Discuss about the Effectiveness in the Business World.
Title: BA offering free flights for children in the UK
Industry: Travel & Leisure
Concept: PESTLE
The air traffic deregulation in the US at the end of the 1970s has opened the doors for increased competition in the airline industry (Araujo and Kjellberg 2015). In Europe, the common market deregulation in the year 1990 has led to the entry of various low cost carriers including Virgin Atlantic, Budget Air and others (Heyes and Lewis 2014). This situation has led to increased competition where the airline companies are competing with each other by implementing unique marketing strategies in order to attach more customers and remain sustainable in the global market.
The major airline companies including the British Airways have been unable to make any substantial profits owing to the rise in the competition in the market. Moreover, the increase in the market liberation had also led the entry of the many international companies to join the global market. Coping up with this immense completion, has led most of the companies to implement various marketing strategies for attracting more customers and gain their loyalty (Pappas and Apostolakis 2016). The implementation of effective strategies by the airline companies had been helping them to remain competitive and sustainable in the market.
Despite having, great infrastructures, British Airways at present, lack an effective marketing strategy. This has been hampering the company in respective of its growth and progress. Recently, the company has been putting more attention to the way its customers the customers use the suite. The company has controlled each of the functions of the aircraft by simple and inclusive touch. This offering of the British Airways to provide free flights for children in the UK is an effective marketing strategy that would help the company in attracting more customers. This strategy would also help the company to remain sustainable in the market.
Title: Amazon’s International Growth Challenge
Industry: Retail
Perceptions
The perception of the customers with respect to the company is an important factor that would be helping in influencing their purchasing decisions. In the era of globalization, companies are grabbing the opportunities to attract more customers. Same approach has been observed in case of Amazon (Dawson 2015). However, making such approaches is not easy and the companies have to face challenges.
Motivations
The motivation of the employees is also one of the important internal factor for the company that could be helping in enhancing their performance level. This motivation could be generated by introducing schemes related to the pay and reward system for the employees.
Attitudes
It has been found that Amazon has hit $ 1.3 billion in the recent international revenue. Amazon is the leading online company. However, the company has been facing challenges worldwide. There has been increase in competition among these online marketers. It has to be understood that more and more online stores are opening in every region. It has been found that 95% of its revenue is earned from the countries like Germany, UK, US, Canada and Mexico.
Learning
Companies are grabbing the opportunities to expand their business. Same approach has been observed in case of Amazon. However, making such approaches is not easy and the companies have to face challenges.
Culture and Subculture
There has been increase in competition among these online marketers. It has to be understood that more and more online stores are opening in every region. For instance, the success of the companies like Flipkart and Snapdeal cannot be disregarded. There has been mergers and acquisitions as well which on the other hand improved the capability of these companies.
Amazon has been increasing widely in terms of its geographical location. Amazon depends greatly on building the infrastructure of the company. It has been recommended that the company have to focus on a handful countries and not the globe as a whole. Therefore, setting a particular goal for the business is indeed important. In order to take the advantage of the increasing globalization.
Keeping Porter’s five forces in mind, it can be said that the Airline has the greatest threat in two criteria. These are:
Threat of substitution: There has been continuous increase in the number of Airlines and other travel agencies. The Virgin Airlines, British Midland, Lufthansa, Emirates, and Jet Airways are the major competitors. There have been huge approaches from the end of these airlines to compete with the existing airlines. Although British Airways is a well-established and loyal brand among the consumers, the threat of substitution always persists.
Buyer power: Today’s consumers are very informative and smart. Before making any kind of purchase, they acknowledge everything before making any kind of purchase. With the advent f internet and the increasing options, the ability of purchasing power of buyers has increased by many folds. Therefore, if buyers find any kind of dispute from the end of the seller, they have other options ready for them. Staying focused on the need of the buyer might help to improve the business condition of the airline.
In the news article, it has been found that the passenger at the time of booking as not satisfied with the treatment that he received. The passenger booked for a premium service but did not get the same at the time of travelling. It was at the same time, the passenger thought of using the service of other airlines. This clearly indicates both the threat of substitution and the power of purchasing of the consumers. Consumer behavior plays a vital role and the organization has to understand this fact and mould their business strategies keeping the same factor in mind. In this respect, it has to be said that the company has to focus on their pricing as well as the customer servicing that might improve their condition in the competitive world.
