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Marekting Concepts - Classic Airlines - Essay Example

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It deals with over three hundred and five jets. The airline serves two hundred and forty towns and cities, and does two thousand three hundred flights per day. It has grown to a great extend as it has an employee base of thirty two…
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Marekting Concepts - Classic Airlines

In addition, there are high levels of uncertainty in the firm. These uncertainties range from reduced customers to a flight of a half full aero jet. As a result, there is a considerably increased charge to cater for these uncertainties. The fact that there are a number of other airlines is a challenge by itself. Competition is high in this business and leads to a reduction in the number of customers with time. Since the year 2005, there has been a problem in customer loyalty. Existing customers (even today) are trying other airlines hence switching from Classic Airlines. Due to the prominence of the first four airlines, this particular one has lost market (Kotler & Keller, 2006).
Due to the tough economic times, costs of most items go up by day. Labor and fuel go up at an alarming rate and at times fluctuates. It makes competition for Classic Airline a big challenge, therefore. In a move to try fighting these challenges, this airline had to call for a crisis meeting which cost the company a lot to finance for the transport of major stakeholders as well as cater for their sitting allowances. There was some workforce downsizing, which affected the company a great deal. When experts are sent home, this is the beginning of trouble; less work will be done by the few remaining workers. Machines are deemed to fail at times. According to University of Phoenix Material (n.d), many lives have been lost in this mode of transport. Paying salaries for the expensive expertise becomes a challenge and the burden is transferred to the customer.
As noted by University of Phoenix Material (n.d), Classic Airlines have one of the challenged corporate cultures in the world. On the contrary, there are departments that are not working to realize the requirements of their customers. For this reason, there has been a problem in bringing together some of the company processes and operations. There is the use of customer relationship management that is catered in the marketing ... Read More
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