Category: Airlines

Introduction

Various reasons explain the rapid growth and development of Qatar airlines ranging from the internal factors to the factors emanating from the external environment. Since its re-inauguration, the airline has seen tremendous growth to approximately 140 destinations globally. Factors that have been cited as the major contributors to this growth and development include excellent service delivery, sound management, government support, and industrial environment. Besides, the firm has relied heavily on the new technological advancements and highly professional workforce both in the management and in junior staff positions. While these factors remain to be integral in the growth and development of the airline, the provision of high-quality services has played a critical role (Fojt 25). In other words, the airline is committed to offering high-quality services in addition to an increased level of efficiency.

Essentially, the airline has fully identified and utilized its competencies to build, maintain, and grow its position in the marketplace. Competencies such as increased technological advancements, skills, and professionalism of the workforce and the financial support from the government have primarily been used to ensure the quality of service delivery, which is the major source of its competitive advantage (Fojt 25). In a highly competitive environment such as in the airline industry, identifying factors that provide competitive edge remain critical, particularly in capturing increased market share. As such, Qatar airlines have fully utilized their competencies that provide this competitive edge in order to capture a sizeable market share.

The history of the airline

Based in Doha, the airline is the national carrier of the state of Qatar. Besides, the airline represents one of the big success stories in the highly competitive aviation industry. The airline started its operations way back in 1994 as a regional carrier offering fewer services to only a small number of routes (Fojt 25). In 1997, the countrys top leader championed the re-launch of the airline with a vision of turning the national carrier into an excellent and international airline offering quality services to its clients. Since its re-launch, the airline has recorded constant higher growth with unprecedented expansion.

Besides, dynamic leadership has contributed to its growth. Essentially, the transformational and dynamic management of the CEO has greatly contributed to the airlines rapid growth into a renowned excellent airline. Under the management, the airline has been transformed into the leading force, particularly within the region and in the global stage, offering excellent and standard services to its clients (Fojt 25). In 2011, the airline attained a landmark by reaching over 100 destinations globally as well as obtaining delivery of over 100 aircraft. The achievement is an incredible accomplishment within just fourteen years of its re-launch. By 2013, the airline has already developed a global network covering over 140 destinations, particularly within the Middle East as well as in South Asia and Asia Pacific. Other destinations are found in Africa, Europe, North and South America. The airline is also equipped with a modern fleet of over 130 passengers and cargo aircrafts.

Reasons for the growth of the airline according to Porters diamond model

Factor conditions

Various factors have contributed to the growth of the airline from a mere regional carrier to internationally recognized airline with over 140 destinations. Factors such as the utilization of highly professional and skilled labor, infrastructure and advanced technology have enabled the airline to offer high quality services, which in effect has led to the capture of a sizable market share within the global market (Márkus 150). In fact, both internal and external factors have contributed to the firms increased competitive advantage.

Competent and dynamic management

The management of the firm is one of the major factors that have contributed hugely to its rapid growth and development. Essentially, the management competency has greatly contributed to the sustained growth in terms of revenue and profitability. The management competencies are not only found at the top levels of the firm but also at middle and junior levels. However, the top management is highly focused on the strategies that are geared towards growth and development of the airline. In other words, the management practices and activities are aimed at improving revenue and profitability growth as well as expansion.

In developing the strategic goal of the firm, the management considered existing opportunities within the core businesses of the airline. Besides, the management sufficiently considered existing opportunities in areas adjacent to the core business of the airline such as new customer sub-segment. Moreover, the airline management came up with an infrastructure that supports appropriate execution of the firms strategies.

Essentially, besides the capabilities and the transformational management style of the top manager, the strategic goals and supportive infrastructure has contributed to the rapid growth of the airline within the industry. The management of the airline has focused on three main areas including strengthening leadership practices at all levels, creating customer-focused strategies and effective execution of the stratagems. Within the leadership practices, the firm has emphasized on three growth areas including expansion in customer sub-segments, growing the core business areas as well as in the adjacent opportunities. The strategies have aided the firm to build the internal organizational capabilities and performing management, which is critical for growth and expansion of the airline. Generally, the management capabilities with focused strategies have contributed hugely to the growth of the airline.

Supportive infrastructures

The growth of the airline has also been greatly supported by the available physical and management infrastructures. In terms of physical infrastructure, the airlines operations have been supported by the expanded Hamad international airport with initial capacity of over 30 million passengers. The modern and state of the art airport is expected to be enlarged and upon completion, its capacity will increase to over 50 million passengers on a yearly basis.

The increased capacity of the airport and its capability of handling many passengers have enabled the airline to increase its efficiency in handling the ever-increasing passenger traffic, which in turn has contributed to the increased client base. Besides, Qatar airline is the only airline in the region with the youngest fleet and an average aircraft age of below four years. The youngest fleet consists of the modern aircrafts that provide the passengers with increased comfort and luxury, an experience that can only be found within the airline.

Besides, at the management level, the firm has come up with standardized infrastructure that has supported the execution of its strategies. The management has achieved this development through the elimination of various departmental and regional hurdles that prevent the execution of the growth policies. Besides, the firm has continuously applied the leading indicators as well as the performance drivers that are aligned to the growth strategies. Further, the airline has ensured the growth of leadership capabilities at every level whether in managerial and non-managerial positions. The managerial or non-physical infrastructure has contributed hugely to the development and growth of the airline. Besides, the non-physical infrastructures are one of the major managerial competencies that have increased the firms competitive advantage over its rivals.

Advanced technology

The firm has appropriately applied the prevailing advanced technological knowhow to deliver excellent and quality services. The service offerings through technological platform have propelled the airline into the global stage. Most of the airline services can be delivered online including flight bookings and other information such as departure time. The online services have enabled the clients to get any information concerning flight bookings, prices, luggage collective onboard services as well as arrival/departure times all over the globe. Essentially, the online platform through the firms website has increased the level in which the firms clients can obtain and access information conveniently. In other words, the technological platform has increased the efficiency and effectiveness in information delivery. The convenience created by the application of new technological advancements is one of the service qualities, which in turn has contributed to the growth of a large pool of clientele.

According to the industry specific studies, clients prefer the convenience and quality in the service delivery. In fact, the airline attained the level of offering 5-star travel experience online where customers can easily book their flights and search for more information anywhere and anytime around the globe. The new site has increased the rate of price transparency and access to information regarding new flight deals. The technological applications have come with increased customer experience that continues to attract a large number of clientele.

The demand conditions

The nature of demand in the aviation industry requires considering both the quality and quantity in terms of services being provided and capacity. The reason is that the demand of the industry is highly sophisticated with ever-increasing knowledgeable clients and their changing needs as well as the economic hurdles that have contributed to the reduced capacities of the passengers. Therefore, pricing and quality remain to be the major drivers of growth and expansion of firms operating within the industry.

Provision of quality services and products

The Qatar airline has been focusing on the provision of quality services and products to its clients. In fact, the quality service delivery is one of the strategies that have contributed hugely towards the growth and development of the airline. Besides, the airline has ensured efficiency and effectiveness in handling passenger traffic, improved onboard services as well as luggage handling procedures. Moreover, the airline has focused on the customer-oriented strategies that have led to the improvement of certain areas such as effective luggage collection.

In order to be distinct from other firms, the airline has provided its services online. All the service areas and information are available to the clients online. The availability of information online has drastically reduced the time and expenses related to the search of information. The provision of services online has greatly contributed to increased efficiency in service delivery. Quality and effective service delivery are one of the critical competencies that contribute hugely to increased competitive advantage to the firm. Generally, the airline service delivery including the management of information concerning departure/arrival time, luggage collection, onboard services as well as rout availability has been ranked as the most effective within the industry.

The pricing strategies

With the constant declining economic conditions, clients have continuously become more sensitive to prices not only in the aviation industry but also in other industries. Currently, fair prices are one of the major drivers of demand in the aviation industry. In fact, the Qatar airline provides flexible fare prices in all its classes particularly in the economy category. Besides the class categorization, ticket prices are also pegged on other variables that result in the reduction of fares. Besides, the airlines cargo prices are also fair compared with other airlines in the region. The fair prices combined with increased quality have contributed hugely to the growth of the airline passengers in almost all regions across the globe.

Related and supportive industries

The nature of national conditions that determine the creation, organization and management of the airline as well as the level of domestic and regional competition has played a critical role in the growth and development of the firm (Porter 79). The capabilities of the top leadership of the airline, the use of highly competent and skilled labor, the application of technology as well as the supportive oil and gas industry has propelled the growth and development of the airline.

The firms strategy, structure and competition

The firms focus on the customer-oriented strategies, safety policies as well as the corporate social responsibility has also contributed to its rapid growth and expansion (Fojt 26). Customer oriented strategies and safety policies have resulted in the production of high quality services while corporate social responsibility has increased the relationship the firm has with the communities and governments in which it operates. The commitment of the firm towards the greener energy and reduction of carbon emissions as part of its corporate social responsibility has also enhanced its good relations with the larger global community.

Chance events

Other factors outside the control of the government and industry such as the fundamental technological innovations, unexpected changes of oil prices as well as economic conditions has also influenced the growth of the firm (Porter 84). In fact, the firms capability of identifying these variables and gaining full control as well as appropriate application has propelled its growth and development. For instance, the firm has used new technological advancements in aviation and Information Technology (IT) industries to improve the quality of its service delivery.

Government support

Since its re-launch, the airline has received enormous government support in all fronts including finance and infrastructure development. The government of Qatar through its top leadership has provided the necessary requirements to support the growth of the airline from a mere national and regional carrier to an international airline with increased quality in service delivery. The vision of the top leadership is to turn the original regional airline into a global carrier with improved quality service delivery. As such, the government together with top management of the airline developed strategies and policies aimed at achieving the goal.

Conclusion

As indicated, various factors have contributed to the growth of the airline ranging from the competent and dynamic leadership of the top manager to government policies and strategies geared towards attaining the strategic goals. Most importantly, improved service delivery, competency of the management, technological advancements as well as government support has propelled the firm into a renowned global airline with over 140 destinations and largest number of fleets. Generally, these factors have contributed to the rapid growth of the firm both in terms of revenue and profitability and in terms of geographical coverage as well as fleet size.

Works Cited

Fojt, Martin. The Airline Industry. Bingley, UK: Emerald Group Publishing, 2006. Print.

Márkus, Gábor. Measuring Company Level Competitiveness in Porters Diamond Model Framework. Business Science Review, 3.1 (2008):149-158. Print.

Porter, Michael. The Five Competitive Forces that Shape Strategy. Harvard Business Review, 86.1 (2008): 78-93. Print.

Introduction

Emirates Airline has developed an award-winning loyalty program alongside Flydubai. The intention is to change how customers experience the world by offering them a chance to win miles when they purchase tickets and deciding how to spend them (Emirates, n.d.; ALL, n.d.; Saleh, 2021). The customers earn reward miles on their tickets based on the distance flown and the class as opposed to the ticket cost (Rawson, 2021; Steinberg, 2021). The program can be described as revolutionary because of the effect it will have on the companys reputation and marketing potential. The program has been associated with other such benefits as exclusive deals for consumers at over 500 retail, recreational, and dining attractions across Dubai (TTR Weekly, 2021; THISDAY, 2021). Considering the nature of this program, it is important to explore how the external and internal environment affects the companys marketing mix associated with it. A key point to note is that the loyalty program can be regarded as a marketing tool, which means that the analysis of the business environment will focus on how the program affects the marketing mix of the actual services offered by the Emirates.

