Running head: PROBLEM SOLUTION: Classic Airlines
Problem Solution: Classic Airlines
Standing as one of the biggest airlines in the world, Classic Airlines has seen many successful years of operation, characterized by phenomenal growth. However, in recent months the airline giant has faced several challenges that many other firms have fallen victim to before. Amidst softer economic market conditions and increased competition, Classic Airlines has seen its sales drop. Moreover, the rising price of fuel and labor has also taken its weight on the company, thus making the airline giant less cost-efficient compared to the younger airlines. Given their current situation, its important to also consider that most of “these factors are respectively controllable and uncontrollable variables” (Kerin et al, 2006). Nonetheless, through the analysis of their issues and opportunities and the benchmarking of firms faced with similar problems, a recommended solution amongst alternatives will be crafted to support Classic Airlines with a solid plan moving forward.
Describe the Situation
Issue and Opportunity Identification
Given Classis Airline’s current situation, it’s equally important to identify the issues and opportunities that affect the company both externally and internally. In regard to internal factors, the company’s CRM software has been greatly criticized by many as not being fully utilized to its full potential. Given the substantial investment in this software, the company’s expectations were that, on top of being used to make reservation and travel bookings, the software would also be used to generate and gather market and consumer data; clearly, this is not the case right now. The opportunity that lies ahead for Classic Airlines is to utilize their CRM’s full potential by making the software more efficient and by providing various groups within the organization with valuable analytical data. Such data would allow operational groups to make certain...