Airline Industry SWOT Analysis

Airline Industry SWOT Analysis Conducting a SWOT analysis, that is, reviewing the strengths of an organization, its weaknesses, opportunities it can capitalize on for maximum profits, and the threats to achieving its full potential provides very invaluable information to the organization about the market and understanding the industry, as well. The aviation industry is not an exception, it too has its own share of strengths and opportunities which once utilized by an organization can help it grow substantially and weaknesses and threats which the organization must strive to minimize to the lowest possible levels. Strengths One of the strengths of an organization in the aviation industry is the growing income levels. The growth in individual incomes increases the amount of disposable income and hence many people are able to utilize the carriers to fly to their destinations Growth in tourism is also a major strength as it has led to a significant increase in the number of domestic and international passengers with statistics indicating a 50% growth in the number of domestic flyers and a 25% increase in the number of international flyers. Despite the downturns, air travel has continued to grow over time and is one of those industries that are far away from reaching their peak. This can be partly attributed to the ever growing population and the increase in the propensity of people to fly. With efficient management, an organization in the aviation industry is guaranteed to grow into a big and profitable enterprise. Air travel has a marked safety record and has been generally accepted as a safe and fast way to travel. Even the low cost growing airlines have safety and speed attributed to them and therefore, a small growing airline shares this strength with big and recognized brand names in the industry which is quite an advantage. Airline staff consists of highly trained personnel, which is a major strength, to any organization in the industry. Weaknesses One of the major weaknesses in the aviation industry is infrastructural development. The development of infrastructure has been very slow thus unable to keep up the pace of growth of the aviation sector. It is therefore, a major bottleneck in the industry. A growing airline should therefore, give priority to investing in infrastructure by constructing state of the art airports with adequate runways and ample parking lots for passengers. It should also invest on routes leading to the airports to help reduce passenger delays due to traffic. Airlines have been known to have a very high spoilage rate in comparison with other industries. Once a passenger misses his/her flight, the income/revenue from that seat is lost. In order to avoid or minimize this occurrence, the airline should establish a method of contacting all the passengers prior to departure to remind them of their flight. There should also be a larger time window between the boarding time and the departure of the airbus to cater for those passengers who arrive late for their flights. Aircrafts are very expensive and running an airline requires a very huge capital outlay. For this to work to the advantage of the airline, proper marketing strategies are required, and careful planning to ensure that returns on investment are greater than the initial investment. An airline may find it very difficult to compete with other carriers due to their low fares. To survive this, the organization can lower its fares but ensure that they are in balance with the returns to avoid losses. Extensive advertising campaigns on quality can also give it an edge over the low cost carriers. Airlines have to maintain a huge work force which is spread over an outsized ecological area and which requires constant communication and monitoring. For this to work to its advantage, extensive evaluation of the personnel is required to ensure competence and also the ability of the workers to work under minimum supervision. Opportunities There are many opportunities that an airline can capitalize on to reap maximum profits. Expected investment is one of the opportunities that can benefit an airline. The aviation sector is ever growing, and there is an increasing number of stakeholders in the industry willing to invest in air travel. An airline can take this opportunity to increase its capital base so as to be able to enjoy large economies of scale. Development of new products and services can have a substantial blow on the profits of an organization. In aviation, an airline can introduce mailing services for delivery of mails and parcels across the globe. It can also introduce special fare packages for those travelling to certain destinations for pleasure or business. Technological advancement and investment in information technology is an opportunity that can greatly help an organization to minimize its operation cost. An airline can rely on information technology to offer more customers friendly services and also provide customers with other services like internet while travelling which would make them pay more for the services hence increasing the profit margins of the organization. The organization should evaluate end user response to its services to gain information on what areas of its services to improve. This would go a long way in helping the organization acquire new customers as well as retain its old ones who are satisfied with the services being offered. The organization should also take the opportunity to expand and cover a larger geographical area. It should grow into the untapped markets and offer its products and services in these regions. Having a large customer base would increase its profits. Acquiring better supply deals, for example, a less expensive fuel supplier would greatly minimize the operation cost of an organization in the aviation industry. The airline can also retain its suppliers but negotiate for better deals with the aim of increasing its profit margin. Cutting down on delays is very important in the aviation industry. Minimized delays would mean less refunds and minimal compensation due to inconveniences made. It would also help the organization to gain the customers trust thus establishing itself as a carrier of choice for many travelers. Linking up with other carriers in the industry is an opportunity that should not be ruled out. Linking up with another carrier would increase the passenger volume greatly. This can be done through ensuring a coordinated schedule where the airlines offer their services to various destinations through a sharing agreement. Only one carrier flying to a given destination from a particular location would enable the partnering carriers to avoid the long time taken before an aircraft is filled. Threats There are many threats facing organizations in the aviation industry. Travelling for leisure and business is greatly impacted by the global economy. A downturn in the global economy means that less people are likely to travel for pleasure and to do business. This leads to low income to the airline during this period. To minimize the effect of this, the organization should devise a mechanism of lowering its operation cost to the minimum possible levels to avert possible losses due to its operating costs exceeding income. Some government legislation can also be a major threat to investors in the aviation industry. Intervention by the government can come with it rules which are very costly to adhere to and also competition from unexpected quarters, for example, from international airlines due to liberalization of the market. Air travel is very vulnerable to environmental changes. Heavy storms are detrimental to flight schedules, and this may mean refunding those customers who opt to cancel their flights all together other than to wait. It can also lead to loss of an asset, for example, the crashing of an aircraft. To minimize the effect of this, the airline should ensure that it is well insured against losses resulting from these weather changes. There should also be an insurance cover for its passengers. Air travel has a seasonal demand especially where the largest percentage of travelers involves those travelling for leisure. In this case, the highest demand is likely to be during international holidays like the Christmas season and a significant decrease in demand midway through the year. To ensure that there is no considerable drop in customers during the off peak seasons, the organization can come up with a method of encouraging people to travel during this period by, for example, lowering the travelling rates, offering discounts and special travelling packages. In recent times, air travel has been a target to terrorists, and this has had a very negative impact on the airlines themselves. Frequent fliers have been scared away, and the airline industry has lost a considerable number of customers. To gain back the lost confidence, an organization should carry out an extensive campaign meant to assure customers of their safety when travelling using their airline. Over the next few years, huge investments are expected to be made in the aviation industry. New airlines are likely to crop up and this will lead to a strain on the available pilots, and airport staff. This will be a limiting factor to the continued growth of the airline. To prevent this, the airline should start training its own pilots and airport staff. This would in future give it an advantage over the other airlines which would be experiencing a shortage of the same. The airline can therefore, transform this threat into an opportunity by selling some of its staff to the other businesses for a profit. With the increasing number of airlines and aircrafts, there is likely to be a marked shortage of airports and airport facilities. The airline should therefore, invest heavily in its own airports and ensure that they have ample parking bays for its aircrafts. The organization also faces the threat of being vulnerable to attacks by its major competitors. It should therefore, have all the mechanisms of counteracting this in standby so that it does not fall to accusations from other airlines. The greatest hurdle facing many airlines today is high fuel prices. A huge upward surge in fuel prices can destabilize an investment in the aviation industry. To counter this, the airline should ensure that it has its own fuel reserve so that it is not immediately affected by the changes in fuel prices as it will have time to adjust while relying on its fuel reserves. With its own reserve, it can benefit from this threat by providing that much needed resource to its competitors at a large profit margin.