External Environment

Competitive Environment

The Skyward program of the Emirates Airlines can be considered to be a leading loyalty programs offering benefits similar or better to most those offered by competitors. Porters five forced of competition can be used to assess the competitive environment by focusing on the threat of new entrants, bargaining power of buyers and sellers, competitive rivalry, and threat of substitutes (Adamkasi, 2018). Barriers to entry are low because many airlines can easily develop and fund loyalty programs. Airlines have formed partnerships to offer customers useful benefits. Example include the TrueBlue program that brings together such partners as Icelandair, Emirates, JetBlue, JetSuiteX, and South African Airlines (TravelPerk, 2021). Even though the bargaining power of consumers is relatively low, they can demand quality services and constantly go for relatively cheaper options (Pride & Farrell, 2016). The bargaining power of suppliers is very high considering only two major firms, Boeing and Airbus, supply aircraft. Emirates Airline has developed close ties with both to help it get the best products for a better customer experience (The Emirates Group, 2018). However, pricing decisions are entirely controlled by the suppliers as they compete with each other.

The threat of substitutes is high because customers are spoilt for choice when selecting loyalty programs. However, competition remains stiff between Emirates and such competitors as Etihad, Turkish Airlines, and Qatar Airlines, all of which have loyalty programs (Owler, n.d.; Craft, n.d.). Therefore, competitive rivalry can be considered to be relatively high because these companies compete to develop the best program to offer their customers. However, Emirates copes with the competition by creating new partnerships and alliances with other airlines and other businesses in the aviation industry (Stawski, 2021; TTR Weekly, 2021; Orban, 2021). The partnerships help reduce the pressure and aid the company is exploring opportunities for mutual benefits.

Political/Regulatory Environment

The Emirates Airline enjoys massive support from the government, which gives it a conducive political and regulatory environment. Firstly, the company is a property of Dubai, which saw the government inject over $2 billion into the firm in 2020 (Adamkasi, 2017; Rahman, 2020). However, global operations are affected by political stability, including such destabilizing events as terror attacks and Brexit (Shehata, 2021). Loyalty programs face little pressure from governments and the Emirates Skywards can be implemented across multiple countries.

Social Environment

The Emirates Airline is affected by the demographic changes taking place across all the markets it serves. In the United Arab Emirates (UAE), a growing population means more demand for its services (Mirza, 2021). Even though predominantly Muslim, the UAE is increasingly becoming a multicultural region, which means the companys operations and culture have to adapt (Emirates, 2019; Kaddoura, 2019). Lastly, Dubai is a world-class entertainment and shopping destination, which helps bring customers from the regional tourism industry. Despite the class differences, the Emirates Skywards appeals to all customers served by the company.

Economic Environment

The economic environment facing the Emirates Skywards program is connected to the companys overall operations. The Emirates Airline faces a favorable economic environment in the UAE. The company is tied with other major industries that contribute significantly to regional growth. Additionally, the economic growth of the region means that more consumers with high disposable incomes. Most importantly, the growing tourism business in the UAE makes Emirates Airlines among the most-demanded airline providers in the region (Carvalho, 2021; Al Saed, Upadhya, and Saleh, 2020; Emirates, 2021). The company responds by offering better services, which includes the Skywards loyalty program that offers special benefits to loyal customers.

Technological Environment

The airline industry is often massively affected by technological developments involving various aspects of its operations. Technology is quite volatile, which means that airlines are forced to keep adapting (Future Travel Experience, 2020; Euro news, 2021; Fast Company, 2021). The Emirates Skywards can be considered a technological innovation because it automates several processes involved in awarding and redeeming to loyal customers. Emirates Skywards program is part of those technologies accelerating digitization of customer service. (International Airport Review, 2021; Emirates, 2019; Wilson, 2021). While some technologies are enforced by the market forces and regulatory environment, others are intended to help revolutionize the services offered by the company.

Internal Environment

The Emirate Airline is an aviation company offering both domestic and international flights. The companys philosophy has been described by its president, Sir Tim Clark, as aeropolitical multilateralism supported by liberal air access where the protection of national carriers no longer yields positive cost-benefit results (Emirates, n.d.). Therefore, it can be argued that the company seeks to continually expand in the international airline market as illustrated by the newly launched flight to Tel Aviv (Desk, 2021; Paul, 2021). Additionally, the company also increased capacities to such destinations as Melbourne (Rao, 2021). The geographical expansion has been in the form of venturing into new markets and serving more destinations, which can be viewed as the implementation of the liberal air access philosophy. The Emirates Skywards is facilitated by these internal environmental factors. For example, the global expansion means that the loyalty program is offered to clients across multiple national borders.

Other aspects of the internal environment include the companys resources and core competencies that offer a competitive edge in the market. A strong brand name and identity are critical for many businesses. In the case of Emirates, its brand has grown in value to reach US$7.7 billion in 2016, which illustrates the companys financial strength (Emirates, 2016). The subscription to the Emirates Skyward loyalty program is also evidence of the strong brand identity as the membership has already surpassed 27 million (Gosai, 2021). Many of the subscribers are from the United States (10%), which illustrates how the brand has been embraced globally.

From a marketing perspective, Emirates Skywards several core competencies that help drive its growth. The strategies used involve segmentation, positioning, and targeting. Value-based positioning makes Emirates one of the best brands associated with quality services. Across these strategies, the program has been designed to appeal to all markets, from luxury to economy. Targeting is majorly done to attract specific niches and groups of potential customers (Shamsul, 2021). Most importantly, the newly-launched Skyward loyalty program illustrates the companys commitment towards its consumers and the desire to keep all its loyal customers. The program has been designed to compete in a market where rapid rewards are becoming an integral part of loyalty programs.

Marketing Mix

Product

The Emirates is an airlines business, which means flights are its core service. The external environment exerts competitive pressure on the company as illustrated by high competitive rivalry. Therefore, the company has adapted its services to remain the most competitive. Examples include personalized videos across all classes. Additionally, multiple cabin modifications have been made to make all its planes more aesthetically and functionally appealing than its competitors (Bhasin, 2019). Other aspects include better healthcare and housing for customers and employees. A global network means that the company has a larger outreach and can serve multiple markets. Lastly, the Skyward loyalty program means extra services can be offered to customers who have earned many miles on their cards.

Price

Dubai can be considered to be the main link between the east and west, which means that major carriers would be competing for customers. The Emirates does so by offering low-cost tickets as compared to rivals. Even though the bargaining power of buyers is relatively low, the consumers often prefer cheaper alternatives and those with higher perceived quality. Emirates pricing across all routes follows the same low-cost strategy (Bhasin, 2019). The UAE society is also highly varied, which means that the company has to use flexible pricing to accommodate everyone. As such, premium pricing for customers demanding luxury and exclusivity is also offered.

Promotion

Emirates engages in extensive marketing practices comprising major ad campaigns that address current issues. For example, the #StaySafe#StayHome campaign has become a major hit due to its important safety message on the coronavirus pandemic (Menon, 2021). Other slogans include the Fly Emirates. Keep Discovering, which appeals to many. The promotional campaigns are necessitated by both the competition and the economic factors, including growth in such industries as tourism. Internally, the companys resources and global brand identity sustain the campaigns and the companys reputation.

Place

The Emirates serves multiple destinations across the world and manages all its operations. Dubai is the hub of the company but over 80 countries can be served by daily flights, which is facilitated by the Emirates philosophy. Customers often book online, which illustrates the influence of technology and internal competence in adapting and innovating to serve customers better (Rahman, 2020). Additionally, agents are strategically located across all destinations to help improve customer service.

People, Process, and Physical Evidence

These three aspects of the marketing mix can also be visible in the companys activities and the influence of the internal and external environment is also apparent. For example, a diverse workforce can address multiculturalism and employee training and development manifests core competencies. The processes are also varied to include flight booking, customer service, and customer management illustrated by the Skyward loyalty program. Lastly, the physical evidence includes its facilities and planes, which have all been designed to improve both physical and aesthetic appeal.

Recommendations and Conclusion

The Skyward loyalty program can be described as a prudent move by the company because it has massive competitive potential for the company. Based on the external and internal analysis, the first recommendation is that Emirates should also include all partner airlines in the loyalty program. The mutual benefits by all partners should be followed by joint loyalty programs to create a level of standardization across the marketing activities. The second recommendation involved technology adaptation where innovations should also be incorporated. Today, such technologies as virtual and integrated reality have become a key part of many businesses operations. Emirates should find new applications for them to remain ahead of the competition.

Overall, the Emirates Skywards loyalty program can be described as a prudent move by businesses that face high competitive pressure. The external and internal environments reveal that the company faces a relatively favorable operating environment. The few challenges encountered can be addressed and should not have any devastating effects. As a global brand, Emirates Skywards program should allow the company to attract the new client and maintain the current ones.

List of References

Adamkasi (2017) PESTLE-PESTEL analysis of Emirates Airlines. 

Adamkasi, 2018. Porters five forced of Emirates Airlines. 

Al Saed, R. (2020) Role of airline promotion activities in destination branding: case of Dubai vis-à-vis Emirates Airline, European Research on Management and Business Economics, 26(3), pp. 121-126.

ALL (n.d.) Emirates Skywards: the award-winning loyalty programme of Emirates Airline. 

Bhasin, H. (2019) Marketing mix of Emirates airlines  Emirates marketing mix. 

Carvalho, S. (2021) Aviation and tourisms share to UAE GDP seen at $128 billion in 20-years: IATA. 

Craft (n.d.) Emirates competitors. 

Desk, W. (2021) Dubai flights: Emirates to launch daily service to Tel Aviv from December 6. 

Emirates (2016) Emirates brand value grows 17% to reach US$7.7 billion. 

Emirates (2019) 145 nationalities and a kaleidoscope of cultures come together to make history on EK 2019. 

Emirates (2019) Emirates uses advanced navigation technology to increase cargo capacity to Kabul. 

Emirates (2021) Emirates forges partnership with Indonesia to support tourism industry recovery. 

Emirates (n.d.) Emirates Skywards. 

Emirates (n.d.) Our business model. 

Euro news, 2021. How technology is helping airline businesses bounce back from COVID. 

Fast Company (2021) Proactive tech strategies for airlines to succeed after COVID-19.

Future Travel Experience (2020) 12 technology trends for airlines and airports to focus on in 2020. 

Gosai, H. (2021) Opinion: a look at Emirates Skywards loyalty program. 

International Airport Review (2021) Emirates accelerates digital innovation for passengers. 

Kaddoura, M. (2019) Emirates Airline celebrates UAE National Day with the most nationalities on an aircraft. 

Menon, N., 2021. Emirates Airlines ad campaign: do you remember? 

Mirza, A. (2021) Five-year average population growth rate in the United Arab Emirates from 1950 to 2020. 

