CLASSIC AIRLINES

Classic Airlines marketing Solution



Classic Airlines marketing Solution

Introduction

Classic airlines is one of the biggest airlines and instructions a fleet of more than 375 jets that assist 240 towns with over 2,300 every day air journey. They extend to be a very money-making business, but with increasing overhead charges and the present state of the finances, classic airlines have know-how some set back. There are numerous interior and external stresses that assist to Classic Airlines present crisis. In alignment to address this urgent position, Classic Airlines should use the rudimentary difficulty explaining method. They should furthermore utilize their interior trading assets and discover external trading choices to find a money-making solution (Arnoult, 2004).

These are just few of the challenges faced by airline managers. Unfortunately, these challenges also seemed to be bothering Classic Airlines. Classic Airlines is the world's fifth largest with over 2,300 flights daily to and from about 240 cities in the world. In spite of its mammoth size, Classic Airlines only managed to earn just about 0.1 per cent net profit margin from sales revenue of $8.7 billion. Indeed Classic Airlines is operating with very, very thin profit margin which is not sustainable in the long run. This very low profit margin is insufficient for the airlines to periodically upgrade its fleet and maintain it competitiveness. Unfortunately, like in any other industry, the stock prices of airlines are directly affected by the airlines ability to earn money or create wealth for its stockholders.

The paper aims to evaluate and analyze the problems faced by Classic Airlines and discuss the alternative courses of actions to these problems while highlighting the macroeconomic environment of the airlines followed with recommendation.

Issue and Opportunity Identification

Many business opportunities are won and lost because of past business relationships that have included emotions and past experiences. Classic is dealing with a past that included a bad choice that is dictating to decisions that are being made currently. The CEO, Amanda Miller agreed to lower prices the previous year in an attempt to gain back customers that the airline had lost. This decision backfired in the CEO's face and as a result the company has been placed in a worse situation, and Amanda doesn't trust new ideas especially from a marketing team. This past experience has put the leadership team in a position to practically have a plan working before its implemented or make no changes to any processes or the cost structure to be successful. Along with Amanda, the company's Chief Financial Officer, Catherine Simpson is also one whom will have to be impressed by the plan to improve Classic's outlook. Catherine has been with the company about as long as the CEO and often sides with Amanda's vision, or views on decisions that are made (Coyles et al, 2005). The Marketing, Customer service, and Human Resource teams are led by newer in the company and have not had a major opportunity to impress. In order to be successful in its endeavors, the Marketing and Operations ...