What values are going to guide the airport business? The most successful strategies are those consistent with the airport culture that exists.
It is obvious that the airport business has great perspectives for its further development. The existence of these perspectives is conditioned by several major concerns that regulate the functioning of the whole sphere and have a significant impact on its further development. These concerns also give rise to a number of values that guide the business. First, the security of flights should be the greatest value of any airport as it conditions the level of trust, the companys image, and a number of other important factors. Moreover, the focus on the satisfaction of the main customers needs is another value as passengers should be sure that they are the main element that determines the success of the whole business (Rankin para. 5). For these reasons, the strategy that is based on a high level of security and provides the best services to customers could be taken as the most efficient one.
How far down the road should the airport look?
One realizes the fact that the airport could not be placed within the city as planes and other facilities will pose a great threat to the security of people. Additionally, high buildings could make the airports functioning dangerous. In this regard, there is a tendency to build them outside the city. At the same time, this pattern introduces the problem of airport accessibility as passengers have to reach it. To solve this problem, public service vehicles and other means of transport should be used (Halpern and Graham 26). However, the airport should be placed not far from the road for vehicles to be able to deliver passengers and their luggage. That is why the creation of the airport should rest on the peculiarities of local traffic.
What assumptions about the external environment underpin the airport’s strategy (regulation, the economy, resource availability, technology, competition, and the market)?.
The external factors will obviously have a great impact on the functioning of the airport and its profitability. For this reason, it is crucial to create a strategic approach to the organization of the new business. Yet, it is possible to predict that the economy of the region will have a great impact on the functioning of the airport (Susman, Warren, and Ding 98). The prosperity of society conditions customers purchasing power and determines the profitability of the new airport. Additionally, the resources available for the organizers of a new business and the technologies used to align its functioning might also impact the image and determine the efficiency of the whole project. Finally, the market should also be analyzed to highlight the main competitors and create a strategy to struggle with them.
What existing and new products and services will/should the airport offer or not offer?
The blistering development of technologies introduces a number of new devices and services that could be used to improve the functioning of a certain company and make it more efficient. First, the newest Internet technologies should be used to make the services more available. Customers should have the possibility to book a ticket and choose the services needed for them. Moreover, in terms of the great terrorist threat, it is crucial to implement the newest security tools to provide the monitoring of passengers actions and luggage. It will help to increase the image of the airport and avoid accidents. Finally, the airport should also offer transportation to the hotel or some other places to attain success and improve its image.
What criteria will the airport use to evaluate a new product or service opportunity?
Implementing the new technology, the airport should obviously create the procedure that will help to determine its efficiency and general impact on the state of the business. For this reason, there are two main practices. First, it is vital to compare the state of the key showings before and after the usage of new services. It could highlight the character of changes and accept their positive or negative impact. Second, the customers of the airport should be reviewed to acquire their vision of new services and consider whether they are satisfied with the new practices or not. The usage of the given approach will also help to trace the slightest challenges in the image of the company and implement the new strategies to improve it.
In addition to identifying new customers, what existing and new customer groups will the airport serve or not serve? Social responsibility plays a part here. This may include charitable contributions, community service, sponsorships, etc. These actions demonstrate appreciation for the benefit an airport gains from utilizing the resources of the community and infrastructure.
Being focused on the entry into a new market, the airport should work with various groups of customers to guarantee the increase of its popularity and creation of a positive image. Yet, it is also vital to be able to preserve the balance between different customer groups (“Identifying Market Opportunities Through Marketing Information Systems And Research” para. 9). The airport should provide some community services to obtain governmental support and help people from the local community. Additionally, they should be provided with all services needed for a comfortable flight. Moreover, the airport should also work with charitable contributions to promote the further improvement of its image and the local community. Finally, it should act as a sponsor as the evolution of local resources and infrastructure will also have a great positive impact on the company.
What criteria will the airport use to evaluate a new market opportunity? You should identify the criteria by choosing activities that are crucial to an airport’s competitive advantage and the need to operate efficiently as possible within the constraints of its location.
There are several points that should be considered while planning the entry to the new market. First, the airports officials should analyze the existing demand for air carriage and its urgency. In case people need it right now, a great competitive advantage could be achieved. Furthermore, the investigation of the market size and pricing potential will also help to evaluate the new market opportunity and create the strategy that would guarantee the best outcomes (Cabbage para. 5). If the above-mentioned factors could be considered acceptable, the airport should choose the activities that could help to conquer the market and create a great competitive advantage to win the rivalry and operate efficiently. Moreover, it is also crucial to organize the functioning of the airport in accordance with the peculiarities of the local infrastructure to guarantee beneficial cooperation with it.
What factors (price and/or the various dimensions of quality) are meaningful to the airport’s customers? Airport professionals should identify specific programs and practices to adapt and customize the practice, service, or product to the airport. For example, many airports now require street pricing in concession management programs.