Orban, A. (2021) Emirates signs Memorandum of Understanding for codesharing with Garuda Indonesia. 

Owler (n.d.) Emirates.

Paul, M. (2021) Emirates launches daily flights to Tel Aviv from 6 December. 

Pride, W. and Farrell, O. (2016) Foundations of marketing. Boston: Cengage Learning.

Rahman, M. (2020) Marketing mix of Emirates Airline. 

Rahman, M. (2020) PESTEL analysis of Emirates Airline. 

Rao, S. (2021) Emirates offers new daily flights, 1000 extra seats from Melbourne to Dubai from December 2. 

Rawson, C. (2021) The guide to Emirates Skywards. 

Saleh, A. (2021) Emirates, flydubai mark four years of strategic partnership. 

Shamsul, 2021. Emirates marketing strategy. 

Shehata, I., 2021. Emirates Airlines: tough business conditions. 

Stawski, B. (2021) Discussing award availability, airline partnerships and more: the latest from Emirates Skywards. 

Steinberg, E. (2021) Everything you need to know about Emirates Skywards. 

The Emirates Group (2018) The Emirates Group annual report 2017-18. Dubai: The Emirates Group.

THISDAY (2021) Emirates Skywards launches exclusive offers. 

TTR Weekly (2021) Emirates inks codeshare deal with Garuda. 

TTR Weekly (2021) Emirates launches fare deals for families. 

Wilson, J. (2021) Technology take off for Emirates Airline. 

The airline market in Australia has a monopolistic market structure. Monopolistic market structures are made up of a few enterprises that operate in a comparable market and provide similar but differentiated items to a large number of clients (Bertoletti & Etro, 2017). They set their prices depending on their market share and the degree of demand generated by each differentiated product. With a market share of 38.2 percent, Qantas Airways is the largest stable airline business in the economy, followed by Virgin Australia at 30.9 percent of total economic airline performance (Ma et al., 2019). Jetstar Airways is a competing and emerging company that is attempting to gain a significant market share.

Within the domestic destinations, there are more than two airline firms operating airline services. These airlines have minimal negotiating leverage on pricing and supply models. As a result, they cannot generate excessive profits in the short run and are all market price makers (Ma et al., 2019). These airlines capacity to set their pricing is dependent on the elasticity of the demand model. There is no market concentration since there are just a few airlines that serve the whole countrys economy. Qantas is the leading airline business in this economy and has a competitive advantage over other similar enterprises. This allows the company to make sensible decisions about ticket prices and advertising methods. Based on the businesss market share, it can be assumed that the firm charges comparatively low-ticket prices, which results in large client subscriptions and rising income over time. Increased revenue and operating profits are reinvested back into the company to expand operations and maintain the highest market share and stock in Australias airline sector.

According to economic theory, price and supply have a direct relationship: as the price of a product rises, more businesses will enter the sector, increasing the supply of items in the market. This causes the supply curve to move to the right. In the case of oil, prices do not affect demand or supply. Because oil is used in every area of the economy, its need is never reduced.

If oil prices suddenly rise, demand for the commodity will fall. Consumer disposable income will fall if transportation costs or industrial operating costs rise as a result of price increases (Prest, 2018). This circumstance produces losses in industry and reduces supply. Government income will rise since the government will pursue a contractionary strategy during such times. Looking at the demand curve, price elasticities are seen to vary at different locations along the curve, with some price being extremely elastic while others are inelastic. An inverse demand function has constant elasticity in relation to price (Chung & Lee 2017). If demand is elastic, any price adjustment has a greater influence on demand. If demand is inelastic, a price change will have no effect on the products demand.

References

Bertoletti, P., & Etro, F. (2017). Monopolistic competition when income matters. The Economic Journal, 127(603), 1217-1243.

Chung, H., & Lee, E. (2017). Asymmetric relationships with symmetric suppliers: Strategic choice of supply chain price leadership in a competitive market. European Journal of Operational Research, 259(2), 564-575.

Ma, W., Wang, Q., Yang, H., & Zhang, Y. (2019). An analysis of price competition and price wars in Australias domestic airline market. Transport Policy, 81, 163-172.

Prest, B. C. (2018). Explanations for the 2014 oil price decline: Supply or demand. Energy Economics, 74, 63-75.

Abstract

The blistering rise of digital devices preconditioned the increased importance of IT technologies for the functioning of the majority of organizations and corporations. In this regard, the given paper is devoted to the precise investigation of the main aspects of a certain company that benefits from the exploration of the innovative approaches and their implementation in its functioning. British Airways is chosen as the background for the given analysis. At the moment, the company is considered a successful business venture characterized by a great level of income and stable revenues. That is why the paper provides a comprehensive analysis of its business environment, the companys strengths and weaknesses, its perspectives, and strategies. Moreover, the possible ways of the implementation of the most advanced IT technologies into its functioning are also suggested. The given report also contributes to the improved understanding of the importance of the usage of new strategies and practices to gain a certain competitive advantage and guarantee the further evolution of the company.

Introduction

The rise of technologies and their great importance for the evolution of the modern business preconditioned the appearance of a new pattern and method to organize the functioning of a certain company to guarantee the acquisition of significant competitive advantage. The great level of rivalry also impacts the shift of priorities towards the adherence to new and unique approaches that could help a company to survive and create the new model that could rest on IT technologies and the opportunities provided by them. Therefore, a number of various corporations have already recognized the unique importance of IT technologies and numerous advantages they could suggest. However, every company has its unique profile that contributes to the appearance of specific features that should be minded when creating a strategy that could help to become successful and continue the gradual evolution. The comprehensive investigation of the company with the help of various tools like PESTEL or Porters value chain analysis becomes crucial for the creation of an efficient strategy needed to shift priorities.

Company Background

British Airways is the flag carrier and the greatest airline in the United Kingdom (Fleet facts n.d). It is headquartered in Waterside not far from its main hub at London Heathrow Airport. The company was organized by the UK government in 1972 with the main aim to manage two nationalized airline corporations which were British Overseas Airways Corporation and British European Airways, and several smaller local companies (History and heritage n.d). All these companies were reorganized in British Airways that had to satisfy the existing needs for transportation. The newly created company demonstrated good paces of its rise and managed to become the most significant and influential carrier of the UK. In 1987 the company was privatized. At the moment it is a founding member of Oneworld airline alliance that also comprises American Airlines, Cathay Pacific, Qantas (Fleet facts n.d).

The company has about 40000 employees including 15000 cabin crew, 3600 pilots, 5500 engineers (Company information n.d). The companys current total revenue is about £11.333 million which is 3,3 percent over the previous year (British Airways Plc 2015). It means that it still evolves and explores numerous opportunities for further growth. British Airways suggests a wide range of services for its clients. These are the transportation of passengers and cargos to the majority of states all over the world. Passengers are provided with an opportunity to choose various levels of service. They are able to buy tickets to business class, economy class, etc. There are also booking services that help to assure that tickets will be available at the needed period of time. Altogether, the company is ready to provide its customers with a set of services that are needed for their satisfaction and comfortable transportation.

Business Processes

Therefore, British Airways experiences the impact of the current market environment. First, the current economic conditions are considered complex. The aftermath of the crisis is still significant and could not but affect the company. However, the UK could be characterized by the stable financial sector. Among the countries of the EU, the UK is considered one of the most powerful ones. For this reason, British Airways has good perspectives related to its further evolution and rise. Technological factors are also important when speaking about the companys environment. British Airways uses modern and comfortable aircraft to satisfy customers needs (Fleet facts n.d). However, there are still several problems related to technological obsolesce. That is why a company should be ready to devote significant funds to the constant improvement of its equipment and aircraft to condition its further rise.

Besides, demographic factors could be considered beneficial as the number of customers increases. Moreover, along with the rise of potential clients, their well-being and paying capacity also grow. It means that they are ready to spend greater sums and use some additional services to make their journey more comfortable. There are still several problems related to the functioning of the company in various areas all over the world; however, there are numerous opportunities for further rise. Finally, social factors also impact the functioning of a company by introducing certain demands to the products and services suggested by British Airways. It tries to satisfy the most important demands by introducing new products and services needed for evolution. However, the application of various assessment tools might help to acquire significant information related to its environment (Chaffey & White 2010). First, a PESTLE analysis could be conducted to investigate the main factors that impact British Airways.

Political factors

Being founded by the government, British Airways still feels its support and great influence. The company is the major carrier of the UK, and it performs the bigger part of flights, both domestic and international. Moreover, the government is also able to introduce new taxes and regulations into the sphere.

Economic factors

At the moment, the purchasing power of customers increases and contributes to a greater level of income. The company is characterized by stable and high revenues and the tendency towards their further rise. It means that the current economic situation should be considered positive.

Social factors

The social environment and the existing level of demand on the services impact the companys functioning greatly. If to speak about British Airways, the population of the UK considers it to be a safe and popular carrier whose services could be used to reach a certain place. The popularity of the brand remains high.

Technological factors

The company could be characterized by the great attention given to new technologies and it tends to align the constant reequipment of aircraft. At the moment, there are both new and old planes; however, there is a tendency to introduce new and modern crafts

Legal actors

The company functions in accordance with the existing rules, laws, and regulations (British Airways Factsheet 2016 n.d.). British Airways tend to coordinate all its steps with the government to avoid misunderstandings and conflicts.

Finally, environmental factors also contribute to the further rise of British Airways and are becoming the leader of aviation operations.

Porters Value Chain Analysis

Porters value chain analysis should be performed to obtain some information needed to realize the companys important concerns. When speaking of British Airways, this kind of analysis shows that in general, the company has a well-thought-out value chain that contributes to the improved performance and a stable level of income.

The company has several contracts with the main suppliers. For instance, British Airways cooperate with Boeing to buy aircraft and renew the fleet used to deliver passengers to various destination points. Stable relations with suppliers serve as the key to the successful evolution of the corporation and its success. Moreover, British Airways has an efficient marketing department that is responsible for the cooperation with clients and their satisfaction with the provided services. The quality of these services is controlled by a certain department that should introduce new and the most important demands preconditioned by the alteration of customers interests. However, there are still some problems related to the quality of the cooperation with clients and the level of their satisfaction with British Airways. Some people admit the lack of attention and inability to use the unique services provided by the company (Company information n.d.). That is why there are still some areas that should be altered to guarantee the improvement of the outcomes and its showings.

Altogether, both PESTLE and Porters value chain analysis provide the information which proves the fact that British Airways devotes great attention to the most important aspects of its functioning. This approach helps a company to remain beneficial and support a stable interest in its services. However, there are still some areas that should be altered to guarantee further rise.

There are still some opportunities for the implementation of IT technologies that could be used to gain a certain competitive advantage and contribute to the companys further growth. As PESTLE and Porters supply chain analysis show, the company remains efficient and has numerous perspectives for the rise. However, there are some areas that should be improved. First, new software could be explored to improve the service of online bookings. At the moment, there are several cases when a system collapsed and was not able to satisfy peoples needs (Company information n.d.). For this reason, additional servers combined with the back-up system should also be introduced to guarantee the stable functioning of software that is needed to satisfy customers. Furthermore, it is also possible to suggest the usage of unique IT equipment that is needed to collect customers feedbacks and ideas for innovations. The existing one is also rather efficient; however, it does not contribute to the acquisition of significant competitive advantage.

