abhishreshthaa
Abhijeet S
US Airways, Inc. is a major airline based in the United States. The airline is an operating unit of US Airways Group and is the 6th airline by traffic and 8th by market value in the country.[1] US Airways operates major hubs in Charlotte, Phoenix and Philadelphia and maintains focus city operations at Ronald Reagan Washington National Airport.
A member of the Star Alliance, the airline has a fleet of 347 mainline jet aircraft and 319 regional jet and turbo-prop aircraft connecting 200 destinations in North America, South America, Europe and the Middle East.
The airline was acquired by America West Airlines in 2005, with the new airline retaining the US Airways name. The name choice was based on studies indicating that the US Airways name had better brand recognition worldwide than the America West name. Despite better name recognition, US Airways consistently ranks at the bottom of customer service surveys.[2] US Airways has become a "discount" carrier compared with the remaining historic mainline companies (Delta Airlines, United Airlines, American Airlines) and has made decisions to transfer flights from larger capacity, super-hub airports like Pittsburgh International Airport to smaller, mid-sized airports with lower capacity like Charlotte Douglas International Airport. Some of these decisions in cost-cutting and down-sizing, along with outsourcing call centers for customer care[3], help explain why the carrier ranks so low in quality.[4] Smaller airports cannot maintain service levels that the larger super-hub design terminals allow, sending passengers through limited space. The airline has had consistent monetary problems, which have cut funding for employee pay and salaries and overall service.[5] According to the reputable service ranking firm JD Power, this has led to US Airways having the least experienced, lowest ranked customer satisfaction out of the traditional carriers.[6] The full satisfaction survey continues to state the following about US Airways: "below average staff, air crafts, reservations, check-in experience, and deals." Despite US Airways' huge challenges, the airline has remained in business as other companies have either been merged under larger brands or ceased to exist.
The carrier operates the US Airways Shuttle, a US Airways brand which provides hourly service between Boston, New York and Washington, D.C.. Regional airline service is branded as US Airways Express, operated by contract and subsidiary airline companies. As of December 2008, US Airways, based in Tempe, Arizona, employed 33,765 people worldwide and operated 3,130 daily flights (1,312 US Airways Mainline, 1,818 US Airways Express as of December 2008).
With respect to the strategic marketing practices of Boo.com, the company didn’t consider the factors in the dot-com era that could affect their operation. Even tough the company created an expressive marketing strategy and forecasted the possible revenue and the financial statements are clear, they didn’t answered and reviewed the fundamental questions for modeling the potentiality of the business. Actually, the administrators of Boo.com are too much optimistic regarding the potential of the business. Thus, aside from large overhead cost in launching Boo.com, we may that excessive optimism is the main source of failure of the company.
Cause of Boo.com’s Downfall
Epstein (2005) claims that executives and managers use the information that they glean from financial statements to know how well the company is doing financially as well as information about problem areas so they can make changes to improve the company’s performance. After these review they are now ready to impose several actions to improve the business practices of their firm. However, Boo.com still suffers from downfall due to excessive optimism. Actually, if we reviewed the meaning of optimism, it annotates to a positive view. But something that is excessive might result to some problem.
Excessive optimism is one of the most important biases not only in business that psychologists have recognised. Several researches have shown that a most of the people believe themselves to be more attractive, smarter and more talented than others, and they commonly overrate their future success. Most of us actually suffers from "illusion of control" in which we constantly overstress the amount of control we have over outcomes that are significant to us—even when the results are in fact random or determined by other forces. Actually, in businesses, excessive optimism may result to delay of projects, excessive overhead costs, unstable cash flow and low profits or worst bankruptcy which is evident in the case of Boo.com. These are only some of the problems that a certain business may encounter if their owners, investors, stockholders, managers, or business administrators are too optimistic.
If we are about to compare the business practices of other online company’s such as lastminute.com, egg.com and firebox.com to Boo.com, the former are actually known to the speed of their transactions. Lasminute.com, egg.com and firebox.com focused on the online behaviour of their customer which is in contrast to the focus of Boo.com that is marketing and global expansion. Boo.com’s administrators had a problem regarding bias confirmation. Most of decision theory is normative or prescriptive, i.e. it is concerned with identifying the best decision to take, assuming an ideal decision taker who is fully informed, able to compute with perfect accuracy, and fully rational. However, since it is obvious that people do not typically behave in optimal ways, there is also a related area of study, which is a descriptive or positive discipline, attempting to describe what people will actually do. Furthermore it is possible to relax the assumptions of perfect information, rationality and so forth in various ways, and produce a series of different prescriptions or predictions about behaviour, allowing for further tests of the kind of decision-making that occurs in practice. Even though these decisions making is essential, some flaws still exist especially in making business decision and that is through biased perception. The next section will illustrate the marketing mix of Boo.com.