The Case Of The Elusive Car Salesman :: essays research papers

I was pacing around Lexington, waiting for my local mechanic to finish the latest repairs on my ‘77 Chevy Impala. My name's Yesterday, Sam Yesterday. It was hot in Lexington, by that is not uncommon for mid-July. I'd had a good several months, and I was in good financial position for the first time since I bought that Impala back in 1977. That car had served me well, but lately it had been failing. Maybe it was time for a trade, I thought; so I walked over to the nearest friendly (sort of) car dealership. As soon as I set foot on the shiny showroom floor, it seized me. It was the most beautiful thing I had ever seen. A sparkling combination of steel, leather, electronics, and a very large engine. The muscle car had been revitalized in the form of a 1995 Chevy Impala SS. It was sleek, resembling the type of car Darth Vader would drive. I grabbed the nearest salesman, hopped into the body hugging leather bucket, fired up the 275 bhp. LT1 engine and took off. As the 6-speaker CD stereo belted out Aerosmith the poor salesman tried to sell me a car that had already sold itself. I had fallen in love, it was the only car that I had loved since that ‘77 Impala. It had an engine large enough to satisfy my primitive need for power, an image that screamed "Hey you with the radar gun! See if you can catch me!" Granted, it was heavy, it had watery boat-like handling, and drank gas like my Uncle Bubba drinks beer. Still, I loved it. It wasn't Japanese, German, Korean, or otherwise. It was a big hunk of purebred, American muscle car, dammit. I picked out a nice shiny new one, called the bank and drove home in my new wheels. I decided to spring for all the bells and whistles; leather, CD player, alarm system, keyless entry, etc. I figured that if this car was going to run as long as my last Impala it should be well-equipped. As I was admiring the view from my office in the Financial Center, the phone rang. I answered and was greeted by a rather hysterical woman named Diane who thought that she had been cheated by her car dealership. "That evil Car salesman has kidnaped my car!" she explained. I calmed her down and asked what happened. "Well, Larry, the salesman, picked up my Lexus for servicing, just as usual. Also as usual, he left a more expensive car as a loaner. Later in the day,

