The paper "Business Turnaround and Labelling the Company’ s Competition" is a perfect example of a Management Assignment. “ What steps should an established carrier such as MAS take to counter the threats posed by low-cost competitors? ” Low-cost competitors can be a threat to any established business. Nevertheless, there are strategies that an organization can utilize to ensure that low cost competitors are not a threat to their business. Malaysia Airline is threatened by low cost budget carriers in the region. To deal with this threat, the airline needs to adopt three easy steps to ensure that they remain competitive in the market amid the competition as suggested by Stritz (2012).
These steps include; Labeling the company’ s competition. This entails the use of true but unappealing labels to position the low-cost competitor as a less desired carrier than your company. This is aimed at slamming the competitors even though the competitor may deserve it (Stritz, 2012). The main purpose of labelling the competitor is to position the company as a better choice in the customer’ s or prospects perspectives. The true but unflattering tag should expose the traits or information of the competitor that your prospects or customers might find unattractive.
Customers usually buy services based on perception, thus they will develop the perception of both the company and the competitor. Educating the company’ s prospect. Malaysia Airlines can deal with low-cost competitors by rolling out an education program for its prospects. The more a company helps its prospects know its services or products they are purchasing, the better decision they can make. Basically, people go for cheap services or products because they do not see the differences (Stritz, 2012).
MAS may show its prospect the differences in the services offered between them and their competitors by educating them. The company can utilize various ways to educate their prospect including seminars, demonstrations, tours of their company facilities, non-selling articles and white papers, tests, research and reports among others. However, MAS should be careful not to use educating efforts to carry out sales as this may chase prospects away. It is important to note that people know the difference between education and sales. In this way, MAS can be able to minimize threats by their low priced competitors. Deliver a better experience.
The experience that a company offers to its customers is more worth than the price. MAS should ensure that they are doing everything right and ensure that they know what the customers want from an airliner (Mukerji, 2007). This can be achieved by asking customers what they want and make sure that the company understands what the customers really want. The company can then tell their customers what they are capable of doing for them and how it helps them attain what they desire as customers (Stritz, 2012).
Delivering a better experience entails doing what customers want, expect, deserve and even more. MAS can thus meet their customers’ expectations and going even further. The company can do this by showing their customers that they are willing to help them better than anyone else. By doing so, the company can still maintain high prices and offer a great experience to customers who really know what they are looking for in an airliner. Doing this will help MAS make its low price competitors irrelevant.