- 25/11/2012
- Posted by: essay
- Category: Free essays
Taking into consideration major problems leading to the deterioration of the marketing performance of Classic Airlines, it is possible to suggest several measures that can help to improve the position of the company in the market. In this regard, the company should focus on both internal and external changes, including the introduction of the total quality management, development of the social responsibility of the company and consider the possibility of merger with another airline company to improve its marketing position and expand its market share.
In actuality, the introduction of the total quality management is an essential step to improve the company-customer relationships and to improve the relationships of the company with unions that can prevent strikes and further tension with employees. The introduction of the total quality management implies the focus of the company not only on the quality of services delivered to its customers but also to the quality of relationships within the company. Therefore, through the total quality management, the company can set the high quality standards and develop positive models of interpersonal relationships within the company.
Furthermore, the development of the social responsibility of the company can contribute to the consistent improvement of its public image and, what is more important, to the improvement of the company relationships with unions and employees. Unions aim traditionally at the improvement of conditions of work of employees and their position in the company. The social responsibility of Classic Airlines will lead to the improvement of the position of employees in the company that will prevent the personnel turnover and increase the effectiveness of work of employees because they will be motivated to work in Classic Airlines (Calder, 2002). In fact, the company can develop fair compensation plans, provide employees and their families with health insurance and offer a variety of other programs to manifest its social responsibility and to develop employees’ loyalty to the company.
Finally, the company can prepare and implement a merger to improve the marketing position and expand the market share of Classic Airlines. In fact, this step could improve consistently the position of the company in the market because this is one of the most effective ways to tackle the problem of the growing competition. The new company will have a larger market share, fleet and larger opportunities for growth and successful competition. Naturally, the merger can raise the problem of restructuring and reorganization of the new company but, on completing the restructuring, Classic Airlines will get better opportunities for the development of its marketing strategy and expanding its market share. In addition, the company can decrease the price of flights due to the larger fleet. Moreover, the company can tackle the problem of delays because the company will deliver passengers to new destinations and using its larger fleet the risk of delays decreases.
Thus, taking into account all above mentioned, it is important to lay emphasis on the fact that Classic Airlines faces the problem of the consistent deterioration of its marketing performance. In this regard, it is possible to identify several causes of such deterioration, including the low quality of services, the high costs of flights and high fuel price, the growing competition and complex relationships of the company with unions and strikes of employees. In such a situation, the company needs to elaborate a complex solution to tackle the problem of the ongoing deterioration of its marketing performance. In this respect, it is possible to offer three tools which could be used in a combination. First, it is necessary to improve the quality of services and relationships within the company. The total quality management can help to meet this goal. Second, it is necessary to develop the social responsibility of the company to ease the tension with unions and employees. Finally, a merger could improve the marketing position of the company. Such a combination of measures will stabilize the internal situation within the company and the external position of the company in the market.
References
Calder, S. No Frills: The Truth behind the Low Cost Revolution. LA: Touchstone, 2002.
Littman, T. “Evaluating Transportation Equity.” World Transport and Practice, 8:2, 2002.
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