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 Influences Consumer Perception
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Answer
Market positioning is a strategic effort to influence how consumers perceive a brand relative to competitors. For Emirates, positioning in the higher price/higher quality segment can attract customers who seek premium services, thus enhancing brand value.
Step 2
Differentiation from Competitors
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Answer
Emirates’ positioning sets it apart from competitors, giving it an edge in a crowded market. This differentiation can lead to higher profit margins as customers may be willing to pay more for perceived value. Effective positioning also helps counter competitive threats from other airlines.
Step 3
Factors Affecting Market Positioning
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Answer
While ticket pricing is critical, factors such as excellent customer service, quality aircraft, and customer experience play significant roles in how Emirates is positioned. Customers often make decisions based on these aspects, which can drive loyalty and repeat business.
Step 4
Vulnerability to External Shocks
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Answer
Emirates’ position in the luxury market makes it susceptible to economic downturns and external factors like security concerns. During such periods, customers may prioritize different aspects such as cost over luxury.
Step 5
Practical Considerations for Consumers
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Answer
Ultimately, consumer considerations can vary widely. Business travelers often prioritize the convenience and schedule flexibility, while leisure travelers may focus more on price. This indicates that market positioning may not be the only factor influencing success.