Silverjet Essay
Phase 1 Assignment Brief “Silverjet: a fallen star”
Reporter: Pham Van Anh - FB4A - FTU
November 8th , 2012
Market Segmentation is recognized as an indispensable tool of marketing strategy, which determine about whether business are able to earn profits and durable subsist. This statement could be unequivocally demonstrated in the case of Silverjet airline phenomenon in period of 2006 – 2007. Though company was bankrupted later in 2008, there were lots of significant experiences for this industry that Silverjet left behind.
Below an overview of aviation market segmentation targets, there are three main parts which have been arranged according to the criteria of customer income, demands, career characteristic: Economic Class, …show more content…
Airlines use carbon offset payments to fund programs which develop renewable energy sources, like solar power and wind farms, as well as research into energy efficiency(4), thus fee for Carbon offset are almost negligible. Notwithstanding, most major firms have focused on Economic class then $20 included on $300-$800 per ticket could be a big deal. Took advantage of this, Silverjet – the only business class serving (with $1200 per ticket) - provided carbon offset fee as PR tactics not only for proving its environment concern to public but polishing brand image and expanding advertising range. People in parallel would express sympathetic in spending just $20 for both their responsibilities as well as …show more content…
However in my opinion, the cause of firm collapse was derived from both objectivity and subjectivity reasons. Undeniable the recession created economic and psychological burdens, obstructed obtaining investment capital since it was service firm that operated as the two companies had earlier bankruptcy in the U.S: MAXjet and Eos. Nevertheless, in essence, contrary to what was widely supposed, Mr. Lawrence Hunt said that it wasn't the rising oil price and the credit crunch in themselves that killed Silverjet(5) When a new company was launched, except trading campaign, the company itself should in need of a long-term financing plan. In fact, Silverjet seemed to be too dependent on the sources of its services to aware of unexpected incidents. Further more, market changes constantly, the continued use of old segmentation form meanwhile develop new market ( new route to Dubai and second service per day to New York), also was malpractice market strategies that indirectly brought to its failure.
In conclusion, Silverjet airline is a convincing proof for both success and fail in market segmentation that business user and entrepreneurs should learn to plan viable. The lack of cost-conscious may bring risks that inability to overcome and impossible to build a firmly business foundation.
Reporter: Pham Van Anh - FB4A - FTU
November 8th , 2012
Market Segmentation is recognized as an indispensable tool of marketing strategy, which determine about whether business are able to earn profits and durable subsist. This statement could be unequivocally demonstrated in the case of Silverjet airline phenomenon in period of 2006 – 2007. Though company was bankrupted later in 2008, there were lots of significant experiences for this industry that Silverjet left behind.
Below an overview of aviation market segmentation targets, there are three main parts which have been arranged according to the criteria of customer income, demands, career characteristic: Economic Class, …show more content…
Airlines use carbon offset payments to fund programs which develop renewable energy sources, like solar power and wind farms, as well as research into energy efficiency(4), thus fee for Carbon offset are almost negligible. Notwithstanding, most major firms have focused on Economic class then $20 included on $300-$800 per ticket could be a big deal. Took advantage of this, Silverjet – the only business class serving (with $1200 per ticket) - provided carbon offset fee as PR tactics not only for proving its environment concern to public but polishing brand image and expanding advertising range. People in parallel would express sympathetic in spending just $20 for both their responsibilities as well as …show more content…
However in my opinion, the cause of firm collapse was derived from both objectivity and subjectivity reasons. Undeniable the recession created economic and psychological burdens, obstructed obtaining investment capital since it was service firm that operated as the two companies had earlier bankruptcy in the U.S: MAXjet and Eos. Nevertheless, in essence, contrary to what was widely supposed, Mr. Lawrence Hunt said that it wasn't the rising oil price and the credit crunch in themselves that killed Silverjet(5) When a new company was launched, except trading campaign, the company itself should in need of a long-term financing plan. In fact, Silverjet seemed to be too dependent on the sources of its services to aware of unexpected incidents. Further more, market changes constantly, the continued use of old segmentation form meanwhile develop new market ( new route to Dubai and second service per day to New York), also was malpractice market strategies that indirectly brought to its failure.
In conclusion, Silverjet airline is a convincing proof for both success and fail in market segmentation that business user and entrepreneurs should learn to plan viable. The lack of cost-conscious may bring risks that inability to overcome and impossible to build a firmly business foundation.