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What recommendations might you make to the company? The company needs to get the

ID: 374148 • Letter: W

Question

What recommendations might you make to the company?

The company needs to get the pilots. This is holiday season and the demand for tickets and flying to destinations will be very high. If American Airlines’ are not able to meet the customer demand they will lose a lot of business. Even once the holiday season ends and things become normal their business will still be impacted as the customers will feel that this airline is not capable of providing proper services. If they cannot manage their own scheduling how will they manage varied customer demands and requirements.

Hence, it is vital that they get their act together and make sure that their flight ply as per schedule.

How will this impact the total retail experience?

The fact is even if American Airlines’ can get their act together and do function normally, the fact that they botched up is going to result in loss of customer confidence, especially in case of some very cynical customers. However, those who do not have an alternative and are booked with American Airlines’ will be thankful and might even forgive them for the scare that they might have received when they would have learnt about this crisis.

As mentioned earlier, irrespective of what they do they have to get their aircrafts to fly to save blushes.

Discuss American Airlines’ current financial dimensions?

The airlines revenue for the period ending 12/31/2016 is $40,180,000. The net income is $2,676,000.

Discuss American Airlines’ retail strategy?

The airlines use a mix of demographic, geographic and psychographic details to serve its customers. With the help of segmentation, they understand the different groups of customers. An undifferentiated targeting strategy is used to cater to growing customer needs.

It garners 60% of the revenue from domestic routes. They have three main business units; Mainline passenger, Regional passenger and cargo segments.

Explanation / Answer

Given your understanding of retail logistics, discuss American Airlines' current crisis. Topics to consider: What recommendations might you make to the company? How will this crisis impact customer's total retail experience? Discuss American Airlines' current financial dimensions (Net Profit margin, asset turnover, return on assets, net worth etc). Discuss American Airlines' retail strategy This is your opportunity to showcase your analytic skills, general business knowledge and communication skills. There is no minimum or maximum length requirement.

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