Abstracts
The purpose of this paper is to illustrate the importance of studying the internal and external market forces that could contribute to a company’s sales decline. This piece also delves into the ensuing strategies-revamp in the corporation’s marketing mix to counter declining sales. As a scenario, this study would be taking the point-of-view of a Marketing Manager idealising and justifying the team’s actions in a sales boost bid.
For this paper, studies would be based on the national carrier of Malaysia, Malaysian Airlines System (thereafter referred to as MAS). They have been dogged by continuous sales decline since the beginning of this decade. In the beginning of 2006, the company recorded some RM 10 billions of loss for
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This reduces the sales-ability of the airliner amongst their newer target market under the BTP plan, leisure travellers. As such, albeit knowing the unpopularity of imposing surcharges to attract customers, it was a necessary move.
Public doubt
Despite being honoured with international recognition awards (numerous Skytrax awards, www.airlinequality.com ), MAS brand image does not convey these achievements. Years of highly publicised failure in previous management has instilled public doubt over their credibility. A weak image would definitely reduce sales number.
Quoting an example 31st May 2005, a well-renowned paraplegic, Peter Tan who writes for New Straits Times’ Monster blog, (www.monsterblog.com.my) publicly inquired MAS crew competency after his wheelchair was damaged whilst in flight
and their refusal to offer any assistance thereafter. His widely-read letter of complaint catapulted other dissatisfaction towards MAS publicly into national interests.
Competitor’s pressure
MAS has strong competitors on all fronts of its low-cost yet full-service portfolios. Even after the rationalization of domestic flights, Airasia continues to threaten regional sales due to their floor pricing policies. Furthermore regional airline powerhouse, SIA boasts spotless-clean full service international routes, strongly contending against MAS in terms of destinations, service and speed.
These pressures have significantly subdued MAS’s
Harsh rise in fuel price led to higher ticket prices. Willie Walsh, chief executive of International Airlines Group said, “Ticket prices and fuel rates were being kept under review after oil breached $110 a barrel this week”. As a result, British Airways met tough competition from low cost airline that provide cheap discounted rates to passengers. This has caused BA’s passenger count to fall shockingly (The Guardian, 2011).
Pakistan International Airlines is in competition with not only international airlines but also with domestic airlines on the various routes to the Middle East and the Gulf. Due to fierce competition and rising oil prices, international aviation industry regulations and some internal factors such as human resource issues of over recruitment, de-motivated employees, mismanagement of resources both in case of manpower and other resources, aged fleet, corruption and lack of accountability PIA is facing a deep financial crisis. It is losing its market share both in international market and domestic circuit. The present research is done to know about the current situation of PIA and the factors underlying the poor performance of the organization. Nepotism, lack of management, poor service provisions are some of the factors identified through this piece
Malaysia Airlines is the biggest operational flight in Malaysia. As they do domestic flights and also international flights throughout Asia as well as a handful of destinations in Europe and Oceania. With the facilities in Malaysia Airlines, it gave a big help in shorten the time to reached a faraway destinations. It help lots of people in order to fly to other country in order to increase our economies. Besides, it also gave Malaysia an opportunity for people from other country to come to Malaysia. As it will make an easier for them to invest in our country. Therefore, our level of economies can be upgraded from time to time. Malaysia Airlines also gave comfort to the passengers, as we know long distance places can be inconvenience for a certain period, therefore Malaysia Airlines provide the best price with the best facilities throughout the journey. Besides, it also help young people to travel and see how the other country therefore, it will gave the youngster inspiration. As we know, the youngster is a very important asset for our country. When they are inspired by the other country, it might gave a great help to our country when they are grown
The “ Battle Of The Air” has been used to describe current situation in the airline industry. The emergence of “ No Frills “ discount carriers such as Air Asia, Mahlindo, Firefly have threatened the survival of the traditional giants such as MAS, SIA, Thai Airways in the APAC regions and even the Big Boys across the continents such as United, Delta, Continental, Luftansa, Emirates and US Airway ( Myron J.Smith, 2012 ) face competition
The Airline industry today offers services to nearly every place of the globe. The following economic factors that include consumer behaviour, currency rate, purchasing power of consumers, oil price plus the inflation plays key role in deriving the country’s economy. According to (Macmillan & Tampoe 2000), Airline industry itself is a leading economic force in terms of both its effects on associated industries for example aircraft manufacturing, operations and tourism. In this regard, this paper discusses the economic factors that affect the decision, the board of Air Asia needs to consider before acquiring 10 units of Air Bus model A350-1000 to increase its fleet of long haul airplanes.
