Cumberland Metal Industries - 1716 Words

The table below breaks down the economic value in use of the CMI pads according to both the Colerick and Fazio tests. I used the data from each case to derive the number of hours of driving required to complete the job with both the asbestos and CMI pads. The difference in time to complete the job multiplied by the cost per real hours was one part of the economic value in use. The other portion was the cost of the asbestos pads for each project. Colerick Test Feet driven 15000 Hours Cost per real hr($238) x total hrs Asbestos 100 $23,800 CMI 75 $17,850 Difference 25 $5,950 Cost of pads 20 Sets @ $50 ea $1,000 Economic value in use $6,950 Per foot $0.46 Fazio Test Feet driven 12000 Hours Cost per real hr($238) x†¦show more content†¦The players in this segment are likely to be the larger international construction contractors like Conmaco and Raymond International, as well as larger independent pile driving firms. The market can be segmented by benefit because there are those consumers or purchase influencers who look at the impact the pads can have from an engineering standpoint. Because CMI pads transfer the energy from the pile more efficiently they were less likely to result in damage to the pile that may affect the integrity of the foundation. The players that would be in this segment would be the architectural and consulting groups, as well as the more sophisticated of the larger engineering/construction contractors. There is a second benefit segment that you can identify as well. This group would be defined by there need or want for a safer work environment. The use of asbestos pads would be undesirable to this segment, and w ould be more likely to choose the CMI pads. This segment would be harder to identify because they would be spread out amongst the different size firms. It is likely that at the time of the case larger firms were not yet concerned about the major litigation issues surrounding the use of asbestos. Since it is most likely site workers that would be identified in this segment’ it is likely that smaller firms were the principle is on site at the projects would be the major part of theShow MoreRelatedCumberland Metal Industry1463 Words   |  6 PagesCumberland Metal Industry 1,2- The first two questions will be gone through together in order to avoid confusion. Pricing is one of the most important elements to launch a product on the market. Mainly, because it is the only element, together with the marketing mix, that produces revenues. It is fundamental to set the right strategy in deciding and setting the price of a certain product to be sure that is fully understood and appreciated by customers in all its aspects and characteristics. ARead MoreCumberland Metal Industries5353 Words   |  22 PagesI.Case Analysis Overview Cumberland Metal Industries (CMI) is one of the largest metal manufacturers in the world. The company evolved from selling metal as a finished product to one that used it as a raw material, increasing sales from $250,000 in 1963 to over $18,500,000 in 1979. Currently, CMI relies heavily on SlipSeal, which is used as a high-temperature sealant in automobiles. Although CMI dominates the market for this product, corporate sales figures decreased over the last year. As aRead MoreCumberland Metal Industries Essay1105 Words   |  5 PagesCumberland Metal Industries (CMI) should price their new cushioning pads at $900 to maximize profit. CMI should begin by targeting the customers that will find the greatest value in the product an pay the most. This allow the company to maximize unit contribution, and leave available options for dealing with future competition and sales challenges. Customer CMI estimates a potential customer base of 19,500 to 26,000 actively operating pile drivers in the United States. Currently the marketplaceRead MoreCumberland Metal Industries : Case Study1144 Words   |  5 PagesCumberland Metal Industries – Case Study Aayush Koradia Issues: Following were the issues being looked by Cumberland metal ventures:  ¥ How to value the item which does not exist in market to guarantee individuals would end up buying?  ¥ How to promote, teach and decide the appropriate channel to dispatch the item  ¥ How to approach the influencers?  ¥ Demand estimates  ¥ How to create a market for the pads?  ¥ Product mix - What all items will be offered as they are as of now concentrating just onRead MoreCase 2: Cumberland Metal Industries1070 Words   |  5 PagesIndustrià «le Marketing Prof. dr. Muylle Steve Case 2: Cumberland Metal Industries: Engineered Product Division, 1980 Deadline: Friday 14/10/2011, 18h Group1: Team 07: Michiels Verona Moortgat Jonas Moravcovà   Alexandra Mortier Nick Seffers Raphaà «l 1. What is the worth of the CMI cushion pad relative to the incumbent asbestos cushion pad? Build a customer value model including value elements, word equations, assumptions, and calculations based on the test results of both ColerickRead MoreCumberland Metal Industries Analysis Essay example1301 Words   |  6 PagesExecutive Summary Cumberland Metal Industries (CMI), which was historically one of the largest manufacturers of curled metal products in the country, has developed a new product. This product is a metal cushion pad which is to be used with large crane-pile driving activities. The cushion is to prevent the shock of the hammer from damaging the pile. CMI’s cushion pad is a â€Å"one-of-a-kind† product as there is nothing similar on the market today making comparisons difficult. Upon successfulRead MoreCumberland Case1250 Words   |  5 PagesPresentation Marketing Cumberland Metal Industries ( CMI cushion pads) The Problem Definition: For Cumberland Metal Industries the curled metal cushion pads represent a great breakthrough. These pads offer the company the opportunity to diversify, and double their sales, given a proper market introduction. Cumberland Industries faces the challenge to Place in the market (promote/advertise) and price their latest innovation, the curled metal cushion pads in a way that it reveals the great advantagesRead MoreCumberland Case1241 Words   |  5 PagesPresentation Marketing Cumberland Metal Industries ( CMI cushion pads) The Problem Definition: For Cumberland Metal Industries the curled metal cushion pads represent a great breakthrough. These pads offer the company the opportunity to diversify, and double their sales, given a proper market introduction. Cumberland Industries faces the challenge to Place in the market (promote/advertise) and price their latest innovation, the curled metal cushion pads in a way that it reveals the great advantagesRead MoreCumberland Case Analysis Essay examples1384 Words   |  6 PagesEXECUTIVE SUMMARY Cumberland Metal Industries is evaluating a new product that makes pile driving less costly and more efficient. The product is a cushion pad made from curled metal that prevents the shock of a hammer from damaging the hammer or the pile. Currently the industry uses asbestos pads and is the only form of competition the company faces. If adopted there is potential to sell 29,000 to 39,000 sets of pads (6 pads per set) annually. The most important issue CMI management faces is settingRead MoreOptical Illusions852 Words   |  4 PagesHarvard Cases for BBUS 521 1. 2. 3. 4. 5. 6. 7. Southwest Airlines (A), Reprint # 9-575-060 Cumberland Metal Reprint # 9-580-104 Optical Distortion Reprint # 9-575-072 Biopure Corp. # 598-150 Nestle Refrigerated Foods, # 9-595-035 Aqualisa Quartz: Simply a Better Shower: 9-502-030 Fashion Channel: Market Segmentation, # 2075 Case Preparation Questions: The list provided below for each case are Preparation Questions. They are not meant to be comprehensive nor are they to be answered in sequence

A Study On The History Of Coffee Essay - 1621 Words

