Analyzing the Market Research Paper Example | Topics and Well Written Essays - 2000 words

Analyzing the Market - Research Paper Example The paper concentrates more on factors that influence demand and supply, discusses the price elasticity of demand that produces a kinked demand curve in the oligopolistic airline’s service competition, and the point of equilibrium. It also describes the benefits of the intellectual property (patents and trademarks), and how it protects the owning airlines in their operations. It finally includes the input factors used in generating airline services. Keywords: Passengers, Airline, Flight, Demand Supply, Price Elasticity, Oligopoly, Product Differentiation, Trademark, Patent, Pricing Strategy, Competition, Market Introduction The success or failure of airline services depends most critically, with the established efforts to attract and retain customers to their services. Several airlines have failed before, some able to rise up again, others still struggle to cover losses while most of them end up merging with other well performing airlines. The entry into the airlines business is not only difficult in a field considered to be an oligopoly market, but maintaining and thriving while in competition with large airlines is quite a challenge. Providing airline services require a keen and clear strategy in management and operational activities, to facilitate the services required by the passengers in time. It is therefore a core factor that any airline should build good relationships with their customers as a marketing strategy, so that their future long term profitability can be safeguarded, by retaining more customers and influencing the choice of most undecided passengers in the market. The airline’s reputation, ticket prices, safety record, possible delay times, and services provided (ranging from different travel classes and the associated beneficial facilities, services by the cabin crew) among others, influence the customer preference or satisfaction with an airline, and generally its performance in the market. Airline’s Services Market Comp etition Competition in the airline industry is very high and sensitive, such that with the high fixed costs in their operation, the profit margins are usually low. However, the competition and profit margins may vary with the small changes brought about by the sizes of the airlines, the capacity of the aircrafts, the routes served by airlines, means of customer attraction (such as the in flight services) and discounted fares, which make it possible for some airlines and their services to have a competitive advantage over the others. According to Papatheodorus, the modern airline services competition arises from the differentiation or the best cost provider strategy, while considering the marketing initiatives and the economic advantage, to ensure they consistently provide the service in the market place (2006). Airlines both large and small, whether providing long haul and short haul services struggle to retain and add a market share. Large airlines may compete against others throug h its popularity, and if it has a good safety record, or high quality services, it makes it worse for its smaller rival companies. Most of the times, competing airlines have used generic strategies to achieve their fair share in the market. Differentiation has been a major factor among airlines, as