This paper evaluates and applies different models and theories in this Titan Airline simulation over the 12 quarters to develop effective strategies and make effective business decisions. The decisions and strategies mainly focused on marketing, fare, fleet and routes, compensation, corporate activities, and financial issues of Titan Airline. A number of models and theories were applied to make a decision and develop strategies for Titan Airline over 12 quarters. According to Porter’s Five Forces Model, Titan Airline faced challenges from competitors including Limitless Airlines, Horizon Airlines, Universal Airlines, and Air Breeze. The customer buying power was also high due to alternatives with similar products, quality and integrity, and prices. The power of suppliers was also high because of the increase in fuel, oil price demand, and cost of airplanes.
These issues affected Titan Airline’s revenue, profit, stock price, and customer bases. However, the threat of new entrants was comparably low because it takes a huge investment, knowledge, and understanding, and time and effort for new entrants. The threat of substitutes was low due to effective alternatives for long distances. Applying Porter’s Generic Model, Titan Airline used a cost leadership strategy. It was also flexible in targeting and market segmentation due to variation in price ranges. Titan Airline brought product differentiation by offering only economic services and providing free soft drinks, and pretzels or peanuts over 12 quarters. Applying the Marketing Mix (4 P’s), Titan Airline was able to develop its products, prices, places, and promotions successfully.
The SWOT analysis shows for Titan Airline had more strengths and opportunities in comparison to weaknesses and threats, that why we gained success over the 12 quarters. Applying Ansoff’s Growth Matrix, Titan Airline followed market penetration strategies from the 3rd quarter by increasing aircraft to increase the revenue of Titan Airline by adding 3 more aircraft. The financial analysis shows that Titan Airline was able to increase net profit and stock prices from about $-25K and $22.5 in the 3rd quarter to about $260K and $36.21 in the 12th quarter respectively. Overall, Titan Airline gained better performance over the 12 quarters in comparison to its competitors.
Table of Contents
2.1 Porter’s Five Forces Model
2.2 Porter’s Generic Strategic Model
2.3 Marketing Mix (4Ps)
2.4 SWOT analysis.
2.5 Ansoff’s Growth Matrix.
2.6 Financial situation.
Simulation technique plays a significant role in making effective decisions for businesses. This technique develops strategic thinking and management skills, improves business acumen, and increases financial knowledge and understanding, and builds up teamwork and leadership skills. This airline simulation case has extended our knowledge, understanding, and real-life business experiences. The name of our selected airline company is Titan Airline. In our team, there were a number of people who worked on this airline company over 12 quarters. Our main roles were to make effective decisions and change the decisions as required to improve Titan Airline’s business performance including revenue, profits, stock prices, quality, and reliability.
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The key aim of this paper is to evaluate and apply different models and theories in this airline simulation over the 12 quarters to develop effective strategies and make effective business decisions. As this airline simulation has been operating in a very competitive marketplace, its paper also focuses on understanding and analyzing the competitive situation of Titan Airline. In addition, the business environment (both internal and external), dynamic marketplace and industry trends, customer changing needs, and expectations are analyzed to make strategic and management decisions for Titan Airline. Finally, this paper describes the learning and experiences gained through this airline simulation, reflects the effectiveness of models and theories applied in making decisions for Titan Airline, and defines strengths of Titan Airline, and the areas that Titan Airline should improve.
As the Titan Airline simulation has been facing aggressive rivals and a competitive marketplace, several decisions have been made to develop effective business strategies over 12 quarters. The decisions and strategies developed over 12 quarters mainly focused on marketing, fare, fleet and routes, compensation, corporate activities, and financial issues of Titan Airline. A number of models and theories have been applied to make a decision and develop strategies for Titan Airline over 12 quarters. The key models used in this airline simulation are Porter’s Five Forces Model, Porter’s Generic Strategic Model, Marketing Mix (4Ps), SWOT analysis, and Ansoff’s Growth Matrix. In addition, Titan Airline’s financial situations (mainly net profit and stock price) have been analyzed to understand its performance and future growth in the competitive marketplace.