Company Background
Aeroplan is a leading partnership loyalty program situated in Canada, and is owned by Groupe Aeroplan Inc. It is the prominent loyalty management organization in the world. The head offices for Aeroplan are situated in Montreal, Toronto. It also has two call centers, one in Vancouver and the other in Montreal. Aeroplan started as a promotional tool for business travelers for Air Canada in 1984. After a period of one year, the organization had amassed about 100,000 regular flyers. In 2004, Aeroplan adopted its own identity separate from Air Canada, and it emerged as the leading loyalty initiative in Canada (Boer & Gudmundsson, 2012).
In 2008, Aeroplan converted its Income Fund to growth oriented, which is a worldwide loyalty management organization referred to as Groupe Aeroplan Inc. In 2009, Air Canada transferred its Vancouver and Montreal call hubs to Aeroplan. This move made approximately 800 agents who were affiliated with the CAW Union to join around 350 employees who used to serve as administrative staff at Aeroplan. As a result, the company was forced to adopt a key culture change in order to cope with the workers who previously worked for Air Canada. Presently, Aeroplan has around 4 million members who are awarded air miles based on the widening network that comprises of about 150 brands in the retail, financial and travel industries (Boer & Gudmundsson, 2012).
The mission for Aeroplan is to stimulate the loyalty of its associates and partners, supplement its members’ lives, and have significant influence for its partners, shareholders, workers, and the societies that it serves. The culture of Aeroplan comprises of the following elements: employee engagement. Innovation, sharing of knowledge, teamwork, action bias, and customer centricity. The underlying culture for the enterprise is based on authenticity, valued partnership, simplicity, originality, nimbleness, and inclusiveness (Zook, 2013).
Strategic Analysis for Aeroplan
SMART Analysis
In order to undertake its operations in an efficient manner, Aeroplan has managed to put in place a set of objectives. These measures target adopting initiatives that can help the organization to implement the strategy that they have formulated. For instance, the company undertakes a deep evaluation of its employees to determine if they are capable of addressing the distinct issues that influence the design of processes. It also hires people who possess diverse experiences and skills to make sure that they are capable of bringing their knowhow to the operations that the company embarks on, especially in matters pertaining to management of loyalty points. This practice allows the company to handle processes in an effective manner, thus increasing the number of people who subscribe to loyalty program. As a result, the business processes of the enterprise go up, thereby boosting the sustainability and profitability of the company (Proulx, 2006).
Upon realizing the benefits that advancements in technology bring, Aeroplan has not been left behind, thus allowing it to realize the goals that it has put in place. The organization employs its resources to allow it acquire appropriate technology, which it can apply to attain the goals that they want to realize. The operational experience inside Aeroplan together with the technological platforms that the company has implemented will allow it to boost its profitability, as well as broaden the range of services that it provides to its clients around the world. The company has, therefore, engaged in various research and development processes, which will allow it to offer its services in a consistent manner through innovation (Tax, Kim, & Nair, 2013).
To allow Aeroplan execute the strategies that it has set forth appropriately, the management of the company has put in place various initiatives, which will allow the enterprise to boost the value of the services that it offers is customers and partners. Moreover, the organization has adopted measures that will make more members to associate themselves with the loyalty programs that they possess, and offer them with revolutionary ways of accumulating and redeeming them. Additionally, Aeroplan as implemented initiatives that will assist their customers to manage their loyalty programs to boost the impact that the business has on its clients (Tax, Kim, & Nair, 2013).
Environmental Analysis
PESTLE Analysis
Political
The political environment refers to an area whereby the government interferes with the activities that an organization engages in. Aeroplan has its headquarters in Canada, and the growth that it has realized has played a vital role in terms of improving people’s lives and generated employment opportunities for many people. In this case, the involvement of the government in the operations of the company results to its sustained growth. For instance, the tax policy that the government has implemented in the country benefits the government, since it manages to set up other sectors in the economy, which continue to improve people’s livelihoods (Roseman, 2012).