Title: Virgin Atlantic named UK’s top private travel firm
Industry: Travel and leisure
Three major Sustianability factors
Profit
The measure of the progress and growth of the company has been evident from the increase in the profit margin for the company in 2015. This can be marked as the positive result of the company’s strategy. Virgin Atlantic is a market leader, which creates benchmark and set standards in the industry (Davies 2016). Thus, its mission statement and strategies goes in the same direction. However, it needs to boost up its marketing strategy in order to gain more customers and loyalty in the future. It would also help the company to remain competitive in the market as well
With the rise in competition in the airline market, the airline companies compete with each other to attract more customers through the implementation of effective marketing stages. The customers are one of the most important factors upon which the growth and profitability of the airline companies depend. Despite having a great infrastructure, most of the airline companies lack effective marketing strategies. This has been hampering the company in respective of its growth and progress. In comparison, Virgin Atlantic, one of the major competitors of British Airways, has been able to gain competitive advantage by attracting more customers across the globe. The main reason is the proactive attitude of Virgin Atlantic towards the new marketing trends and advertisement effectiveness as well.
The production of media is classified and distributed in the lounges, airplanes and various advertisements channels of the company. It helps in promoting the sales, offers, discounts, and announcements for its customers in order to provide them with the latest information about its schemes and processes of the airline company.
Thus, the proactive attitude of Virgin Atlantic towards the new marketing trends and advertisement effectiveness as well has helped the company in gaining the top spot in the UK airline industry.
In the era of globalization, with the advancement in the field of telecommunications and other fields, companies are grabbing the opportunities to expand their business. Same approach has been observed in case of Amazon. However, making such approaches is not easy and the companies have to face challenges. There has been continuous advancement in the field of telecommunication, digital communication, transportation revolution and cross border mergers and acquisition. Same kind of approaches has been seen in majority of the companies that have global approach.
It has been found that Amazon has hit $ 1.3 billion in the recent international revenue. Amazon is the leading online company. However, the company has been facing challenges worldwide. There has been increase in competition among these online marketers. It has to be understood that more and more online stores are opening in every region. For instance, the success of the companies like Flipkart and Snapdeal cannot be disregarded. There has been mergers and acquisitions as well which on the other hand improved the capability of these companies. It has been found that 95% of its revenue is earned from the countries like Germany, UK, US, Canada and Mexico.
In order to fight this competition in the era of globalization, it is important that Amazon should undertake certain competitive policies. Amazon has been increasing widely in terms of its geographical location. Amazon depends greatly on building the infrastructure of the company. It has been recommended that the company have to focus on a handful countries and not the globe as a whole. Therefore, setting a particular goal for the business is indeed important. In order to take the advantage of the increasing globalization, setting up a proper business strategy and focusing on the same is the most vital thing to do.
References
Araujo, L. and Kjellberg, H., 2015. Forming cognitions by investing in a form: Frequent Flyer Programs in US air travel post-deregulation (1981–1991). Industrial Marketing Management, 48, pp.68-78.
Bowerman, G., 2014. The Media Game: Publishing for the Modern Traveler. In The New Chinese Traveler (pp. 159-173). Palgrave Macmillan UK.
British Airways Plc,. 2016. British Airways Plc. Annual Report And Accounts Year Ended 31 December 2015. Retrieved from https://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9NjE0MDM4fENoaWxkSUQ9MzI4MDI0fFR5cGU9MQ==&t=1.
Davies, P. (2016). {{metaTags.other[‘og:title’]}}. [online] {{metaTags.other[‘og:site_name’]}}. Available at: https://www.travelweekly.co.uk/articles/62314/virgin-atlantic-named-uks-top-private-travel-firm [Accessed 4 Aug. 2016].
Grundy, M. and Moxon, R., 2013. The effectiveness of airline crisis management on brand protection: A case study of British Airways. Journal of Air Transport Management, 28, pp.55-61.
Heyes, J. and Lewis, P., 2014. Employment protection under fire: Labour market deregulation and employment in the European Union. Economic and Industrial Democracy, 35(4), pp.587-607.
Pappas, N. and Apostolakis, A., 2016. Financial Crisis and Tourism Activity: Evidence from the UK. In Global Dynamics in Travel, Tourism, and Hospitality (pp. 190-207). IGI Global.
Sutton, A. and Setchim, R., 2014. Valuing Sponsor Support. British Actuarial Journal, 19(2), p.404.
Wensveen, J.G., 2016. Air transportation: A management perspective. Routledge.
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