Topics: Marketing, Customer relationship management, Strategic management Pages: 4 (1076 words) Published: February 16, 2013

Submitted By
jamuna prasad
Classic Airlines is a 25 year old company that commands a fleet of more than 375 jets that serve 240 cities with more than 2300 daily flights all over world. Classic airlines Target was to become the Leading air service provider in the world. But Due to some challenges, company is facing a big problem to sustain in a competitive environment where fuel and labour cost is rising which makes the air service business to reduce its incentive schemes and facilities to customers creating the down market condition as compared to its competitors. The main Internal and External challenges which company is facing are as under: 1. Internal challenges:

* Low employee Morale
* Minimal focus on marketing strategy while maximum on Expansion 2. External Challenges:
* Decline in Sales and Profit
* Dissatisfied Customers
* Price Battle competition with the competitors
Problem Identification:
Though Classic Airlines is a very big air service provider firm but with some basic problem they made some lack of their strategy in the marketing, sales, innovation and relationship side. Classic Airlines is facing an overall decline in demand and decrease in their market share in the airline industry. As a result of this situation, their stock prices are suffering. The Frequent flyer known as classic Rewards has experienced a 20% decrease in membership participation. Also the Flights (travelling) of their frequent flyer members have decreased by 20%.This scenario represent a threat from the competitors. One of the challenges of the industry is the increase of the cost of fuel. This is an external factor than a classic airline was unable to control. At the same time this issue does not allow the company to develop a strategy based...
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