Part I: The History of Coffee In 750 AD, the Ethiopian highlands, a goat herder named Kaldi watched a number of his goats eat berries off an unknown plant. As he continued to watch his goats, they became more energized and could not fall asleep that night. The next morning, Kaldi gathered a handful of berries and brought them to his local town’s Abbott. The Abbott made the berries into a drink, and then discovered that it kept him awake and alert during the evening prayers. Soon, the Abbott shared this drink with the other monks of his monastery, and the news of these energizing berries spread. As people began to move to the East, and coffee reached the Arabian peninsula, the drink’s reputation would soon expanded across the globe. The Arabs were the first people to cultivate and trade coffee. By the fifthteenth century, coffee had traveled to Yemen, and by the sixteenth century, it had spread to Persia, Egypt, Syria, and Turkey. At this time, coffee was not only being drunk in homes but in public coffeehouses- called â€Å"qahveh khaneh,† which began to pop up in the major cities of the East. The popularity of these coffeehouses was unparalleled and were frequented for all kinds of social activities. With thousands of pilgrims travelling to Mecca each year from all over the world, the travellers would pick up coffee and diffuse it far beyond Arabia. European travelers coming back from the East brought back the unusual, black beverage to their home countries. By theShow MoreRelatedCoffee Daily: Windows to the World1571 Words   |  6 Pagesthe world wake up to a cup of coffee but is this harmful or beneficial? Research shows that the pros to coffee, at responsible amounts per day, outweigh the cons or negative effects of coffee and even have the same effects as medicines given over the counter at pharmacy or even prescribed by a pharmacist. Many people just drink coffee without even knowing the location of where coffee began but this can be very crucial to the understanding to finding the benefits of coffee. â€Å"In the Ethiopian highlandsRead MoreA Recent South Korean Cross Sectional Cohort Study947 Words   |  4 Pagescross-sectional cohort study published in the journal, Heart, supported that people with no clinically evident cardiovascular disease and consumption moderate amount of coffee (3-5 cups) every day could have a lower prevalence of coronary artery calcium, which is the marker of early stage of atherosclerosis. (1) The relationship between coffee consumption and cardiovascular disease has been controversial over years. The latest study from South Korea supported that the moderate consumption of coffee could helpRead MoreEffects Of Caffeine On The Central Nervous System799 Words   |  4 Pagesthe central nervous system† It is the most regularly utilized stimulant as a part of United States.found in coffee,tea,soft drinks,chocolate, and medications including torment relievers.caffeine has a place with a group of medications called methylxanthines. Coffee is a beverage produced using Coffee beans, which are the simmered apples and oranges of the Coffea Arabica shrubbery. Coffee is general in its advance. All countries do it tribute. It has ended up perceived as a human need. It is no moreRead MoreCoffee Consumption and Prostate Cancer Aggressiveness among African Caucasian American in a Population-Based Study1127 Words   |  5 Pagesindication that coffee could be related in preventing cancer risk. Therefore, many studies were involved to check the accuracy of coffee and its effect on cancer especially prostate cancer (CaP). According to the article Coffee Consumption and Prostate Cancer Aggressiveness among African Caucasian American in a Population-Based Study, there were two studies that examined the effects of Coffee on cancer risk; Meta-analysis and a report from the Health Professionals follow-up study (Arab, Su, AngRead MoreComparative Study on Chalk Dust, Cinnamon Spice and Coffee Ground as Insect Repellants1161 Wor ds   |  5 PagesScience Investigatory Project COMPARATIVE STUDY ON CHALK DUST, COFFEE GROUND, AND CINNAMON SPICE AS ANT REPELLANTS Faith II Group of Year III- St. John CHAPTER 1 BACKGROUND OF THE STUDY: There are several household problems we and our helpers encounter at home. These may be issues regarding food supply and storage, cleanliness and sanitation. One of the most common problems is the presence of household ants, especially the red ones, causing a disturbance in our own system of food storageRead MoreCoffee : The Magical Elixir750 Words   |  3 PagesCoffee: The Magical Elixir Topic: Coffee Specific purpose: Being students, many of us drink coffee throughout our days to get to the weekend. I want to give some insight on the history of coffee as well as the positives and negatives it has on our bodies. I. Introduction A. Attention Getter: Who here drinks coffee or other forms of caffeine? B. Relevance: For the most part, many of you drink a caffeinated beverages in your daily lives and today we are going to explore one specifically, coffee. Read MoreGlobal Local And International Trading990 Words   |  4 Pagesbetween global forces and the localities. Therefore, the term ‘global-local nexus’ is coined in order to conceptualize the complex relationships between the global and the local. This project adopts the concept of ‘global-local nexus’ using the case study of Starbucks in Vietnam to examine how a global brand operates in a domestic context and the cultural forms arise from that. The essay will first explore the practices that Starbucks company employs to adapt to the Southeast Asian country’s cultureRead MorePhilippine Coffee - Barako921 Words   |  4 PagesPhilippine Coffee - Barako (Coffea arabica Coffea canephora or robusta) About Coffee Coffee has two main varieties or species, Coffea arabica and Coffea canephora or more popularly known as Robusta. Arabica (Coffea arabica) was originally cultivated in the Arabian Peninsula, hence its name. While Robusta (Coffea canephora) is grown in many regions where Arabica would not grow but Robusta has less flavor and contains more caffeine than the Arabica. However, Robusta contains more antioxidantsRead MoreEssay on Starbucks Marketing Plan1006 Words   |  5 PagesContents Executive Summary†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..3 History and Background†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦...4 Marketing Strategy†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦...5 The 4 P’s†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦...6 Anoffs Growth Matrix†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..7 International Expansion †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦...8 References†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦9 Starbucks Marketing Case Study 3 Read MoreA Research Study On Vitamin E And Vitamin1109 Words   |  5 Pagesutilizing the Pubmed database for studies that contained subheadings of diet, antioxidants, and prostatic neoplasms. The references of selected studies was reviewed to identify additional articles. Studies that only examined plasma levels were excluded. Selected were 12 intervention studies and 32 observational studies. Results S1 reported on 16 studies concerning vitamin E and vitamin E components: two case-control, six prospective and four intervention studies found no effect. However, three case-control

Jordan vs. James Essay Example For Students

Jordan vs. James Essay Jordan vs. JamesMichael Jordan, in his prime, was thought of as one of the greatest basketball champions of all time. A shooting guard, standing at six-six, Jordan was able to out play anyone in his position. He started his career at the University of North Carolina, where he helped his team win a national championship. He then was drafted by the Chicago Bulls in the 1984-85 season. While playing for the Bulls, Jordan received many awards such as, MVP, five championships, Olympic gold medals, slam dunk contests, and many more defensive and offensive awards. Jordan simply dominated the nineties and left the game as a NBA Finals winner in 1998. It was not until the year 2002 that the NBA was able to find someone to match Jordans dazzling acrobatic style of play. His name is Lebron James. Lebron, who plays shooting guard and small forward, stands at an athletic six-eight. James, however, never played in the NCAA. He was drafted straight out of high school in the 2003-04 season, by the Cleveland Cavaliers. James is already on the road to success by achieving co-rookie of the year, and he appeared in the Olympics. James is expected to be a champion, but he may not have what it takes to become a real champion such as Michael Jordan was. Before Jordan or James can be categorized as a champion, they have to be able to handle pressure, fame, and maintain a positive relationship with their team. When Cumbee 2comparing Jordan and James clutch capabilities, or their ability to handle pressure at key times, Jordan has the upper hand. First of all, Jordan won an NCAA championship with a heroic last second shot. To be able to keep compo sure and focus on one shot under those types of conditions is not an easy task. Amazingly, he made clutch shots time and time again for the Bulls. Being able to think and react in highly pressured situations for James on the other hand, has not been accomplished. I have seen James, with the ball in the final seconds of the game, and he was