Operates A Large International Route Network-Myassignmenthelp.Com

Question: Discuss About The Operates A Large International Route Network? Answer: Introducation United Airlines is the worlds third largest airline company. The companys headquarter is in Chicago, Illinois. The company operates a large international route network. It was founded in 1926 and initially company was recognized as Valey Air Lines but later it was popularized as United Airlines. The company serves more than 210,000 customers daily. United Airlines provides range of services to customers. In the given essay some concepts are given related to marketing environment, market segmentation and SWOT analysis. The marketing environment is the environment in which company operates. Marketing environment includes both internal and external environment. Internal environment includes customers, employees, retailers, distributors and shareholders whereas external environment includes political, social, technological, economic and legal factors. Business operations are influenced by these factors. Internal environment factors are known as controllable factors which mean the management can control these factors. On the other side external environment factors are known as uncontrollable factors which mean the management cannot control those factors. It has been analyzed that changes in demographic, cultural and economic environment has affected united airlines decision. The company plans its marketing strategies after considering various environment factors such as demographic, economic and cultural factors. The company United Airlines is generating good revenue because it is providing best services to customers. Demographic factors play a significant role in forecasting demand (Martn-Consuegra Esteban, 2007). Demographic factors include income, occupation, marital status, gender, education level, religion, average size of family, etc. United Airlines gives focus on age and lifestyle of the people. People of the age group 35 54 are the target customers for the company. The company targets the customers whose income is around $75,000. Professional people and people who live in urban and semi urban areas are the target customers for United Airlines. The airlines company has major hubs in popular cities like Los Angeles, Newark, San Francisco, Washington, D.C., Chicago, Denver, Houston and Cleveland. The company considers cultural factors too because people of different cultures show different behaviors. Cultural factors include behavior, attitude, belief and values. Company gives best services to all customers. United Airlines uses positive and supportive work culture. The airline company also considers economic factors while taking important decisions. In recession period Time United Airlines provides services in low cost to stay competitive and in peak season company charges high amount for same services. At the time of oil crises Company increased the fares and that time only few numbers of passengers used the service. Economic condition also gives impact on the revenue of the company (Wang Hong, 2011). Market segmentation is process of dividing large homogeneous market into identifiable segments. New segment contains people of similar needs and demands. Company designs marketing mix strategy according to the expectations of target segment customers. Four major factors that affect market segmentation process are: identification of the segment, measurability, accessibility and appropriateness. Mainly companies do market segmentation on the basis of behavioral, psychographic, demographic and geographic wise. Airlines companies do psychographic, behavioral and demographic segmentation (Teichert, Shehu von Wartburg, 2008). Companies use segmentation, targeting and positioning approach to plan marketing strategies. This approach gives more focus on customers rather on products. Market segmentation approach helps to attract new customers and companies can give more focus on designing marketing messages. Companies design marketing strategies for each segment so that maximum numbers of cus tomers can be satisfied (Buchanan Clinton, 2010). Some popular methods are interviews, surveys and questionnaires which can provide help in data collection for market segmentation. In targeting companies target customers on the basis of benefits, money, accessibility and differences. In positioning method companies make efforts to create favorable image in customers mind. Positive image of company or brand helps to differentiate a companys products or services from its competitors offerings (Barbot, Costa Sochirca, 2008). United Airlines does psychographic segmentation. Some people use airlines services because they want to reach at the destination on time. When the customers want to reach at the destination on time they do not give preference to price. They only prefer to use best quality services by which they can reach on time. For selecting the transportation services some people give more preference to quality while some give more preference to cost. Psychographic segmentation includes lifestyle, interests, attitudes, social class and behaviors of target customers (Ginieis, Snchez-Rebull Campa-Planas, 2012). Some customers prefer