Tiger airway case study Essay Example | Topics and Well Written Essays - 1750 words

tiger airway case study - Essay ExampleManagers in Tiger use the low f ars as a tool for attracting customers also for keeping their existing customers. However, this practice has affected the menages boilers suit agonistical dodge. Also, other parts of the organizational activity, for instance the level of the fast(a)s profits still also the persona of the service delivery has been influenced by the decision of the upstandings manager to see a low-fares strategy. The above problem would be made clear by referring primarily to the relevant literature. Then, acknowledgement should be made in the relationship between the firms low-fare strategy and the other elements of the organization, as described above. In accordance with Daly (2002) determine is a valuable competitive strategy it is noned that stock-still a minor decrease in the price of a product/ service can dish out a firm to get a contract (Daly 2002, 14). On the other hand, Smith (2011) states that pricing is not always a competitive proceeds reference is made specifically to the case that a firm decreases its prices lower than its competitors. It is explained that in the above case pricing cannot be characterized as a competitive advantage since the firm has no profits, and in this way, no advantage exists for the firm by adopting the finicky strategy (Smith 2011, 272). From another(prenominal) point of view, Porter (1998, 528) notes that through pricing, a firm can support its brand name. This view is particular important in the case of low fare airlines, like the firm in the case low discussion. Moreover, Marn, Baker and Zawada (2010, 81) state that pricing can be accepted as an effective competitive strategy but sole(prenominal) under the terms that the laws on fair competition are not violated. Towards the homogeneous direction, Spulber (2007) supports that pricing can be a highly effective competitive strategy but only if it is combined with another strategy of similar scope refe rence is made, for example to the combination by firms of pricing and distribution strategies for achieving a competitive advantage (Spulber 2007, 176). In the case under examination the effects of the firms low-fares strategy on its other strategies, would be described as follows a) the firms competitive strategy have been affected by the low-fare practice at the following points a1) it is difficult for the firm to reveal other competitive strategies due to the reduction of its profits, a2) the firms brand name is enhanced as a low fare airline services provider, a3) because the quality of the firms services has been decreased, the real(a) benefits of the firm in regard to its competitiveness towards its rivals are minimized b) because of the decrease of fares, the profits of the firm are decreased this fact, inevitably affects the firms performance, since it is not possible for the firm to introduce plans for securing its position in the market c) at the next level, the limita tion of the firms profits has led to the decrease of the quality of its services a fact highlighted in the case study (where reference is made to the lack of cleanliness of the cabin, the unworthiness of the seats in terms of space left for passengers, the lack of facilities and stores in the waiting area of the airport referring to the part of the airport where the passengers of the particular firm have to wait and so on) from this point of view, the decrease of the firms fares has not led to the acquisition by the firm of a