Department of Maritime and Logistics Management Essay

Department of Maritime and Logistics Management - Essay Example The industry has become saturated due to several negative external environmental impacts. Therefore, it is important for the new comers to understand the appropriate demand for the air service before developing a new business. Discussion This part of the essay will determine the key factors that need to understand before deciding the demand for a new airline business. Moreover, the study will identify the implications for the operation of an airline regarding the mixed passenger and freight model. Answer 1 It is important for a newly developed organization to do a market survey to understand several business factors. Knowledge about market competition will help the organization to develop an effective business plan. Moreover, the organization needs to review effective internal resources and capability of the organization. Defining Idea, gathering information about market competition, effective resources, customer demand and feasibility assessment will help the organization to move fo rward. Global airline industry has become highly saturated due to intense competition and several political and economical challenges. Recent financial crisis and global economic recession affected the global economic environment. Low purchasing power, limited disposable income of people and negative economic growth rate are the major consequences of this economic slowdown. People are trying to save more rather than consuming products and services due to this economic distress. Therefore, it is important for the organization to utilize the resources in such a way that can reduce the business operation cost. Effective operation cost reduction can help the organization to implement competitive pricing strategy. Effective competitive pricing strategy will help the organization to achieve potential competitive advantages. Airline industry is considered as the service industry. People always expect better service against their air ticket fare. Now-a-day, the global airlines are trying to implement CRM strategies in order to satisfy the needs of customer. Slowly and gradually, effective customer relationship management will help the organization to develop a potential target customer base (Winsveen, 2012, p.13). Therefore, the major objective of the organization would be providing effective in-flight customer service against low competitive ticket price. Employees are considered as the strongest asset in a service providing organization. Skilled and trained pilots, flight attainders and air hostesses are considered as the major competitive strength of an airline organization. Effective organizational and work place culture need to be adopted by the organization to develop an effective workforce. The organization should focus on employment benefits of the employees in order to increase the motivation level of the employees (Bowhill, 2008, p.333). Highly motivated employees will try to perform more effectively. Low turn around time and high frequency of flights increa se the core competency of the airlines. The organization needs to provide effective training and development programme to increase the skills of the employees. Effective turnaround time management will enhance effective customer relationship management. Therefore, the organization needs to treat their employees and vendors as their own family members. Then only they can achieve effective competiti