unable to hit the winning shot. You can see the pressure all over his face. He does not have the ability to plan and if necessary, counter plan under extreme conditions. A good example is in this past years Olympics he clearly did not play like a champion. When the team was down, he didnt try to take the game over like a champion would. When looking at Jordan and James fame, they are both equally popular, but it is how they handle the fame that sets them apart. Jordan is a class act, meaning he carries himself with honorable pride, not vanity. After Jordan signed with Nike his game only got better. He never felt as if he was too good for improvement and showed everyone great respect. James differs after he signed with Nike, his game flat-lined. He never showed any kind of improvement in his game, and his team never got any better. It seemed like he only tried when he had the ball, especially when his team was getting blown out. A champion should never be without the support of his teammates. After observing Jordan and James relationship with their teammates, Jordans team proved to Cumbee 3have more chemistry. Jordan was able to make his teammates better by getting them more involved in the game, and they loved him for that. Instead of taking the final shot of the game himself, the Bulls won many games with Jordan assisting the goal. James team, however, does not come together as well. He has not grasped his teams trust. He is trying to be the savior too much he does not understand, like Jordan, that his team is only as good as the weakest player. James needs to give and go instead of taking the shots. .u6cfea0e53484c6822e2f9be00a0ce0ce , .u6cfea0e53484c6822e2f9be00a0ce0ce .postImageUrl , .u6cfea0e53484c6822e2f9be00a0ce0ce .centered-text-area { min-height: 80px; position: relative; } .u6cfea0e53484c6822e2f9be00a0ce0ce , .u6cfea0e53484c6822e2f9be00a0ce0ce:hover , .u6cfea0e53484c6822e2f9be00a0ce0ce:visited , .u6cfea0e53484c6822e2f9be00a0ce0ce:active { border:0!important; } .u6cfea0e53484c6822e2f9be00a0ce0ce .clearfix:after { content: ""; display: table; clear: both; } .u6cfea0e53484c6822e2f9be00a0ce0ce { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .u6cfea0e53484c6822e2f9be00a0ce0ce:active , .u6cfea0e53484c6822e2f9be00a0ce0ce:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .u6cfea0e53484c6822e2f9be00a0ce0ce .centered-text-area { width: 100%; position: relative ; } .u6cfea0e53484c6822e2f9be00a0ce0ce .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .u6cfea0e53484c6822e2f9be00a0ce0ce .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .u6cfea0e53484c6822e2f9be00a0ce0ce .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .u6cfea0e53484c6822e2f9be00a0ce0ce:hover .ctaButton { background-color: #34495E!important; } .u6cfea0e53484c6822e2f9be00a0ce0ce .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .u6cfea0e53484c6822e2f9be00a0ce0ce .u6cfea0e53484c6822e2f9be00a0ce0ce-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .u6cfea0e53484c6822e2f9be00a0ce0ce:after { content: ""; display: block; clear: both; } READ: Drug And Alcohol Abuse EssayMichael Jordan and Lebron James are about the same height, play the same position, and both wear the number 23. They are great basketball players, but what makes a real champion is in your performance under pressure, your adjustment to fame, and the relationship with your teammates. Jordan has successfully conquered these goals.

Research on Parental Involvement in Adolescents Life as an Element to Contribute To Identity Formation

Introduction Every stage of Development of human being is very important especially the adolescence. This is because it is purported that it’s at this stage that the formulation of sense of identity takes place.Advertising We will write a custom research paper sample on Research on Parental Involvement in Adolescent’s Life as an Element to Contribute To Identity Formation specifically for you for only $16.05 $11/page Learn More Basically identity is described as the cohesive set of personal qualities concerning life goals like career developmental religious values and political ideologies. Achieving e a stable ego identity allows adaptability and future development besides creating an integrated sense of oneself (Faber et al, 2008, p. 244). Besides, attaining a stable mature quality experience is a crucial part of adolescent identity formulation. It’s believed that before adolescents can commit themselves to certain value system they observe and exploit the value their parents portray, assess and compare them with other alternative ideologies. Hence, parents’ idea and qualities can play a critical role in formation of child identity. Objectives The aim of the paper will be to explore the role of active involvement of parents in raising their children through adolescence and the impact on the formation of identity. Basically, theory states that native participation in their children’s lives influential on how they behaved and set their goals in life. Specifically, the research will explore the process through which identity statuses are related to the process of achieving parent-child value similarity – the accurate perception of parent value and the acceptance of these values by children. The paper will also describe the role of parents as reflective agents in comparison with the process of formulation of identity (Knafo Schwartz, 2004, p. 441; Schachter Ventura, 2008, p. 449). Purpose of Study This research will be aimed at examining the relationship between the process of identify development in adolescents and the process of parent child value analogy. The research will exploit the impact of active interaction of parents with children builds their identity formation (Faber et al, 2008, p. 243).Advertising Looking for research paper on psychology? Let's see if we can help you! Get your first paper with 15% OFF Learn More The paper will present a theoretical assessment of the significance of the theory for the formation of an all-inclusive background theory of identity formation. Hypothesis The active involvement of parents in the lives of their adolescent children contributed greatly to healthy identity formulation of these adolescent as opposed to inactive participation of parents in the lives of their children. Parent participation plays a crucial role in the process of adolescents’ (aged 13 – 17 years) identity formulations. Literatu re Review Due to the significance of adolescents forming a stable ego identity, there has been increased research set to explore the factors that affect ego identity. Many of these studies show that there are differences in the processes of identity formation during the adolescent years (Faber et al, 2008, p. 245). Theoretically, the development of identity takes time because of the need of exploration. Nonetheless, some studies show that this type of exploration is less likely to take place in a less secure home. A stable home supports exploration of external environments. This means that secure attachment that takes place when a family is stable and the adolescents face challenges of interpersonal and intrapersonal searching and this can result into formation of a stable ego identity (Faber et al, 2008, p. 245). There are several researches that have explored the connection between identity formulation and adolescent attachment. Family Stability The importance of family stability is quite evident in several studies. These studies show that families are organizations that are made up of subsystems including parents, sibling and spouse relationship, which define the manner in which family members interrelate (Faber et al, 2008, p. 245).Advertising We will write a custom research paper sample on Research on Parental Involvement in Adolescent’s Life as an Element to Contribute To Identity Formation specifically for you for only $16.05 $11/page Learn More Alignment describes the way family members as individuals and comprising the subsystems are connected to each other and compared to the rest of family members and subsystems. Parental coalition is set when parents work in concert to provide the basic needs to their children and keep the children out of marital affairs (Knafo Schwartz, 2004, p. 441). This means family structure has been deemed to be a very significant influence on the identity formation, nonetheless in what m anner family structure affects adolescent attachment degree and the formation of identity process has not been exclusively investigated. It’s been found that when adolescents are securely attached to their parents it’s a sign that they explored their environment