7. Introduce the firm:
a. who is the firm?
i. whom does it serve?
In 1944, the civil Aviation Conference was held in Chacigo, where fifty two states siged an International Convention that established the basic principles for the functioning of the air market: each country could negotiate bilateral agreements with other countries in order to regulate the market conditions that would govern air traffic. Before the 1980’s, the planning system used was basically “ point to point”, that is to say, direct flights from one city of origin to another of destination. Instead of planning simple routes, they planned routes from and to the hub airports that came from or were going to other cities. In 1959,
ii. What value does it deliver?
They used medium and low capacity aircraft on low density routes. Generally they only made domestic flights and rarely international ones. They competed with flag carriers and also with low cost carriers, which had caused a decline in their per passenger income. For that reason, some regional companies decided to go into partnership with flag carriers which results to also low cost carriers.
iii. Why does it matter?
It matters with the 1.9 billion passengers carried safely by the airline, because of the low cost but efficient carrier. The strategic master plan II 2000-2013, established customer service as one of its priority objectives which in fact result with the passenger’s satisfaction that would be converted to profit. iv. What is its ambition?
Its ambition is to suffice the need of its passengers while giving low cost in a way that their service will be still in the international level and not only for domestic purposes with the intention to give a safe and worth it flights. 2. How does the firm create and capture value?
i. What is its difference?
Its difference is that it gives low cost flights which gives the customers the right satisfaction. They managed flights “point-to-point”, both scheduled and short haul. They used to regional airports that were cheaper and less crowded than the main airports. Nevertheless, some low-cost carriers such as easyJet and Vueling also used main airports. They had homogenous fleets that facilitated crew information and saved on maintenance costs. They offered one class only with high density seating and no in-flight service. They made sales directly by telephone and internet without issuing tickets. They offered unnumbered seats on the aircraft so as to speed-up the boarding process. They subcontracted many activities such as ground assistance or maintenance. They employees were not union members, and in many cases they contracted for several tasks. Iberia enabled Iberia to ramp up its security without having to take on additional staff. The automatic detections made by Vi-System have resulted in more effective surveillance, managed centrally from the security team’s headquarters, without the need for regular patrols around the large site. ii. How does it deliver its value proposition?
Our research indicates that most companies, when asked to construct a customer value proposition, simply list all the benefits they believe that their offering might deliver to target customers. Therefore, the benefits of Iberia are as follows: 1. Non expensive flights
2. Safe flights
What makes its strategy superior?
Its strategy is superior because they know how to choose their trusted customers. Customers which aims for a low prices offered by the airlines, they made their schedules convenient and frequent, made a good edge by making good previous experience and definitely a direct flight. iii. How does it evolve?
It has established partnerships with other flag carriers. Iberia became a partner of European regional airlines although still having independent capitals but it they achieved better service and obtained positive results 8. Describe the here and now condition of the firm as given by your case material PEST
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