BS1106 Business Environment Essay Example | Topics and Well Written Essays - 1000 words

BS1106 Business Environment - Essay Example some of the recurring lives that an air ducts patience requires to survive. The air passages industry is a complex one. It is a high risk industry as is known after the incidents of 9/11, yet it is a highly lucrative industry with potential of high profits. capacious investments, high risks, squeezing profit margins, growing competition are some of the major barriers to entry in this industry. The global economic downturn has also badly affected the expansion of the airlines industry worldwide. As a result of decreasing profit margins and to consolidate their position, a major trend within the global airlines industry has been for companies to seek strategic alliances with other airlines and benefit from synergies in operations. The success of low cost airlines and the increasing airline alliances has in general resulted in contributing towards service in the airline industry (Datamonitor, 2005). With the opening of economies and mar ket driven forces taking over the business prospects, the customer has become the real king in the airline industry. Now companies do everything possible to invite the customer towards them by offering them good bargains, club memberships, loyalty programmes, sumptuous meal and goodies on board. The customer descent management (CRM) has to play a key role in managing and retaining the customer as the customer has become very demanding, and resorts to bargain prices before purchasing the ticket. The fall out 10 leading names which have successfully made use of this trend are shown in the table belowWith more low cost airlines dotting the airspace, the industry is further reaching towards saturation. Brand name and frequent flier point programmes also play a role in the Airline industry1. An airline with a strong brand name and incentives can usually be enough to lure a customer (even if their prices are higher). The figure below lists some of main customer satisfaction determinants (Ipsos