The government plays an essential role in ensuring that the operations of the company are smooth and that it delivers value to the clients. In order to improve the interactions that the company has with its customers, the company has restored the expired air miles of its clients by encouraging them to claim the points at $30 fee. The clients argue that they have already paid for the miles from the initial charges that they were subjected to. Here, the government intervenes to make sure that these issues are addressed in the best manner possible. In this case, both the company and its clients are required to follow court proceedings to ensure that the issue is handled in an effective manner. This form of political influence, therefore, has a significant impact on the operations that the company embarks on (Roseman, 2012).
Economic
Economic forces are crucial in terms of influencing the decisions that Aeroplan makes or the operations that it embarks on. Interest rates and inflation rates significantly impact on the economic and financial processes that the company follows. These issues have a significant influence on the business operations of the company, especially with matters pertaining to the profitability of the company. In the event of poor economic conditions, such as high interest rates or during a recession, the performance of the company will deteriorate, and thus bringing down its profitability and sustainability in the market. Economic performance influences the number of people who use flights while compared to other transportation means. In case the economy is performing optimally, more people tend to use flights, and thus influencing a large number of people to use loyalty programs that the company offers (Hillard, 2014).
Social
The social environment impacts on the operations that Aeroplan undertakes in that the trends of the society influence the products and services that the company offers. Therefore, the social features play a vital role in influencing the number of clients who enroll to the loyalty programs. For instance, the common trends in most societies around the world is that people use programs that promise cost cuts, as well as being provided with high quality services. In this case, it is the role of Aeroplan to implement appropriate measures that can help the enterprise to understand and follow the market trends, thus allowing it to take advantage of the emerging markets (Hillard, 2014).
Currently, the population is rising at a high rate meaning that more people are likely to subscribe to the services that the company offers. Moreover, it is appropriate for the company to diversify the services it delivers to its clients to allow it capture diverse needs of the customers, who will then subscribe to the operations that the company undertakes on a daily basis. Therefore, it is appropriate for Aeroplan to devise a strategy that will allow it generate more demand for people who use the loyalty programs, and ensure that it addresses their needs in an appropriate manner (Hazledine, 2011). Technological
Technology plays a vital role in terms of offering an enterprise with new opportunities for growth, as well as handles the prevailing processes more efficiently. It is, therefore, a vital aspect for Aeroplan to consider allowing it succeeds in the marketplace. The technological aspect has helped the company to realize efficiency and effectiveness in the processes that it undertakes. It has made it possible for the clients of the company to use its services with ease. Through continued research and development, the company will be able to address the needs of the customers, as well as cope with the emerging trends in the market (Hazledine, 2011).
Innovations in technology have made it possible for Aeroplan to provide its clients with a broad range of services, which they can get access to in different locations. For instance, the enterprise offers its clients a different set of cards that have diverse benefits and features according to the diverse clients who use the company’s services. The cards that the company offers its clients comprise of Aeroplan Corporate, Platinum, Gold, and Plus cards. Based on the diverse features and benefits of these cards, Aeroplan has managed to address the diver needs of its clients efficiently. With the advancements in technology, the situations and conditions of managing loyalty programs are changing rapidly. In this case, Aeroplan needs to adapt to new technologies in a rapid manner to allow it run its processes in an effective manner (Hazledine, 2011).
Legal
Businesses are supposed to operate in line with the laws and regulations that have been set in the market. The operations that Aeroplan undertakes are highly influenced by the legal environment. Therefore, while creating demand for the diverse products and services that it delivers to its clients, Aeroplan needs to follow the set procedures to avoid hurting the interests of its partners and clients. It should follow the appropriate procedures pertaining to hiring of employees, and consumer laws that demand businesses to offer efficient services to their clients. One of the major legal issues that Aeroplan has been subjected to is the one of expired air miles, which it charges its clients $30 to restore. However, this move was not in accordance with the will of its clients, who stipulated that they had already paid for the miles. Under this lawsuit, the clients are, therefore, demanding for the mileage that they has earned for them to settle the issue they have with the enterprise (Zook, 2013).
Environmental
The properties that are under the name of Groupe Aeroplan are not identified with any potential hazards. Therefore, issues pertaining to environmental liabilities do not impact on the operations that the company undertakes. This means that since the operations of the company are linked to minimal impact to the environment, there are minute environmental issues that influence the enterprise. However, the key processes that Aeroplan engages in, target the management of loyalty programs for diverse flights. Since flights are usually impacted by adverse weather conditions, the processes that the company undertakes, such as the issuance of loyalty points get impacted during such situations. In order to show responsibility to the community, an enterprise is supposed to engage in corporate social responsibility to address the environmental issues that a given society may fail to handle. In this case, it is the duty of Aeroplan to allot some of their funds towards handling different initiatives that the community is engaging in (Zook, 2013).
