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Strengths, Weaknesses/Limitations, Opportunities, and Threats

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AirWays Global, a U.S. commercial airline, is experiencing marketing problems three years after 9/11. While the industry as a whole is on the path to recovery, after three years of uncertainty and decreasing profitability, the airline is still having problems implementing effective customer retention policies. Customer confidence appears to be waning, as indicated by a 20 percent drop in AirWays's Frequent Flyer Reward Program membership. Preliminary research data indicates that the most profitable "Business Traveler" segment is quickly losing customers. Additionally, industry labor and fuel costs have been rising every year since 2001.
AirWays's executives are worried that the bad press the company is getting will aggravate labor union representatives and send the wrong signals to Wall Street's investors. The newly hired chief marketing officer (CMO) admits that marketing is critical to the company's ability to move forward profitability. Her confidence has been compounded by the recent implementation of a customer relationship management (CRM) system as part of an overall revamping of the company's marketing information system (MIS). The CMO believes this technology is the centerpiece of AirWays's future success.

- Perform a SWOTT analysis, placing particular emphasis on long-term trends affecting the commercial airline industry.
- Create a (new) mission statement for AirWays Global, placing particular emphasis on what the competition is doing. Include the following elements in your statement:
- Customer orientation
- Service category
- Scope/direction
- Core competency.


Solution Preview

You will want to add to this information with your own experience and knowledge/research. This is to get you started:

A SWOT analysis, placing particular emphasis on long-term trends affecting the commercial airline industry:

- Established airline - These are days where established companies can be a strong point
- Rewards program - The rewards program is established and customer's needs are, and should be considered to improve the program
- Knowledgeable customer relations staff - These two staff areas are filled with experienced people who put consumers first
- Excellent flight staff

- More ...

Solution Summary

The solution discusses the strengths and weaknesses/limitations, opportunities and threats.