March 24, 2013
Continental Airlines strategy is identifying and increasing the benefits its most valued and loyal customers (frequent flyers); while luring new, more profitable customers, nationally and globally with top-notch customer service. The company’s main goal is customers reaching their destination safely, on time and with their baggage. Continental main strategy is concentrating on a group of loyal frequent flyers who would be willing to pay more for superior customer service, contributing to, increased profitability and great customer service which could attract new customers globally,(Rainer & Turban, 2008).
To achieve its strategy, Continental went beyond the usual airline technology such as in-line check-in and electronic ticketing. Continental relied on its information technology department to create automated tools, boosting efficiency, and sharper business intelligence (Rainer & Turban, 2008. The information technology department solved the problem by utilizing a cutting edge information systems; the company consolidated its old system into one integrated system, saving about six million dollars annually. The new system combines all customer information and company information and unlike the old system is flexible and enterprising.
Other airlines have not implemented a similar customer service program to continentals because of economic conditions such as the cost of an Information Technology system, rising fuel cost, post 911, and antiquated air traffic control systems. Several of the larger airlines have gone bankrupt or have barely avoided it (Rainer & Turban, 2008). Instead they have stuck with their old customer services programs including baggage fees and other outdated customer service rules causing flyers to choose no-frills airlines with solid rules. Information technology can...