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Regional Airline Industry - Essay Example

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Regional Airline Industry

The success of the regional airline carriers is explained by attention is directed to the selection of the logical or best strategy under conditions of risk. Of course, expenditures for certain types of service are declining while others are gaining. . It is also important to recognize technology, particularly as it interacts with the strategy and organizational structure of the regional airlines. These expansions reflect desires to meet consumer needs and capture a larger part of the discretionary dollar. Services are not accorded concrete treatment in marketing, since they are intangible and difficult to deal with. Life styles are leading passengers to larger expenditures on services, which are important not only in the aggregate but also in their influence (Thompson et al 2008).
2. The strategy of SkyWest is based on unique brand image and partnership with United and Delta. The key is to have a strategy for investigating and integrating the various technologies over time. This is a challenging endeavor, to say the least. The importance of SkyWest strategy is that its operational strategy and organizational structure are developed simultaneously with the implementation of new information systems. At some point, new strategies and structures are required on the basis of what the information technology can deliver. It is all too easy to improve the information technology of the firm in increments only to find that it does not mesh well with the existing strategy and structure. As a result, these separate components become impediments to successful implementation. Strategy, structure, and systems must be melded together as an integrated whole.
SkyWest followed differentiation strategy and tries to achieve sustainable competitive advantage. Service differentiation results from different service processes, research and know-how, design and adjustment of products, and the variety of wants and needs represented by price, quality, style, and other product attributes. Service differentiation, which tries to bend demand to meet supply, has considerable effect on a firm's market position and margins. Or it may be achieved through a totally redesigned product or a technological breakthrough, as in the use of transistors in electronic products. SkyWest is faced with the need to instill an image in the minds of customers that distinguishes their products from others and causes the customer to react more favorably toward them. This might be the result of the image of the company itself, its distributors, or the product per se (Thompson et al 2008).
2. Technology is becoming a primary tool for serving the customer, improving decision making, and streamlining the management of the airline enterprise like SkyWest. Towards this end, it is important to keep systems "in sync" with how the business is run today and will be run in the future. The key will be to apply technology in order to gain a sustainable competitive advantage. Only by applying technology in this manner can exceptional profit performance be achieved. What follows will reveal the threats to airline industry from each of these potential competitors due to developing technologies that can be applied by others as well as by current airline ...Show more

Summary

1. Regional airline business succeeds because of unique strategies and market niche occupied by airline carriers. Regional airline industry consists of independent carriers specialized in short haul flights. The success is that regional airline industry services small communities in partnership with large carriers…
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Regional Airline Industry essay example
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