Aeroplan Five Forces Analysis
The Porter’s five forces play a crucial role in terms of evaluating the competitive potential of an enterprise in the future. It targets rivalry intensity, new entrant and substitute threat, and the buyer and seller’s bargaining power. The competitive analysis for Aeroplan is as follows;
Technological Influences
Focus on technological advancements is one of the major areas that can influence the strategic direction for Aeroplan. Technological aspects for the company face the threat of new entrants to the market. With the advancements in technology, more companies will emerge to compete with the enterprise making more people to use their services. This will make the client base for Aeroplan to go down, which will then bring down its profitability. In order for the company to remain as the dominant player in the market, it is crucial for it to emphasize on technological aspects that will allow it to improve the quality of services it delivers to its clients, as well as diversify the range of products. This will make it possible for the company to attract a broad range of clients from diverse parts across the globe, thus boosting its competitiveness, profitability and sustainability in the market. This move will pose challenges to new entrants who will be forced to adopt superior technology and huge capital investments in order to succeed in the market (Ungson & Wong, 2009).
In the technological arena, the threat of new substitutes also plays a crucial role. There is a broad range of technological innovations that have been witnessed in the field of loyalty programs that Aeroplan offers. As a result, more applications are likely to be developed by competitors, which will be easy to use. The introduction of substitute products with easy to use features will offer clients the convenience that they deserve. By engaging in thorough research and innovativeness, Aeroplan will manage to address this issue and be able to integrate new operational methods to its processes, thus raising the level of confidence towards the company (Ungson & Wong, 2009).
The buyer’s bargaining power impacts on the future strategic direction for any business enterprise. As such, it will influence the future direction for Aeroplan. This is because the clients of the company can subject them to pricing pressures, which will force the company to implement a particular technological aspect that will make it possible for the company to lower its prices. Also, the suppliers’ bargaining power will allow the firm to balance the pressure that is imposed on them to undertake its operations optimally. Aeroplan will be required to balance the pressure that comes from both the buyers and the suppliers to allow it realize reasonable profitability from the operations that it undertakes. Moreover, it is appropriate for the enterprise to learn how to use technologies that are capable of allowing it to balance the diverse forces that prevail in the processes that it undertakes to allow it boost its profitability as well as generate value for its clients (Dupuis, Gamache, & Pagé, 2012).
Social-Cultural Influence
Social-cultural forces in a company impact its strategic direction. The influences in the case of Aeroplan comprise of threats that new entrants pose, especially if they adopt programs that are capable of addressing the needs of clients appropriately. New entrants have the potential of introducing new programs that can offer clients more benefits while compared to the ones that Aeroplan offers. Customers look for those services that appear to be cost effective, and yield more benefits to them. It is, therefore, crucial for Aeroplan to study the market trends, and the prevailing social-cultural aspects to allow them upgrade their services in a manner that will rhyme with the needs of the clients. The intensity that is associated with rivalry is also an issue that Aeroplan should expect to cope with as new firms enter the market. New firms will employ new tactics to allow them attain a significant share of the market. Therefore, it is appropriate for Aeroplan to ensure that they adopt competitive strategies that will allow them tom cope with the new services that competitors will introduce to the market (Dupuis, Gamache, & Pagé, 2012).
The threat that is posed by substitute services and products is also attributed to socio-cultural factors that face Aeroplan. This can result to a trend where clients use substitute products in a given time. Social aspects also comprise of factors such as people’s lifestyles that change during certain periods that influence their perception towards the use of loyalty programs. In this case, Aeroplan will be forced to observe and monitor the trends in the market on a consistent basis to identify the emerging issues in the market. This way, the company may be able to adopt an analysis that will allow it to develop products that its clients can adapt to effectively, based on the value that they generate. This would lead the company to realize increased profitability (Dupuis, Gamache, & Pagé, 2012).
