5910_ASS 6 # DRAFT 1 # # MBA-FPX5910 MBA Capstone Experience MUST NEED A+++++++ OTHERWISE DISPUTE
Capstone Presentation Frontier Airlines
1
Introduction
The frontier airlines company is an American organization that operates within the transport industry. It is based in Denver, Colorado.
The company is among the best, currently ranked as the 8th largest airlines in America. It operates in more than 100 destinations in the US.
The success of the company is mainly attributed to the strategies put in place by the management.
However, the company has been facing a lot of competition over the past few years, especially due to new entrants within the market.
Frontier Airlines is an American organization operating in the transport sector. It’s based in Denver, Colorado. The company is the 8th largest airline in the United States. It runs in more than 100 destinations in the US. The success of the organization is primarily due to the plans invented by organization management. However, the company has been facing a lot of competition over the past few years, mostly due to new entrants.
2
Competition in the airline industry
Frontiers Airline Company is characterized by significant innovations, mainly due to technological advancement, especially over the past few years.
Deregulation and liberalization have also enabled more companies to venture into the industry, thus increasing competition.
However, it is essential to note the increase in mergers and collaborations within the industry, which reduces the competition.
In recent years, competition has mainly increased due to increased travel choices over different destinations.
Other factors that promote competition within the Airline Industry include the availability of cheaper and low-capacity airlines, globalization, lower plane ticket prices, and even favorable government policies.
The Frontiers Airline Company presents significant innovations, especially in recent years, mainly due to technological improvements. Deregulation and liberalization have allowed more companies to enter the industry, which has increased competition. However, it is important to note the increase in mergers and collaborations within the industry, which reduce competition. In recent years, competition has step up, primarily due to the increased travel options to different destinations. Other factors that promote competition in the aviation industry include the availability of cheaper and smaller airlines, globalization, lower ticket prices, and even favorable government policies.
3
Market structures
There are four main market structures, all of which are determined by the variations in the cost of flights. They are described as follows:
Monopoly, where the seller is single. There is no competition in such a market structure.
Oligopoly, where few establishments regulate the market. Having a few organizations that dominate the market, this market structure allows the organizations to set the business mood about prices.
Perfect competition, where all sellers and customers have complete and symmetric data, no operation costs, with many manufacturers and customers who compete among themselves(Balliauw et al., 2018).
An imperfect competition where there are many producers, but they sell heterogeneous commodities instead of the perfectly competitive market scenario (Balliauw et al., 2018).
There are four major market structures, all of which are determined by the differences in the cost of flights. These are explained as Monopoly, where the seller is single. There is no competition in such a market structure. The second market structure is oligopoly, where few establishments regulate the market. Having few organizations that dominate the market, this market structure allows for the organizations to set the business mood with favor to prices. Perfect competition, where all sellers and customers have complete and symmetric data, no operation costs, with a large number of producers and customers who contest between themselves(Balliauw et al., 2018). Additionally, defective competition where there are many companies, but they sell different products as different from the market scenario (Balliauw et al., 2018).
4
Use of technology to attain competitive advantage
Flight planning. It enhances proper customer management, mainly because it can share crucial information regarding the flight taking time within a specific time and any other emergency information.
Digital operations. They have increased the efficiency of service delivery, as many companies switch from manual delivery methods to digital methods.
Customer service. Through technology, it is easier for customers to communicate with the company, make complaints, compliments, and even give feedback on services offered.
Environmental conservation. The use of technology in the airline industry has minimized pollution in the form of reducing emissions.
More efficient maintenance using drones. This enhances the efficiency of the process of aircraft inspection.
Technology has also facilitated good lighting in airlines, primarily through using the light-emitting diodes for the engineers and cabin crew.
Flight planning enhances proper customer management, especially because organizations can share important and other emergency information about flight times within a specific time. As many companies switch from manual delivery to digital, digital operations have improved the efficiency of service delivery. Technology also has a big impact on customer service. Technology makes it easy for customers to communicate with the company, complain, compliment, and even give feedback on the services provided. Environmental conservation. Use of technology in the aviation industry minimizes pollution in the form of reduced emissions. More efficient maintenance using drones. This improved the efficiency of the aircraft inspection process. Technology also helps superior lighting for airlines, especially by using light emitting diodes for engineers and flight attendants.
