Sample essay on the american airline report

Monday, 11 May 2015.

On the business model of American Airlines, there is a logical framework that the company uses to create, deliver, and improve its services and products. There are nine American Airlines units that indicate their interest in improving service delivery. The company deals with four main areas, including customers, infrastructure, supply and viability. The canvas of this business model is a strategy that is implemented through the company’s systems, systems, and processes

Thus, the canvas of the American Airlines business model is reliable, and it directs its strategies and operations to achieve its objectives. This company aims to expand its share in the target market for five years and to increase its services (Osterwalder & Pignneur, 2013). This canvas offers a detailed guide and approach that will enable the company to achieve its objectives

On the canvas of the American Airline business model, there is a consumer segment, which consists of persons who serve the purposes of the organizations. American Airline’s survival depends on its customers. In order for clients to be satisfied, their needs should be grouped in this segment by the company. In other companies, models have consumer segments that have several small and large customer segments. However, the canvas of the business model of this company has a general segment, which defines the various clients served by the organization

American Airlines requires that the consumer segments may be linked to various distribution problems, promotion of various products and justification of proposals, as well as to understand various aspects of relationships and proposals. The American Airlines has a massive market. Thus, the company does not distinguish between segments of its customers. The focus is on a distribution channel, progressivity of cost, and customer relationship. The company focuses on the mass markets so that it can promote its products and services to various beneficial and potential customers

This aspect of the American Airlines ‘ business model is designed to understand the various services and products at the time of increasing value for specific customer segments. The value of the offer helps the company to compete with other airlines in meeting the needs of our customers. The company believes that the company is running to accommodate them to various business travelers. This includes frequent and reliable shipments, light flights, tradable and tactical flights, and low ticket prices

The requirements of specific customers are determined by the company on the basis of the value of the proposals. This may be innovative, and therefore it submits proposals. However, the value of existing market proposals is valuable. The value is created for different customer segments by offering a value proposition by differentiating the special needs of customers. In a valuable offer, performance is an important and relevant aspect (Osterwalder & Pignneur, 2012). This helps to create the value of services and products. The business model of this company has improved graphics that create the corresponding growth as a way to meet customer needs

The communication of the organization is explained by the channels that help to reach the target customers in order to ensure the value of the company. Sales and communication strategies, as well as distribution channels, enable this company to associate itself with potential customers. These channels play an important role in increasing customer service from this company. This role entails raising customer awareness, helping clients, giving customers the opportunity to appreciate the value of the company, providing value for the offer, and providing support after purchase

The company is responsible to the customers through these channels. The channel segments play an important role in ensuring the value of supply for the company’s mass markets. The company appreciates the challenges it faces, including through its website and internal sales. Web site and internal sales have improved the channels that link customers and organizations. The channels also help to integrate experience with clients, as well as to increase the income of the organization

The relationship with the customers is largely supported by American Airlines. This is because they allow companies to verify the existing relationships in particular customer segments. The relationships that the company would like to have with the use segments are clearly stated by management. The relationships that this company has with customers are the specific motivations of this organization, the purpose of which is to increase sales, purchase customers, and retain customers. Lower ticket rebates are motivated by this relationship. There are discounts that help companies win their target markets by increasing the shelf life of customers, as well as maximizing income. In most cases, the company has resorted to automated services. In this regard, customers can use self-service. Customers, as well as their personal attributes, are recognized by automated processes. In American Airlines, this relationship is the best, because it offers a reliable and simple way to promote personal relationships. Customer relationships also help to improve the model used by the company to improve customer interaction

The business model of this company uses the revenue stream to receive the money that is realized from each customer. As long as the business model of the company remains relevant, revenue streams will always play an important role on the canvas of this business model. Each revenue stream has a unique pricing strategy. Thus, it is managed separately. This company uses a business model that helps in value proposition

However, revenue streams are directed at income and value. Different ways are used to generate revenue for the company. These include subscription fees, safes for assets, and rental and ticket meetings. American Airlines ‘ workarounds are maximized as a way to increase productivity in the organization

The organization has the core resources that enable it to operate and monitor its business model. These resources allow the company to enter its markets, receive revenue and maintain relations. Thus, key resources play an important role in the management and operation of the business model of the company. Core resources cover financial, physical, intellectual and human aspects. These resources are owned or owned by American Airlines. They’re important to this company. Therefore, the airline cannot operate or operate without these resources

