Management Issues In Low Cost Carriers Essay.

Aircraft Seating in Economy Class

With the emergence of the concept of Low cost carrier also known as LCC, there are number of other aspects which has become a matter of concern for number of people like comfort in the form of quality of seats used in these flights. It is a challenge to travel in this flight in a long-distance journey and this has become a main criterion for number of passengers traveling through these flights (Ison, 2017). One of the most important concern or challenge that impacts the aircraft seating in economy class is the much-required legroom. It is important to understand here that seat pitch as the complete distance that exists between the back of the seat as well as the back of the seat towards the front side.

Following is detailed discussion of three management issues:

Socio-culture trends in external environment: in airline industry, the issue of seat shows the impact of external environment on the airlines. The external environment can be defined as a series of events that happens externally and have the power to impact the performance of the company. The rise in the level of awareness and important understanding of many element of the external culture are actually a key feature for the many airline managers. The problem of seat pitch questions the management team performance and their association with the stakeholders. The rate of change on culture experienced by the LCC airlines can be rightly managed with close eye on the consideration of many stakeholders and their relationship that also include an association with the suppliers (Ison, 2017). It is important to note here those managers who are clear about the business supplier and the relationship with them actually work to make it stronger and long-term association since it helps in getting high quality products at affordable prices. At the same time, suppliers are not just the external stakeholders for these kinds of airlines. There is also some change in trend of passenger comfort needs. It is important for the airline managers of LCC to maintain a strong as well as safe association with number of stakeholder. For instance, a strong association with Airbus, is usually signified by fleet in long term with expansion based commitment and can also provide the team of the organization with an impact to actually ask for engagement with rise in number of research and growth focused solutions by finding the right balance between the comfort and the cost based needs (Morrison & Mason, 2016).

Socio-Culture Trends in External Environment

The competitive advantage: the second component associated with the issue discussed in report is the consideration of what can be the competitive edge for the company. The concept of competitive advantage is actually an edge which is unique and comes from the core competencies of the company. It requires a lot of dedication of the staff and a staff positioning strategy by the company. This way, this airline has been able to offer the mission towards success.

A renowned marketing guru Michael Porter has discussed about three competitive strategies on generic level (Hagmann et al, 2015). To gain competitive advantage for the company cost leadership is an obvious option. The concept of cost based leadership along with usage of high amount of control to manufacture the product make its very efficient process. In this case it is important to understand the focus on the prices offered by competitors while also offering high quality along with earning it at reasonable profit.

As per the standard model of LCC, it is important to understand the maximum number of seats on board of the aircraft along with comfort the seat and their sizes than any other full service company in this field. It has also been suggested by many authors that in LCC concept of business model passenger seats usually lead to reducing the services as well as comfort of the passenger. LCC helps in encourages some consumers who wanted to spend more for some extra services.

The level of competition in aviation industry of Asia has transformed to a significant level. It is important to understand here that even in favorable circumstances, such business models struggle especially when the management completely fails to properly sharpen the competitive advantage of the company (Pearson, 2016). In previous part of the report consumer trends and evolution in it has been discussed in detail with respect to the pitch of the seat. At the same time, cost based leadership is also considered as a mile stone for the competitive strategy in such concepts.

Concept of innovation: Innovation is often integrated with other challenges discussed previously in the report including positioning and differentiation strategy for the product. As per number of authors, the level of success in the organization in present time need some kind of innovation and in industry like this there is high amount of volatility as well and the competition at global level turns chaotic. This is why company’s also needs to develop newer products as well as services and also embrace different kind of technology to compete in a successful manner (Chang & Yu, 2014). But, it is never about the development of some product or services that base the research on innovation.

Competitive Advantage

As per number of research, the growth team in the company must always focus on new products or services and their offering should always be better than before. At the same time, profitability yet low cost companies also encourages that any kind of innovation may look to aim on large audiences that come under low income group. The concept of innovation usually comes from the adopting new technologies. 

In last twenty years, the rule for the economy has always been economy based seating which meant more for seats with decreased seat based pitch and width of the seats. The trend further continues in the future as well. This is why, innovation based techniques are needed for LCC in order to meet the demand of passenger at the same time also maintaining the focus of low cost. In order to leverage from new base of technologies and it is also based on an appeal to large part of the population.

The managers can also adopt new and innovative technologies by encouraging high level of creativity. The concept of innovation is further turning the results of the present creative process into a lot of useful product or various work based tools (Chan, 2014). There is different kind of structural, human based and culture based elements that can impact the level of innovation in the company. But an ambitious approach for innovation is always considered as a most effective approach. The approach helps the manager to become more flexible by nature and also have freedom to innovate and propose new kind of ideas with the help of creative department and also the involvement of various venture teams. But the usage of a more strict, non-flexible, centrally established and standard approach for executing innovation (Fageda et al, 2015). Most importantly, the workforce usually at lower level creates the series of innovative ideas.

Following is the detailed discussion of recommendations: -

1. It is also clear and assuring to see the relationships that are actually crucial for stakeholders and the more impact it makes on managers and will have various organizational levels of results (Leou et al, 2016).
2. The overall penetration by LCC models in aviation sector of Asia is also expected to prosper without any restriction for coming ten years. With this mindset, it is further important to understand that the Airlines also helps in maintaining the attention on competitive advantage and related strategy focusing on the low-cost approach. There are many external trends that can force the management of airlines to focus on many options with pricing structure along with configuration for seating.
3. Any success in the company in an industry which is volatile by nature and are often related to those that nourish the creative side of the workforce (Whyte & Lohmann, 2015). It is thus recommended that the airlines industry also make sure the right kind of culture with structure and human resource based commitment to motivate the creativity and innovation in the industry.

Conclusion

The report has discussed in detail about the influence of the present trend related with passengers traveling through airlines and their demand to have some comfort at least through comfortable seats on LCC model. The complete discussion has been around three elements of key airlines management considerations related with the challenge of seat comfort consisting with elements like socio-culture trends and its association with external environment, the competitive edge and innovation. The existence of external environment sometime indirectly influences the LCC models (Pearson & Merkert, 2014). This usually needs airlines based manager to based different options for the business. It can also be concluded that it is times to create volatility with high level competition and airlines managers that requires retaining the attention on the company on the long term goals. This further can be accomplished with the help of recommendation suggested in the report. These recommendations are based on the requirement for the executives to be able to manage the impact of the business of the external culture by creating the base for strong relationship with many key stakeholders (Pearson & Merkert, 2014).

Reference

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