Marketing Principles Innocent Smoothies: STP Essay

Segmentation, Targeting, Positioning Positioning According to Kotler and Keller (2006), placing the product in a position where it is in demand, attractive and unique to the customer in relation to the products of its competitors is known as market positioning. Innocent has a reputable stance in the market, being known for its image of good will and helpfulness. From the company’s contributions to charity to the fun, lighthearted word choice of their product’s labels, Innocent successfully portrays itself as being a brand which above all, wishes good health for the consumers of their smoothies. The reputation which Innocent Smoothies holds is thanks to the values upon which the company was first established. Head of Communications for Innocent Drinks, Charlotte Rawlins, stated that â€Å"You have to build from your principles and make sure there’s a good product at the heart of it (and) if that’s the case, a good reality and image will follow†. A wide variety of product characteristics have ensured that this image of Innocent Drinks is preserved. 100% recycled bottles, donating to their own charity foundation, introducing ‘kids packs’, ensuring their product has health benefits such as contributing to peoples’ 5-a-day, jokes and heart-warming messages on their packaging†¦even their innocently drawn logo of a somewhat juvenile drawing of a smiley face contribute to giving the impression that Innocent Drinks are as Innocent as their company’s name. (Need references from partner). Innocent is rated as the most environmentally concerned company. Tropicana is next in line. Consumers that buy smoothies on a regular basis (once a week) and consumers that buy smoothies very rarely both agree on the fact that Innocent’s work ethics are above those of its competitors. Also, even though Innocent is the most expensive out of its main competitors, 69% of respondents have said that Innocent smoothies are worth every penny. Nevertheless, Tropicana had a 73% rate, own brands had a 65%, 42% for Happy Monkey and 29% for Coldpress. Segmentation/Targeting The smoothie market is divided into varying groups of consumers, which all differ in characteristics, behavior or needs. These different groups might seek different products of the marketing mix. This is known as market segmentation (Kotler and Keller, 2006). Innocent targets people that are health conscious, since their smoothies have no added sugar and are made 100% from fruits. They do not have any sort of colourings, flavourings or genetically modified products. Another group of people that Innocent smoothies are aimed at is time-strained people or workers, this being because of the practicality of the product. It is not only healthy, small and filling, but contributes to one’s 5-a-day fruit and veggie count. By having one small 250 ml smoothie, one is already having 2 of their 5-a-day. This is easy for those who have difficult times getting their diets balanced with their work. A third group of buyers that Innocent attracts are parents. Kids’ diets are extremely important while growing up and a smoothie is always a more appealing option to a young one than a piece of fruit. Innocent is a better option in every way than a fizzy soft drink which probably has no nutritional value and more sugar. Geographically, Innocent has expanded from a small stand at a concert in London to having a presence in France, Austria, Ireland, Sweden, Belgium, Switzerland and Denmark. Demographically, Innocent has focused on young kids in an essential growth stage of their lives all the way up to mid-age men and women workers who struggle to maintain a healthy and balanced diet. People with active lifestyles tend to consume this type of product more since it offers a trouble-free on-the-go option.