The new system will help to alter the current state of affairs. It is obvious that customers have a better vision of the nagging problems that might irritate and undermine the companys image. For this reason, they should be provided with an opportunity to express their thoughts and emotions related to the most problematic concerns. Numerous sources evidence that very often ideas provided by customers might help companies to reconsider their functioning in a way that could contribute to the improved outcomes and guarantee that new fresh ideas will be heard and accepted.

Furthermore, the implementation of customer relationship systems (CRM) to plan their interactions with the company and align the stable connection between them could also be considered beneficial. Almost every person has a certain device that could provide access to the Internet or other sites. For this reason, British Airways should obviously introduce a new application that should be available for all platforms, both Windows, Android, iOS. The main aim of this application is to monitor the brands image and customers attitude to it. For instance, an individual should be able to book a ticket to any location using only this application. At the same time, if he/she remains satisfied with the quality of suggested services, he/she could leave a positive feedback that will contribute to the improved companys image. However, in case there are still some problems, a customer might choose the problematic area in the list and indent the issue that results in the appearance of some complications.

Concluding Remarks

The given software will obviously contribute to the improved companys image as customers feel happier and more satisfied when they are provided with an opportunity to impact the evolution of a certain company and contribute to the elimination of complications that are annoying for the rest of users (Chaffey & White 2010). In conclusion, British Airways is obviously able to improve its functioning with the help of the implementation of new technologies that could be used to improve relations with customers and their attitude to the issue.

Reference List

British Airways Factsheet 2016.

British Airways Plc 2015, Annual Report and Accounts 2015, Web.

Chaffey, D & White, G 2010, Business Information Management: Improving Performance Using Information Systems, Financial Times Management, Upper Saddle River.

Company information n.d. Web.

Fleet facts n.d. Web.

History and heritage n.d. Web.

Abstract

Aviation has experienced multiple challenges over the past decade due to economic, political environmental, and sociocultural issues, the pandemic having been one of the major causes of its setback. However, some companies, including Southwest Airlines (SWA), have managed to overcome these challenges by integrating innovative technological solutions. Nevertheless, SWA has been facing significant issues with flight delays, which have been affecting its performance and overall reputation. Thus, a thorough analysis of the issues with the implementation of innovation in the SWA context will be required.

Introduction

The aviation industry has experienced some significant changes recently, causing numerous companies to revisit their stance on multiple issues regarding core management processes. Among these changes, the ones caused by technological innovations and the associated shifts in the coordination of essential aviation-related issues deserve to be listed first. The recent surge of innovative technological ideas and their pervasive nature that has made them percolate into every industry has defined a notable shift in the quality of performance across an array of airline companies, the Southwest Airlines (SWA) being an excellent example. Due to its ability to incorporate innovative technology into its operations, ranging from flights to maintenance to customer communication, SWA has managed to thrive despite the crisis. However, because of the lack of focus on introducing innovative tools for making forecasts and conducting a thorough analysis of the key weather changes, SWA has generated multiple delays across its supply chain. While SWA has been known for its technological innovation in marketing and logistics, the lack of innovative solutions in the management of forecasts-related issues and the identification of key risks associated with delays, the company has been faltering, which proves the importance of introducing innovation homogenously across all performance domains.

Problem

Up until recently, the overall performance of SWA has been nearly perfect, with an impeccable strategy for managing core tasks associated with logistics and operations management. Specifically, the existing accounts of SWAs performance demonstrate the companys excellent score (Tayeb, 2022). The same can be said about SWAs marketing and the related issues (Tayeb, 2022). However, over the past couple of years, the issue of delays has become a particularly pressing concern for SWA, especially as far as its passenger transportations are concerned (Tayeb, 2022). Several recent reports indicate that the issue of delays has been appearing consistently and affecting the customers perception of the company to a significant extent (Tayeb, 2022). Therefore, the problem of delays needs to be examined, particularly, in connection to other aspects of the company performance, specifically, SWAs outstanding use of technological innovations and threated opportunities in cost management marketing, and logistics.

Theoretical Background

To investigate the specifics of SWAs performance in the present-day economy, especially in relation to its use of technological innovations to address current concerns, a theoretical framework base on the innovation Matrix should be used. Namely, the innovation-riven process served at SWA will be placed on the innovation matrix to determine where it stands on the axes of Disruptive vs. Sustaining and Incremental vs. Radical (see Fig. 1). The specified approach will help identify the nature of innovation at SWA ad examine the effects of implementing the specified innovation policy in the corporate setting. Most importantly, the proposed framework will help determine whether the specified type of innovation suits SWAs current business model and needs. Thus, the problem of delays observed in SWAs current performance will be studied thoroughly, with detailed suggestions concerning possible improvements provided.

Purpose and Rationale

The significance of innovation and the tremendous role that it plays in a companys competitiveness and ability to respond to a crisis have become evident over the past decade. Therefore, understanding how organizations can encourage innovation on every level of their performance, as well as what impediments they face when doing so, is central to the further pursuit of incremental progress. Therefore, the analysis of SWAs case is essential for contributing to the specified issue. Namely, considering the streak of success that SWA has been enjoying up until recently, the role that innovation played in it, and the reasons behind the recent deadline-related failures will lead to a better understanding of the issue. Specifically, the outcomes of the analysis will inform the further design of strategies to be adopted in the business environment in order to boost the levels of innovation. More importantly, options for integrating innovations organically into the corporate setting and ensuring that they are aligned seamlessly with corporate standards will be identified. Thus, while studying the nature of SWAs innovation is the core purpose, the rationale is based on the necessity to promote innovation in other organizations as well, making it an integral part of the present-day business context.

Methodology

To identify the main methodological approaches, one must consider the nature of this study closer. Specifically, this study seeks to answer the following questions:

1. What makes SWAs approach to innovation particularly effective?
2. Why has SWA encountered delay-related issues in its SCM recently despite the integration of innovative solutions?
3. What suggestions regarding the improvements to be introduced into the SWA setting can be made?
4. How can the recommendations for SWA be extrapolated onto the broader scope of the aviation industry and the global business setting, in general?

Evidently, the questions above are essentially qualitative in nature. Therefore, the qualitative research methods will have to be applied. The case study research as the approach that examines a specific phenomenon in a real-life context will allow examining the specified issues particularly closely (Ngulube, 2019). In order to achieve the required outcomes, the interpretivist approach and the inductive method will be applied to the study, particularly, data collection and its analysis. Thus, the premises for examining the nature of the phenomenon of innovation in the corporate context will be established.

Furthermore, it is worth noting that, to embrace the full extent of the nature of innovation at SWA, the issue will have to be considered from multiple perspectives. Therefore, a multidimensional framework, particularly, the multi-method qualitative approach, will be utilized. Finally, in order to support the multidimensional approach in question, the use of cross-sectional methodology will be required. Specifically, a combination of information collected with the help of the questionnaire tool to be introduced further and a review of the existing reports and literature will be provided.

The data will be collected from SWA managers and employees to establish the nature and key effects of change observed at the company as innovative approaches were integrated into its performance framework. For this study, twenty (20) participants were selected as a sample size, with staff members being represented by sixteen (16) participants, and the managers being the remaining four (4). The changes observed within the company, as well as the staff members perceptions of these changes, were represented as the key dependent variables, whereas the innovation factor and the approaches to its implementation in the corporate setting were viewed as the main independent variables.

Results

The data collection process has returned mixed results which can be explained by the complexity of the issue and the presence of a certain amount of subjectivity in the responses of the participants. Moreover, the risk of a subjective interpretation of the submitted data in the course of information analysis should also be seen as a major limitation of the study. Nevertheless, the expanded range of research participants and the presence of different data types has helped minimize the probability of core information being misrepresented. S

The responses of the participants have indicated that a substantial portion of SWAs company members were largely unaware of the implications of the innovative solutions adopted at the organization. Specifically, in the course of the thematic analysis of the submitted information, the themes and notions of confusion about the nature of innovation and the manner in which it should be implemented in the corporate context have been raised (35%). Additionally, a significant range of the respondents indicated that the issue of delays has become a major impediment in the functioning of the company and their performance despite the innovative solutions (75%). Specifically, the respondents mentioned that the nature of innovation in the corporate setting has been associated with the following qualities: inconsistency (25%), communication issues (50%), leadership issues (10%), and management concerns (10%). The described outcomes indicate that the absence of tools for seamless incorporation of innovation principles across all departments has been causing disruptions in SWAs performance.

Furthermore, the issue of delays has been raised in connection to the integration of innovative solutions in the corporate context quite frequently. Namely, the questionnaire results prove the presence of a major issue in the target environment. Specifically, the specified response proves that the organization has been struggling to adjust it approach to the context of the present-day aviation environment, particularly, the forecasting issue. Indeed, due to the increased impact of economic, political, financial, technological, and sociocultural obstacles, the emergence of delays in plane arrival is to be expected (Bradford & Scheraga, 2020). However, the current rate as demonstrated in the recent statistical data indicates that SWA has been having problems integrating innovative solutions into its service delivery management, particularly, communication and quality assurance (Bradford & Scheraga, 2020). Therefore, the theme of poor integration of innovation principles into the corporate setting emerges as one of the key issues.

Positive Effects

The range of positive effects of innovative solutions in the SWA context has been quite clear. Baes on the responses of the questionnaire participants, as well as the data recently supplied in reports and the related media, the introduction of innovative solutions has affected DWAs marketing and customer communication. Furthermore, among the positive outcomes of the integrated innovations the overall quality of service has increased (Airline quality rating, 2022). In the 2022 Airline Quality Rating, SWA showed a slight (-1.20%) drop in performance in July, which, compared to other airline companies, landed SWA at the top of the list (Airline quality rating, 2022). Therefore, general improvements in the quality of managing customers needs and technological aspects of the flight process have been evident.

Negative Effects and Their Causes

At the same tie, one must point out the obvious problem with delays observed recently at SWA. Specifically, reports have outlined an evidently negative trend at SWA in relation to delays and the associated cancellations of flights (On-time performance  Reporting operating carrier flight delays at a glance, 2022). Specifically, the percentage of delayed flights has soared lately, reaching a nearly inadmissible level of 23.29% in 2022 (On-time performance  Reporting operating carrier flight delays at a glance, 2022). The specified trend is indicative of a serious problem within the SWA context, which the proposed innovative solutions evidently fail to address. When considering the specified piece of information in conjunction with the staff members and managers commentaries on the issue and the nature of the situation, one will recognize an obvious execution problem. Namely, while some areas of the companys performance, such as marketing and performance maintenance, have been enhanced significantly by innovative technology, others, such as forecasting and communication with core partners allowing to minimize errors and the resulting delays, have been abandoned (On-time performance  Reporting operating carrier flight delays at a glance, 2022).