more. Strong parental partnership developed clear boundaries between the parents and children, culminating into a secure attachment because the differentiation describes responsibilities and authority (Knafo Schwartz, 2004, p. 442). From the point of view of the parental influence, the degree to which the parent-child similarity is developed by a process that takes two phases of internalization. The first step is where the children have to notice the values their parent support and second step is where the children have to agree that these values appropriate and develop them as their own. This is a process referred to as value transmission and it could succeed or fail at any step.Advertising Looking for research paper on psychology? Let's see if we can help you! Get your first paper with 15% OFF Learn More For the first step of perception, children could observe that the values their parents quite acceptable in an accurate perception (Knafo Schwartz, 2004, p. 443). For the second step of acceptance, children could choose to agree to the values they perceive, but they could as well reject them as well. When children think that the parents’ values are accurate and accept them instead of rejecting them, then, value congruence will be higher (Schachter Ventura, 2008, p. 449). Adolescents Perception of Growth From the viewpoint of adolescent identity development, value systems are developed via a process where adolescents take on an ideological standpoint juxtaposed to those of their parents (Knafo Schwartz, 2004, p. 443). The value system is a major aspect in the stable occupational, ideological and relational dedication that comprises the adolescents’ emergent identity. Exploration entails searching, explaining and exploiting the possible alternatives of identity. Commit ment includes deciding to accept certain alternative as part of their self. The results of the commitment are to attain enduring self-orientation in several life domains like political, vocational and religious (Schachter Ventura, 2008, p. 451). Methodology Systematic Literature Search The research will use literature search to collect information. For this study articles that related to the topic of identity formulation and parenting of adolescents will be searched for study. This means that the researcher will search these articles on the internet (Knafo Schwartz, 2004, p. 443). Basically articles with information on identity statuses in adolescents (diffusion, moratorium, achievement and exploration), impact of parent values of ego identity of adolescents, family structure and attachment, and parent-children value analogy among other will be searched (Faber et al, 2008, p. 244). The major problems that would face the researcher may include where to get those sources and once th ese resources have been identified, knowing what to sieve or seek via an excess of information that will be available to determine what is important to the study. Enough time will be allocated to finding the relevant materials. Two main activities will be critical for this study. The brainstorming and the literature search itself (Faber et al, 2008, p. 245). At the start of the research, the investigator will develop a working bibliography based on knowledge of both print and electronic library resources and use of the referencing system to identify these sources. Search Plan The research will focus on how this topic progresses as the research is conducted via the documentation life-cycle. The possible approaches include looking for the books and articles that are currently accepted for use as references in the study and discover how they were cited. Seeking original reports and articles is very important (Knafo Schwartz, 2004, p. 444). This strategy will result in a structure like tree-diagram or a network that will show articles that are related. By assessing and reading the abstracts of these articles, it would be possible to categorize the articles by topic and also by the author’s interest in that particular work. The researcher will then search the reference lists of the papers to find relevant papers because at times the internet databases classify articles differently or categorize the papers by using different descriptions and different terms and key words. The search plan is a blue print to understanding of the information available because the electronic storage system is getting complicated and retrieve of research resources is advancing a great deal. Without a plan, there are high chances that the researcher might get lost in the sea of internet articles seeking relevant information or the search can just be going round the same articles. Expected Results In a research by Knafo and Shwatz, the results of their studies showed that identific ation and acceptance of parent value was high when adolescent correctly perceived their father values. Basically there was no significance difference between the acceptances of father value versus the mother values (Knafo Schwartz, 2004, p. 447). The researcher in this proposal anticipates that the relationship between the way parent and child values predicts the accuracy of perception and acceptance. Basically when there is low congruence then the parent-child value perception and acceptance will be low as well. The findings also showed that the accurateness of perception and approval the parental values are significant influencers of the parent-child value congruence as literature has often presumed based on the studies by Grusec and Goodnow in 1994 (Knafo Schwartz, 2004, p. 447). Grusec and Goodnow presented a two-phase process of value acquisition already discussed in literature review. It’s therefore important to examine how identity formation was related to acceptance and accuracy (Knafo Schwartz, 2004, p. 448). The results of accuracy perception versus identity formation indicate that the adolescent who are in the moratorium and achievement (high-exploration) level are able to correctly perceive the parental value than their counterparts in low status of exploration (diffusion and foreclosure) (Knafo Schwartz, 2004, p. 448). These studies also shows that the adolescent in the high-commitment statuses readily accepted their parents perceived values compared to their counterparts who happened to be in low commitment statuses. Faber el al found that the relationship between the family structure and attachment were positively correlated with poor attachment in families that faded some unresolved conflicts between spouses. With regard to attachment and identity, paper demonstrated that there was a positive correlation between father attachment and the level of identity attained (Faber et al, 2008, p. 247). This was quite different from other studi es which indicate that mother’s relationship and attachment were positive correlated to identity achievement. Parents usually feel very responsible for their children development of identity and sometimes consider themselves as the only factors that are responsible for influencing their children’s development. Being involves in development of identity of their children is not only because of concern, moral or success but rather their own identity (parent’s own identity). Parents interviewed in a study by (Schachter Ventura, 2008, p. 456) revealed that parents were concerned about the social identity of their children especially religion. This is basic traditional identity that families believe it should be passed on to next generations and that it was the responsibilities of parents (Schachter Ventura, 2008, p. 456). There were set identity goals for many families concerning their children’s identity formation and educational and vocational achievements . Whereas parents were educated in same framework of study, they had different goals in life compared to their children. However, the interpersonal morality is quite insisted for any of the studies. Conclusion Identity agents constantly evaluate and scrutinize the children and their environment at different levels so as to better arbitrate identity. Both parents are reported to have developed an understanding of the social factors that are important to the attainment of identities of their children. This is evident in the modern society where parent are seen to potently influence the identities of their children either by revitalization impact on morals and dedication or as an vast wave of continuous change. Identity formation is a part of development stage in life where adolescents take active role. Being able to get a chance to explore and then make a commitment to a certain identity has huge effect on the future