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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 in the Airline Industry
Answer
Market positioning is an essential strategy for airlines, including Emirates, to influence how consumers perceive their brand in relation to competitors. Emirates aims to position itself in the higher price/higher quality segment of the airline market by investing in premium customer service and high-quality aircraft. This positioning is critical as it allows Emirates to differentiate itself from competitors and cater to customers who prioritize quality over price.
Step 2
Comparative Advantage
Answer
By effectively positioning its services, Emirates can charge customers a premium price. This differentiation can lead to higher profit margins, as customers may associate Emirates with greater value and better experiences compared to alternatives. Airlines like British Airways offer various competitive aspects such as convenience or lower prices; therefore, Emirates must highlight the quality and reliability of its offerings to retain customers.
Step 3
Vulnerability to Market Fluctuations
Answer
Despite its strong market position, Emirates must also be aware of external shocks, such as economic recessions or changes in consumer preferences. In such cases, customer priorities might shift, making price a more critical factor than quality for some. Hence, while positioning is vital, flexibility and responsiveness to market conditions are also crucial for maintaining success.
Step 4
Conclusion
Answer
Ultimately, while Emirates's market positioning is significant, other factors may also impact customer decisions. Variables such as the overall travel budget and practicality of flight schedules can heavily influence consumer choices. A balanced assessment of these factors is essential for Emirates to navigate its positioning effectively in a competitive landscape.