Business Strategy of BIG Organisation - Assignment Example

? Brand Management Number Department Introduction That business strategy is a matter of utmost importance in business success is a matter that is underscored by the fact that business strategy provides organisations and enterprises with the framework through which the market is penetrated, the market share is consolidated and expanded and break-even stage is realised. In this case, BIG is an example of an organisation that serves s a case study for analyzing the extent to which business strategy can help in the realisation of performance target. Some of the aspects likeable about the experience are the perfect reward systems that Air Asia had introduced for customers. Some of the aspects of BIG are not fully satiating. That one has to spend points with Air Asia only whereas other airliners such as the Qantas are flexible enough to allow one to choose from a myriad of brands undercuts BIG’s policy. BIG also does not factor the use of AUD in money conversion points and this is a minus. The relevance of information presented is relative. This is because one of the chief points of concern was student-friendlier air prices, yet Air Asia zeroed in on matters such as comfort and the introduction of online shopping events and stores and entertainment events and accommodation services. Reconsidering BIG remains a tenable option, given its student-friendly rates, compared to other options. This also means that should there be another company offering cheaper airfare, personally, it will be considered beside the offer being put forth by BIG. BIG’s reward system fall short of fully exciting, sincerely, given that it is largely unfair to those who are not regular travelers like me. Secondly, BIG’s package and offer makes the assumption that every client is a sole decision maker, yet that is not the case with me. Like my peers, I travel with my parents since I am still 18. BIG also in its advertisement claims that its services are cheapest, yet this is clearly an artifice to retaining customers. This is because, the rates are subsidised only to those who have punctiliously followed up the stipulations of the loyalty programme. Some of the areas of improvement include the systematic arrangement and presentation of information, especially information which is significant to students’ interests, proper advertising that specifically aims at students who are hard to market target due to their strict budget, and the need to utilise the use of Facebook to market Air Asia, since scholars such as Alloyce and Forte (2011, 22), Franc (2012, 34) and Bedeyore (2005, 75) have already acknowledged the place of online social networks in business success. I am a moderately satisfied customer since the specific item (student-friendlier air prices) that I was interested in was not available. The failure to organise information in a manner that would make information easily retrievable and the failure to use Facebook are some of the factors that served as a letdown. However, the presence of online shopping events and stores and entertainment events and accommodation services abated the degree of a possible backlash that students would extend towards it. It is not mandatory that I become part of the loyalty programme in order to become a loyal customer. All that is needed is the consideration of students-friendlier rates of air ticket, since this will auger well with my strict budget. Even Miranda (2009, 45) and Ortiz (2012, 13) postulate that the use Facebook and the organisation of information in a manner that would make it easily retrievable and accessible will also help convert me into a loyal client. Indeed, being part of the loyalty programme may have the potency to change my behavioural predisposition since the move will be instrumental in inculcating in me, the sense that the airline company acknowledges and appreciates me and I am therefore not taken for granted. Considering some of the aspects likeable about the experience Some of the aspects that are likeable about the experience are the manner in which Air Asia has gone the length to include elements that are supportive of comfort. Alongside the comfort that is attached to the airliner, there are several measures and provisions that have been introduced to include online shopping events and stores, entertainment events, accommodation services and holiday tours. The relevance of information The information that is provided by the airliner remains relevant to its clientele and students who were specifically intent on accessing Air Asia. For instance, the inclusion of the reward system and is instrumental in injecting competitiveness and persuading students that they too can enjoy some packages that are tied to Air Asia, at subsidized rates. However, information such as the provision of redemption of free flights within destinations in Asia did not serve as very useful information to students since most students who use flights are international students and therefore travel mostly to the US, the UK and Europe, as is observed by scholars such as Mark (2007, 44), Williams (2003, 19) and Maslows (2006, 30). Some of the Areas of Improvement Going by what most students have posted in their blogs, several areas need improvement. Key among