5
SWOT Analysis
| Strengths | Opportunities |
| Firm brand name Availability of curriculums that guarantee that no flights get annulled. The company has more than 50 aircraft operating to different destinations across the world. | Expansion to other regions in the world. Extension of business to include cargo services. Service to people in remote regions that connect to major airports in different parts of the world. |
| Weaknesses | Threats |
| Poor past financial performance. The aircraft are also filled by many passengers, which makes it hard to fill the seats. | Government regulation Increased jet fuel prices. New entrants in the industry also increase the rate of competition. |
The company's strengths include the availability of our brand name, a program to prevent flight cancellations, and the company also operates more than 50 aircraft to many destinations worldwide. Opportunities include expanding to other parts of the world, expanding business, including cargo services, and servicing people in remote areas connecting to main airports in different parts of the world. The company also has various weaknesses. This includes poor financial performance in the past and large aircraft passenger capacity, making it difficult to fill seats. Threats include unfavorable government regulations, rising jet fuel prices, and new players to the industry are also becoming more competitive.
6
PEST Analysis
| Political | Economic |
| The company operates in a highly regulated political environment With the opposition and regulations in the industry, passengers are in a position to push for lower charges and facilities. | The airline is impacted by different economic factors such as: fluctuations in oil prices. The great recession. International slowdown. Labor requirements. Protection fees. |
| Social | Technological |
| The emerging millennial generation comprises of disturbing clients. The passenger profile accounts for even the economically-minded passenger. | Technology plays a key role in enhancing the competitiveness of a company. |
The political environment in the region affects the company in many ways. For example, the company operates in a highly regulated political environment. Due to industry opposition and regulation, passengers are in a position to demand lower fares and equipment. Airlines are also affected by various economic factors, including fluctuations in oil prices, the Great Depression, global slowdowns, labor requirements, and protection rackets. Social factors affecting the company include a new generation of millennials made up of disturbing clients. Passenger profiles describe even economy-oriented passengers. Technology plays an important role in increasing a company's competitiveness.
7
VRIO Analysis
| Value | Rare |
| Highly valued financial resources Well-trained employees Patents | The finances need in the company are rare. Labor is also a rare resource. The employees are highly skillful and proficient, unlike those in other establishments. |
| Imitable | Organization |
| Imitation of finances in the company is expensive. It would also take the company a long time to achieve as much as Frontier Airlines have achieved so far. Imitation of employees in Frontier Airline is also hard. | The organizational finances are well-organized to indicate value. Network distribution in the establishment is also well organized. |
Among the assets valued within are financial resources, well-trained employees, and patents. Rare resources include finance and labor. Employees, unlike other facilities, are very skilled and skilled. When it comes to imitating a company, imitating a company's finances is expensive. Also, it takes a long time for the company to achieve what Frontier Airlines has achieved so far. Imitation of Frontier Airlines employees is too tricky. The finances of an organization are well organized to show value. Network distribution within the facility is also well organized.
8
Overcoming Barriers to Competition
Aggressive innovation. Innovative organizations have a competitive advantage because they are ahead of their competitors.
Provision of training and development programs for employees, especially regarding the critical operational areas. This increases the quality of service delivery.
Revising the prices. The flight prices should be affordable so as to increase the number of customers who seek for services from a particular company.
Introduction of low capacity aircraft. This will reduce the cost of operations for the company due to the lower maintenance costs of the aircraft. It will also speed up processes since fewer passengers will be needed to fill the flights.
Provision of high-quality customer service. This would increase the satisfaction levels of clients and hence increase their retention rate.
Guaranteeing air safety and effective maintenance of aircraft would also be significant in increasing the market size for the company.