Bargaining power of buyers’ targets forces such as when the Aeroplan’s clients impose pressure on the diverse issues that impact on the company as a mechanism that can allow them to adapt to the changes that have the potential of addressing their needs during a given time. Social aspects, especially the case of lifestyle changes force an enterprise to learn to cope with market pressure, which may make it implement changes that can rhyme with the social scope of its clients. Here, Aeroplan would be forced to offer loyalty programs that rhyme with the social trends. This can have a significant impact on the company when adopting strategies that can allow its operations to be successful (Hillard, 2014).
Influence of Economic Forces
Economic forces have an impact on the manner in which an enterprise undertakes its strategic analysis. Economic forces have a significant impact on the way in which Aeroplan implements its loyalty programs in the market. For instance, the threat of new entrants can pose problems in this case since the company would be forced to bring down its costs of operation in order to cope with competition. Most clients tend to go with an enterprise that offers them huge benefits in the market. In the case of Aeroplan, the company should adopt initiatives that can allow it to realize a competitive edge in the processes that it undertakes, such as making use of economic forces that prevail in the market to ensure that they deliver value to the lives of their clients (Gelberg, 2011).
Substitutes also pose a threat in the area of the economic aspect while issuing loyalty programs. This is an element that a company can look at is it wants to succeed in the market. In this case, substitutes may comprise of programs that are introduced to the marketplace and deliver more value to the clients, and thus making customers to be aligned to your side. Clients bargaining power is also a crucial aspect tom consider while considering economic resources that can allow a firm to attain competitive advantage. In the case of Aeroplan, it is appropriate for the enterprise to position itself in a manner that can help it to balance economic issues that prevail while issuing loyalty programs to allow it maximize its profitability, and boost its competitiveness in the market (Gelberg, 2011).
Internal Analysis: Resource-based View
Tangible Resources
Based on the activities that Aeroplan undertakes, a financial analysis of its operations reveals an improvement in performance. The revenue for the company on December 2013 was $2,054 million, which reflected an increase from $1,437, which it has realized the previous year. Also, the operating income for the enterprise was $63.3 million in 2013, and it recorded net earnings of $22.5 million, which was incidental as a loss for the company. Aeroplan does not have physical resources since it does not own property under that name. The company leases properties as well as offices that are used in performing its initiatives are the ones that the enterprises witnesses expenses from. The loyalty cards that the company issues to its clients are also, as a result, of an outsourcing initiative that the company offers for different manufacturers (Proulx, 2006). The company has managed to sustain the loyalty program through this mode of operation.
Technological aspects for Aeroplan are the ones that have played a crucial role in allowing the company to undertake its operations. With the developments that the company has realized in this field, it has managed to boost its operations, which have contributed to the successes that the company has realized in the market. The estimations that Aeroplan makes pertaining to technology and the software that it uses is worth approximately $2.4 billion, together with the technology that it uses in Europe, Canada and Middle East. The technological feature of the company has played an essential role in terms of boosting the operations of the company. As a result, Aeroplan emphasizes on upgrading its technologies on a frequent basis while handling their usual activities (Proulx, 2006).
The resources that Aeroplan uses are also treated as valuable, since they have a number of branches that house approximately 4.6 million clients. The organization has formed partnerships with other enterprises that adopt loyalty programs while performing their operations. The revolutionary partnerships that Aeroplan aims to realize with Toronto-Dominion Bank, which is anticipated to last for a period of 10 years, will serve as the driving force towards helping the company to realize successes in the operations that it undertakes (Dupuis, Gamache, & Pagé, 2012).
Intangible Resources
The human resources team at Aeroplan has played a crucial role with respect to boosting the performance of the enterprise. The value that the company has created with the adoption of loyalty programs has added great value to clients, especially in matters pertaining t6o flight expenditures. In this case, the company has been able to adopt processes that would not have been possible if loyalty programs were not associated with the spending patterns of clients (Roseman, 2012).
Creativity and innovativeness serve as major resources that have helped Aeroplan to operate efficiently in the market. They have allowed a large number of clients to enroll to the loyalty program. The innovation that is employed in the products that the company offers offer clients with a certain degree of value. This form of innovation is always rhymed with the needs of the organization and is thus anticipated to offer more value, which will be evident in the case of the clients who use the services. The company has also employed various aspects of creativity, which allow it to offer convenience to clients as well as realize effectiveness in the processes that are carried out in the organization. These practices are advantageous both to the company and the customers (Roseman, 2012).
