Essays on Air China Cargo's Market Leadership and Profitability Case Study

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The paper “ Air China Cargo’ s Market Leadership and Profitability” is an excellent  version of a case study on marketing. The airline industry is positioned based on first flights, military aviation, commercial aviation, and general aviation across the globe. Based on the changes in the aviation regulation act of 1978, the new act advocated for increased competition within the industry that was previously dominated by a handful of giant companies such as Delta and American airlines (Matolli 2014). Research conducted by the U. S. Department of Labor indicates a growing demand for regional and international Air travel (Erraitab 2016).

China Airlines CargoChina Airlines was founded in 1959 in China hence the largest Taiwan Carrier. Currently, the company operates with 86 cargo aircraft that manage to serve 27 countries across the globe hence 97 destinations. The company major cargo hubs such as Bangkok and Osaka tend to optimize routes hence a smooth connection between regional’ s and continents flight services. AchievementThe importance of the business plan strategizes on how China Airlines Cargo needs to secure a leadership position and improve its profitability in the Airline cargo industry.

Recent research indicates the Airlines China cargo profit goes down by 32% in 2013 due to intensified competition and the weak demand for Air cargo (Chiu 2014). As such, the net profit reduced from CNY 4.91 billion to CNY 3.32 billion (Chiu 2014). Based on a leadership position, The Aircargo news indicated that china airline cargo is dropping down on its cargo supply by 8.2 % thus 60.6% from 74.3 % (Aircargonews 2016). The strategy is based on identifying the customer preferences in service delivery hence the provision of high-quality services.

The new services tend to target markets that are poorly or undersubscribed by the existing direct and indirect competitors hence improving on its market shares. The strategy is based on changing routes and targeting express markets such as Australia/New Zealand (CAPA 2013). Literature ReviewPerformance and Service QualityStudies indicate a positive relationship between organizational performance and customer satisfaction hence a positive correlation between company profits and its success (Gilaninia 2013). Additionally, resolving customer’ s complaints regarding the company services, advocates for retaining the client’ s loyalty hence organization profitability. As such, the Airline cargo industry greatly focuses on customer services by handling claims expeditiously, ability to solve problems promptly while having a knowledgeable sales force. Growth of AirfreightResearch conducted by The International Air Cargo Association (TIACA) predicts that the cargo Airfreight is expected to triple in the next 20 years with a growth of 6.7% annually (Mitra 2014).

As such, China Airlines cargo needs to take advantage of such opportunities to position it in global markets. Additionally, findings predict the greatest growth in the intra-Asian freight market, North America-Asia, Europe Asia and the North America-Europe at 9% annually in each continent (Hamanaka 2013).

In the process, China Airlines cargo needs to have a strategy on such a market so as to improve its market share hence leadership position and gradual increase of profitability in the company. Customer Satisfaction and LoyaltyResearch indicates that the greatest barrier to the airline industry to effective service recovery is only complained by about 5-10 % of customers while other clients that are unsatisfied silently switch to other service providers while making negative comments about the previous company (Li 2015). As such, advocating for the service recovery technique through hiring, training, and empowerment in services provides the company with easy access to complaints and effective responses in call centers and customer database.

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