Paper Example on Competing for Profit: Alaska Airlines and Low-Cost Rivals

Business competition has become a very big factor to consider in any business, especially if the main goal of the business is to minimize its costs and improve its sales. Costs affect so much the profit earned by various companies as the amount has to be deducted in every financial year or income before the net profit of an organization is calculated.

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In this particular essay, Alaska airlines happen to go through a similar challenge due to the existence of other low-cost airlines like the spirit airlines and the rest. The cost of the airplanes becomes a threat because the final charges on the customers will depend on the amount of cost the airline company is using. It makes no logistics to use lower prices to favor are attract customers when our costs or other expenses involved are so high, if this becomes the case then it is possible that the airline will run at a very big loss. To help curb this, the airline has initiated some mitigation plans that it can use to compete with other low-cost airline companies.

In (Varadarajan, 2010), the author considers strategic marketing as the biggest domain that may be resolved to ensure business success. This strategy simply indicates the organization's pattern of operation and the decision-making process that aims at looking into some crucial and specific choices concerning products in regard to its marketing. He also states that the chief sector in any organization is the marketing department, since it may be of no need to continue producing, improving, manufacturing a product in a firm if they cannot be sold at the required times and the income cannot meet the total expenses of the costs.

From this perception, then Alaska airlines can be promised many profits if it can implement its plans on saver fare. This is a strategy on the organization, and strategic marketing is a core factor suppose there is a need to increase sales. This will, for example, attract customers, it is very normal that no customer however rich they may be can ever be interested in high-cost products. The increase in the number of customers will eventually lead to high profitability to the organization.

The Alaska airlines can as well set up its own efficient frontier portfolio so that it returns on a given risk is raised to the highest level. This is to ensure that the income achieved exceeds the number of expenses that was initially used for setting up the risk plan. In the case where the airline company has decided to introduce saver fare which will see it that there are no flight changes or even limited seats, this is known as the efficient frontier because, besides setting up these plans, it is aiming to drastically persuade its customers in the market and increase their income (Herrera, 2005).

Additionally, a resource-based view commonly known as RBV is simply a mechanism in any business organization that considers the resources to be the parent performers. If a product complies or has the VRIO attributes then it can be guessed that much gain will be realized and it will also sustain the competitive market. This is very favorable with the organization like Alaska because it will help it propel in the midst of its low-cost competitors (Wernefelt, 1984). In summary, regarding the move to introducing the saver fare is very important and the company will indeed improve its sales if not drastically then gradually until it becomes stable.

References

Varadarajan, R. (2010). Strategic marketing and marketing strategy: domain, definition, fundamental issues, and foundational premises. Journal of the Academy of Marketing Science, 38(2), 119-140. Retrieved from https://link.springer.com/article/10.1007/s11747-009-0176-7

Herrera, S., & Pang, G. (2005). Efficiency Of Public Spending In Developing Countries: An Efficiency Frontier Approach Vol. 1, 2 & 3. The World Bank.

Wernerfelt, B. (1984). A resourcebased view of the firm. Strategic management journal, 5(2), 171-180.