High Operating Costs: Continental had a high operating cost because they decided to attract consumers by offering in-flight meals preventing them from going to other airlines. Align new marketing strategy, more consumer oriented, with low cost strategies. September 11th: The public lost faith in the airline industry after the September 11th and for many companies this meant bankruptcy.
Even after this, the majority of the airline industry had lower profits. Oil prices were getting high? Increasing Rivalry As stated in the case study, Continental Airlines was ranked at the very bottom of the list of airlines and regularly received low marks for customer service. Its external environmental was very instable and each carrier was trying very hard to save the company from bankruptcy.
The company had 45 different CRM systems and the carrier had no way to verify who the most important customers were. The way they implemented this strategy was basically creating and IT department which would improve customer services and operations.
But according in Teradata www. Fly to Win: Understand what products customers want and what they are willing to pay for. Fund the Future: Manage costs and cash flow so the airline can continue to operate. Make Reliability a Reality: Get customers to their destination safely, on time and with their luggage. Work Together: Create a culture where people want to come to work.
What are the new management capabilities and business processes? Are they information-intensive? How they work? The real-time data warehouse provided data from 25 internal operational systems and two external data sources loaded into the data warehouse. The source systems included: schedules, inventory, employee and crew payroll, airline tickets, customer care, and others and it was applied to areas such as revenue management, customer relationship management, flight management dashboard and fraud detection.
Management understood that good quality information was critical. For example, international fliers dial a different number than do customers booking domestic flights. Rewards Program members have their own toll-free line.
To even more precisely identify individual customer needs, callers may also respond to a series of network-level prompts before being connected to an agent. The new capabilities and business processes attained by the company made possible to know more about their customers which lead to more profit and consequently to a better customer service.
Does IT have a strategic role at Continental? One thing worth mentioning is that one of the key resources at Continental were the employees.
More productive employees lead to better margins. The ability to deal with problems efficiently, in turn, created job satisfaction, as employee see their efforts give way results. Therefore, there is a low threat of new entrants because the service they are offering is difficult to copy?
Airlines to International Cities. City International Airport. Dubai To Doha Flights. Amsterdam To Berlin Flights. Penang To Langkawi Flight.
Lisbon To Paris Flights. Paris To Berlin Flights. Munich To Rome Flights. Amsterdam To Venice Flights. Shanghai To Beijing Flight. Toronto To Winnipeg Flights. Nice To Venice Flights. Izmir To Istanbul Flights. Mumbai To Paro Flight. London To Paris Flights. Gorakhpur To Kathmandu Flight. The team did it. How did we do it? How did we do that? We focused on that every day, and the record still stands.
So, it can be done from a dispirited last place. It was the management — and it always is. These are basic things, but I think too many companies forget it. I did a voicemail that was minutes that basically told everybody what was going on, and what they could expect.
The twist was that you could voicemail me back through the phone service, and they could tell me what was on their minds. In any case, it was a secure, frequent, respectful voicemail to employees. You ever watch a football team when they have a huddle before a play? That kind of respect for your employees — they notice that. You have to gain and earn the trust of your employees. But not only that, you have to make them feel rewarded in order to get your product at a level that it can beat the competition.
But having employees that want to do a good job is invaluable. When I was at Continental, I would always go to the airport an hour-and-a-half before my flight, and I would visit Continental employees in the crew room or break room or baggage room. If you want to be the leader, then you have to appreciate and respect your employees. One way to show them that is to get off your ass, go to their office — which might be a cockpit — and say hello and thank you.
I would go out to the airport and work on those days — I would load bags, do work behind the counter, greet customers. You become a true member of the team then.
But we flew in Central and South America and Europe, and those were smoking flights since international flights were exempt. I would have customers complain about smoking and, of course, if you were a working flight attendant, and you worked the back of the plane, it was a different atmosphere—it was cloudy, grey, and smoke-filled.
And, you know what? We picked up more business doing that than anything we did. We had so many people ditch Alitalia or Air France to fly on us because we were non-smoking. And while it angered some customers, we got more customers because of the rule.
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