Preview

China Airlines Marketing Strategy

Powerful Essays
Open Document
Open Document
2111 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
China Airlines Marketing Strategy
Marketing Strategy China Airlines on Guam

CASE SYNOPSIS:
This is a case study about how a foreign carrier, China Airlines, adapts it strategy competing in the Guam-based airline industry. The case traces the company’s history on Guam from setting up its regular flight schedule between Guam and Taipei, through a pricing competition with its main competitor Continental Micronesia, to today where it occupies the sole market share of flights between these locations. In addition, the study explains China Airlines approach to its customers through partnerships with hotels and tourism companies in both Taiwan and on Guam; how this business has been affected by immigration regulations; and how it has become a successful carrier on Guam, in spite of failing to reach its initial goal for even being on Guam.
Business Background on Guam
China Airlines is a foreign aviation corporation with headquarters in Taipei Taiwan. Before 2000, China Airlines only flew charter flights to Guam, with the market here being limited by the requirement that Taiwanese hold American visas to enter Guam. These charter flights, or irregularly scheduled flights specially arranged according to the needs of customers, were more expensive than normal flights, and were held at peak travel times, such as Chinese New Year (which usually is in January or February and lasts about fifteen days), a golden travel time period throughout Asia. In March 2000, the United States passed a visa waiver policy, allowing Taiwanese to come to Guam directly from Taiwan with only a Taiwanese passport and a Taiwanese identification card. The stay period was only valid for 15 days. With this policy in place, more Taiwanese came to Guam for vacation. With this growing tourist market in mind, China Airlines set up regularly scheduled flights between Taipei and Guam twice a week with a capacity of about 150 passengers per flight.
When China Airlines began regular flights, its goal was to develop its

You May Also Find These Documents Helpful

  • Good Essays

    Hna Case

    • 405 Words
    • 2 Pages

    Air transport is definitely the major growth area for the HNA group, generating 78% of the group’s revenue. Efficient operations and lean management allow it to derive higher margins compared to its competitors. The group’s plans in this business block are aggressive, indicated by the formation of Grand China airlines. Airports are directly complementary to the airline operations and provide an avenue to grow and expand, with the increasing Chinese government policy towards privatization of airports. The tourism block and the hotels block complement each other in addition to benefiting the air transport business. The relative industries serve a primary purpose of diversifying the Group’s assets, protecting it against unexpected global fluctuations.…

    • 405 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Question: Explain how and why the message and each of the four (4) promotional mix elements used by an airline would differ if the target audience were:…

    • 696 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Classic Airlines in an airline company that has been in business for over 25 years and has gained great success within the airline industry. In the 25 years since its creation the company has grown to over 32,000 employees and has generated 10 billion dollars worth of business. Although the company has seen great success, it also is subjected to the many challenges that other airlines companies face in today’s market. Classic airlines must be able to market its product so that customers will pick there product over competitors within the industry (University of Phoenix, 2012).…

    • 545 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    Airline Country Codes

    • 1758 Words
    • 8 Pages

    Hong Kong and Macau are Special Administrative Regions and from an Airline viewpoint have to be treated separately from the rest of the Peoples Republic of China.…

    • 1758 Words
    • 8 Pages
    Powerful Essays
  • Satisfactory Essays

    This strategic marketing plan focuses on marketing strategies of the SriLankan Airline Strategic Business Unit (SBU), in Sri Lanka. The strategies are concerned with the market, product, pricing, distribution and communication/ promotion strategies for the Srilankan Air Taxi. The time period for the strategic marketing plan for SriLankan airline will take place over 3 years from July 1st 2008 to July 1st 2010.…

    • 380 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    In recent years, China has emerged as the world’s fastest growing economy. Everyday multinational companies (MNC’s) are looking to, in some way or another, expand into the Chinese market; whether it is through product expansion, joint ventures, or acquisitions, it seems every MNC is trying to enter into China. Recently, Cessna Aircraft Company is one of those that have made the leap into China. By establishing two joint ventures, Cessna has expanded its reach and product line into the Chinese markets, and it is through this already established relationship that we see an obvious opportunity. Through the procurement of a partnership with Cessna and by utilizing their already established expertise in China, pursuing the opportunity to open and establish a Flight…

    • 8002 Words
    • 33 Pages
    Good Essays
  • Powerful Essays

    International marketing china

    • 12070 Words
    • 49 Pages

    chief marketing officer of Lenovo, and Hal Sirkin, senior vice president at BCG, discuss the…

    • 12070 Words
    • 49 Pages
    Powerful Essays
  • Best Essays

    The product comparison between Network Carriers and Low Cost Carriers and forecasting the future market trends and global competition in airline industry The deregulation in United Stated (US) since 1978 caused the emergence of new airline business models which are dynamic and competitive. The negotiation is less restrictive air services agreements contributed the explosion of new entrants with innovative business models entering the market.…

