This analysis will cover the impact of political, economical, social, technological, legal and environmental factors on the company. Being a part of UB group, the Kingfisher airline started its operations in but failed badly despite of having the loyal customers, wide network and brand visibility. It has however submitted a rehabilitation plan to take a fresh start.
The airline offers several unique services to its customers. The services offering by Kingfisher airlines are offering of world class in-flight entertainment with personalized video screens on every seat with 10 channels of chartbusting Kingfisher Radio and 5 channels of the trendy FUN TV, personal valet at the airport to assist in baggage handling and boarding, exclusive lounges with private space, accompanied with refreshments and music at the airport, audio and video on-demand, with extra-wide personalised screens in the aircraft, sleeperette seats with extendable footrests, spacious leg room and large over-head storage space, international cabin crew and designer interiors.
For the passengers, Kingfisher airline offering the gourmet meals of breakfast, lunch and dinner in vegetarian and non-vegetarian options. For welfare of the clients, Kingfisher airlines providing low fat, low-sugar meals.
Kingfisher airways merged the Deccan airways and Kingfisher airways planning to converting their services of domestic into International services.
But Deccan airways will get 5 years domestic experience by this year in the month of August. So Kingfisher airlines are planned to launch International aircraft to different countries.
So Kingfisher airlines following the market development strategy, it moves beyond its immediate customer base towards attracting new customers for its existing products and services.
This strategy often involves the sale of existing products and services into new international markets. The kingfisher airlines company attempting to become the lowest-cost producers in an industry, so the strategy can be referred as cost leadership strategy.
The company with the lowest costs would earn the highest profits in the event when the competing products and services are essentially undifferentiated, and selling at a standard market price.
By following this strategy any company place emphasis on cost reduction in every activity in the value Date: In certain instances, the company can for instance charge an average price while following the low cost leadership strategy and reinvest the extra profits into the business Lynch, Market penetration means company penetrates a market with its current products.
It is important to note that the market penetration strategy begins with the existing customers of the organisation. This strategy is used by companies in order to increase sales without drifting from the original product-market strategy Ansoff, Companies often penetrate markets in one of three ways: This strategy is important for businesses because retaining existing customers is cheaper than attracting new customers.
Acquisition means tends to be used when a larger firm absorbs a smaller firm and merger tends to be used when the combination is portrayed to be between equals. That means taking the ownership of another organization. Kingfisher airlines are using this strategy for acquisition of aircrafts.
The services which are offering by the kingfisher airlines can differentiate, in comparison with the existing competitors. Porter has argued that for a company employing a differentiation strategy, there would be extra costs that the company would have to incur.
The extra costs kingfisher airlines doing is because of extra services like hospitality services and include high advertising spending to promote a differentiated brand image for the product, which in fact can be considered as a cost and an investment.STEP 5: PESTEL/ PEST Analysis of Kingfisher Airlines Case Solution: Pest analyses is a widely used tool to analyze the Political, Economic, Socio-cultural, Technological, Environmental and legal situations which can provide great and new opportunities to the company as well as these factors can also threat the company, to be dangerous in future.
The PEST analysis is a tool to evaluate external factors. It is often helpful to complete a PEST analysis prior to a SWOT analysis, although it may be more useful to complete a PEST analysis as part of, or after, a SWOT analysis. Bermuda's Fauna Animals, birds, fish, insects, lizards, marine life, reefs, endemic and naturalized.
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This part of the PEST analysis deals with the political factors affecting the external environment of.