Classic Airlines
Problem Solution: Classic Airlines
The airline industry is constantly undergoing change, and the ability to react and adjust swiftly is imperative. The need to improve safety, reliability, and customer appeal while offering competitive prices is an ever-present challenge. Classic Airlines is no stranger to the challenges faced by the airline industry. (University, 2007).
Issues and Opportunity Identification
Classic Airlines faces an array of issues and opportunities which can be categorized into profitability, business alignment, customer satisfaction, and innovation.
Under the business alignment, the CEO and CFO shared common business philosophies which are not in-line with the rest of the management group. Transformational leadership is imperative to the survival and efficacy of the enterprise as well as for implementing sounded marketing practices. (xxxxx).
Under customer satisfaction, Classic Airlines has experienced a negative impact in customer loyalty with a 19% decrease in the number of Classic Rewards members and a 21% decrease in flights per remaining members. Classic Airlines must place its emphasis on managing the customer experience not the business experience as customers have the control of the enterprise not vice versa.
Under innovation, Classic Airlines is not utilizing the customer relationship management (CRM) system to its full capacity nor is the enterprise positioning itself to take competitive advantage of new market practices such as code-sharing. The fully utilization of a CRM system can address market dynamics, leverage technology and placed the enterprise in a position to be able to deliver better and fast than the competition at each and every moment. "Code sharing provided a way for both types of carriers to expand their customer base by feeding into each other's flight networks." (xxxxxxxx). Classic Airlines must take advantage of this new trend as it will drive long-term...
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