Aggressive innovation is crucial in overcoming competition barriers. Innovative organizations have a competitive advantage because they are ahead of the competition. In alleviating competition barriers, it is also important to provide training and development programs for employees, especially in critical areas of business. This will improve the quality of service delivery. A price revision is also recommended. Flight prices must be affordable to increase the number of customers seeking service from a particular company. The company needs to introduce low-capacity aircraft. This reduces aircraft maintenance costs and as a result reduces company operating costs. It also speeds up operations by requiring fewer passengers to fill the flight. It is also important to provide quality customer service in order to overcome competition barriers. This increases client satisfaction and, as a result, client retention. It is also important to ensure the safety and effective maintenance of the aircraft air. It is important for expanding the market size of the company.
9
Ethical considerations
Among the most important virtues within the airline industry are:
Honesty
Fairness
Confidentiality
Privacy
Employees in Frontier Airline Company ensure they are honest with the clients and also the colleagues for efficient operations.
They are also encouraged to keep client information confidential.
All the clients in the company are also treated impartially to ensure fairness.
Honesty, fairness, confidentiality and privacy are the most important strengths of the aviation industry. Frontier Airlines employees ensure that they are honest with their clients and colleagues for efficient operation. We also recommend that you keep your client information confidential. All clients within the company are also treated fairly.
10
Leadership and collaboration
Leaders must think big. This ensures that the organization stands out from the crowds.
Leaders must have a vision. This enables the leader to guide their team to do their best to achieve the goals.
Leaders must motivate collaboration and teamwork. Collaboration and teamwork help an organization to consolidate ideas from different employees within the organization.
Leaders promote smooth and transparent communication. This fosters trust and healthy relationships in work.
Leaders should promote the creation of relationships. Employees who have positive relationships with their leaders are motivated and willing to do the extra to help the organization achieve its goals.
Leaders need to think big. This makes the organization stand out from the crowd. Leaders also need to have a vision. This allows leaders to guide their teams to do their best to reach their goals. It is also important for leaders to motivate collaboration and teamwork. Collaboration and teamwork help organizations integrate ideas from different employees within the organization. Leaders promote smooth and transparent communication. This promotes trust and healthy relationships in the workplace. It is the role of the leader to facilitate the building of relationships. Employees who have a positive relationship with leaders are motivated and willing to do additional things to help the organization achieve its goals.
11
Recommendations
Innovations will help the company to upgrade its services to a globally competitive level (Park & Seo, 2019).
Training and development programs. Training equips leaders and employees with skills and strategies will armor them with what they need to support the mission and vision of the company.
Promote collaboration. Frontier Airline should encourage and promote Collaboration and teamwork help an organization consolidate ideas from different employees within the organization
Encourage leaders to build positive relationships. Employees who have positive relationships with their leaders are motivated and willing to do the extra to help the organization achieve its goals (Cote, 2017).
Innovation will help the company upgrade its services to a globally competitive level (Park & Seo, 2019). Training and development programs are also crucial in that train leaders and employees with skills and strategies and provide them with what they need to support the company's mission and vision. Frontier Airlines also needs to encourage and promote collaboration and teamwork. This helps the organization integrate ideas from different employees within the organization. We also encourage leaders to build positive relationships. Employees who have a positive relationship with leaders are motivated to help the organization achieve its goals and are willing to do other things (Cote, 2017).
12
References
Balliauw, M., Meersman,aH., Onghena, E., & Van de Voorde, E. (2018). U.S. all-cargo carriers' costs structure and efficiency: A stochastic frontier analysis. Transportation Research Part A: Policy and Practice, 112,229-45. Retrieved from https://www.sciencedirect.com/sciece/article/abs/piii/S096588564188300168
Cote, R. (2017). Vision of effective leadership. Journal of Leadership, Accountability, and Ethics, 14(4). Retrieved from https://articleegateway.com/indeex.phf/JLAE/article/view/1486
Park, A.H., & Seo, K., (2019). Common Ownership and Product Market Competiton: Evidence from the U.S. Airline Industry 48(5), 617-640. Retrieved from http://www.e-kjfss.org/upload/pdf/KJFS-2019-0-488-5-617.pdf