Problem Solution Classic Airlines

Problem Solution: uncorrupted Airlines guiltless Airlines is the worlds fifth largest airline serving 240 cities world wide. Although the airline is profitable, its ancestry prices have decreased by 10% in the onetime(prenominal) year and employee morale is low due to increased exam on the airline industry from all sectors of the economy (UOP, 2005). all over the past two years, unsullied Rewards Members have decreased their fleck of flights which has created concerns as to the viability of the company. In addition to low employee moral and lessen customers, mere is also a facing a constraining post 9-11 monetary value restructure due to overly approbatory expansion. Classics Board of Directors has recently mandated a 15% across-the-board cost reduction over the next 18 months (UOP, 2005). Adding to the complication is Classic is the only commercial airline that does not have an alliance agreement with another airlines. Within the constraints of the mandate, Classic also needs to improve its frequent flier broadcast with methods that leave behind demonstrate a measurable return on any investment while still meeting the cost reduction goal. Through the use of environmental scanning Classic will be able to more accurately shout out qualifys in the market and consumer trends which will better enable it to change its marketing plans.

Describe the Situation Issue and Opportunity Identification Classic Airlines faces several critical issues with its current operation, customer confidence is declining as well as Classics Rewards Program, which measured a 19% decrease in the number of Classic Rewards members and a 21% decrease in flights per remaining members. Part of Classics problem can be tract to its chthonic capitalized customer relationship management (CRM) system, although the existing CRM system is a powerful tool it is not being used in a way that is beneficial, preventing the capturing of valuable customer data. Classic will need to use the CRM system the way it was meant to be, which... If you want to nettle a full essay, order it on our website: Orderessay

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