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,...
The following Table labeled Table 1.0 shows the Direct Competition Comparison in the industry sector of Marriott International, Inc. Table 1 Marriott International is known for being creative and especially so in relation to the IT dollar. In a report entitled "The Keys to Marriott's Success" stated is that "Marriott and its IT department have documents and system, policies and procedures and even history and philosophy to guide their decisions frees
Generic Strategies Porter's generic strategies began life as a matrix grid featuring low cost and differentiation strategies, which could either be mass market or niche in nature (QuickMBA, 2010). A fifth strategy, hybrid, has been hypothesized by some, noting that there are instances where a firm could be argued to practice some combination of differentiation and low cost. The Swatch Watch has a differentiated strategy. While not a high end watch, it
The strategy outlines clearly the ethical position of the organization in relation to interactions between consumers and various stakeholders. This is essential in the enhancement of service and products provisions. The organization focuses on the adherence to the law through development and implementation this marketing strategy. This enhances effectiveness and efficiency of the legal interaction between consumers, shareholders, and stakeholders. The organization also pledges to take quality care of
5 billion (a$28.2 billion) in 2008 (IKW, 2009). The Germans have a long history in the business, with "eau de Cologne" being invented in Koln 210 years ago (IKW, 2009). The German market is continuing to grow slowly, despite economic challenges, recording 10.5% growth since 2004 (Ibid.). There are approximately 525 firms in the industry in Germany, ranging from large international enterprises to small boutique cosmetic and fragrance houses. The industry
At the same time, one does not know whether they offer the workers any benefit or perk as is provided by Korean employers. This matter has to be sorted out by the Korean partner as the workers are more likely to trust him than Australians. He may also find it possible to offer the workers the same perks that are offered to his employees in other concerns. The hours of
D.). Socio-Cultural Environment Home to the world's tenth largest economy and second largest population, India defies swift generalization. It includes a vast range of developmental situations, cultures, languages, and climates. The country remains largely rural, with just 26% of its people living in cities. Yet in 1995 it had over 30 cities of one million or more residents, including three of the world's 20 largest cities -- Bombay, Calcutta, and Delhi --
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