Traditionally, the correlation between the price and quality has always been one of the main factors impacting the customers attitude to a certain service of a company. However, the problem is complicated by the high price which makes a ticket unavailable for a common person. With this in mind, it is important to find the ideal balance between the price and service to attract customers and create a positive image. Low cost and full-service carriers provide opposite services for their passengers to satisfy their needs. However, the choice of the companys type should be determined by the targeted audience and promote the further companys development. Finally, it is possible to recommend the approach that implies the provision of several services at a comparatively low price. It will contribute to the appearance of new customers.
Which factors will represent an airport’s competitive advantage? Identify internal strengths such as location, existing tenants, capabilities, and services already provided at the airport.
The analysis of the airports functioning will be needed to reveal its strengths and weaknesses and determine the areas of change. Yet, one realizes that economically advantageous location will contribute to the significant improvement of the airports functioning and condition its further development and evolution. Moreover, the location could also impact the airport accessibility and result in an increase in the number of customers. Therefore, the airport could also benefit from the usage of the newest technologies to provide passengers with outstanding services. The possibility to book a ticket and transportation might be considered the great competitive advantage of the airport. Finally, the capabilities of the airport and the number of directions could also serve as the factors that condition the further improvement of the projects profitableness.
In which of our current product or market areas will the airport place its greatest emphasis (resources and attention)? Airport professionals should examine, analyze and validate the airport’s SWOT and place the emphasis on what resources need the most attention.
It is obvious that the success of any business is determined by the available resources that could be used to attain success and guarantee the stable evolution of the project. If to speak about the airport, there are several areas that should be given special attention. First, it is crucial to increase the number of available planes to condition the appearance of new directions and new flights. Furthermore, the appearance of the new vehicles will introduce the necessity of the creation of new facilities which will obviously have a great positive impact on the development of the airport business. Moreover, human resources should also be given great attention as the professionalism of the staff impacts the image of any company.
In what new product or market areas will the airport place its greatest emphasis? New products or markets could include possibilities such as establishing another industrial park, development of air cargo, or expansion of services offered by the general aviation industry.
The airport business could be considered the great basis for the development of some other projects. It provides numerous opportunities as there is a number of facilities that could be used to introduce a new product or service. Revolving around the airport activity, it is possible to suggest the further development of air cargo as the environment is beneficial for its evolution. Moreover, there is a tendency towards the increase in demand for air cargo. This fact results in the appearance of the opportunity to obtain some extra benefits while organizing transportation of various goods and cargo. Finally, the existing demand also guarantees the success of the project.
What financial and non-financial measures will the airport use to assess the viability of the strategy? Financial ratios can be used for detecting trends in financial success.
For example:
- liquidity ratios,
- leverage ratios,
- activity ratios,
- profitability (performance) ratios.
Non-financial measures may include such measures as aircraft operations, based aircraft, noise complaints, etc.
The financial aspect of the companys functioning is another major concern that conditions the final result and impacts the level of performance. For this reason, an efficient financial strategy is crucial for the projects evolution. Yet, the airport could use financial ratios to monitor the state of the sector and introduce some regulations if they are needed. For instance, the analysis of the profitability ratios could help to determine the possible incomes and outline the further perspectives related to the financial side of the project (“Commercial Aviation Policy 2015 on incremental international traffic” para. 8). Furthermore, it is crucial to control the aircraft operations and investigate the amount of money needed to guarantee the stable functioning of the company.
What strategy should the airport implement to ensure that departmental goals, process goals, organizational design, and management support the mission of an airport? Given the SWOT, airport professionals should recommend the appropriate strategies for an airport.
Finally, the airport’s functioning should be aimed at the achievement of certain goals that will promote the further evolution of the company and help it to become more powerful. Analyzing the SWOT and the basic airports characteristics, the strategy that takes into account the strong and weak companys aspects should be introduced. It is crucial to organize the functioning according to the pattern that guarantees the accomplishment of the most important tasks resulting in the improvement of performance. That is why all members of the staff should be informed about the airports main focus and work to contribute to its development. Additionally, it is possible to implement the practice of constant training to get rid of weak points and increase workers professionalism.
Works Cited
Cabbage, Neal. A Framework For Evaluating Market Opportunity. 2013. Web.
Commercial Aviation Policy 2015 on incremental international traffic. 2015. Web.
Halpern, Nigel and Anne Graham. Airport Marketing. New York: Routledge. 2013. Print.
Identifying Market Opportunities Through Marketing Information Systems And Research. n.d. Web.
Susman, Gerald, Anthony Warren and Min Ding. Product and Service Innovation in Small and Medium-Sized Enterprises. 2006. Web.
Rankin, William.King County: A Case Study Model for Strategic Marketing Planning for Airport Managers. n.d. Web.