We must identify and define the problem. This goes beyond seeing the problem just as a “sales decline". We need to look deeper into all aspects of the organization and open a dialog and ask questions to receive input from all parties. As stated previously, we are experiencing a symptom. We must take care not to identify our symptom as THE problem (Tomas, 1999). In our pursuit to clearly identify and define the underlying problem Baer, Dirks, and Nickerson (2012) outline the concept of problem formulation. Problem formulation involves "establishing the web of correlated regularities spanning all symptoms that are related to the initial symptom that launched the inquiry and another activity that involves the formulation of all causes that explain one or more of the previously identified symptoms" (p. 34). In following this we will be able to identify multiple symptoms and how they relate to each other and as Baer et al, (2012) postulates there is probable relationship between the "problems formulation and the likelihood with which the root causes of a particular problem will be discovered” (p.
In this assignment I was assigned the task of comparing 2 different airlines, one being a full service carrier and the other being a lost cost carrier, from United States of America, namely the Delta Airlines and South West Airlines. The points of comparison were market strategies, financial benefits, load factors, contrasting yield, revenues and passenger/cargo loads. The analysis was done on the business model and a long term strategy. Through this it would be known that which airline is performing better than the other. The disruption of air travel through various incidents like the terrorist attacks and global downturn, which can be considered as economic, political and social conditions, effect airlines adversely.
Berry, S., & Jia, P. (2010, August). Tracing the Woes: An Empirical Analysis of the Airline Industry. American Economic Association, 2(3), 1-43. Retrieved from http://www.jstor.org/stable/25760397
Hard to compete against the large airlines not only for customers but space at the airports for their airplanes.
Air Asia leading airline was established with the dream of making flying possible for everyone. Since 2001, Air Asia has swiftly broken travel norms around the globe and has risen to become the world’s best. With a route network that spans through to over 20 countries, Air Asia continues to pave the way for low-cost aviation through our innovative solutions, efficient processes and a passionate approach to business. Together with our associate companies, Air Asia X, Thai Air Asia, Indonesia Air Asia, Philippines Air Asia and Japan Air Asia.
Airline Industry is 500 billion dollars, creative and dynamic industry. In early 2001, airline business was going through very rough patch because of economic crisis
British Airways (BA) is a company that encountered several difficulties back in the 1970’s and 1980’s. The poor performances of the organization, was leading the company to failure. BA was offering a service that even though it accomplished the mission of the company, was not providing customer satisfaction. The organization was not taking into consideration the needs of the costumer and was not providing an acceptable customer service experience. “Productivity at BA in the 1970s was strikingly bad, especially in contrast to other leading foreign airlines” (Jick, Peiperl, 2010, p.28). Due to numerous changes, the company increased their revenues and became a respectful and well know organization.
The strong competitive advantages which low – cost airline such as Air Asia is equally causing Mas to restructure their operations, there resource such as airplane and the quality of their cabin crew tends to be looked at deeply. Mas has the oldest airline in Malaysia they have to use the advantages to continue to stay at the frontline in the aviation industry by them using available resources effectively with the help of the government and come up with a strong strategy so as to compete and stabilize its product in the aviation industry.
As a part of Crossman Communications, this essay will go into depth about the client, Malaysian Airlines and their recent campaign. Malaysian Airlines founded in 1957, currently flies to 53 different destinations having over 12 000 employees (Malaysian Airlines, 2017). The airline company offers the best way to fly to and from Malaysia flying over 40 000 people everyday (Malaysian Airlines, 2017). The campaign was set to rebuild the trust of Australian and New Zealander flyers due to the multiple aircrafts that have gone missing which have affected families in both countries (Crossman Communications, 2015). Having said that, the goal was to improve bookings, and generate positive media coverage (Crossman Communications, 2015). This essay
Even AirAsia is seen as Mas biggest threat, however, seeing that how both of these airlines promotes entirely different packages and offerings, Mas deemed these few obstacles as their main threat, which is the volatility of fuel price due to Iraq invasion by US, staff resistance of given plan and government intervention in setting up boundaries for the CEO to act accordingly to what they thinks fit.