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Continental Airlines
In contrast to the other airlines, "Houston-based Continental Airlines Inc., the fourth-largest airline in the U.S., has actually invested in customer-service improvements, increased its routes, and kept prices steady, all while managing to lose the least money last year," an impressive statistic when one considers that while Continental lost $68 million in 2005, Delta lot $3.8 billion. Continental has deployed a unique strategy of emphasizing one core competency. It was unable to slash fares drastically because higher fuel and labor costs, and it could not compete with the prices of value carriers, so it instead identified Continental's most valuable customers and offered them unique customer services such as automated tools and greater efficiency. Technology is its emphasis in customer service
D'Agostino 2006:1).
For example "if an airplane is more than 90 minutes late, we'll send an automated e-mail to our top customers on that flight apologizing for the delay," says Mike Gorman, senior director of customer relations....Our best customers get rewards, like frequent-flier miles, for that inconvenience'...[and] the people who get those e-mails increase their business with Continental by 8%, a significant figure when you consider that those customers pay top dollar for their fares"
D'Agostino 2006:3)....
"Company executives knew that the fickle, low-cost consumer would never be their bread and butter -- they tend to jump from carrier to find the cheapest fare" so the company decided to concentrate on attracting a loyal group of frequent fliers who would be willing to pay more for superior customer service
D'Agostino 2006:2). It obeyed its mantra to 'Work Hard, Fly Right, as even the company's internal slogan reflects its stress upon high-end business travelers
D'Agostino 2006:2).
Works Cited
D'Agostino, Debra. (14 July 2006). "Case Study: Continental Airline's Tech Strategy
Takes Off." CIO. Retrieved 1 May 2007 at http://www.cioinsight.com/article2/0,1540,1989438,00.asp
Katz. David. (15 Mar 2001) "Delta's Strategy for Reducing Turbulence." CFO.com. Retrieved 1 May 2007 at http://www.cfo.com/article.cfm/2992209
Porter's Generic Strategies." (1999) Quick MBA. 1999. Retrieved 1 May 2007 at http://www.quickmba.com/strategy/generic.shtml
Rowell, David. (2002)."Six Steps to Success for United Airlines" the Travel Insider. Retrieved 1 May 2007 http://www.thetravelinsider.info/2002/1213.htm
Works Cited
D'Agostino, Debra. (14 July 2006). "Case Study: Continental Airline's Tech Strategy
Takes Off." CIO. Retrieved 1 May 2007 at http://www.cioinsight.com/article2/0,1540,1989438,00.asp
Katz. David. (15 Mar 2001) "Delta's Strategy for Reducing Turbulence." CFO.com. Retrieved 1 May 2007 at http://www.cfo.com/article.cfm/2992209
Porter's Generic Strategies." (1999) Quick MBA. 1999. Retrieved 1 May 2007 at http://www.quickmba.com/strategy/generic.shtml
Rowell, David. (2002)."Six Steps to Success for United Airlines" the Travel Insider. Retrieved 1 May 2007 http://www.thetravelinsider.info/2002/1213.htm
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