development and success of such an individual. Therefore when one un derstands the factors that affect individual’s ability to attain identity, therapist can assist adolescents in their search for an identity. Besides the weaknesses of methodologies that have been used for related studies, this will be a crucial study that seeks to examine directly how the cognitive aspects of the adolescents are manifested as they seek their own identity to make a commitment to. Therefore this study will have crucial implications on the study about parenting styles and identity formation. Reference List Faber, A.J., Edwards, A.E., Bauer, K.S Wetchler, J.L. (2008). Family Structure: Its Effects on Adolescent Attachment and Identity Formation. The American Journal of Family Therapy, 31, 243-255 Knafo, A., Schwartz, S.H. (2004). Identity Formation and Parent- Child Value Congruence in Adolescence. British Journal of Developmental Psychology, 22, 439-458 Schachter, E.P., Ventura, J.J. (2008). Identity Agents: Parents as Active and Reflective Participants in Th eir Children’s Identity Formation. Journal of Research on Adolescents, 18(3), 449-476. This research paper on Research on Parental Involvement in Adolescent’s Life as an Element to Contribute To Identity Formation was written and submitted by user Graysen Floyd to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

Low Cost Airlines Strategy Essay Example

Low Cost Airlines Strategy Essay Situation It’s a chilly winter evening in Bangalore and Vijay Mallya looks out of the window with a Kingfisher Beer pint in his hand. He looks out at the reddish horizon and contemplates the future of his airlines The Kingfisher Airlines. He has recently bought the first low cost carrier in India, Air Deccan. With the sale of Air Deccan, the industry has seen a correction of sorts, in terms of the cost of travel. With increasing oil rates and the turmoil that the airlines’ industry is currently in, Mallya needs to come up with a strategy to make best of the low cost carrier. He also needs to pull out the airlines of the losses it has been making since the past few years. Objective The objective is to study the current scenario in the Airlines Industry in India and to analyse the possible strategies that Kingfisher Airlines can adopt to increase the market share of Kingfisher Red to be the market leader in the low cost airlines segment. Company Background: Kingfisher Red, known formerly as  Simpli-fly Deccan  and prior to that as  Air Deccan, is a  low-cost airline  run by  Kingfisher Airlines. It is headquartered in Mumbai,  India. Formerly known as Air Deccan, the airline was previously operated by  Deccan Aviation. It was started by Captain  G. R. Gopinath. Less than expected growth in the Indian aviation sector coupled with overcrowding and the resultant severe competition between airlines resulted in almost all the Indian carriers, including Air Deccan, running into heavy losses. After initially trying to get in fresh capital for running the airline, Captain Gopinath eventually succumbed to pressures for consolidation. On 19 December 2007, it was announced that Air Deccan would merge with Kingfisher Airlines. We will write a custom essay sample on Low Cost Airlines Strategy specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Low Cost Airlines Strategy specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Low Cost Airlines Strategy specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Since Indian aviation regulations prohibited domestic airlines from flying on international routes until they had operated in the domestic market for five years, it was decided to instead merge Kingfisher Airlines into Deccan Aviation, following which Deccan Aviation would be renamed Kingfisher Airlines. In its present avatar as Kingfisher Red, the airline faces stiff competition from SpiceJet, IndiGo Airlines, Jet Lite and GoAir. Kingfisher Airlines posted a net loss of Rs 1,608. 82 crore for fiscal 2009. Airlines Industry in India Indian aviation industry ranks 4th in the world after USA, China, and Japan in terms of domestic passenger volume, with a domestic passenger base of 43. 29 million. The Indian aviation industry is among one of the fastest growing industries. The number of scheduled passenger airline operator has grown to 15 and the number of aircraft in their fleet has risen to more than 400. India now has 82 operational airports against 50 in 2000. International flights have increased to 706 flights per week. Due to enhanced opportunities for international connectivity, 69 foreign airlines from 49 countries are flying into India. The governments open sky policy has lead to many overseas players entering the market and the industry has been growing both in terms of players and number of aircrafts. With the liberalization of the Indian aviation sector, the aviation industry in India has under gone a rapid transformation. From being primarily a government-owned industry, the Indian aviation industry is now dominated by privately owned full-service airlines and low-cost carriers. Private airlines account for around 80-85 per cent share of the domestic aviation market. Earlier, air travel was a privilege only a few could afford, but today air travel has become much cheaper and can be afforded by a large number of people. According to Director General of Civil Aviation(DGCA) passenger data, passenger carried by domestic airline operators have grown to 33. 9 million during January-August 2010 as against 28. 4 million over the same period a year ago. The share of private airlines constitutes around 82% of the sector of domestic aviation market. Jet Airways along with its budget arm Jet Lite captures the highest 27% market share. Kingfisher airlines ranks second with 20% market share. NACIL (National Aviation Company Limited) which, was formed in 2007 with the merger of two national carriers Air India and Indian Airlines, captures 18. 3% share. The airline with the largest fleet in the domestic market is Air India, but its market share of the number of passengers is low, and therefore results in a low fleet hare to passenger share ratio of 0. 62. Kingfisher leads the full service carrier segment with a fleet to market share ratio of 0. 95, but this also includes figures from their low cost Kingfisher Red service. Passenger market share leader Jet Airways is at 0. 82 and this includes their low fare service Jet Konnect. For a better comparison between Jet and Kingfisher, if we add-up the numbers of Jets other low fare subsidiary JetLite, the total group ratio of Jet at 0. 865 still remains well behind Kingfishers 0. 95, suggesting a far more aggressive fleet utilisation strategy by Kingfisher. Expectedly, the low fare carrier side shows much higher ratios, due to their higher usage of aircraft and also the higher number of seats offered per flight due to an all-economy configuration. The laggard is JetLite with a ratio of 1 while SpiceJet and IndiGo are neck and neck at 1. 75 and 1. 76. However, GoAir, has an industry leading, fleet to passenger share ratio of 2. 04. Clearly the airline has shaken off the demons of the past and is aggressive in their fleet utilisation. The civil aviation sector witnessed a slowdown in passenger traffic during 2008 due to a sharp rise in fuel prices coupled with global economic slowdown. Situation started improving in the second half of 2009. In 2009-10, the passenger traffic increased to 123. 73 million passengers from 108. 88 million in 2008-09. For the first time, in 2009 -10 the passenger traffic crossed 120 million mark and has recorded 123. 73 million (34. 37 million international and 89. 36 million domestic passengers) passengers. Passenger traffic (million) Source : AAI Traffic News June 2010 According to Director General of Civil Aviation passenger data, passenger carried by domestic airline operators have grown to 33. 9 million during January-August 2010 as against 28. 4 million over the same period a year ago. Recent Trend According to Airport Authority of India (AAI), the total aircraft movement increased by 3. 3% from 329. 84 thousand to 340. 9 thousand during Apr-Jun 2010 as compared to Apr- Jun 2009. The international aircraft movements have shown an increase of 7. 1% during Apr-Jun 2010. The higher growth in traffic has witnessed in Kolkata, Trivandrum, Amritsar and Delhi airport due to increase in frequency by the existing airlines. The civil aviation traffic with respect to passenger and aircraft movements is growing from past few years. The total passenger traffic handled during Apr-Jun 2010 raised by 20% to 35. 