The described trend indicates the lack of an innovation management framework allowing for a seamless implementation of innovative solutions across the organization. Specifically, SWA needs to recognize the importance of weaving innovation into the very fabric of its corporate performance, decision-making, and business strategy. The proposed solution will allow integrating innovative ideas into every facet of SWAs supply chain, therefore, making it possible for company members and employees to communicate crucial information effectively to all participants and introduce the required changes effectively (On-time performance  Reporting operating carrier flight delays at a glance, 2022). Thus, the issue of delays will be managed accordingly.

Specifically, the existing reports show the lack of innovative solutions being included into the areas of forecasting and communication between different departments of the airlines. In turn, the specified aspects of SWAs performance are central to the proper functioning of the airlines and the delivery of respective services (On-time performance  Reporting operating carrier flight delays at a glance, 2022). Therefore, the inclusion of tools that will allow making innovation an essential part of and premise for any aspect of a companys decision-making must become the main approach to addressing the issue of delays and the related concerns especially pertaining to the quality and security of services. Therefore, based on the matrix above, the nature of innovation within the company can be described as radically disruptive, meaning that it has affected the performance of the company immediately and in a nearly uncontrollable manner. In turn, the shift toward the incrementally sustainable innovation framework is highly desirable in the current situation.

Conclusion

Due to SWAs failure to maintain its innovation as incrementally sustaining and, therefore, integrate it into every facet of its performance management, the organization has been facing major performance quality issues, particularly, in relation to delays. Therefore, it is highly recommended that SWA should incorporate the concept of incremental innovation into its framework and, therefore, encourage an immediate improvement. With the focus on integrating innovation into every facet of the companys performance, one will be able to address the present situation.

Contribution to the Topic

This paper contributes to the topics of aviation and change management in aviation by examining some of the key issues in one of major airline companies. Specifically, the research examines the introduction of innovative practices within an airline company and the [problem of delays observed within it despite the changes. As a result, suggestions concerning possible improvements in the quality of forecasts and the resulting planning, communication, and flight management are offered. Notably, this paper introduces the concepts of blokchain and incremental innovation practices into the aviation context. Specifically, the importance of embracing both technological and organizational factors leading to the development of delays in the corporate context and delivery of relevant services is studied and ultimately, proven in this paper.

Problem Resolution

To introduce innovation into the environment of an airline company as the basic premise for any corporate decision-making, one must consider the integration of blockchain technology principles alongside with the use of AI. Particularly, AR and VR devices as the means of modeling the target environment and making relevant predictions should be considered as a vital step in improving the current issue of delays and quality management, as well as addressing the problem of a drop in customer satisfaction. Specifically, the adoption of blockchain technologies will allow for seamless management of data across the entire supply chain, therefore, delivering essential information from one party to another. As a result, errors and similar issues leading to performance bottlenecks and the resulting delays will be addressed effectively.

Moreover, since a significant portion of responses concerning the introduction of innovative technology into the corporate context has indicated that substantial number of staff members have a very vague idea of the role that these innovations play in the corporate context, respective adjustments must be made to the corporate communication approach. Namely, the role of innovation and the associated issues must be communicated clearly to company members so that they could integrate not only innovative tools but6 also innovation-based philosophy of the organization into their decision-making. Thus, appropriate changes will be made to the aviation context, leading to major improvements in the management of delays and the related issues.

Furthermore for a more seamless integration of the proposed tools into the target setting of aviation, AI-associated innovative solutions, particularly, AR and VR. Must be seen as central to the management of the delay issue. Specifically, increased accuracy in the modelling of possible scenarios and the identification of the available solutions will lead to an improved approach to managing extraneous factors As a result, delays will be avoided in the target context.

Conclusion and Implications

Overall, it is strongly recommended that the focus on maintaining connection between the performances of the departments by incorporating blockchain technologies and the related data management tools should remain a priority. The specified recommendation is true both for the SWA Company and other organizations operating in the aviation sector. Since delays in airlines may be emblematic not only of organizational issues within company, but also security- and safety-related concerns, integrating technologies allowing for seamless data transfer is central for maintaining a companys performance and its positive perception yb7 the target audience. Therefore, blokchain tools and the integration of data management techniques allowing for the active dissemination of information related to forecasts and analysis results, are an indispensable contribution to the improvement in the functioning of the aviation industry.

References

Airline quality rating. (2022). Witchita.edu. Web.

Bradford, B., & Scheraga, C. (2020). Relative Trends in Exogenous Factors Influencing Airline Flight Delays. Journal of Transportation Management, 30(2), 5-21. Web.

Ngulube, P. (2019). Handbook of research on connecting research methods for information science research. IGI Global.

On-time performance  Reporting operating carrier flight delays at a glance. (2022). BTS.gov. Web.

Tayeb, T. (2022). Southwest apologizes and blames technology glitch for hundreds of flight cancellations and more than 1,000 delays. Business Insider. Web.

Introduction

The way companies treat their clients predetermines the perception of the brand by the general public. It is important because the contemporary penetration of social media publicity into everyday life makes every corporate action matter to society. Ultimately, the impact of customer service outcomes is seen in the profits of a company and its presence in the market overall. The quality of customer service is a costly and yet beneficial element of business functioning since it creates long-term value for the organization, trust from clients, and an overall positive reputation. This paper examines the case of United Airlines customer service crisis and aims to analyze and reflect on the relationship between customer service and buyer decision-making.

General Publics Perception of the Situations

The incidents with United Airlines failure to provide adequate customer service to its passengers were negatively perceived by the public. The number of views that the videos published online obtained throughout the time is very large. Indeed, the Sons of Maxwells song was viewed 20 million times, the footage of a man dragged from the plane was watched 4.9 million times, and the Ellen Shows video was viewed 3.9 million times (Business Insider, 2017; Sonsofmaxwell, 2017a; TheEllenShow, 2017).

These numbers indicate bad publicity for the airline company, which ultimately resulted in reputation losses and monetary damage to the organizations financial condition. Moreover, the official response of the CEO only deteriorated the situation since he said that our employees followed established procedures for dealing with situations like this (CNBC, 2017, 00:01:10  00:01:18). Ultimately, peoples outrage and resistance to Uniteds decisions to deny reimbursement for the broken guitar or the wrongful handling of the overbooking situation resulted in a rapid decline in bookings and buying, which had disruptive monetary losses for the company.

Reflection on the Popular Opinion about Uniteds Level of Customer Service

I agree with the popular opinion about the lack of good customer service culture at the organization. I think that the management handled the incidents was unethical because it breached the principles of human safety and well-being, which are fundamental rights of any individual. The companys leadership prioritized profit over people by using such a common loss-minimization practice as flight overbooking. Indeed, in such a manner, airlines manage their perishable seats; yet, it remains a challenge to balance the possible consequences of spoilage and denied boarding (Ma et al., 2019, p. 192). Ultimately, poorly resolved issues with overbooking are costly in terms of reputational losses and stock prices decline. Indeed, as the incidents aftermath showed, United Airlines stock prices and booking rates significantly and rapidly decreased.

It was because the company forgot that their passengers are the people that create the value and make them profitable (Sonsofmaxwell, 2017b, 00:02:02  00:02:06). Thus, the company failed to provide a decent level of customer service and bore logical outcomes.

The Effects of Self-Perception on Customers Decision to Choose United Airlines

When considering the likelihood of consumers buying from United after the analyzed incidents, self-perception plays a significant role in making decisions. According to research, reflecting on and finding meaning in ones choices may be an important step in linking behavior within-group identification and thus the self-concept in turn (Dishon et al., 2017, p. 1). Indeed, since people who are linked to a group use social media activity in unity, their decision to refuse to use United will be viewed as a contribution to a bigger community.

However, there might be other individuals whose self-perception is aligned with compassion and forgiveness. Such individuals are likely to support the company by flying with it after the publication made by United on the change in customer experience. Indeed, the priority in the CEOs discourse shifted from employees in the first announcement to customers in the later one. The CEO stated that every customer deserves to be treated with the highest levels of service and the deepest sense of dignity and respect (United Airlines, 2017, para. 5). In such a manner, the customers who decide to book flights with the company after their apology and change announcement might find the reflection of their self-perception in the organizations longing to improve.

Personal Purchasing Decision Description

As for me, I would not choose United Airlines for flying after the repeated failures to provide decent customer service. When choosing airlines, I am concerned with safety, cost, and quality of service, and I am particularly interested in being treated with dignity while I am on the plane. I perceive myself as a conscientious and determined individual who foresees the outcomes of all actions and decisions. If I chose to fly with United Airlines regardless of their wrongdoings, I would compromise my belief in the greater good, consistency of actions, and prioritizing people over money.

Conclusion

Conclusively, the analysis of the incident with flight overbooking at United Airlines has been a vivid illustration of the essential importance of quality customer service on branding and overall profit-making in the contemporary social-media-driven world. Social media creates an environment that highlights the importance of humane actions in the business world by criticizing unethical corporate decisions. The analyzed case demonstrates that investment in customer service is a beneficial contribution to a companys longevity and long-term customer loyalty.

References

Business Insider. (2017). Video shows a passenger forcibly dragged off a United Airlines plane [Video]. YouTube. Web.

CNBC. (2017). Social media tears apart Uniteds response to the removal of passenger | CNBC [Video]. YouTube. Web.

Dishon, N., Oldmeadow, J. A., Critchley, C., & Kaufman, J. (2017). The effect of trait self-awareness, self-reflection, and perceptions of choice meaningfulness on indicators of social identity within a decision-making context. Frontiers in Psychology, 8, 2034, 1-11. Web.

Ma, J., Tse, Y. K., Wang, X., & Zhang, M. (2019). Examining customer perception and behavior through social media research  An empirical study of the United Airlines overbooking crisis. Transportation Research Part E: Logistics and Transportation Review, 127, 192-205. Web.

Sonsofmaxwell. (2017a). United breaks guitars [Video]. YouTube. Web.

Sonsofmaxwell. (2017b). United breaks guitars 4?  Dave Carroll responds to customer service incident on United Flight 3411 [Video]. YouTube. Web.

TheEllenShow. (2017). Ellen on United Airlines latest headlines [Video]. YouTube. Web.

United Airlines. (2017). United Airlines announces changes to improve customer experience [Press release]. Web.

Introduction

Traveling has become an inevitable element of modern peoples lives, and airline companies are the ones capable of making long-distance commuting easier. However, while all of such organizations can offer speed, hardly any of them guarantees cheapness. AirAsia X is one of the newest low-cost airlines providing people with an opportunity to travel at moderate prices. The AirAsia X model can be described as a breakthrough one (Corporate profile, n.d.). The company is only 12 years old, but its span of services covers as many as 29 destinations across Asia, Australia, the Middle East, and the USA.

AirAsia Xs business model

While some of AirAsia Xs business model elements resemble the traditional airline models, the company also has unique features to offer to its customers. The same details are the division between economic class and premium class seats, operational excellence, and a low distribution cost (Annual report, 2017). Innovations include the optimization of aircraft weight and flight operations, attractive fares, and economies of scale (Annual report, 2017).

Aircraft weight optimization is associated with meal inventory and in-flight service. Also, there is no heavy wiring for in-flight entertainment equipment. AirAsia X has customized water levels and is currently working on the paperless cockpit (Annual report, 2017). Besides, there is a Quiet Zone cabin on all flights of the company that features a more relaxed cabin atmosphere and soft lighting (Corporate profile, n.d.).