Aeroplan has attained positive reputation in the area of loyalty program management. This is a vital resource for the activities that the enterprise undertakes. The reputation, which Aeroplan has managed to acquire, is vital since it will encourage more people to pledge to the loyalty programs based on the level of trust that the organization has attained from its clients on the different activities that it undertakes. Aeroplan has been able to establish a solid reputation as reflected by the large number of people who have subscribed to the loyalty programs by the company. It has also been able to form different partnerships with a broad range of companies and airlines that fly to more than 1000 destinations (Hazledine, 2011). This has revealed the commitment that the company has towards serving its clients and in adding value to the practices that they embark on.
Capabilities of the Organization
There are certain skills knowledge and abilities that have played a crucial role with respect to boosting the capabilities of the enterprise. Aeroplan has about 4.6 clients who participate actively in the loyalty programs. The members also have varying issuance pertaining to services and applications that are availed to them. The management of the company serves as a fragment of the loyalty program, and is therefore required to be in possession of sufficient skills and knowledge that allow them to address the needs of their clients in an effective manner. Moreover, Aeroplan has maximized on the capabilities that it possesses to help it address the needs of its rising client base. Moreover, the developments that are being witnessed in the enterprise also aim at managing the growing number of clients, as well as serve everyone effectively. This will make it possible for the company to generate value for the operations that they undertake in order to boost the profitability of the enterprise. Also, by hiring personnel members who are high skilled, the company has managed to maximize its capacity while offering services to their clients (Gelberg, 2011).
Every reputable enterprise should be able to combine its resources to help it improve productivity. This is among the major strengths that Aeroplan has portrayed while undertaking its operations. The major resources that the organization has managed to combine so as to realize its objectives comprise of linking software with technology that the managers use to govern loyalty points. The organization is able to link these initiatives with qualified personnel who are able to employ their skills in terms of realizing effectiveness in the operations of the organization (Tax, Kim, & Nair, 2013). The tangible resources that the company uses in its loyalty programs have been linked to allow the enterprise to realize its goals. Therefore, the managers at Aeroplan have the duty of merging different resources to allow the enterprise realize best results during the process. In this case, it is true that the company’s strength is dependent on the diverse resources that are linked together to allow the enterprise realize best outcomes in its operations. Also, Aeroplan has managed to pool the activities that different enterprises perform to allow them realize the best results, as well as introduce a way in which the loyalty programs of the enterprise can be managed in an to help boost the overall productivity of the enterprise, as well as make the members to realize benefits from this initiative (Zook, 2013).
SWOT Analysis
Strengths
Aeroplan has a number of strengths that have allowed it to succeed in the market place. The major strength emanates from its internal operations, especially the stability that it portrays its financial resources. The financial stability of this organization has allowed it to undertake its operations successfully without suffering negative impact from the threats that are posed by its rivals. The company is able to undertake various business practices that allow it to boost its operations. Moreover, the enterprise is able to implement different innovations, which play an essential role in terms of boosting its growth in different sectors. The company is also able to fund research and development to help it compete effectively in the marketplace (Ungson & Wong, 2009). The competitive strategies that the company offers allow it to realize high profitability for all the processes that it embarks on.
The enterprise has also been able to build a solid reputation among its members in the industry. This is strength for the company because its members look for services that they associate with Aeroplan, which are of high quality and add value to them. Moreover, the company has a membership of about 4.6 million clients, thus an indication that the company has managed to establish a reputation that has helped them to undertake their operations in an effective manner in the market. The large membership base is also a major strength to the company since people believe that the company has the appropriate resources for protecting their interests from mishandling, or being subjected to incidences of fraud, which may take place as the enterprise is undertaking its operations. The reputation that Aeroplan has attained is also noted in the awards that the company has received. The organization has been able to offer around 2.3 million recompenses to its clients for about 1.6 million flights that are offered to more than 1000 destinations in the planet. This element has enticed more people to join the loyalty program that the company offer, since the benefits are broad and are convenient to those who use them (Dupuis, Gamache, & Pagé, 2012).
