Serving short distance and budget fare, the airlines were able to do away with some luxuries which consumers were not interested in like first-class, seat numbering, in-flight meals, and baggage transfers. The budget airlines are able to compete with other major airlines by focusing solely on the consumers who want to travel cheaply, and for short distances. The larger airlines are focused on providing premier services like business lounges, business-class and first class. This way they cater for elite consumers.
Focused strategy based on differentiation
This strategy is aimed at differentiating the product in order to appeal to some unique needs and preferences of a narrow group Arthur a. Thompson, 2010.
In order for this strategy, to be successful there needs to be buyers who are looking for certain product attributes. This buyer segment is always willing to pay a premium price in order to obtain the product, and a company will definitely increase its profit margins if it successfully uses this strategy. A company has the opportunity to focus on catering for the needs and preferences a narrow group, which has the potential to provide it with some competitive advantage over its rivals Arthur a. Thompson, 2010.
According to Lewis et al. (2006)
focusing on a smaller group allows a company to specialize and create products that satisfy this market instead of catering for a broad market.
The airline industry has managed to focus on a narrow group of business travelers. These are guys who have to travel because of business purposes and they need to travel in comfort. Airlines have developed business lounges where the travelers can relax as they await their flight or transfers. At this lounges, they have the facilities to check their emails and relax. Airlines also offer business classes that are geared towards the business traveler. The consumer is willing to pay the premium price charged to travel in comfort away from all the other travelers. Business-class offers premier services and seats that can lie flat, which allows the travelers to relax and be prepared for their next meeting location.
Using this focused differentiation,...
All of these attributes together fuel a high level of mastery of their jobs, a critical element in job satisfaction (Sull, 2007). Finally the aspects of personal and work outcomes, which include high internal work motivation, high satisfaction with work and low turn-over indicate that BMW employees have found competency in their work. The reliance on transformational leadership techniques in terms creates a sense of purpose throughout the company.
BMW Investor Analysis It is recommended that investors sell BMW AG stock for short-term strategies. BMW has had a recent increase in profit margins and has had success in developing markets and this performance is represented in the current market evaluation. However, it is unlikely that BMW can maintain this performance in the short-term for a variety of reasons. One of the largest contributing factors to this position is that emerging
Of course, BMW also hoped to take advantage of Rover's 13% market share in the UK. BMW has always placed a heavy emphasis on improving its logistics: "Even before the establishment of its U.S. plant, BMW was spending several hundred million dollars annually in North America to procure parts and materials for its German-made vehicles. Although transportation costs were higher, exchange rates and lower production costs made them cheaper
The Series 3 cars are conservative in appearance, but their variety of body types will appeal to a wide range of consumers. Several of the Series 3 models are lower in price than other BMW cars and might therefore appeal to younger, upwardly mobile market segments. The touring models will appeal more to large families or those who want larger vehicles, whereas the coupe and convertible will appeal more
The James Bond tie-in ensured that this message was received strongly by the target audience. The Nieman Marcus promotion and Central Park promotion strongly reinforced this message. Everything was tied to the Bond promotion and all supported the aspirational message, including the product itself. In terms of distribution, the company knew that it was going to need to rejuvenate dealer interest in BMW, given that they had just made a
" Abuelsamid (2010) states, "this coupe is among the most attractive Audis in existence, it's probably one of the best looking coupes we've seen in decades." The Audi A5 had an Italian designer, who is credited with the slick, sexy, and sophisticated lines (Matras 2009). The BMW 335i, on the other hand, looks functional. NiceDrivz (2010) states of the BMW 335i, they "don't look their best unless they are equipped with
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