29 million from 29. 35 million over the same period previous year. During the first six months of 2010, world passenger traffic increased by 5. % with international traffic increased by 6. 7% and domestic passenger traffic increased by 5. 3%. The highest passenger traffic growth has reported in the Asia Pacific region. Demand Drivers Air traffic in the country has grown substantially over the past few years with a boom in the tourism industry as well as the introduction of low-cost airlines. The air transportation helps growth of interior regions which in turn helps industry / business sector to produce products at lower costs enabling competitiveness in the global market. India is one of the fastest growing economies in the world. Its share in the international trade and tourism is increasing gradually. Increase in income level (especially disposable income) along with introduction of low cost airlines has made air travelling affordable for the middle-class people. This results in growing demand for new airports in India. The Marketing Triangle One can better understand the workings of airlines by looking at its marketing triangle. There are three entities in the entire transaction: * Customer: He is the person who wishes to satisfy his need i. e. of transportation from one destination to another. Company: This is both the dreamer and the offerer. It is the various airlines, which offer its aviation services to satisfy the customers demand for transportation from one destination to another. For e. g. : The Indian airlines * Provider: these are finally the people who interact with the customers. They are the ones who carry out the final transaction. The customers actually come in contact with the service provid er and not the company. For e. g. : The Airhostess and the crew. The interaction between these three parties while providing the service takes place in the following manner: The Company is established with the basic objective of providing the specific transport service. Thus the airline industry with players like Indian airlines, jet airways, Sahara airways etc came into being. * The air service provider that is the company communicates with the customer and makes him aware of the services. It makes promises to the customer through advertising through various media. For e. g. : the TV ad of Indian airlines advertising its new sleep in seats. * The customer who gathers knowledge about the service approaches the company for availing his service in order to satisfy his need. This interface of the customer with the company is through the customer’s interaction with the providers of the company. The company enables its promises to the customers through setting up facilities to deliver the promises that is by setting up ticket and enquiry counters. The outcome of the â€Å"to be transaction† is determined by the interaction between the provider and the customer. Hence the company aims at offering its providers with the required infrastructure and training to optimize the quality of the transaction. For eg: Yearly employee training programs and performance appraisals done by Sahara airlines. The three strategic points where the provider and the customer interact are: * Ticket purchase at the airline counter or the ticket agency. * Checking in. * During boarding. * During disembarkation Kingfisher Airlines * Kingfisher Airlines  is an airline group based in  India. Its head office is Kingfisher House in  Vile Parle (East),  Mumbai. Kingfisher Airlines, through its parent company  United Breweries Group, has a 50% stake in  low-cost carrier  Kingfisher Red. Kingfisher Airlines is one of six airlines in the world to have a 5-star rating from  Skytrax, along with  Asiana Airlines,  Cathay Pacific,  Malaysia Airlines,  Qatar Airways  and  Singapore Airlines. Kingfisher operates more than 375 daily flights to 71 destinations, with regional and long-haul international services. In May 2009, Kingfisher Airlines carried more than a million passengers, giving i t the highest market share among airlines in India. * Kingfisher Airlines is also the sponsor of F1 racing outfit,  Force India, in which  Vijay Mallya  also owns a stake. Kingfisher Airlines was established in 2003. It is owned by the  Bangalore  based  United Breweries Group. The airline started commercial operations in 9 May 2005 with a fleet of four new  Airbus A320-200s  operating a flight from  Mumbai  to  Delhi. It started its international operations on 3 September 2008 by connecting  Bangalore  with  London. * On 7 June 2010 Kingfisher became a member elect of the  Oneworld  airline alliance  when it signed a formal membership agreement. A firm date to join the alliance will be announced once the implementation process is underway; it possibly may take 18 to 24 months. Kingfisher Red * Kingfisher Red, known formerly as  Simplifly Deccan  and prior to that as  Air Deccan, is a low-cost brand run by  Kingfisher Airlines. It is headqua rtered in Mumbai,  India. * Formerly known as Air Deccan, the airline was previously operated by  Deccan Aviation. It was started by Captain  G. R. Gopinath  and its first flight took off on 23 August 2003 from  Hyderabad  to  Vijaywada. It was known popularly as the common mans airline, with is logo showing two palms joined together to signify a bird flying. The tagline of the airline was Simpli-fly, signifying that it was now possible for the common man to fly. The dream of Captain Gopinath was to enable every Indian to fly at least once in his lifetime. † Air Deccan was the first airline in India to fly to second tier cities like Hubballi, Mangalore, Madurai and Visakhapatnam from metropolitan areas  like Bangalore and  Chennai. * On 25 January 2006, Deccan went public by filing a  red herring prospectus  with the  Securities and Exchange Board of India. Deccan planned to offload 25 percent of its stake in the  initial public offering (IPO) that opened on 18 May. However, due to the  stock market  downturn at that time, Air Deccans IPO barely managed to scrape through, even after extending the issue closing date and reducing the price band. * Less than expected growth in the Indian aviation sector coupled with overcrowding and the resultant severe competition between airlines resulted in almost all the Indian carriers, including Air Deccan, running into heavy losses. After initially trying to get in fresh capital for running the airline, Captain Gopinath eventually succumbed to pressures for consolidation. On 19 December 2007, it was announced that Air Deccan would merge with Kingfisher Airlines. Since Indian aviation regulations prohibited domestic airlines from flying on international routes until they had operated in the domestic market for five years, it was decided to instead merge Kingfisher Airlines into Deccan Aviation, following which Deccan Aviation would be renamed Kingfisher Airlines. This was because Air Deccan was the older of the two airlines, and therefore would be the first to qualify for flying on international routes. The merger became effective April 2008, with  Vijay Mallya  becoming the  Chairman  and  CEO  of the new company, while G. R. Gopinath became its  Vice-Chairman. competitors * SPICEJET * SpiceJet, Indias leading low cost airline, is a reincarnation of  ModiLuft. It is promoted by Ajay Singh and the Kansagra family. SpiceJet marked its entry in the Indian skies with  Rs. 99 fares for the first 99 days, with 9,000 seats available at this rate. * This deal was followed it up with a  Rs. 999 promotional scheme on select routes. Their marketing theme was offering low everyday spicy fares and great guest services to price conscious travellers†. Their aim is to compete with the  Indian Railways  passengers travelling in air conditioned coaches. Today, Spicejet operates 21 Boeing 737-800/900ER aircraft across 19 destinations and has a 12% share of the Indian market. * INDIGO * IndiGo Air  or  IndiGo Airlines  sports the deep colour of IndiGo as its signature colour. It is a privately owned low-cost domestic airline based in Gurgaon with Indira Gandhi International Airport as its main base. IndiGo Airlines started operations on 4th August 2006 and is owned by InterGlobe Enterprises and Mr. Rakesh Gangwal. This airline is amongst the best, offering professional services, economical prices with great deals and discounted airfares. It operates to all the major cities of India. IndiGo air tickets can be booked online and the services provided are user friendly while at the same time, extremely comprehensive. IndiGo Airline provides what no other airline can. * JET LITE * JetLite, formerly  Air