Stanford Prison Experiment †Sociology 100 Paper

Stanford Prison Experiment – Sociology 100 Paper Free Online Research Papers Degradation at Our Expense Getting arrested is a very disturbing event for most people. Having the police come to your house to find you is even more disruptive to the human psyche. The events that occur during that particular event can have lasting negative effects. The procedures police use during arrests lead to people feeling degraded and dehumanized as well as angry, confused, and fearful. Having to endure that experience would probably be too much for me to handle personally. The rapport that police will have with the common person from that point on in their lives may be permanently changed or damaged due to how they were treated. During the arrest procedure in The Stanford Prison Experiment, the suspects were picked up at home, informed of why they were being arrested, searched on the police car in front of neighbors, and then driven away in the squad car with â€Å"sirens wailing† (prisonexp.org, 2009). This is the first reason why the procedure is disturbing. Having a group of police come to your residence, bust in the door if necessary, and drag you outside to complete their arrest procedure is downright humiliating, especially if your neighbors are watching. The police really do not care who sees them! Driving off with you in the backseat, sirens sounding, just adds to the feeling. All along the suspect thinks they are being charged with a violation of Penal Code 211, Armed Robbery, and Burglary, PC 459 (prisonexp.org, 2009), knowing in their heart that they did not commit any crime. The worst part is that the crime was never actually committed; this was all a ploy to see how far the suspects could be pushed or how much they could endure before they cracked, and how they will react for the rest of their journey . Next on the list of degrading acts by the â€Å"police† is when they arrive to the make-shift prison. Here the suspects are put through the whole normal booking procedure with a little extra; they are strip searched, hosed down for bugs, and given a smock-like dress to wear†¦..with nothing underneath. The prisoners were made to be completely humiliated by acting as if they had some awful germs by spraying them off, then had to wear garments that resembled dresses and be naked under them, and be shackled. Their whole persona would change, how they sat had to change so their private parts did not show, how they walked and carried themselves had to be adjusted, and they thought they were being marked as dirty, low-class, less than human citizens. How infuriating it must have been for these men. Heinous events continued to occur in the â€Å"prison† until it finally ended early after six days because of the abuse the men were receiving from the fake guards, and the conditions the men were being subjected to was unacceptable. The prisoners were informed that it had all been an experiment and just released and expected to go on living their lives as if nothing had ever happened. These prisoners still felt confused, fearful, degraded, and dehumanized due to what they had just been through. Will they always get that yucky feeling in their guts when they see a police car or hear a siren? Will their view of police change to negative if they have never been to a real prison because they have a vision in their head of how it is? Obviously in current times, this experiment would not occur. Ethically, it would not be allowed. It would be impossible to have unbiased results if the prisoners were told of the experiment previous to them being subjected to it. However, it would not get an approval due to the circumstances they out people in. Another factor is that people are more informed of their rights and will exercise those, even if it means when they are released. Lawsuits would be brought up and charges filed for mistreatment. Even the guards had to endure going against their morals at times and having to think that they had to almost fight for their lives so they used extreme force. For this to all be fake, it damaged many people. Those effects can last forever. On a personal level, I was arrested for something I did not know was going on, nor did I do. The police came to my house, broke down my door, cuffed everyone in the house, including my son who was twelve at the time, accused me of all kinds of things that I did not do, threatened to have my son taken away-right in front of him, made a mess of my car and house, and hauled me out in cuffs to jail. They did not care who saw me, who they damaged, who was really telling the truth, or what personal property they ruined. All they were interested in was making an arrest based on their search warrant and the charges filed against me. It was degrading and humiliating, not to mention horrifying and embarrassing. I had never been in trouble in my life for anything and have only gotten pulled over twice. This was over eight months ago and I still have issues; every time I hear cars outside my house, I get that bad feeling in my stomach, seeing a police car makes me nervous, and my son is just as bad. Luckily I got released that day. If I would have had to stay there for any amount of time, I think I would have gone crazy. It was dirty and the correctional officers speak to you like you are sub-human, including cussing and telling you that they do not care what you need or want. The saddest part about the whole experiment, or current situations, is that the future repercussions are not taken into account. The men they took in for the experiment back in 1971 might have really been bothered by the whole episode. They might have been permanently damaged and have a mild case of PTSD. Their families were affected as well by thinking that their loved one had actually committed some awful crime and knowing they were in abhorrent conditions. Being arrested and treated with such disrespect stays with you forever and leaves a bad taste In your mouth towards law enforcement, even with my son. Granted, police do good things, the bad things they do tend to stick in people’s minds and build a foundation as to how they will react in a situation. Some people are labeled as institutionalized and never recover from the circumstances they have had to deal with. Releasing them into society can have detrimental effects on everyone, including the individual. The relationsh ip between society and the individual then becomes a reciprocal one and they will react to the situation accordingly, whether it will have positive or negative consequences. References Zimbardo, Philip. (1999-2009). Stanford Prison Experiment. Retrieved April 15, 2009 from prisonexp.org/edge/page6.htm. 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Light and the Glory essays