The X model is not void of some weaknesses, but it also has several strengths. The major advantage of AirAsia X is that its services are very cheap, making it the king of low costs (AirAsia X SWOT, 2014). Another strength is the fleet flexibility that is planned to be increased by seven aircraft annually and reaching 98 aircraft by 2024. The next asset of the company is the record-level transit traffic (AirAsia X SWOT, 2014). More than half of the airlines traffic is now linked to other AirAsia or AirAsia X flights. Two other strengths are multiple hubs and the first-mover advantage (AirAsia X SWOT, 2014).

What concerns the weaknesses of the AirAsia X, they are few but considerable. The most disappointing aspect is the companys lack of profitability (AirAsia X SWOT, 2014). The losses can be attributed to demanding market conditions and oil prices. Another weakness is the skepticism of investors since not many of them are willing to support the development of a low-cost long-haul model (AirAsia X SWOT, 2014). Finally, the relationship between AirAsia and AirAsia X has some restrictions, which leads to unfavorable conditions in the companys development.

There are some threats and opportunities that the company could avoid or use to enhance its productivity. The major threats include intense competition, growing fuel prices, and the reversal of national flexibility (AirAsia X SWOT, 2014). The greatest opportunity is the restructuring of AirAsia Xs main competitor  Malaysia Airlines. Other favorable circumstances include the expansion possibility in China, good positioning, and the possibility of lowered fuel prices (AirAsia X SWOT, 2014).

Conclusion

Strategic recommendations to AirAsia Xs executive team are concerned with the results of SWOT analysis. The company should use the opportunities for expansion to reach out to more customers. Also, it is crucial to find the right balance between affordable prices for clients and profits for the airline. If AirAsia X improves its expansion rates, it is highly likely to become the most successful long-haul low-cost airline in the world.

References

AirAsia X SWOT: Challenging times but first mover advantage and fleet flexibility are huge strengths. (2014). Web.

Annual report. (2017). Web.

Corporate profile. (n.d.). Web.

Introduction

Background

Businesses have relied on communication for different purposes, including marketing, sharing crucial information regarding products and business processes, and keeping in touch with their customers. The sharing of corporate social responsibilities (CSR) information has been vital over the past two decades due to the increased attention the public gives business processes (Ajayi & Mmutle, 2021). CSR communication is aimed at providing stakeholders with information about the sustainability efforts of companies to reduce their negative impacts on the environment (Verk et al., 2019). Organizations have established CSR goals and communicate the same to the public. The goal is to ensure that customers and stakeholders know what the business is doing to contribute towards environmental conservation and improvement (Ijabadeniyi, 2020). The public has always expected firms to meet their CSR goals without concern that these objectives were being met (Morsing & Spence, 2019). However, investigations into large companies have revealed that most companies hardly uphold the goals they have set. KLM Royal Dutch Airlines has been sued for its failure to address its environmental impacts despite presenting itself as an environmentally friendly business through its Fly Responsibly advertisement. This paper examines whether companies are responsible for achieving the sustainability goals they communicate to stakeholders, the possible implications when they fail, and the role of factors like legitimacy in ensuring that communication is correct.

Description of the Company

KLM Royal Dutch Airlines is the official airline for the Netherlands. The airline company was established in 1919 and currently has a fleet of approximately 110 (KLM, 2022). The company is part of the Air FranceKLM group and has various partnerships to enhance the service provided to its customers (KLM, 2022). KLM has managed to overcome challenges that have led to the collapse of several airlines since its establishment. The communication strategy in most businesses aims to influence customers by providing them with information about their products and lead purchases (Sama, 2019). The companys marketing strategy has successfully presented the organization as one that resonates with society. However, it has come under criticism from environmental advocacy groups that have faulted the airline for misleading its customers about its efforts to address its carbon footprint.

Statement of the Problem

KLM is being sued for greenwashing its advertisements. The marketing message claimed that KLMs flights had a lower environmental impact and that customers should choose them to reduce their carbon footprint when they travel (Watson, 2022). According to environmental groups, the airlines advertisement misleads customers and infringes on the European Unions Unfair Consumer Practices Directive (Watson, 2022). Therefore, they want Fly Responsibly adverts removed and the company to work towards fulfilling the sustainability claims. KLM argues that it is committed to achieving the 2050 industry goal of zero emissions, and its fleet continues to be made sustainable (Watson, 2022). However, environmental groups argue that the company uses sustainability as a marketing strategy and has failed to fulfill its customers promises.

The problem is that KLM is advertising that its flight is sustainable, and customers should choose them because of its low carbon imprint on the environment. Advocacy groups maintain that the advertisement misuses customers into believing that the airline is doing enough to mitigate its contribution to climate change (Thomas, 2022). The case raises inquiries into the responsibility that companies have to uphold the claims they make about sustainability. It is a revelation that while businesses have committed to environmental sustainability, not every company is indeed working to achieve the promises and goals that they make. The case significantly impacts other airlines and industries because of its increased focus on meeting the CSRs and promises companies make on sustainability. Ensuring that companies meet these goals has not been a significant concern by the public, but the case reveals the unethical conduct that some organizations engage in to lure and convince customers about their commitment to sustainability.

The issue has significant consequences on companies that have committed to sustainability but are yet to begin achieving these goals. Businesses have shifted their marketing approaches to feature more on their sustainability efforts because of the increased concern from customers (Pérez et al., 2019). The marketing approach makes companies liable for their sustainability claims since they influence consumer decisions (Mitra et al., 2018). The consequences also affect the public that has not been keen on the companys practices. The case has the potential to reveal organizational patterns that may demonstrate the controversial impacts of businesses on the environment leading to more scrutiny of business practices and a more informed consumer base.

The research is essential since it focuses on communication and the impacts that it can have on companies in the current business environment. Communication is integral to company functions, including sales (Byrum, 2017). The decision-making to purchase a product or service is based on company messages about what they offer (Suomala, 2020). Most decisions are based on the information companies share during marketing. The value of communication is being tested in this research, whereby the study will aim to determine whether companies should ensure that the information they share with stakeholders is accurate. The research also highlights the importance of communication between businesses and stakeholders and the possible impacts that it can have. The study is necessary because it highlights the significance of corporate social responsibility and the responsibilities of companies and stakeholders in ensuring that CSRs are achieved.

The research objective is to examine CSR communication, the role of companies in ensuring that they provide the correct information that is shared with customers, whether businesses are responsible for meeting these, and the possible implications when they fail.

Research Question

What is the role of KLMs CSR communication in influencing consumer attitudes and purchasing intentions through the companys advertisement, Fly Responsibly, which shows consumers that the company is working towards achieving sustainability goals?

Organization of the Report

The second one explores the existing literature discussing the topic. The chapter examines the theoretical framework, selected articles, and the conceptual framework regarding the topic. Chapter three entails the descriptive analysis of the assessment. Chapter four explores a summary of the findings, discusses the results, and answers the research question.

Theoretical Framework

Introduction

The theoretical framework reviews current concepts that help to create a foundation and guide the formation of arguments in research. Studies use theories to determine relationships, explain phenomena, and make predictions. The theoretical framework assesses the existing theories in an area of study to help determine the existing variables and define the specific framework that will help to evaluate and interpret collected data. The theoretical framework is also essential in comprehending concepts and variables based on established predictions. The theory in this chapter will be based on the Corporate Social Responsibility (Communication) theory. The theory will help assess the communication of CSR and the responsibility it bestows on the organization.

Corporate Social Responsibility (Communication) theory and application to the case

The CSR communication theory aims to legitimize the products of a business through the determination of the most effective communication strategies for use. The concept posits that company communication is structured to guide the thoughts and perceptions of stakeholders to align with those of the business (Morsing & Spence, 2019). The theory is based on the fact that organizations have to legitimize their processes and actions for society to accept and support them. Based on the theory, organizations frame their messages to influence stakeholders perceptions and gain support (Morsing & Spence, 2019). Framing determines the reception of messages, which is vital in any form of communication. Applying the CSR communication theory helps explain why businesses take specific paths when communicating with customers regarding their behavior.

The theory applies to KLM and the selected advertisement. The airline industry has prioritized sustainability over several other business factors, making it a competitive edge for KLM and other companies (Watson, 2022). KLM has adopted an advertisement approach that resonates with current business trends whereby companies try to portray themselves as the best in the industry in terms of achieving sustainability. According to the activists, the companys advertisement misinforms customers that their environmental impact has been minimized significantly and customers should choose them (Watson, 2022). In KLMs case, the company is accused of misleading customers by advertising responsibility, yet it was not taking any responsibility for its actions. The theory helps to understand KLMs reason for using the advertisement and elaborates on the need for the company to maintain its communication approach to remain relevant to its stakeholders.

Article Summary 1

Sikorski and Müller (2018) s article When Corporate Social Responsibility Messages Enter the News: Examining the Effects of CSR-Framed News on Product Purchasing Intentions and the Mediating Role of Company and Product Attitudes examines the role of communication on customer attitudes towards a company and product purchases. The primary concepts in the article include CSR, which is the organizational strategy that creates social accountability for a company, the public, and stakeholders (von Sikorski & Müller, 2018). News framing effects are defined as the impact that emerges from presenting company news in a specific manner through mainstream media. Public relations are the strategies that organizations use to maintain a positive public image. Purchasing intentions are the attitudes and decisions individuals make regarding the products and services of a company based on what they know about them.

The primary argument from the researchers is that CSR-framed messages embedded in regular news coverage positively affect the perception and attitudes of customers towards a company or product. The authors note that different researchers have widely assessed the effects of CSR communication (von Sikorski & Müller, 2018). However, research gaps are evident in evaluating CSR-framed communication in the media. Various issues are identified, including the presentation of CSR in ordinary news, the emphasis on ethical responsibilities, and the impacts of CSR frames on news consumers regarding companies and products (von Sikorski & Müller, 2018). The position of the authors is that the presentation of CSR messages in ordinary news affects news consumers, leading to the development of a positive attitude towards companies and their products and an increase in sales due to the emphasis that journalists make on the sustainability efforts a company is making.

The main finding of the article was that CSR-framed news increased the purchasing intentions of news consumers by influencing their attitude toward a company. The outcomes also showed that organizational involvement in CSR activities was essential to new and existing customers, but the type of activities did not matter (von Sikorski & Müller, 2018). The authors concluded that companies could influence the purchasing intentions of customers through CSR-framed news. Presenting the CSR efforts of a business in the news has a positive impact on consumers, which improves their consideration of the company as appropriate for purchases (von Sikorski & Müller, 2018). The article contributes to the impact of CSR-framed messages through mainstream media. Most studies have focused on the overall effects of CSR on consumer behaviors but failed to address the communication media. The article indicates that the use of mainstream media has a more significant influence, inferring the trust and confidence news consumers have in mainstream media. It also contributes to the literature on the role of communication in influencing consumer choices.

