The aim of this paper is to assess and imply different models for Classic Airline simulation over the 12 quarters. In the process of making the strategies and decisions for the company, many factors were focused. Those are fare, fleet, and routes, marketing, corporate activities, as well as financial issues of Classic Airlines. Skywards Airlines, Air Giants, Delight Airline, and Dream Air are the major adversary of Classic Airlines. This serious and tough competition impacts the customer bases, stock price, profit, and revenue of Classic Airlines. Therefore, according to Porter’s five forces model, Classic Airlines is in a very high rivalry market position. The buying power of the customers is also higher.
The demand for fuels increased the price of oil, and airplane costs are also higher. For this, the supplier power of Classic Airlines is also higher. Classic Airline’s profit, revenue, stock, and price are impacted by these factors. In the case of newcomers, to establish their business in the market in comparison to the already established companies, they need a huge amount of capital, knowledge, and information on business and a lot of effort. For this, the threats from the newcomers are comparatively low for Classic Airlines. Threats of substitutes are low because, in comparison to the service of Classic Airline, the train or other transportations are slower in case of long-distance. According to Porter’s Generic Strategic Model have been presenting five types of pricing to their customers. Due to these differences in the prices, Classic Airline has the flexibility to do the targeting and segmentation of their customers.
Classic Airlines tried their level best to make the most effective strategies for their business to sustain in this competitive market. They introduced product variations through economic offerings, in spite of luxury offerings. Then Classic Airlines has offered its customers a cheaper price for their service. Here they have implied the cost leadership strategies. According to the marketing mix, Classic Airlines was able to make effective pricing of products and promotional works for its brand image. According to Ansoff’s Growth Matrix from the 3rd quarter, we started to follow the marker permeation strategies. In the 3rd quarter, we launched 3 more planes. However, in the 4th quarter, we sold one of the planes. Then again in the 7th and 10th quarters, we added two and two total four planes. In this service, we only offered economical service. No luxury services were offered by them. They settled their price at a very minimum level compared to our opponents.
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.
In creating efficient business decisions the role of the simulation method is very important. Through this technique, many factors get developed. The factors are the skill of management, strategic thinking process, perspective about business, financial understanding of marketing, skills of leadership, and team-building skills. This case of airline simulation helped us to clear our perception, increase our knowledge and experiences in the business. Classic Airlines is the name of our chosen airline company. Our team included several members who operated in the Classic Airline for more than 12 quarters. Our main responsibilities were to make efficient decisions and do alternations in the decisions according to the need for improving the performance of the Classic Airline’s business.
The main goal of this paper is to assess and imply various theories and models in the simulation of Classic Airlines over 12 quarters for improving their business strategies and make proficient decisions of the business. Classic Airlines operates its business in a very competitive marketing place. They have many competitors in the market. For this, the paper also concentrates on the competitive circumstance of Classic Airlines by analysis and assessment.
Moreover, to make strategies and efficient business decisions for airline simulation the internal and external environment of business, market trend, customer demands are analyzed. Then this paper discusses the learning outcomes and proficiencies achieve by the airline simulations. Then this paper conducts a reflection of the efficiencies of the model used in the analysis. Then through this paper, the strength and weaknesses of Classic Airlines are discussed. Finally, this paper provides recommendations for Classic Airlines for their improvement and development of strategy making and decision making.
To improve the business strategies, numbers of decisions need to be made. In the process of making the strategies and decisions for the company many factors needed to be focused on. Those are fare, fleet, and routes, marketing, corporate activities, as well as financial issues of Classic Airlines. To make the strategies and the decisions many theories and models are considered and studied. The key models which are going to be used in this airline simulation are SWOT analysis, Ansoff’s Growth Matrix, Porter’s Five Forces Model, Marketing Mix (4Ps), as well as Porter’s Generic Strategic Model. Moreover, to understand the future state and business performance of Classic Airline, the financial states are also needed to be analyzed.
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2.1 Porter’s Five Forces Model
To identify the competitive status of Classic Airlines, we utilized Porter’s five forces model. Kotler et al. (2015) suggested that to assess the development of strategies of the business, Porter’s five forces model is one of the most popular models used all over the world. In this model, five major forces are been concentrated. These five forces point out the intensity of rivalry, the charm of the market, and industries’ capacity to do a profit. Jurevicius (2013) disclosed that Porter’s five forces model is very beneficial for the business to take efficacious decisions against their rivals.
Moreover, this model helps to make the challenges into opportunities for the company. However, Johnson et al. (2015) revealed that, despite many benefits, this model has some limitations. One of the major limitations of this model is effectual for the wider industry rather than small businesses. Next, another limitation is this model only concentrates on the qualitative assessment of the strategies of the business. The quantitative assessment is rather ignored in this model. In addition, this model is suitable for only the present situation. Through this model, the optimum industry can not be decided.
Classic Airline’s study discloses that the market place it is operating, it is very competitive for the business. Skywards Airlines, AirGiants, Delight Airline, and Dream Air are the major adversary of Classic Airlines. This serious and tough competition impacts the customer bases, stock price, profit, and revenue of Classic Airlines. Therefore, according to Porter’s five forces model, Classic Airlines is in a very high rivalry market position. Next, the purchasing power of the customers is very high in the case of Classic Airlines. The reason behind this high power is, the customers have many choices in the market of similar products of quality, prices, and virtue.
Due to the higher demand for fuel, the higher price of the oil, and the increased cost of the airplanes suppliers’ powers are also superior. Nevertheless, threats from the newcomers in the case of Classic Airlines are very low. This is because to establish the new business in the market like the already settled business, the newcomers need a high amount of investments, information, and understanding of business and large efforts to be successful in the market. In addition, threats from the substitute are also low because the demand for airlines is more than the train or other transportations………………
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