abhishreshthaa
Abhijeet S
AOL Inc. (NYSE: AOL), formerly known as America Online and logo typeset as "Aol.", is an American global Internet services and media company.[4][5] AOL is headquartered at 770 Broadway in New York.[6][7] Founded in 1983 as Control Video Corporation, it has franchised its services to companies in several nations around the world or set up international versions of its services.[8]
AOL is best known for its online software suite, also called AOL, that allowed customers to access the world's largest "walled garden" online community and eventually reach out to the internet as a whole. At its zenith, AOL's membership was over 30 million members worldwide,[9] most of whom accessed the AOL service through the AOL software suite.
On May 28, 2009, Time Warner announced that it would spin off AOL into a separate public company. The spin off occurred on December 9, 2009,[10] ending the 8 year relationship between the two companies.
With sales processing, Boeing has Boeing International Sales Corporation for international sales and Boeing Sales Corporation for domestic sales. Boeing depends on a limited number of customers, including the U.S. Government and major commercial airlines. It can make no assurance that any customer will purchase additional products or services after our contract with the customer has ended. The loss of the U.S. Government or any of the major commercial airlines as customers could significantly reduce its revenues and its opportunity to generate a profit. Several of the commercial airlines, including United Airlines and Hawaiian Holdings, Inc. have filed for bankruptcy protection.
Sometimes, in aircraft show, buyers can propose Boeing on aircraft purchasing but the negation is not actually happened. The negotiation officially starts when Boeing sends its representatives to the buyer’s place. Aircraft buyers now become more sensitive with the price due to intensive competition with Airbus and a fact that almost all of the airline companies go bankrupt at the moment. Therefore, the benefit of aircraft sales is being squeezed. Major buyers tend to exert buyer power through demands for price and financing concessions.
The negotiation has to go through 5 processes: preparation, establishing positions, developing proposals, bargaining and closing.
The influencer most of the time is the government as mentioned in the political factor of the PEST analysis
Pricing strategy in the Boeing-Airbus duopoly
Strategic objectives for Boeing pricing policy
First key point for the Boeing pricing strategy is linked to an environmental analysis. Saving money is vital for success as well as responsiveness to customer needs. Boeing is striving hard to achieve economies of scale from its procurement process to designing and manufacturing. One of its core missions is to leverage economies of scale opportunities so.
This had been achieved through horizontal integration. Indeed made alliances with other aircraft to create the EXOSTAR platform, an online business to business trading platform for procurement. Moreover, the American aircraft manufacturer made strategic mergers and acquisitions such as McDonnell Douglas in 1997, the space and defence business of Rockwell Intl., and Hughes Space & Communications, among others.
Second key point remains Boeing strategy which is to focus on the point to point route travels increase. Boeing made the all new 787 product development to extend its jet portfolio to serve that new point to point travel segment market.
The duopoly and its impact on Boeing pricing policy
One of the most important key points about the pricing strategy is linked to the duopoly commercial airplane structure. The duopoly increasingly means a likelihood of imperfect competition where the two firm Boeing and Airbus can affect the prices of their products. Actually, the two firms are far from being to set their own prices . The buyers, who have the choice only between these two manufacturers, have a considerable bargaining power.
Power of buyers
Airlines are becoming more “price sensitive”. Indeed, major airlines are striving hard to cut their operating cost to survive in a turbulent environment still affected by the 9/11 turmoil.
Their profits are lower and only the low fare/no frills airlines remain profitable. Because of the fact that an average commercial airline such as the well known 737-700 model can cost anywhere between $50.5 - 59.0 million, airlines are now more concerned about cost structure and quite sensitive to discount or financial support through leasing services. All these parameters have affected Boeing pricing policy.
AOL is best known for its online software suite, also called AOL, that allowed customers to access the world's largest "walled garden" online community and eventually reach out to the internet as a whole. At its zenith, AOL's membership was over 30 million members worldwide,[9] most of whom accessed the AOL service through the AOL software suite.
On May 28, 2009, Time Warner announced that it would spin off AOL into a separate public company. The spin off occurred on December 9, 2009,[10] ending the 8 year relationship between the two companies.
With sales processing, Boeing has Boeing International Sales Corporation for international sales and Boeing Sales Corporation for domestic sales. Boeing depends on a limited number of customers, including the U.S. Government and major commercial airlines. It can make no assurance that any customer will purchase additional products or services after our contract with the customer has ended. The loss of the U.S. Government or any of the major commercial airlines as customers could significantly reduce its revenues and its opportunity to generate a profit. Several of the commercial airlines, including United Airlines and Hawaiian Holdings, Inc. have filed for bankruptcy protection.
Sometimes, in aircraft show, buyers can propose Boeing on aircraft purchasing but the negation is not actually happened. The negotiation officially starts when Boeing sends its representatives to the buyer’s place. Aircraft buyers now become more sensitive with the price due to intensive competition with Airbus and a fact that almost all of the airline companies go bankrupt at the moment. Therefore, the benefit of aircraft sales is being squeezed. Major buyers tend to exert buyer power through demands for price and financing concessions.
The negotiation has to go through 5 processes: preparation, establishing positions, developing proposals, bargaining and closing.
The influencer most of the time is the government as mentioned in the political factor of the PEST analysis
Pricing strategy in the Boeing-Airbus duopoly
Strategic objectives for Boeing pricing policy
First key point for the Boeing pricing strategy is linked to an environmental analysis. Saving money is vital for success as well as responsiveness to customer needs. Boeing is striving hard to achieve economies of scale from its procurement process to designing and manufacturing. One of its core missions is to leverage economies of scale opportunities so.
This had been achieved through horizontal integration. Indeed made alliances with other aircraft to create the EXOSTAR platform, an online business to business trading platform for procurement. Moreover, the American aircraft manufacturer made strategic mergers and acquisitions such as McDonnell Douglas in 1997, the space and defence business of Rockwell Intl., and Hughes Space & Communications, among others.
Second key point remains Boeing strategy which is to focus on the point to point route travels increase. Boeing made the all new 787 product development to extend its jet portfolio to serve that new point to point travel segment market.
The duopoly and its impact on Boeing pricing policy
One of the most important key points about the pricing strategy is linked to the duopoly commercial airplane structure. The duopoly increasingly means a likelihood of imperfect competition where the two firm Boeing and Airbus can affect the prices of their products. Actually, the two firms are far from being to set their own prices . The buyers, who have the choice only between these two manufacturers, have a considerable bargaining power.
Power of buyers
Airlines are becoming more “price sensitive”. Indeed, major airlines are striving hard to cut their operating cost to survive in a turbulent environment still affected by the 9/11 turmoil.
Their profits are lower and only the low fare/no frills airlines remain profitable. Because of the fact that an average commercial airline such as the well known 737-700 model can cost anywhere between $50.5 - 59.0 million, airlines are now more concerned about cost structure and quite sensitive to discount or financial support through leasing services. All these parameters have affected Boeing pricing policy.