A member of the Star Alliance, the airline has a fleet of 347 mainline jet aircraft and 319 regional jet and turbo-prop aircraft connecting 200 destinations in North America, South America, Europe and the Middle East.
The airline was acquired by America West Airlines in 2005, with the new airline retaining the US Airways name. The name choice was based on studies indicating that the US Airways name had better brand recognition worldwide than the America West name. Despite better name recognition, US Airways consistently ranks at the bottom of customer service surveys.[2] US Airways has become a "discount" carrier compared with the remaining historic mainline companies (Delta Airlines, United Airlines, American Airlines) and has made decisions to transfer flights from larger capacity, super-hub airports like Pittsburgh International Airport to smaller, mid-sized airports with lower capacity like Charlotte Douglas International Airport. Some of these decisions in cost-cutting and down-sizing, along with outsourcing call centers for customer care[3], help explain why the carrier ranks so low in quality.[4] Smaller airports cannot maintain service levels that the larger super-hub design terminals allow, sending passengers through limited space. The airline has had consistent monetary problems, which have cut funding for employee pay and salaries and overall service.[5] According to the reputable service ranking firm JD Power, this has led to US Airways having the least experienced, lowest ranked customer satisfaction out of the traditional carriers.[6] The full satisfaction survey continues to state the following about US Airways: "below average staff, air crafts, reservations, check-in experience, and deals." Despite US Airways' huge challenges, the airline has remained in business as other companies have either been merged under larger brands or ceased to exist.
The carrier operates the US Airways Shuttle, a US Airways brand which provides hourly service between Boston, New York and Washington, D.C.. Regional airline service is branded as US Airways Express, operated by contract and subsidiary airline companies. As of December 2008, US Airways, based in Tempe, Arizona, employed 33,765 people worldwide and operated 3,130 daily flights (1,312 US Airways Mainline, 1,818 US Airways Express as of December 2008).
With respect to the strategic marketing practices of Boo.com, the company didn’t consider the factors in the dot-com era that could affect their operation. Even tough the company created an expressive marketing strategy and forecasted the possible revenue and the financial statements are clear, they didn’t answered and reviewed the fundamental questions for modeling the potentiality of the business. Actually, the administrators of Boo.com are too much optimistic regarding the potential of the business. Thus, aside from large overhead cost in launching Boo.com, we may that excessive optimism is the main source of failure of the company.
Cause of Boo.com’s Downfall
Epstein (2005) claims that executives and managers use the information that they glean from financial statements to know how well the company is doing financially as well as information about problem areas so they can make changes to improve the company’s performance. After these review they are now ready to impose several actions to improve the business practices of their firm. However, Boo.com still suffers from downfall due to excessive optimism. Actually, if we reviewed the meaning of optimism, it annotates to a positive view. But something that is excessive might result to some problem.
Excessive optimism is one of the most important biases not only in business that psychologists have recognised. Several researches have shown that a most of the people believe themselves to be more attractive, smarter and more talented than others, and they commonly overrate their future success. Most of us actually suffers from "illusion of control" in which we constantly overstress the amount of control we have over outcomes that are significant to us—even when the results are in fact random or determined by other forces. Actually, in businesses, excessive optimism may result to delay of projects, excessive overhead costs, unstable cash flow and low profits or worst bankruptcy which is evident in the case of Boo.com. These are only some of the problems that a certain business may encounter if their owners, investors, stockholders, managers, or business administrators are too optimistic.
If we are about to compare the business practices of other online company’s such as lastminute.com, egg.com and firebox.com to Boo.com, the former are actually known to the speed of their transactions. Lasminute.com, egg.com and firebox.com focused on the online behaviour of their customer which is in contrast to the focus of Boo.com that is marketing and global expansion. Boo.com’s administrators had a problem regarding bias confirmation. Most of decision theory is normative or prescriptive, i.e. it is concerned with identifying the best decision to take, assuming an ideal decision taker who is fully informed, able to compute with perfect accuracy, and fully rational. However, since it is obvious that people do not typically behave in optimal ways, there is also a related area of study, which is a descriptive or positive discipline, attempting to describe what people will actually do. Furthermore it is possible to relax the assumptions of perfect information, rationality and so forth in various ways, and produce a series of different prescriptions or predictions about behaviour, allowing for further tests of the kind of decision-making that occurs in practice. Even though these decisions making is essential, some flaws still exist especially in making business decision and that is through biased perception. The next section will illustrate the marketing mix of Boo.com.