Arce Dairy Ice Cream
Case analysis
Texas Air, Inc.
I. Main Problem * Pricing Strategy
Sub problem: * Late departures * Poor service and safety
II. Objectives
* To defend its price leadership over its competitors in the airline industry. * To amend its pricing strategy to avoid massive losses. * To shun being the lowest rank out of fourteen major airline in its evaluation on time arrival. * To improve service and safety of the Texas Air Inc.
III. SWOT analysis
Strengths
* Price leadership * Largest airline system * High number of established, high frequency discount rates
Weaknesses
* Poor service and safety * Ultra low-fares
Opportunities * Growth and expansion * partnership
Threats * Competition * Passengers complaints
IV. Alternative Course s of Actions (ACAs)
ACA1.
Texas Air Inc. will now be increasing its price by 30%. Expect high quality service would be given to its consumers.
ACA2.
Set aside pricing philosophy Peanut and MaxSaver fares.
V. Recommendation
We decided to adapt ACA1 because this can be better strategic move for the Texas Air Inc. In this strategy, they can avoid passenger’s complaints such as late departures, canceled flights and dirty planes. We believe that they can give their passengers a high quality services.
VI. Marketing Strategy
Executive Summary:
Early in 1987, Texas Air bought Eastern Airlines and the financially troubled People Express. Texas merged Continental, New York Air, and People Express into one full-service, low-fare airline under Continental banner, making the continental the third largest airline in the United States.
They believe in giving its customers what they want; that is, the best possible service at the best possible price. The airline is committed to this low-price, high-value service, and follows a cost-conscious, consumer-oriented philosophy to maintain this service.
Texas Air maintains price leadership.
Even before the
Texas Air, Inc.
I. Main Problem * Pricing Strategy
Sub problem: * Late departures * Poor service and safety
II. Objectives
* To defend its price leadership over its competitors in the airline industry. * To amend its pricing strategy to avoid massive losses. * To shun being the lowest rank out of fourteen major airline in its evaluation on time arrival. * To improve service and safety of the Texas Air Inc.
III. SWOT analysis
Strengths
* Price leadership * Largest airline system * High number of established, high frequency discount rates
Weaknesses
* Poor service and safety * Ultra low-fares
Opportunities * Growth and expansion * partnership
Threats * Competition * Passengers complaints
IV. Alternative Course s of Actions (ACAs)
ACA1.
Texas Air Inc. will now be increasing its price by 30%. Expect high quality service would be given to its consumers.
ACA2.
Set aside pricing philosophy Peanut and MaxSaver fares.
V. Recommendation
We decided to adapt ACA1 because this can be better strategic move for the Texas Air Inc. In this strategy, they can avoid passenger’s complaints such as late departures, canceled flights and dirty planes. We believe that they can give their passengers a high quality services.
VI. Marketing Strategy
Executive Summary:
Early in 1987, Texas Air bought Eastern Airlines and the financially troubled People Express. Texas merged Continental, New York Air, and People Express into one full-service, low-fare airline under Continental banner, making the continental the third largest airline in the United States.
They believe in giving its customers what they want; that is, the best possible service at the best possible price. The airline is committed to this low-price, high-value service, and follows a cost-conscious, consumer-oriented philosophy to maintain this service.
Texas Air maintains price leadership.
Even before the