these areas is the dissemination of information and Air Asia’s information system. This is because, most students complained about the inability to locate crucial information about the flight schedules and the whole range of services that are being offered by the Air Asia. Franz (2000, 75) elaborates that managing data in a way that accessing it becomes difficult may be a negative to any organization, Air Asia included, since students have less time to search information diligently. Again, another point that needs correcting is the failure to include students as part of its target market. Air Asia has not yet tried to net in students among its target market and the best way of doing this is by setting subsidized prices for students. The need to set subsidized rates for students is underscored by the fact that since they are not in the employment or business sector, students have less spending power. Again, this relates with the first area of improvement for Air Asia which is dissemination of information relevant to students. Since students have less spending power, they are not frequent flyers. Even Brian and Patrice (2011, 13) observe that since they are not frequent flyers, Air Asia should make sure that it avails students-friendlier information about its flights arrangements, schedules, pricing and special offers that it extends to students. Being a satisfied customer About 65% of the student population that blogged expressed not being satisfied with the services that offered. This is not because Air Asia was providing poor or substandard services, but because students felt left out of Air Asia’s target market. Becoming a loyal customer as result of being part of the loyalty programme Going by discussion that has been sustained in the blogs, it emerges truly that not unless Air Asia modifies its products, there will be great difficulty in netting students as loyal customers. This is because, the most important service offers such as the redemption of free tickets are limited to destinations within Asia, yet according to information provided in the blog and by Antoine (2009, 60) and Andrews (2006, 33), most students who use air transport are international students who travel outside Asia. Therefore to cultivate loyalty among international students, two things are incumbent upon the flight, Air Asia: Air Asia must introduce flight prices that are commensurate with the meagre purchasing power of students; and to introduce more flights and more incentives that are applicable to outside-Asia destinations such as the US, the UK, and the rest of Europe. It is also that Air Asia also arranges its information retrieval system in a manner that is student-friendly (Dennis, et al, 2003, 11). Carilus and Humphrey (2002, 25) observe that proper management of information allows students to allow very fast accession of information, so that they do not turn away at the slightest idea that retrieving information will consume their time and energy. Whether being part of the loyalty programme changes behaviour in any way Going by the information that has been provided by students in the blog, it is true that being part of the loyalty programme may change students’ behaviour. Some of the behaviour that will have been attained are the assumption of deeds indicative of customer loyalty and the voluntary recommendation of the airline company to members of a social circle, just as Adams (2012, 11) observes. Conclusion That BIG has a staying power because of its strategy which is the extension of reward points, is a matter that is beyond dispute. However, there are several concepts that BIG must integrate into its strategy to realise a wider scope of success. It is by drawing proper business strategies that BIG will be able to improve on its incentives such as the extension of reward points, proper management of information, and the use of more comprehensive and latest mediums of communication (such as online social networks), in order to include all subcultures into its target. References Adams, K. 2012. Introduction to Business Management. New York: Prentice Hall. Alloyce, B. & Forte, P. 2011. The Relation between Business Management and Success. New York: John Wiley and Sons. Andrews, P. 2006. “Managing Large scale Business.” Journal of Business Management, 3 (2); 33. Antoine, L. 2009. Steps to Successful Business Management. Harvard: HUP. Bedeyore, J. 2005. Business Management and Success. Manchester: Longman. Brian, M. & Patrice, A. 2011. A Model for Emerging Airlines. Cambridge: CUP. Carilus, O. J. & Humphrey, H. A. 2002. “Model for International Business.” Journal of International Business, 2 (3); 25. Dennis, M. et al. 2003. “Strategic Business Plan for Fledgeling Airliners.” Journal of International Business, 2 (4); 11. Franc, E. R. 2012. Successful Business Planning. Manchester: Longman. Franz, P. 2000. A Model for Airline Business Success. London: Cengage Learning. Mark, M. 2007. Building Customer Base. New York: Wiley & Sons. Maslows, E. 2006. Case Study of Business Success. Oxford: OUP. Miranda, P. 2009. “Attaining International Success.” Journal of International Business, 10 (2); 45. Ortiz, M. 2012. Operating Airlines. Oxford: OUP. Williams, P. 2003. Strengthening Fledgeling Client Base. London: Cengage Learning. Read More