Sahara, is an  airline  based in  Mumbai,  India  owned by  Jet Airways, the airline operates scheduled services connecting metropolitan centres in India, it operates 110 flights daily. The airline also provides helicopters which are available for charter services and aerial photography. * The airline was established on 20 September 1991 and began operations on 3 December 1993 with two  Boeing 737-200  aircraft as  Sahara Airlines. Initially services were primarily concentrated in the northern sectors of India, keeping Delhi as its base, and then operations were extended to cover all the country. Sahara Airlines was rebranded as  Air Sahara  on 2 October 2000, although Sahara Airlines remains the carriers registered name. On 22 March 2004 it became an international carrier with the start of flights from  Chennai  to  Colombo. It is part of the major  Sahara India Pariwar  business conglomerate. The uncertainty over the airlines fate has caused its share of the domestic Indian air transport market go down from approximately 11% in January 2006 to a reported 8. % in April. * Jet Airways  announced its first takeover attempt on 19 January 2006, offering US$500 million (2000  crore  rupees) in cash for the airline. [4]  Market reaction to the deal was mixed, with many analysts suggesting that Jet Airways was paying too much for Air Sahara. The Indian Civil Aviation Ministry gave approval in pr inciple, but the deal was eventually called off over disagreements over price and the appointment of Jet chairman  Naresh Goyal  to the Air Sahara board. Following the failure of the deal, the companies filed lawsuits seeking damages from each other. A second, eventually successful attempt was made on 12 April 2007 with Jet Airways agreeing to pay  Rs. 1,450 crore ($340  million). The deal gave Jet a combined domestic market share of about 32%. * On 16 April Jet Airways announced that Air Sahara will be renamed as JetLite. The takeover was officially completed on 20 April, when Jet Airways paid  Rs. 400 crore. * Jetlite has been repositioned as a value carrier offering attractive low fares. It stopped offering complimentary food on board and now offers it for purchase separately. Jet Airways has withdrawn from many of its routes and has replaced it with Jetlite operations to compete with full service carriers operating on those sectors. Market Share Reference:  Directorate General of Civil Aviation Load Factor Trend Reference:  Directorate General of Civil Aviation Cancellation Data Reference:  Directorate General of Civil Aviation Airline Industry- Life Cycle From the mid-1990s to the beginning of the new millennium, the aviation industry faced one of the biggest booms in its history. Worldwide increases in GDP, riding on the wave of the new economy, and a greater demand for travel resulting from globalization stimulated the airlines to healthy growth of around 4-6 percent per year. At the beginning of 2000, economic slowdown brought an end to the growth phase, and the terrorist attacks of 11 Sep 2001 and the SARS virus in 2003 exacerbated the situation. There has always been a fundamentally precarious balance within the industry profit generation and loss. One of the biggest exceptions to this rule occurred during the 1990’s, when the global economic upturn boosted travel demand. Furthermore the major airlines gained from the new economy in terms of computer technology progress, which enables new business processes such as ‘network management’ or ‘yield management’, e-commerce and e-services to be supported. Quantitative analyses permitted the improvement of demand forecasting and the optimization of seats supplied in the network. Nevertheless, during these years, a group of airlines, knows as low-cost carriers, were able to generate profits and positive growth by generating a cost advantage, no frills, and a point to point network business model, in contrast to the traditional hub and spoke national flag carriers. Nowadays, the LCC business model is quite popular and is advocated as an alternative, or sometimes as a complement, for the traditional airline business model, which, on the contrary, aims to cover all market segments and city-pairs. Airline’s is a typical industry where the net margins are very low. This could be attributed mainly due to the high fuel costs, Govt. Taxes and force from people to get the cheapest travel. So if we look at the below figure we understand there is a continuous crest and trough’s in the industry life cycle. Every time the industry goes down in margins the major players try to renew it with various offerings. In the last quarter of 2000, the fundamentally precarious balance between revenue and cost turned negative. The crisis initially started as demand slowdown followed by the cost impact of overcapacity from the supply side. Different from the situation for airlines during the Iraq war in 1991, some other additional factors turned the crisis into a perfect storm for global aviation: 1) The crisis of 2000 started at the time of a positive peak just before an economic downturn 2) The terrorist attacks of September 11 generated fear of air travel and constituted an exogenous demand shock. ) The 2003 Iraq war, together with the SARS epidemic, caused a second exogenous demand shock. 4) The full-service carriers were making few business innovations compared with the network and yield management practices developed in the 1990s The low cost business model was developed in the early 1970’s in the US but it was after more than 2 decades that it came to India. It was initially perceived a regional phenomenon, limited to a niche market which was willing to pay only less and connecting secondary city-pairs. The competitive pressure associated with the evolution of low cost models affected the traditional airlines models. Their reactions was to tend to adopt cost cutting strategies as they were driven to adopt some of the characteristics of the low-cost airlines in an attempt to survive. Challenges faced by Aviation Industry The growth in the aviation sector and capacity expansion by carriers have posed challenges to aviation industry on several fronts. These include shortage of workers and professionals, safety concerns, declining returns and the lack of accompanying capacity and infrastructure. Moreover, stiff competition and rising fuel costs are also negatively impacting the industry. 1. Employee shortage: There is clearly a shortage of trained and skilled manpower in the aviation sector as a consequence of which there is cut-throat competition for employees which, in turn, is driving wages to unsustainable levels. Moreover, the industry is unable to retain talented employees. 2. Regional connectivity: One of the biggest challenges facing the aviation sector in India is to be able to provide regional connectivity. What is hampering the growth of regional connectivity is the lack of airports. 3. Rising fuel prices: As fuel prices have climbed, the inverse relationship between fuel prices and airline stock prices has been demonstrated. Moreover, the rising fuel prices have led to increase in the air fares. 4. Declining yields: LCCs and other entrants together now command a market share of around 46%. Legacy carriers are being forced to match LCC fares, during a time of escalating costs. Increasing growth prospects have attracted amp; are likely to attract more players, which will lead to more competition. All this has resulted in lower returns for all operators. 5. Gaps in infrastructure: Airport and air traffic control (ATC) infrastructure is inadequate to support growth. While a start has been made to upgrade the infrastructure, the results will be visible only after 2 3 years. 6. Trunk routes: It is also a matter of concern that the trunk routes, at present, are not fully exploited. One of the reasons for inability to realize the full potential of the trunk routes is the lack of genuine competition. The entry of new players would ensure that air fares are brought to realistic levels, as it will lead to better cost and revenue management, increased productivity and better services. This in turn would stimulate demand and lead to growth. 7. High input costs: Apart from the above-mentioned factors, the input costs are also high. Some of the reasons for high input costs are: Withholding tax on interest repayments on foreign currency loans for aircraft acquisition. Increasing manpower costs due to shortage of technical personnel. . Seasonal Business: Airline is an industry that’s seasonal, having peak season during april may, holidays etc. But the trend in slightly shifting as the number of people has been increasing. 