Article Summary 2

Ellerup-Nielsen and Thompsons 2018 article Reviewing corporate social responsibility communication: a legitimacy perspective aimed to substantiate the results of CSR communication, explaining strategies and practices involved in the processes. The article also explores legitimacy in CSR communication. The keywords include CSR, which refers to the sustainability efforts of organizations (Ellerup-Nielsen & Thompson, 2018). Legitimacy refers to aligning corporate actions with stakeholder expectations. Content analysis, which entails the assessment of information from organizations. Corporate communication entails all communication strategies an organization adopts to communicate with its customers.

The main argument is that companies are increasingly feeling the need to attain legitimacy in their actions, leading to increased CSR communication. The authors note that the world has increased its concern over the impacts of organizational processes on the environment (Ellerup-Nielsen & Thompson, 2018). As a result, stakeholders require businesses to disclose their efforts to reduce their effects on the environment. It has led to the emergence of CSR communication, whose primary goal is to achieve legitimacy from stakeholders. The article is trying to fill the gap in research that addresses the issue of legitimacy in CSR communication (Ellerup-Nielsen & Thompson, 2018). The primary findings are that companies look for legitimacy for their activities through communication with stakeholders regarding their actions. CSR communication is instrumental, whereby achieving legitimacy is more important than the truth of the efforts made toward sustainability. They conclude that CSR communication is more focused on achieving legitimacy than providing information about the real efforts companies make toward sustainability (Ellerup-Nielsen & Thompson, 2018). The article contributes to the growing literature on CSR communication and its increased importance in the modern business environment.

The independent variable is corporate social responsibility communication, which encompasses the communication strategies that organizations adopt to provide stakeholders with information on sustainability. The variable assesses the organizational efforts used to communicate the sustainability efforts of a company. The dependent variables are consumer perception and purchasing intentions, which are the outcomes of the influence of independent communication. The moderating variable is the legitimacy of CSR communication. These factors determine the strategies companies use to communicate sustainability, and they influence the dependent variable. The independent variable affects and determines the dependent variable, while the moderating variables influence the impacts of the dependent variable.

Conclusion

The CSR communication theory aims to explain organizational communication strategies used to share sustainability goals with various stakeholders. The theory provides a framework to assess CSR communication by companies and understand the different approaches used. It recognizes the role of communication in stakeholder perceptions and aims to ensure that factors like legitimization and framing are comprehended. The selected articles address the legitimization and structure of information by companies and help to create the conceptual framework used in this paper.

Analyses

Introduction

This chapter aims to assess the collected information on the topic and answer the research question. The chapter conducts a descriptive analysis of available literature on CSR communication and the two primary areas of concern, legitimization, and framing, intending to establish the impacts of CSR communication on consumer attitudes and purchase intentions.

Descriptive Analysis of CSR Communication

Corporate social responsibility communication refers to the strategies businesses use to inform their stakeholders about sustainability measures in their processes. Businesses have a social responsibility to society through the social contract theory (Carson, 2019). Companies manage this relationship through corporate social responsibility, whereby they identify their impacts on society and work to reduce adversities and improve positive aspects (Lock & Schulz-Knappe, 2019). Communication of these efforts is the basis of CSR communication, which primarily entails identifying relevant information to be shared with the public and framed effectively to ensure a good relationship is maintained. CSR communication theory is founded on the need to understand corporate information-sharing strategies and their approaches and implications (Kucukusta et al., 2019). The assessment has revealed that CSR communication is a vital component of corporate communication and has several impacts. However, the current presentation of CSR information is founded on the need for companies to attract and maintain their customer bases rather than addressing their sustainability commitments.

Descriptive Analysis of Consumer Perceptions and Purchasing Intentions

Consumer perceptions are the beliefs customers have about a company and its products. The perceptions are based on the experiences and information customers have about a company (Hongcharu, 2018). The purchasing intentions of customers are the feelings they have about a product and its manufacturer (Bault &Rusconi, 2020). Customers intend to buy products when they believe a company is reliable and meets their preferences. Consumer perceptions and purchasing intentions are the dependent variables in the assessment. These are the outcomes of CSR communication that rely on the strategies companies use (May, 2022). The review shows that consumer perceptions and purchasing intentions depend on organizational communication (Baek & Kim, 2018). Organizations have incorporated CSR into their marketing campaigns to influence consumer perceptions and intentions. The shift has been facilitated by the increased concern about the impacts of businesses on the environment. Currently, the CSR goals of a company are more important than the genuine efforts they are making because consumers believe companies work towards achieving these goals. CSR communication theory determines the impacts of CSR information on stakeholders through its framework that helps to define the strategies organizations use to share sustainability information.

Legitimacy

Legitimacy refers to efforts a company makes to make its products align with stakeholder expectations. Legitimacy is confounded in CSR communication due to the established need for organizations to ensure that the information they share with stakeholders meets and addresses their concerns (Lock & Schulz-Knappe, 2019). The current sustainability concerns emerging from businesses are due to the consumer preferences to choose companies that are making positive steps to reduce their environmental impacts and contribute towards its conservation. Legitimacy also aligns with legal expectations between businesses and customers (Lock & Schulz-Knappe, 2019). The various guidelines that inform business communication have implications, including legal action against companies. Literature shows that CSR communication development aims to create positive perceptions among customers. Legitimacy is a moderating variable because it determines the approaches companies should take in communicating and their implications on stakeholders.

Summary of Main Findings

The analysis reveals that CSR communication is crucial in determining consumer perceptions and purchase intentions. Companies have become increasingly dependent on CSR to present themselves as legitimate to customers. Their efforts are moderated by legitimacy, ensuring that communication aligns with stakeholder expectations and established guidelines. The theory provided a framework that helped to understand CSR communication and the efforts taken to ensure effective information sharing. Consumer perceptions and purchase intentions will continue to be informed by corporate communication, including the CSR efforts companies are making.

Conclusion

Communication is an integral organizational process that determines stakeholder reactions. Companies use communication strategies to share relevant information with customers and maintain positive relationships. CSR communication has become a crucial element of corporate communication as more attention is placed on organizational efforts to achieve sustainability. The increased awareness of CSR has made several companies make sustainability components of their marketing efforts. The review shows that CSR significantly impacts purchasing intentions and customer consumer attitudes. The existence of mitigating factors like legitimacy is doing little to ensure that organizations provide the correct information about their sustainability efforts (Overton et al., 2019). Companies are using CSR communication to influence customers to believe they are sustainable.

KLMs case is an excellent example of how organizations exploit CSR communication. The companys brand is based on its ability to address consumer concerns and expectations. KLM is accused of using CSR communication to misinform its customers about its sustainability efforts (Watson, 2022). The advocacy groups aim to stop the companys efforts to misinform the public (Watson, 2022). They claim that the company should be able to achieve sustainability before informing customers of its achievement and using it for profitability. The case has several implications for CSR communication because it sheds insight into corporate processes and the need for consumers to be more vigilant. CSR communication is crucial to both businesses and stakeholders. However, its use should be informed on truth and accuracy to ensure that customers are not misinformed about their sustainability efforts. Therefore, companies are responsible for ensuring that their CSR communication contains the correct information regarding their sustainability efforts. The provision of wrong information should be subject to scrutiny, and implications should be imposed to ensure consistency in communication and avoid consumer misinformation.

References

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Introduction

Effective leadership is one of the crucial elements that ensure organizational success. Organizations are multifaceted entities that require commitment and truthfulness with regard to management, leadership, and other related undertakings (Bonnici, 2011). Southwest Airlines ranks among organizations that have demonstrated strict adherence to globally accepted elements of effective leadership. It embodies the leadership and management approaches that bolster its overall desire to achieve market leadership and maintain high levels of competitiveness (Bonnici, 2011). Organizational leadership in the contemporary world entails several elements that include an individuals emotional intelligence, personal awareness, communication skills, and charisma among others. Experts argue that the prolonged success of Southwest Airlines in the contemporary business environment is a manifestation of effective and dynamic leadership within its ranks (Anderson, 2005). The main reason behind its success in diverse areas of engagement is the great leadership of its Chief Executive Officer (CEO), Gary C. Kelly.

Background of the CEO

Gary C. Kelly was born in San Antonio, Texas, United States, and is the President, CEO, and Chairman of Board of Directors of Southwest Airlines (Lauer, 2010). He is an alumnus of the University of Texas at Austin and joined the company in 1986. He started off as a controller and worked his way up the companys leadership structure over the years. In his journey to the top leadership position of the worlds biggest discounted carrier, Kelly served in numerous positions that were crucial in bolstering his leadership skills. He also worked as the companys Chief Financial Officer and later as the Executive Vice President (Lauer, 2010). He held each of the two positions for three years before being promoted to the position of CEO in 2004. His predecessor, who had held the position for three years, was James Parker. In 2008, Kelly was appointed as the Chairman of the Board of Directors and President of the Southwest Airlines. He replaced Herb Kelleher as the Chairman and Colleen Barrett as the President of the corporation (Lauer, 2010). Kelly has a Bachelor of Business Administration in Accounting, and he is also a Certified Public Accountant. Over the years, he has received numerous awards for his exemplary leadership at the helm of Southwest Airlines. Some of his most notable honors include the best and influential executives in America award and the best CEO in the United States award that he won both in 2008 and 2009 (Lauer, 2010).

Leadership style and philosophy

Experts argue that the leadership style used in every organization plays a crucial role in determining the level of success and productivity achieved. It helps in achieving essential elements of organizational success, such as high employee retention rates, high motivation to work, and an inclusive decision-making process (Bonnici, 2011). Kelly has one of the most effective leadership styles compared to the numerous executives working in the airline industry. His style of leadership has precipitated success for Southwest Airlines and placed him steps ahead of his peers in organizational leadership. Most people who have worked with him say that the dynamic and inclusive nature of his leadership style offers an opportunity for interaction and engagement with employees (Guinto, 2007).

He believes in giving everyone a chance to contribute towards organizational success by participating in the decision-making process and generating innovative ideas. He is very passionate about growth and innovation. He focuses a lot on influencing his employees to be creative in solving various challenges that arise in the workplace. Many people also describe Kelly as a charismatic leader (Riordan, 2013). He has a high level of personal attractiveness that enables him to influence his management team and employees towards giving their best output in achieving organizational goals. He is a very convincing and supportive leader. This aligns well with the carriers organizational culture, which focuses on building a happy, relaxed, motivated, and creative workforce (Riordan, 2013). Although the employees had few reservations about Kellys leadership style in the beginning, his ability to exhibit dynamism, innovation, and good business acumen gradually made them more appreciative (Guinto, 2007).

Personal and organizational values

Experts argue that personal and organizational values of leaders play a crucial role in accentuating intermittent demand for success, innovation, and high productivity (Bonnici, 2011). The values should be a clear reflection of the organizations they lead in term of goals, values, and culture. Therefore, fusion between personal and organizational values is crucial for success (Anderson, 2005). Having grown in Texas, Kelly was able to acquire and develop good values from a very young age. His close relationship with his father helped him to grow as a person of great morals and high integrity. He learnt the value of relating well with people, respecting their views, and influencing them towards becoming better persons (Guinto, 2007). Throughout his educational journey, Kelly was a highly influential person who always encouraged others to be open minded and to have fun in everything they did. These are the same qualities that he brought with him when he started working at Southwest Airlines (Riordan, 2013). His organizational values at the carrier focus a lot on a strong desire to create an inclusive workplace environment that allows employees to enjoy themselves without compromising the quality of their results (Riordan, 2013).

