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Essay / Research Paper Abstract
This 5 page paper considers the Irish company Ryanair and looks at how they have managed to adapt to meet customer demands that fluctuate and the strategies they has used to maximise their profits at the same time as stimulating and managing demand. The bibliography cites 8 sources.
Page Count:
5 pages (~225 words per page)
File: TS14_TEairdem.rtf
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Unformatted sample text from the term paper:
For goods the need may be more flexible if there is an ability to store the goods, the longer the potential storage time the greater the degree of flexibility that
I built into the system, and the ability to adjust also as a greater lead time. For services the same is not true, although there may be a lead time
over which the demand may be gauged in advance there is also the need to plan and develop to maximise the use of a service. Indeed, airline services are a
good example off the need to plan a strategy tome customer demands, as once the aeroplane takes off there is no ability to add another passenger. The marginal costs per
passenger for the empty seats are minimal, and the overheads are fixed at a high level. Therefore there is a need to adjust the way the seats are sold, the
flights that take place and the marketing to cope with the macro conditions. Sell to few seats and the aeroplane will not make a profit for the company, sell to
many, and either a new aircraft will need to be added to satisfy demand, with diseconomies of scale due to the need for the additional aircraft (Nellis and Parker,
2000). Otherwise, they will need to disappoint some customers with an inability to satisfy the demand. Ryanair is one company that has managed to develop well in a functioning situation.
The initial plan for the airline was for the company to compete with the monopoly company that was flying between the UK
and Ireland. The objective that had been set was for the company to be a full service airline, competing on alike for like basis with the existing Aer Lingus. This
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