9. Exogenous events can suddenly affect demand- As said earlier in the life cycle, any exogenous events could have a huge negative impact in occupancy rate. In the near future, Kingfisher Red may have to face significant challenges such as: * Realigning their com petitive strategies to become profitable. More Players entering the Low cost carrier segment. * Pursuing aggressive cost reduction. * Constraints due to poor infrastructure for aviation in India. EMERGENCE OF LOW-COST AIRLINES IN INDIA For the first 15 years of deregulation the demand for scheduled passenger air transportation was driven by the constraints and confines of its providers principally, the network carriers. Network carriers were able to avoid cost-side pressures by focusing on revenue side strategies – largely centered on the high yield business traveller. The focus led to innovations like sophisticated global distribution system, revenue management, and frequent flyer programs that helped the airlines segment demand. You are – or we were – the linchpin in that strategy, as business and other time–sensitive travellers accounted for only 20% of the airline traffic, but for 80% of network airline. This strategy worked because the business traveller grew accustomed to paying high fares and often did not have an attractive alternative to the high fare, and also because the airlines enjoyed a greater ability to control the number of seats available to discretionary travellers. In short, in the post-regulation world travellers – particularly business traveller – did have the greater option than before, but, even with the impact of the occasional low-fare carrier, they were often at the mercy of major carriers when it came to price. In effect, demand for passenger service was driven, even controlled, by the supply that network carriers were willing to deploy in the market. The above reasons and the price transparency that the internet has created for all types of passengers have led to the emergence of a new breed of low-cost carriers. These developments have seriously compromised the ability of legacy carriers to charge higher prices to travellers on the routes where they overlap with the low-cost carriers. At the end of 2000 the demand for the business class and other high-end products fell dramatically, as the corporate travel managers became more cost-conscious. Customers continue to fall into segments with regard to demand for products on offer. Not every airline will be able to satisfy every customer but the entrance of low cost airlines has pushed customer segmentation. There is a sharper focus for the shorter routes and the target is the price conscious and quality conscious customer. This has led to stiffer competition for the non–business passenger and price conscious business passenger. Low Cost Carriers The entry of these low cost carriers has several far reaching implications on the aviation sector in India. Now low cost airlines have proliferated and offer real, lasting competition to their network rivals. This generation of low cost carriers has newer fleets, a better on-time performance and completion factors than the first wave of post-deregulation start-ups. The fare transparency delivered by the internet and the expansion of low cost carriers has increased the price-sensitivity even of business passenger. The demand for more affordable air travel is quite robust. Increasing numbers of business travellers use low fare airlines as a matter of corporate travel policy whichever country they have been launched in. It has to a very large extent influenced the mass transportation and domestic tourism. Typical low-cost carrier business model practices include: 1. A single passenger class 2. A single type of airplane (commonly the Airbus A320 or Boeing 737), reducing training and servicing costs). 3. A simple fare scheme (typically fares increase as the plane fills up, which rewards early reservations) 4. Unreserved seating (encouraging passengers to board early and quickly) 5. Flying to cheaper, less congested secondary airports and flying early in the morning or late in the evening to avoid air traffic delays and take advantage of lower landing fees 6. Short flights and fast turnaround times (allowing maximum utilization of aircraft) 7. Simplified routes, emphasizing point-to-point transit instead of transfers at hubs(again enhancing aircraft utilization and eliminating disruption due to delayed passengers or luggage missing connecting flights) 8. Emphasis on direct sales of tickets, especially over the Internet (avoiding fees and commissions paid to travel agents and Computer Reservations Systems) 9. Encouraged use and issuance of the electronic ticket 10. Employees working in multiple roles, for instance flight attendants also cleaning the aircraft or working as gate agents (limiting personnel costs) 11. Free in-flight catering and other complimentary services are eliminated, and replaced by optional paid-for in-flight food and drink (which represent an additional profit source for the airline). 12. Aggressive fuel hedging programs. 13. Unbundling of ancillary charges (showing airport fees, taxes as separate charges rather than as part of the advertised fare) to make the headline fare appear  lower. Strategies o f LCC: Cost advantage: Low cost airlines provide air service at costs 25-50% lower than a full service airline. The cost structure of a full service Indian airline is given in the figure below: An Illustration of the Cost structure of Full Service Airlines as a % of Operating Expense: (Source: ICRA report, Civil Aviation, April 2005) Breakdown of Cost savings (Source: www. indiastats. com) The cost advantage of the low cost carrier is a result of savings on various factors given below: Full service airlines provide their passenger with many attendant services like hot meals, frequent flyer programmes, spacious legroom etc. While low cost carriers do not provide frills like hot meals and frequent flyer programmes and work with the minimum number of air hostesses on the flight. Removing business class, storage space for the meals and limited seat pitch (maximum inclination of the seat) makes space for additional seats which can increase the seat capacity of the plane by 20%. Low cost carrier aircrafts take less time to leave the airport after landing which increases their flight time by 20-25% as compare to the full service carrier aircrafts. These airlines do not issue tickets to passengers to save costs on printing, mailing and processing tickets. Passengers are issued a booking number, which they quote at airport check-in, and present their photograph to collect their boarding pass. They also save on distribution costs by disinter mediating travel agents and central reservation systems and selling through internet and call centre. They also try to minimize capital costs and costs of the crew and hangerage. In Europe and the U. S. low cost airlines avoid flying into the mainland airports and save on high parking and landing fees. India has very few secondary airports, because of which the airport charges constitute a sizeable portion of the cost structure that could be reduced considerably. The LCC Phenomenon in India Southwest Airlines, now a major carrier in the U. S. , operating local routes in Texas in the 1970s pioneered the low cost carrier business model. In India, the model was introduced in 2003 by Air Deccan. However, the same descriptive label masks the significant differences in ways the model has worked in India vs. U. S. First, in terms of market share, LCCs accounted for almost 30% of all domestic passengers carried in 2006. As of November 2006, it rose to 35%. This rate of market penetration of LCCs is remarkable given that the market share was zero in August 2003. Low cost carrier operations account for 44% of all flights within India compared to 19% in the U. S.. The second significant difference has to do with the relationship between low cost and low fare. In U. S. , the LCCs offering low fares are also truly low cost operations. In India, the airlines that offer low fares are in reality not low cost operations. They are LCCs only in name. Among the LCCs in India, Spice Jet has the lowest unit cost at 6. cents per ASK, which is comparable with Southwest, Easy Jet, and Jet Blue. But this is more than twice that of the best performer, Air Asia with unit cost of slightly over 3 cents per ASK.. This flies in the face of what LCCs outside India like Ryanair have done when th

Wolfgang Amadeus Mozart essays

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