to use services of United Airlines because of its schedules, best services and frequent flights while others use the services because of cost effectiveness.; SWOT analysis is a framework that helps to identify and analyze strengths, weakness, threats and opportunities. SWOT analysis can be conducted for industry, company, product, place or person. SWOT framework considers both internal and external factors. For strengths and weaknesses internal factors are used whereas for opportunity and threats external factors are used. Favorable external factors work as opportunity whereas unfavorable external factors work as threats. SWOT analysis helps in corporate planning and marketing. Through SWOT analysis the company can identify its position in the market. From the article it is clear that United Airlines Company can increase the strengths by increasing its hubs and by expanding internal routes. Strengths, weaknesses, opportunities and threats are the four components of SWOT analysis. Strengths provide advantages to the company. Strengths include those qualities and capabilities which can help company to perform well. Weaknesses include the points which can create problem in companys development. Opportunity component shows the chances of growth for the company. Last component of SWOT analysis is Threats which includes several risks which may create problems for the company. Major strengths of company are its customers and competitors. United airlines weakness is company has to change the prices according to the economic condition and according to the change in customers demand (Bilotkach, Gorodnichenko Talavera, 2010). Company only uses psychographic segmentation. Major opportunities which company can utilize are company should use d emographic and geographic segmentation. United Airlines Company has so many competitors and the company has to set the prices of services according to its competitors which is a major threat for the company. In the given paragraph as an owner of the company I have applied SWOT model in United Airlines. Strengths include strong points of the company. Some strengths of company are, the company has both domestic and international routes. The airlines company has hubs in different cities. The company has employed more than 80,000 People and daily the company serves almost 210,000 customers. The company has around 378 airports. Weaknesses include weak areas of the company. United Airlines weaknesses are company cannot satisfy needs of each customers. Company mainly gives emphasis on premium customers by which sometimes company gets complaints from unhappy customers. By grabbing the opportunities United Airlines can get growth easily. As it is known that customers like to prefer best services in low prices so the company can use this opportunity to attract more customers. Now days many airlines companies are taking benefits of merger so the company can also take benefits from merger agreement. Growing popularity of internet can also provide benefits to the company (Pels, 2008). The company should give focus on online services. Threats include risks which United Airlines may face due to competitors actions. United Airlines Company has many big competitors. Increment in oil prices is also creating problem for the company. From the given essay it can be concluded that United Airlines Company has so many strengths. Company knows that Airlines Company has to respond quickly to the changing needs of customers to stay in the market. In the given essay marketing environment, market segmentation and SWOT analysis information are presented. Effects of demographic, cultural and economic environments on United Airlines decision are also described above. Segmentation method and SWOT analysis of United Airlines are also elaborated in the essay. References Barbot, C., Costa, . and Sochirca, E., 2008. Airlines performance in the new market context: A comparative productivity and efficiency analysis, Journal of Air Transport Management, 14(5), pp.270-274. Bilotkach, V., Gorodnichenko, Y. and Talavera, O., 2010. Are airlines' price-setting strategies different?, Journal of Air Transport Management, 16(1), pp.1-6. Buchanan, F.R. and Clinton, M.S., 2010. Customer service in the United States, Journal of Behavioral and Applied Management, 11(3), p.279. Ginieis, M., Snchez-Rebull, M.V. and Campa-Planas, F., 2012.The academic journal literature on air transport: Analysis using systematic literature review methodology, Journal of Air Transport Management, 19, pp.31-35. Martn-Consuegra, D. and Esteban, ., 2007.Market orientation and business performance: An empirical investigation in the airline industry, Journal of Air Transport Management, 13(6), pp.383-386. Pels, E., 2008. Airline network competition: Full-service airlines, low-cost airlines and long-haul markets, Research In Transportation Economics, 24(1), pp.68-74. Teichert, T., Shehu, E. and von Wartburg, I., 2008. Customer segmentation revisited: The case of the airline industry, Transportation Research Part A: Policy and Practice, 42(1), pp.227-242. Wang, K.J. and Hong, W.C., 2011. Competitive advantage analysis and strategy formulation of airport city developmentThe case of Taiwan, Transport Policy, 18(1), pp.276-288.