Classic Airlines marketing Solution Essay Example | Topics and Well Written Essays - 2000 words

Classic Airlines marketing Solution - Essay Example As per the case study, the firm is losing its profitability and faring really poorly against its competitors. Customer retention rate is poor and the service is very inadequate. Root Cause Analysis Model The Root Cause Analysis (RCA) model is used in internal audits and other problem detection fields. It is â€Å"a research-based approach to identify the bottom-line reason of a problem with root cause representing the problem† (Mainardi, 2011: p180). It involves a structured investigation into a given problem to ascertain the true and real cause of a given problem (Anderson et al, 2009). This is done to ensure the continuous improvement in the quality and systems of a given organization. Root Cause Analysis is a practical transition from the apparent cause analysis to the examination and critique of the root cause of a given problem. This involves the identification of the actual causes in order to find the intermediate causes and from there, detect the root causes (Lorenzo an d Hanson, 2008). Issues in Classic Airline's Marketing Unit From the case study, some apparent causes and issues are identifiable in Classic Airline's marketing unit. In order to identify it and critique it better, it will be worthwhile to identify the apparent issues, the intermediate issues in order to identify the root cause. A. ... The deregulation of the markets and the integration of small carriers and other overseas investors has led to price wars and other competitive restructuring. Classic Airline's extremely low margins give a strong indication that the airline is really losing out in the competition presented by the other airline companies in the industry. Market Share Issues The failure to compete on the markets have led to a sharp fall in the market share that Classic Airline controls. There customer retention of the company has been weakened by the competition posed by other companies. This is because their current reward program has lost as much as 19% of its members, which has culminated in the reducing the flights of the company by as much as 21%. B. Intermediate Issues Areas of Interest: Marketing Alliances & Restructuring of Marketing It has become almost apparent that the firm needs to restructure its marketing units, the marketing structures and the marketing alliance programs. This is meant to correct the wrongs in the company and also retain some degree of stability. This has created two issues which also needs to be examined and resolved from the root-cause approach. Cost Structure Issues The quick and aggressive growth of the firm has been identified as a major cause of issues with the company. The reduction of the cost budget by a whopping 21.5% and the reduction of budgets in other departments is one of the apparent issues. It will therefore be worthwhile to identify the impact of this reduction and the best way of soothing its effects and correcting its issues. This include amongst other things, infighting amongst the executive managers, and the reduction in important units