    • 3247 Words
    • 19 Pages
    Best Essays
  • Powerful Essays

    The report is about GMG airline. The first part of this report illustrates problem definition, scope, objective, methodology and limitations. Then the second part of the report which is the major one discusses about the industry first, then overview about GMG, their mission, vision, objective, policies, strategies and organizational structures. According to the data provided by Bangladesh Biman, in 1972 it flew nearly 337,000 passengers in the domestic sector and 367,000 passengers in the year 1998, which is rather a stagnant figure. The domestic aviation industry of Bangladesh failed to gain the popularity or reliability of its passengers, due to infrequent flight, inferior standard of service and lack of supply. Thus people were forced to use alternative forms of transport such as buses, trains and other private transport, which was quite inconvenient, when time security and comfort were considered. But after the introduction of other private sector airlines since 1996 and GMG Airlines in the year 1998, the number of domestic air travelers has increased rapidly, as this company was successful in catering to its customers’ needs. But it still remains a fact that the latent demand for air-travel has not yet reached its full potential. GMG Airlines, which is one of the companies of the GMG group, retained a well-known UK based consultant Neil Hansford to study the opportunity in depth and to help GMG implement the business plan. GMG Airlines also further benefited by the fact that the Managing Director and the Chairman were both trained and well qualified commercial pilots and played a vital role in the formulation of the business plan. After a thorough research and a satisfying and materialistic business plan, attention was diverted to overcome the next crucial step, which was the financing for the aircraft and other infrastructure necessities. GMG Airlines positioned itself as a premium airline with the corporate mission of providing ' First…

    • 7435 Words
    • 30 Pages
    Powerful Essays
  • Satisfactory Essays

    On November 2, 2017, China's Beijing Capital Airlines held its first overseas crew recruitment fair in Lisbon, as a part of its ongoing recruitment program in Portugal and Spain from November 2 to November 5. Having received more than 300 resumes, the company plans to hire 40 flight attendants in the two countries. Local candidates have showed great interest in the brand image and the distinctly Chinese culture of Beijing Capital Airlines, marking the globalization of the company's crew recruitment.…

    • 764 Words
    • 4 Pages
    Satisfactory Essays
  • Best Essays

    The following report, comprising of secondary research found from numerous different sources will address the organisational profile of the Hong Kong based airline, Cathay Pacific. An organisational profile will be constructed detailing various aspects of the business including Cathay Pacific’s organisational structure, products and services, markets, competition, financial information and the external influences they encounter. An evaluation of each of these topics will also be made in order to see where the company is prospering and where it is facing detrimental effects. A short comparison of Cathay Pacific against the UK company, British Airways, will also be made to address briefly the similarities and differences between these two companies.…

    • 4729 Words
    • 19 Pages
    Best Essays
  • Powerful Essays

    References: * Hubert Saint-Onge, (2000), “Strategic Capabilities”, Knowinc - http://knowinc.com/saint-onge/library/strategic.htm - [Access on 6 April, 2013]…

    • 5702 Words
    • 23 Pages
    Powerful Essays
  • Satisfactory Essays

    Cathay Pacific Airlines

    • 670 Words
    • 3 Pages

    Airline industry is linked closely to the policies of governments, so political and legal segment is the essential factor which affects the development of Cathay Pacific. Currently, the worldwide airline industry is denominated by several firms which rely heavily on political and financial power. However, with the political preference, private capital began to inject into the civil aviation industry and brings challenge to Cathay Pacific. For example, in mainland China, the development of private airlines such like, OK Airlines and Spring Airlines grab parts of market shares of Cathay Pacific in certain air routes. On the other hand, taxation laws and antitrust laws also have impact on the operation of Cathay Pacific. As is known to all, each policy adjustment of fuel prices and airport construction fee would cause consumers’ great concern and would to some extent influence airline firms.…

    • 670 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    Etihad Airways is considered as one of the youngest airlines in the world, yet it managed to seize a leading place within the aviation industry. Etihad Airways received the 2008 Marketing Award of the “Airline Strategy Awards”, one of the most recognized awards in the industry, just five years after starting commercial operations, followed by many international awards. This early success can be attributed to the marketing strategy employed by Etihad, which resulted in creating a strong brand associated with a high quality service. Etihad’s marketing strategy focused on creating new innovative services in every touch point with the customers. This report will focus on Etihad’s marketing strategy, which enabled the airlines to achieve what other carriers achieved in a much longer time.…

    • 4506 Words
    • 19 Pages
    Powerful Essays
  • Better Essays

    Oasis Hong Kong Airline

    • 952 Words
    • 4 Pages

    Oasis Hong Kong Airlines was founded in February 2005 by Rev. Raymond C. Lee, and his wife, Priscilla H. Lee had they survived; this month would have marked their seven year anniversary. Unfortunately an airline that became known for its low fares liquidated it assets three years and two months after its start in April 2008. Oasis alleged that the company was doing well claiming that the company broke even after the first six months of operation. But Oasis liquidation proved that the company wasn’t doing as well as it claimed. Oasis attributed their success to flying long-haul so as to decrease maintenance and fuel costs. But professionals in the field say flying long haul sectors burns more fuel and requires similar maintenance to short-haul aircraft in order to ensure airworthiness. The fact that Oasis charges such low prices for it services meant it did not generate enough revenue to cover its operating cost. Oasis’s attempt at competiveness turned out to be its downfall.…

    • 952 Words
    • 4 Pages
    Better Essays

Related Topics