Being a leader also means constantly provoking competitors, as is the case here.
Finally, as previously mentioned, innovation is essential to supporting the company's approach and policies on the market. From this perspective, a pioneers approach is obviously indicated. As pioneers, Z-Wing will be able to ensure that its innovations are first on the market and that new customers are attracted to the new products and services that the company is putting out on the market. At the same time, as pioneers, Z-Wing will lead the market from this perspective.
In terms of price, the cost leadership strategy that has been identified here means that the company will be able to sell its planes at a price level lower than that of its competitors, obviously making it more viable on the market. With a lower price, the company can still act as a market leader, but without necessarily reducing its prestige or revenues, because of higher volumes and larger market share.
In terms of promotion, this is essential in communicating the message of the company. The promotion can range from usual advertising (with a low percentage of success in actually getting clients to immediately buy, mainly to the high prices of the product itself), to targeted advertising, which would mean presenting the products and services to those clients believed to be interested (as was the previous example with the Chinese government) and to participating in fairs and reunions with the other market participants.
In terms of place, the company will be targeting mainly the Asian markets, which have been identified as potentially the most profitable of all and which can ensure the increase in both market share and potential revenues. However, especially for the civil luxury aircrafts, niches like the Middle East can bring both sustainable growth and higher revenues over the analyzed period of time.
As for the product, the company will diversify to include not only its traditional civil and military aircrafts, but also luxury civil aircrafts, which will be targeting the upper income segment of consumers and which, despite not necessarily greatly increasing the market share, will contribute significantly to the company's short and medium term revenues.
The company will be using both primary and secondary marketing research. In terms of primary research, the organization will conduct regular questionnaires and group discussions with some of its main customers, so as to be able to understand what the clients want and where things can be improved. In terms of secondary market research, Z-Wing will work towards understanding the general market trend, how the competition evolves and similar things from existing materials and documents.
The forecast for the company for the next 3 to 5 years implies an annual increase in sales of 5%, which is a reasonable figure, considering the estimated general annual growth for the whole market, but also the new regional opportunities that may arise in Asia and other identified places. A break - even analysis does not really make sense at this point, because this is not a new business, but one can expect the additional investment in marketing, promotion and innovatory mechanisms to be covered within the subsequent 3 years, with costs sustainable at the lower levels that have been supported through the arguments of the paper.
The control plan implies the existence in place of a feedback and control mechanism that will (a) determine and evaluate the results of the company in terms of its capacity to abide by its primary objective and maintain its leadership position by retaining current airplane clients and acquiring new ones, (b) compare this against benchmarks that have been established beforehand (for example, the 5 to 10% increase in the volume of clients) and - see whether there need to be taken measures in order to correct any potential problems that have arisen in the development of the business - identify these and correct them so as, at the next evaluation, to have better results.
In case these benchmarks are not respected, the company will need to use its contingency planning in order to minimize its losses. This can go from reducing investment in areas that are losing money to developing a new strategic approach that may target new market sectors.
1. Aviation industry in Asia Pacific region to recover by 2009: IATA. September 2008. China Economic. On the Internet at http://www.chinaeconomicreview.com/airtravel/2008/09/19/aviation-industry-in-asia-pacific-region-to-recover-by-2009-iata.html.Last retrieved on January 13, 2009
Aviation industry in Asia Pacific region to recover by 2009: IATA. September 2008. China Economic. On the…