As part of the promotion of the company’s operations, various key issues are presented in its key activities. American Airlines is dependent on these key actions to ensure the proper functioning of an appropriate business model. Key activities and key resources assist in creating and maintaining cost of positions, reaching new markets, maintaining customer relations and ensuring income. The company’s key operations include an online passport system that will improve online ticket sales

There are also manufacturing operations that include the provision of services by the firm, such as the transportation of passengers to their preferred destinations (Osterwalder & Pignneur, 2013). There are also solutions to problems that address some of the problems that the company faces. The key actions of American Airlines are recorded as the vital productivity of the processes

The traditional American Airline canvas consists of key partners. This shows the relationships that the partners have with the vendors in the business. The organization has established links with various business models as a way to reduce risks and to acquire new resources. The partnerships that the company uses include joint ventures, relationships between buyers and suppliers, and strategic alliances. The main partners of the company have a project that facilitates the allocation of available resources to the appropriate or optimal level. The logic in this is that the partnership that promotes economies of scale is helping to reduce costs. Key partnerships are important because they help to reduce costs, thereby contributing to the development of opportunities

In this company’s business model, costs and expenses are determined by the cost structure. The cost of delivery, revenue generation, and customer relationship is increased by the cost of this business operating model. Other segments of the canvas of this business model entail costs. Thus, American Airline has a business model that is managed at cost. Thus, this company should create inexpensive structures. Reducing the cost of an activity in this organization helps maximize bounds. Minimizing value is important as a way to maximize your income

Launching an airline is a complex business that needs a new or unique business model. The airline must fly at low prices for different people. IATA noted that travel expenses had been reduced by 60 per cent. Travelers are also increasing rapidly. By the end of the 2000s EBIT, the airline made up 0.7 percent. The fact that price variation depends on the system of price differentiation of different processes was accepted by the customers. The purpose of the new model should be to introduce a new way of repositioning the company in the industry so that it can resolve the problems easily. The model will enhance sustainability and competitiveness

Generation of the new model will allow the company to use the process of ideas, which is done by prototyping. The prototyping allows the company to reduce the number of problems that affect the five major innovations of the potential business. The five major innovations in this business are the idea of creating a prototype business model. The creation of the American Airlines business model entails innovations that will increase its influence, revenue and competitive advantages. This company chooses a team to participate in innovation as a way of indicating the value of a business model study

An open strategy helps to advance future business strategies focused on open innovation. This is a focus on building value for different organizations. The public policy must support the section of the generated value. Openness helps shift the focus from ownership to reviewing capture and delivery processes

However, open innovation products face traditional strategies. Despite increased competition (Kaplan, 2012), industrial costs are reduced at some prices. The innovation-based business model is customer oriented. It is based on the needs of customers and facilitates access as a way to enhance competitiveness in the industry

Focusing on the customer-centric model is dependent on open coordination for stronger relationships in business processes. Integrating the various units is represented by business innovation in an open innovation model with multiple segments. The company that is engaged in innovation can see the readiness of innovation, as well as the protection of rights in the summer. American Airlines is focused on minimizing costs to customers and expanding markets and destinations. Thus, the inclusion of open innovation in its new model enhances the effectiveness of efforts to achieve the objectives. The development of new products is aimed at creating this business model in order to improve diversification of markets and get more value. Innovation also focuses on the success of sales and the commercialization of the company’s systems

Technological innovation plays an important role in increasing the competitiveness of American Airlines. The innovation process, more in organizational formats, must be new, unique business models. Thus, technological innovation leads to the development of new business models. This helps to increase the cost of development while reducing the company’s product life cycle. This shows the importance of managing development and research resources to save money and time spent on innovation. In addition, an innovative model can transform revenue streams that require a company to obtain a license for new services and products that it offers. This indicates that the company is ready to use more revenue opportunities (Kaplan, 2012)

American Airlines ‘ s traditional model explains the adoption by the carrier of a market that is constantly changing. There are disruptive changes in the behaviour of passengers and competitors that require additional resources. At present, companies are unable to collect premiums from customers in some markets due to the low cost of air carriers at points of entry

The new model seems ideal compared to the traditional model. The new model will undergo changes and experiments to achieve better results. This helps to identify the needs of new business models and value creation. The innovative business model approach has several advantages in terms of identifying different risks, understanding weaknesses and strengths, changing the market, and focusing on people’s mutual support. This reflects it as an appropriate approach that can be used to make effective use of the value that is essential to maintaining the profitability of the organizations (Kaplan, 2012)

Kaplan, S. (2012) …

Osterwalder, A., & Pigneur, Y. (2013).

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