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Assess the likely importance of its market positioning to the success of a business, such as Emirates. - Edexcel - A-Level Business - Question 1 - 2017 - Paper 1
Question 1
Assess the likely importance of its market positioning to the success of a business, such as Emirates.
Worked Solution & Example Answer:Assess the likely importance of its market positioning to the success of a business, such as Emirates. - Edexcel - A-Level Business - Question 1 - 2017 - Paper 1
Step 1
Market positioning is an effort to influence consumer perception
Answer
Market positioning is crucial for any airline, including Emirates, as it helps to establish consumer perceptions relative to competitors. Emirates aims to position itself in the higher price/higher quality segment of the airline market. By investing in high-quality aircraft and superior customer service, Emirates differentiates itself from lower-cost carriers such as Spirit Airlines. This approach justifies the premium price that Emirates charges.
Step 2
Differentiation through high standards
Answer
By positioning effectively, Emirates creates a differentiated brand identity which allows it to attract a diverse range of customers. Travelers seeking a premium experience may choose Emirates over competitors due to its reputation for quality service and reliability, which can lead to higher profit margins.
Step 3
Vulnerability to external shocks
Answer
However, this positioning also makes Emirates vulnerable to external shocks. For instance, during times of economic downturn or crises such as pandemics, consumers may prioritize cost over quality, opting for lower-priced alternatives. Therefore, while market positioning is essential, its effectiveness may diminish in adverse conditions.
Step 4
Role of ticket price and customer considerations
Answer
Additionally, customer considerations such as the journey duration, convenience, and additional service quality play significant roles in purchasing decisions. While Emirates provides a superior product, some customers, particularly those traveling with families or on a budget, may still prefer lower-cost options, underscoring the complexities in market positioning.
Step 5
Conclusion on market positioning
Answer
In summary, market positioning is vital for Emirates, facilitating brand differentiation and premium pricing. However, it may not always ensure success due to changing consumer behaviors and external market conditions. Long-term, maintaining this position will require adaptability to consumer needs while preserving quality.