cost Airline in 2002, We pledged to mAke Air trAvel AffordAble for everybody. todAy, nine yeArs doWn our corporAte journey, We knoW We hAve kept to our initiAl promise. in october 2010, we flew our 100 millionth guest, a young, newly married indonesian housewife who was going to visit her husband working in india. Just as we made her travel dream come true, we are delighted to have done the same for more than 100 million guests. We have kept our fares down thanks to our disciplined focus on keeping our operating costs the lowest among the world’s airlines. We offer a million free tickets every year. While enabling everyone to fly, we are also connecting people to places that were never connected by air before. We have achieved our Vision of being the largest low-cost airline in Asia, serving those who previously had no access nor the means to enjoy air travel. We have done this by staying close to our Mission of: • • • being the best company to work for, treating each Allstar as a member of our extended AirAsia family creating a globally recognised ASEAN brand maintaining the highest quality product, embracing technology to reduce costs and enhance service levels Central to our promise is our great team of Allstars who have proven time and again that hard work, creativity,...
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...AirAsia Berhad (284669-W) Annual Report 2010 Annual Report 2010 welcome on board. AirAsiA BerhAd AnnuAl report 2010 A Promise mAde, A Pledge KePt When AirAsiA stArted out As A loW-cost Airline in 2002, We pledged to mAke Air trAvel AffordAble for everybody. todAy, nine yeArs doWn our corporAte journey, We knoW We hAve kept to our initiAl promise. in october 2010, we flew our 100 millionth guest, a young, newly married indonesian housewife who was going to visit her husband working in india. Just as we made her travel dream come true, we are delighted to have done the same for more than 100 million guests. We have kept our fares down thanks to our disciplined focus on keeping our operating costs the lowest among the world’s airlines. We offer a million free tickets every year. While enabling everyone to fly, we are also connecting people to places that were never connected by air before. We have achieved our Vision of being the largest low-cost airline in Asia, serving those who previously had no access nor the means to enjoy air travel. We have done this by staying close to our Mission of: • • • being the best company to work for, treating each Allstar as a member of our extended AirAsia family creating a globally recognised ASEAN brand maintaining the highest quality product, embracing technology to reduce costs and enhance service levels Central to our promise is our great team of Allstars who have proven time and again that hard work, creativity,...
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...informationInformation Rules A STRATEGIC GUIDE TO THE NETWORK ECONOMY Carl Shapiro Hal R. Varian HARVARD BUSINESS SCHOOL PRESS BOSTON, MASSACHUSETTS Copyright © 1999 Carl Shapiro and Hai R. Varian All rights reserved Printed in the United States of America 03 02 01 00 99 5 Library of Congres§ Cataloging-in-Publication Data Shapiro, Carl. Information rules : a strategic guide to the network economy / Carl Shapiro and Hal R. Varian. p. cm. Includes bibliographical references and index. ISBN 0-87584-863-X (alk. paper) 1. Information technology—Economic aspects. 2. Information society. I. Varian, Hal R. II. Title. HC79.I55S53 1998 658.4'038—dc21 98-24923 GIF The paper used in this publication meets the requirements of the American National Standard for Permanence of Paper for Printed Library Materials Z39.49-1984. To Dawn, Eva, and Ben To Carol and Chris Contents Preface ix l The Information Economy 2 Pricing Information 19 3 Versioning Information 53 4 Rights Management 83 5 Recognizing Lock-In 103 6 Managing Lock-In 135 7 173 Networks and Positive Feedback 8 Cooperation and Compatibility 9 Waging a Standards War 10 Information Policy 227 261 297 viii I Contents Further Reading 319 Notes 327 Bibliography 329 Index 335 About the Authors 351 Preface Luck led us to write this book. Each of us became economists because we wanted to apply our ...
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