Influence of Kellys values on ethical behavior with Southwest airlines

Studies have established that effective organizational leadership entails having a clear understanding of structural and institutional realities that define an entity (Bonnici, 2011). This includes understanding an organizations ethical code of conduct and the way a leader should use his or her values to influence employees in a positive manner (Anderson, 2005). Kellys individual and organizational values have blended perfectly with the ethical code of conduct at Southwest Airlines. The companys ethical behavior builds along four key values, namely success, sincerity, equality, and concern for others (Guinto, 2007). It requires all employees to respect each other. Everyone at Southwest Airlines should also show compassion towards colleagues by understanding and sympathizing with anyone having a hard time. Kellys Individual and organizational values have played a crucial role in promoting the companys mission, which is to achieve better service delivery through good employee relations and support for one another.

Kelly has managed to create a highly relaxed, inclusive, and result oriented environment at Southwest Airlines (Riordan, 2013). This has played a crucial role in motivating employees to work, respect each other, and build a successful team that believes in the abilities of individual employees. Experts argue that Kelly has incorporated some of his individual values such as honesty, creativity, open mindedness, and charisma into the organizational culture very effectively (Guinto, 2007). The companys organizational culture has enabled employees to achieve their goals because they can express themselves well and at the same time have fun from doing their work (Sahoo, 2007).

Strengths and weaknesses

Just like every human being, Kelly has strengths and weaknesses. A positive attitude, good upbringing, and other individual values have made him one of the most effective organizational leaders of the 21^st Century. Three strengths that have helped him to achieve this feat are honesty, hard work, and concern for other people (Riordan, 2013). Despite the aforementioned strengths, Kelly also has weaknesses that have created limitations in his work on numerous occasions. Experts argue that every industry has a number of predators and opportunists who always aim to exploit the faults of their competitors (Anderson, 2005). Kelly has not been spared because some people have taken advantage of his weaknesses. Some of his greatest weaknesses include being too nice to people and his inability to articulate the companys mission in diverse contexts (Guinto, 2007).

The quality that contributes the most to Kellys success

Kelly has been successful in the few years that he has been the CEO, President, and Chairman of Board of Directors of Southwest Airlines. He has great individual and organizational values, as well as numerous strengths. However, the main ingredient to his success has been his intelligence (Guinto, 2007). Kelly has managed to effectively use the ability to comprehend the crucial elements of the airline industry to his advantage. His high levels of intelligence also played a crucial role in earning his impressive academic achievements. Experts argue that were it not for his good brainpower, he could not have made it past the position of Chief Financial Officer at Southwest Airlines (Riordan, 2013). This position allowed him to analyze the companys stability and predict its future. This is the reason Kelly got promoted every three years. He has been the airlines President, CEO, and Chairman for more than five years (Riordan, 2013).

Group dynamics

Through the leadership of Kelly, it quite easy to comprehend the way crucial elements such as communication, collaboration, power, and politics influence on group dynamics in organizations such as Southwest Airlines (Guinto, 2007). At the company, everyone is actively involved in the decision-making process. Communication between employees and their leaders is also part of the corporate culture. The reason for this is that communication plays a crucial role in influencing the success and growth of the company (Sahoo, 2007). The organizational culture at Southwest Airlines embodies the concepts of power and politics, as all employees are encouraged to be very creative when making quick decisions that do not require consultation. There are situations where an employee makes a decision that contradicts the companys policy for the sake of passengers. Kellys willingness to allow employees to make such decisions often motivates them because they feel valued and appreciated (Guinto, 2007). Experts argue that there is a lot that someone can learn about group dynamics from Kelly and his team at Southwest Airlines, especially on the power of effective communication.

Conclusion

Effective leadership is the most important ingredient for organizational success. Organizational leaders should use approaches that reflect values and corporate culture of an entity. In order to achieve success in the 21^st Century, it is crucial for leaders to identify their individual values and develop effective strategies for incorporating them into their organizational cultures. This way, it will be possible to communicate and interact well with everyone. There is a lot that one can learn about effective organizational leadership from Garry C. Kelly.

References

Anderson, M. (2005). The New Airline Code. San Francisco: iUniverse.

Bonnici, C. A. (2011). Creating a Successful Leadership Style: Principles of Personal Strategic Planning. Lanham: Rowman & Littlefield Education.

Guinto, J. (2007). Southwest Airlines CEO Gary C. Kelly Sets the Carriers New Course. Web.

Lauer, C. (2010). Southwest Airlines. New York: ABC-CLIO.

Riordan, C. (2013). Garry Kelly, Chairman, President and CEO of Southwest Airlines, Talks Success, Culture and Business Approaches. Web.

Sahoo, D. (2007). Book of Answers for a Young CEO. San Francisco: iUniverse.

Introduction

This report is aimed at discussing the branding strategy of British Airways. This organization was founded in 1972, and since that time, it has become one of the largest airlines in the world (Woodley 2006, p. 156). This company serves the destinations that are located in six continents. Overall, one can say that British Airways continuously attempts to improve its services and attract a greater number of clients (Rosenbaum-Eliott, Percy, & Pervan, 2011). Moreover, the senior executives of this company understand that branding is critical for the sustainability of this business (Bacon 2012). It is necessary to show how this organization develops its brand. Moreover, one should provide recommendations to this airline. These are the main questions that should be discussed.

Brand elements

The brand of British Airways contains several distinct elements. These components should be analyzed with the help of a model developed by Jean-Noel Kapferer (2008) and other researchers. This scholar attaches importance to the relations between clients and the organization. Therefore, various brand elements should demonstrate what kind of things a business can offer to a person. In particular, one should mention various slogans such as Fly the Flag, Well Take More Care of You and The Worlds Best Airline (Horner & Swarbrooke 2012, p. 43). These mottoes should increase customers sense of affiliation with this organization. These people should believe that they are using the services of the best company in this industry.

Furthermore, these slogans are supposed to demonstrate that the clients can interact with a business that has competence and experience because these qualities are valued by many consumers. Furthermore, these slogans should also strengthen peoples sense of prestige because they can afford the services of the best company working in this field. Additionally, one should speak about the use of such a melody as The Flower Duet which is supposed to show that British Airways ensures safety, comfort, and calm in the skies (DeReiter, Doheny, & Gilbert 2010, p. 237). These are the main points that can be made.

Moreover, much attention should be paid to reflection or identification of a person for whom services are intended (Aggarval, 2008, p. 37). One can say that British Airways wants to appeal to people who values prosperity, security, success, and prestige. This goal is achieved with the help of customer relations management, slogans, and various commercials. The main problem is that British Airways can lose a part of its market share to low-cost airlines (Bacon 2012). This is one of the issues that should be considered by the management.

Apart from that, one should focus on its logotype and speedmarque. These visual images are familiar to millions of people throughout the world. Admittedly, they do not convey a specific message to a client; however, they are important for making the brand more recognizable. Nevertheless, these components are not directly related to the model developed by Jean-Noel Kapferer (2008). Moreover, this author focuses on such an aspect as culture or values that form the basis of this brand (Kapferer 2008). As far as British Airways is concerned, one should speak about such values as the need for innovation and efficiency (Rosenbaum-Eliott, Percy, & Pervan, 2011, p. 237). The company achieves this goal by adopting new technologies and improving the quality of their services.

It is possible to say that the brand of British Airways consists of many other elements, for example, the use of such colors as blue and red or numerous advertising campaigns. Moreover, one should mention that British Airways supports various athletic tournaments such as Wimbledon. Nevertheless, there is a limitation that should be considered. In particular, this organization does not pay much attention to the self-image of clients. In other words, they do not appeal to the self-esteem of their clients who want to perceive themselves in a certain way. For instance, they want to believe that they have achieved success. This is one of the things that they value.

Branding strategy

Overall, one can say that British Airways adopts such a strategy as name branding. This approach means that this organization attempts to show that the name is inevitably associated with safety and effectiveness (Kitchen 1997, p. 199). This approach is helpful for increasing clients awareness about this organization. Secondly, this choice can be explained by the fact that this company offers services, rather than goods. Under such circumstances, businesses need to identify themselves in a clear way. One can say that this strategy has been quite successful, because British Airways is one of the most recognized brands in the world. Nevertheless, this organization has lost a part of its market share to low-cost companies located in the United Kingdom and other countries. This is one of the details that should be considered by the senior executives.

Marketing communications integration

Additionally, it is important to examine marketing communications integration. This term implies that businesses should convey clear and consistent message with the help of different marketing channels (Egan 2007, p. 340). The management of British Airways understands the importance of this task. First of all, they attach importance to E-commerce because in this way, one can improve clients experience. Secondly, this organization attaches importance to public relations.

This is why British Airways supported 2012 Summer Olympics (Murray 2013, p. 84). Furthermore, this organization advertises its services with the help of television and Internet. Thus, one can argue that British Airways makes it marketing communications through various channels. Yet, there are some shortcomings that should not be overlooked. In particular, this company does not always convey a clear message to potential clients. Its marketing communications do not show how this organization positions itself. Moreover, they do not explain why clients should select British Airways among other airlines. This idea is not clearly communicated to customers.

Growing and sustaining the brand

It is critical to examine current attempts to grow and sustain the brand. The management of British Airways wants to make more attractive to a wider audience (Bacon 2012). Their policies are aimed at showing that this organization can create extra value for clients by offering high-quality services. Their recent campaign called To Fly, To Serve is supposed to show that British Airways takes a dramatically new approach to their interactions with clients (Bacon 2012). This policy has been adopted because this organization faced a strong competition from other companies such as Lufthansa.

This is one of the aspects that can be identified. Additionally, this organization strives to attract customers with various income levels. At present, the brand is associated mostly with first-class travel. However, many people believe that the services of this organization are not available to them. In turn, the management wants to refute this stereotype that harms their brand. There are the main initiatives that they implement. To some degree, these policies are designed to make this business more responsive to the changes in external environment which includes competition and economic development of various countries. These are the main details that can be singled out.

Conclusion

Overall, this discussion shows that branding is an important element of the marketing strategies adopted by British Airways. Various branding elements are supposed to demonstrate that this company can guarantee the safety and comfort of their clients. Moreover, this organization creates visual symbols that are recognized by customers in various countries. This business attempts to convey its marketing communications through various medial channels. Finally, the management of British Airways understands the need for growing and sustaining brand. This is why they want to appeal to people who may have various income levels. However, this organization is now regarded mostly as the provider of high-quality and expensive services. This approach to branding made British Airways more vulnerable. This information should be considered by the senior executives of British Airways.

Recommendation

It is possible to make several recommendations to British Airways. The brand managers should demonstrate how this organization can be distinguished from its major competitors such as Lufthansa or Delta Airlines. In particular, this company should position itself an airline that can offer excellent services to people with various income levels. Secondly, British Airways have to show how this organization can create value for clients. Thirdly, the management should ensure that its marketing communications are clear and consistent. These are the main suggestions that can be made.

References

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