Verified Document

Classic Airlines In Today's Competitive Business World, Essay

Classic Airlines In today's competitive business world, few businesses would argue that it is vital to maintain a good relationship with current customers while working constantly to gain new ones. This is particularly so in the airline industry, where both environmental and corporate climate issues have created an environment in which increased profits have become a challenge. Hence, entities such as Classic Airlines (CA) have found themselves challenged to maintain a steady corporate culture while also investing in the constant marketing required to compete viably with other players in the market

Two of the challenges the airline has been facing include overexpansion and the rising costs of operation (Classic Airlines Problem Solution, 2009). In addition to its 32,000 employees, the company experienced a 19% decrease in Rewards members and a 20% decrease in flights. In addition, the 18 months/15% cost reduction mandate implemented by the Board of Directors resulted in a 10% decrease in stock price.

Indeed, the company...

Mrs. Miller's belief in operation excellence as number one priority created a difficult corporate culture at a time when customer relationships should have been more highly valued while competitors remained strong and gaining.
In the long-term, the challenge became clear as being located in the CRM system inherent in the company's operations. The system was ineffective to a degree at which ha lack of customer value has caused the company to experience not only a steady decline in customers generally, but also those in the company's rewards membership programs, as mentioned above. Part of CA's challenge is therefore to identify market segments. This is a significantly external focus, whereas operational excellence creates a solely internal focus. The results of Miller's focus on the internal factor in terms of excellence have shown itself to be defective…

Sources used in this document:
References

Classic Airlines Problem Solution (2009). Retrieved from: www.gettingoin.com/files/35664815.doc

Tokhi, M. (2009). A Case Study on Classic Airlines: Practical Marketing Solutions. Journal of Business Studies Quarterly, Vol. 1, No.1. Retrieved from: http://jbsq.org/wp-content/uploads/2009/11/2C.pdf
Cite this Document:
Copy Bibliography Citation

Related Documents

Classic Airlines a Nine Step Cost Reduction
Words: 2329 Length: 6 Document Type: Essay

Classic Airlines A Nine Step Cost Reduction Plan Describe the Situation Identifying the Potential Cause of the Problem Verifying the Likely Causes by Gathering Data Identifying Possible Solutions Evaluating Alternative Solutions Determining the Best Solution Identifying and Assessing the Risks Implementing the Solution Evaluate the Results Classic Airlines is currently the world's fifth largest airline which is operating a remarkable 2,300 flights daily to over 240 cities. In the previous period, net profits were roughly $10 million on $8.7 billion in

Classic Airlines Case in the Early 20th
Words: 2312 Length: 7 Document Type: Essay

Classic Airlines Case In the early 20th century two young men by the names of Orville and Wilbur Wright made what some argue as the greatest transportation invention ever discovered outside of the automobile. This 50 pound glider with a wingspan of approximately 17 feet would revolutionize the manner in which humans across the world would travel. In fact, this 12 second flight was so instrumental, that the Wright brothers will

Delimitations Today, Modern Business Systems
Words: 20751 Length: 75 Document Type: Research Proposal

A favorite target for conspiracists today as well as in the past, a group of European intellectuals created the Order of the Illuminati in May 1776, in Bavaria, Germany, under the leadership of Adam Weishaupt (Atkins, 2002). In this regard, Stewart (2002) reports that, "The 'great' conspiracy organized in the last half of the eighteenth century through the efforts of a number of secret societies that were striving for

Australian Airline Tiger Airways Was
Words: 3459 Length: 10 Document Type: Case Study

Another contributing factor is the industry's high fixed costs. These costs increase the exit costs, which is another factor that increases the intensity of rivalry. The third major factor is the degree of consolidation within the industry. Aside from the minor carriers, there are essentially only three major discount airlines operating in the Australian market. Prior to the entrance of Tiger, the two players operated as a duopoly. Tiger

Integrated Corporate Communication and Corporate
Words: 16981 Length: 52 Document Type: Dissertation

Corporate communications involves not just the message, but the idea that communications are managed, and are connected to corporate objectives (Cornelissen, 2004). Therefore, when communication possibilities were limited, corporate options were limited, and one did not see communications management perspectives that advocated the type of intimate connection between communications and corporate strategy that one sees in a modern context (Cornelissen, 2004). What this makes clear is that CC is

What Has Led to the Change in Custom Jewelry in Last 5 Years
Words: 13278 Length: 35 Document Type: Dissertation

Change This study analyzes outsourcing trends in the next decade. The study assesses this by focusing on the past and current trends, problems and issues in outsourcing via semi-structured interviews. Major trends and processes will be revealed and assessed for their relevancy, depth and breadth. Companies belonging to most industries are very much considered to be the units that are vertically integrated, or so-called usual industrial firms (Stigler, 1951), where activities

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now