Assignment 2 Bus 599

Assignment: #1 - Crafting and Executing Strategy 

BUS-599

DJhonna M. Jones

October 16, 2011

Dr. Joy Thomas

Discuss the trends in the U.S. airline industry and how these trends might impact a company’s strategy.

Currently the U. S airline industry is floundering. Most airlines are doing whatever it takes to make up revenue. From charging for luggage to charging for in flight meals, gone are the days where you could bring your entire closet on a trip or be guaranteed that despite being rubbery you would be fed something that qualifies as edible at some time during your six hour flight. Since September 11, 2001 airlines have seen a decline in consumers. In order to make up for this stark contrast fees for baggage have risen sharply as well as an addition in flight charge for meals during long flights. Some airlines don’t offer meals at all anymore. That and all other amenities such as drinks and even toilet facilities are at a very bare minimum. This bare minimum doesn’t even include quality or satisfaction.

Keeping everything else in mind an airline company can make an increase in revenue simply by increasing their customer satisfaction. Increased customer satisfaction increases the number on consumer patronage. Changing their baggage fees or eliminating them all together like South West airlines has, can and as demonstrated by South West, will increase revenue in the long run. Jet Blue Airlines has lost sight of their ultimate goal of increasing customer satisfaction to increase revenue and in turn increase investor returns. Customer service is also a major area in their strategy that would make an impact on their returns. More customer oriented service on the part of the airline company is a large step in planning their company’s strategy.

A company’s strategy is a reflection on the face they want to show the general consumer public. If customer satisfaction is low with a company then their strategy is either not working or they have...