That means taking the ownership of another organization. For example fuel rates are increased then its necessarily to increase the price of the fare. Kingfisher airlines are using this strategy for acquisition of aircrafts.
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.
It is important to note that the market penetration strategy begins with the existing customers of the organisation.
This strategy is important for businesses because retaining existing customers is cheaper than attracting new customers. The use of PEST analysis can be seen effective for business and strategic planning, marketing planning, business and Corporate level strategy of kingfisher airlines development and research reports.
So very less people afforded to travel by kingfisher airlines. The kingfisher airlines company attempting to become the lowest-cost producers in an industry, so the strategy can be referred as cost leadership strategy. This strategy is used by companies in order to increase sales without drifting from the original product-market strategy Ansoff, Some problematic areas include the difficulty on part of the firm to estimate if the extra costs entailed in differentiation can actually be recovered from the customer through premium pricing.
Kingfisher airways merged the Deccan airways and Kingfisher airways planning to converting their services of domestic into International services. Market penetration means company penetrates a market with its current products.
For welfare of the clients, Kingfisher airlines providing low fat, low-sugar meals. Again there is a problem if fare is increased the number of customers travelling by airways will reduce, Corporate level strategy of kingfisher airlines leads to less turn over.
Differentiation has many advantages for the firm which makes use of the strategy. 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.
Kingfisher airlines are targeting only high class or rich people who will spend more money for comfortable travelling. By following this strategy any company place emphasis on cost reduction in every activity in the value Date: Companies often penetrate markets in one of three ways: 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, For the passengers, Kingfisher airline offering the gourmet meals of breakfast, lunch and dinner in vegetarian and non-vegetarian options.
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. PEST is useful for Kingfisher airlines because they decided to enter its business operations into new markets and new countries.
The use of PESTin this case, helps to break free of unconscious assumptions, and help to effectively adapt to the realities of the new environment. The factors which will affect the airline industry are Political factors: The airline offers several unique services to its customers. The services which are offering by the kingfisher airlines can differentiate, in comparison with the existing competitors.
So at present they are targeting middle class people who can afford somewhat to travel by airways. Porter has argued that for a company employing a differentiation strategy, there would be extra costs that the company would have to incur. But Deccan airways will get 5 years domestic experience by this year in the month of August.
For capturing those people the fare should be less it means the middle class person also afford to travel. 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.
By using the differentiation strategy kingfisher airlines got losses, it is not suitable for them because the price of the fare high. PESTEL analysis is one of them that are merely a framework that categorizes environmental influences as political, economic, social, technological forces, environmental and legal.
Kotler claims that PEST analysis is a useful strategic tool for understanding market growth or decline, business position, potential and direction for operations. So Kingfisher airlines are planned to launch International aircraft to different countries.
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. This strategy often involves the sale of existing products and services into new international markets. The results can then be used to take advantage of opportunities and to make contingency plans for threats when preparing business and strategic plans Byars, ; Cooper, Corporate Strategy For Kingfisher Plc.
Print Reference this. Published: 23rd March, Last Edited: 3rd May, Board members are at the apex of the decision making body of Kingfisher.
They ensure that corporate strategies are met and are all in the interest of the stockholders. They can also do sanctions such as voting against. CORPORATE STRATEGY. Air India: In Troubled Skies But the government has to provide a level playing field." There are some scheduled airlines operating in China today.
Kingfisher Airlines, India's largest airline in terms of market share, which reported a net loss of Rs bn ($51 mn) in the quarter to June, owes more than $ mn 1/5(1). Business & Corporate Strategy of Kingfisher Airlines. Comparative Case Study Between Two Airline.
The Indian government plans to set up an Airport Economic Regulatory Authority to provide a level playing field to all players. 9.
Major Investments. Documents Similar To Kingfisher Airlines - Business Startegy,,m. Uploaded by. Manasi Ghag 5/5(1). I am delighted to introduce Kingfisher’s plan for corporate social responsibility. Our aim is to explain how our strategy for operating a company as diverse and dynamic as Kingfisher in a at a Group level.
In doing so I hope we will contribute to a general sharing of ideas. Corporate website of Kingfisher plc, Europe's leading home improvement retailer with over 1, stores across 10 countries in Europe.
Jul 26, · Kingfisher airlines using Market penetration strategy at domestic airlines to improve number of travelers travelling by Kingfisher airlines by improving the number of services offering. Market penetration means company penetrates a market with its current products.Download