Light and the Glory essays The United States Constitution has been the bedrock for the longest lasting government in all history. Why is it that our constitution still exists after more than two hundred years? Is it the incredible minds of those that framed it, or is it something else? In 1620, the Pilgrims departed from Holland and set out for America. Ten years later, they were followed by the Puritans. The Puritans and the Pilgrims experienced incredible hardships, which forced their reliance on God. There was little to eat, and shelter was no more than an uninsulated log cabin. As new generations grew up, they began to learn how to grow and harvest crops, which supplied them with plenty to eat, and comfortable lives. They did not have to depend on God for their survival. Gradually, as the people strayed further away from God, there began to be witchcraft and many people with no moral standards at all. These once godly people had forgotten how God had miraculously provided for their grandparents. By the mid 1700s, America was in desperate need of a revival. This burden was laid on a mans heart whose name was Jonathan Edwards. Jonathan Edwards, a graduate of Yale at seventeen, began and sustained a revival that changed the course of American history. Along with George Whitefield and countless other circuit riding preachers, Jonathan Edwards brought America down on her knees before God in repentance. America was indeed a new nation. It was about this time that America began to view itself as one nation, not just a handful of independent colonies. The only problem was that the Americans were not the only ones who had settled in the New World. They were bordered on the north and west by the French and on the south by the Spanish. If anyone attempted to settle on the west side of the Appalachian Mountains, chances of survival were slim because of hostile Indians and cruel French trappers. America was far from having e...

Tiffany & Co Essay Example | Topics and Well Written Essays - 6000 words

Tiffany & Co - Essay Example Though Tiffany & co. is the price leader, the stores locations make it convenient to its customers. This is a strong marketing mix and other retailers may compete with the company by increasing their number of stores but this does not compare to the low price strategy used by Tiffany & co. Tiffany & co. has been a powerful retail brand and therefore has a good reputation for its value for money. Its convenience and the provision for a wide range of products have contributed to its strengths in the market. Tiffany & co. has also grown substantially over the recent years therefore has experienced global expansion. The company has a core competence which involves the use of improved information technology that supports international logistics systems for example the company carries out a market research that enable the company to see hoe the products perform countrywide and store by store. 2. Review of company and its business The company was the first to win an award in excellence in U S for its silverware. This was in 1867 and in 1877 the company released its logo of cross which was rare as it could only be offered to combat awards. Tiffany & Company also is said to be among the largest private employers having about 9,000 employees as at 2009. Sandra and Roy (1997) shows the company generates revenue of more than $2.86 billion. percent of sales from the grocery business and has therefore focused in opening stores for example in 2007, the company was operating about 64 stores in US which was a total of 480,000 gross square feet. There are also 104 international stores totaling to 300,000 gross square feet. Fairfax Square located in Tyson’s Corner opened in 1990 is the largest outside New York.... The intention of this study is Tiffany & co as first winner of an award in excellence in US for its silverware. This was in 1867 and in 1877 the company released its logo of cross which was rare as it could only be offered to combat awards. Tiffany & Company also is said to be among the largest private employers having about 9,000 employees as at 2009. Sandra and Roy shows the company generates revenue of more than $2.86 billion. percent of sales from the grocery business and has therefore focused in opening stores for example in 2007, the company was operating about 64 stores in US which was a total of 480,000 gross square feet. There are also 104 international stores totaling to 300,000 gross square feet. Fairfax Square located in Tyson’s Corner opened in 1990 is the largest outside New York. The most profitable location was the store in Costa Mesa in California then the New York store and Boston Copley Place. The company’s social responsibility is to plan and develop a program that will promote community development and to enable more people to improve their life. It also advocates for zero rate waste. Tiffany & co.’s mission involves enhancing and integrating supplier diversity programs where it will be categorised in procurement practices. These practices advocate for minority people in the society especially enabling women to open their own businesses. Some of the ingredients that have contributed to the success of Tiffany & co. include the strengths and virtues of the company’s founder. This is due to his overriding vision and unchanging values.

Compare and contrast two Indian states Essay Example | Topics and Well Written Essays - 250 words

Compare and contrast two Indian states - Essay Example These states are good exporters and active in production of goods and commodities which have significant export value The Indian state of Gujarat speaks Gujarati and Maharashtra has the regional language of Marathi. The capital of Maharashtra is the ultra- modern city Mumbai whereas Gandhinagar, the capital of Gujarat is a mediocre city.Even though Gujarat is an industrialized state in comparison with Maharashtra it is way behind latter.Gujarat is self sufficient in agriculture while Maharashtra is not. However, the capital of Maharashtra is the most modern and sophisticated city of the country. The educational ratio of Maharashtra is higher with 78% than that of Gujarat which is only 70%.The infrastructure of Maharashtra is more sophisticated and developed than that of Gujarat. Moreover, the transportation system of Gujarat is not developed as Mumbai as the latter possess quality railway and roadway