Analysis of competitive business environment facilitates proper decision making as well as planning for running an airline company. Deregulations in the airline industry are compelling airline companies to ensure decision making in order to meet expectations and demand of emerging markets. There are several factors that provide input to decision making and planning, and also pave the way to profitability and success of an airline company. These factors are providing high quality service, using up-to-date and cost effective aircrafts, using latest technologies that include informational and electronic technologies, ensuring cooperative, friendly, and professional attitude and face to the customers. However, globalization and low cost competition are pushing Airline Company to take immediate actions so that effective decision making can be ensured. People select an airline company on the basis of its punctuality, and by considering pricing as they want affordable prices. However, 35% people select an airline company on the basis of punctuality, and about 30% people choose an airline on the basis of price (Nhuta, 2012). Additionally, 35% people select an airline company because of its branding (Nhuta, 2012). Branding is regarded as a major component for airline development, particularly in present day competitive world where airlines are branded, launched, and then marketed in an aggressive manner (Lim, Mohammed, Ariffin & Guan, 2009). The pressure or fear of increasing costs such as rising costs of fuel, for running an airline, and also increasing expectations of customers for lower price is making the market more competitive. Considering all these factors, airline companies are emphasizing much on building their brands in order to create customer loyalty beyond the price, shape and maintain the market position, so that customers return in order to get benefit from the service again, which is effectual for an airline business to conduct its business in an effective manner for ensuring profitability.
References
Lim, K. Y., Mohammed, R., Ariffin, A., & Guan, G.G. (2009). Branding an Airline: A Case Study of AirAsia. Malaysian Journal of Media Studies, 2(1), 35-48
Nhuta, S. (2012). An Analysis of the Forces that determine the Competitive Intensity in the Airline Industry and the Implications for Strategy. International Journal of Physical and Social Sciences, 2(9), 433-469