The emphasis that Aeroplan lays towards technological innovations also serves as one of its major strengths. Technological advancements have allowed the company to simplify its reward processes thereby adding value to their clients. The company undertakes research in a cautious manner, a move that have allowed it to update its initiatives that play an essential role in the marketplace. The company has managed to make its processes more effective, and thus allowing it to change in a consistent manner the market demands. The company also benefits from its experienced staff in all departments in the enterprise, who make sure that the loyalty programs by the company are established appropriately (Hazledine, 2011). The value that the company offers to its members leads to increased profitability, which later makes the company to be sustainable in the activities that it undertakes.
Weaknesses
Weaknesses of a company result from its internal operations. The major weaknesses for Aeroplan emanates from issues surrounding its general administration, which impact on different ways that the organization operates. Aeroplan has a large number of clients who have joined the loyalty program, and are highly active in the services that are offered to them. The management process that is directed towards the processes is weak based on the diverse processes in the process. Handling the needs of all the members have led to weakness since it is not possible to handle the problems that every member faces in an effective manner, especially with matters pertaining to addressing all their diverse needs (Boer & Gudmundsson, 2012).
The class action lawsuit tarnished the reputation of Aeroplan, which also contributes as one of its weaknesses. A number of clients raised complaints against the organization when they were told that flight miles renewal had been terminated. The company required the clients to restore the expired miles for a fee of $30 as well as an additional $0.01 for every additional mile that was to be put into consideration. This aspect made clients be dissatisfied with the services of the company, since they have already incurred the charges before. The perception of the members pertaining to the company may have changed or destroyed. Moreover, they would have looked for a rival who would offer loyalty program services in a convenient manner, thus making Aeroplan to lose a substantial number of clients (Boer & Gudmundsson, 2012).
Based on the competitive nature of the enterprises that offer loyalty programs, an enterprise may face hardships while seeking for the appropriate personnel to handle their processes. The costs of hiring qualified personnel would also be higher based on the heavy demand for such people in the market. In this case, it is appropriate for the company to adopt various measures that can allow it cope with the weaknesses that face it, and hence address the problems that prevail in the enterprise. Therefore, it is essential for the enterprise to commit sufficient resources as well as appropriate expertise to ensure that they address the administrative issue that prevails in the enterprise effectively. Also, Aeroplan should emphasize on rebuilding the tarnished reputation that resulted from the lawsuits that it was subjected to (Ungson & Wong, 2009).
Opportunities
Aeroplan has broad opportunities for expanding their operations, which will help in boosting their profitability based on the socio-cultural forces that prevail in the societies where they operate. These initiatives have made people adopt mechanisms that can save the costs that they incur as well as add value to the activities that they participate in. A large number of people are adapting different lifestyles that are emerging in the societies that they live in, and the introduction of loyalty programs is one of the initiatives that people adopt based on the value that it creates to them. Aeroplan has managed to establish positive reputation, which have made it possible for the enterprise to be widely accepted in the societies where it undertakes its operations. More people want to use the services that the company offers, thus serving as a major opportunity that the enterprise can use to boost the efficiency of their services. Moreover, Aeroplan can manage to utilize other chances which are availed to them to offer additional services to a large client base (Gelberg, 2011).
Economic forces in society serve as one way in which Aeroplan can entice more members to subscribe to its loyalty programs. Favorable economic conditions offer an opportunity for the enterprise to take advantage of the opportunity to help it maximize on providing services to its clients efficiently. Favorable economic conditions target good wages, which are availed to different sectors. This makes more people to use flights as an efficient mode of transportation, which will encourage a large number of people to use loyalty programs. This initiative allows clients to cut down on the costs of travel (Dupuis, Gamache, & Pagé, 2012).
Technology applications also offer an opportunity to Aeroplan. By developing revolutionary technological applications, the organization will manage to maximize on its capacity, thereby allowing it to address the needs of higher client base who allow it to realize sufficient growth while undertaking its operation. Advancements in technology offer a good opportunity to the enterprise, such as allowing its members to realize the effectiveness on the activities that the company undertakes. This will encourage more people to subscribe to the services that the company offers. The opportunities that Aeroplan has offered by offering loyalty programs deserve to be utilized entirely, to allow the enterprise address the problems that members face while subscribing to loyalty programs (Hazledine, 2011).
Threats
Competitors are the major threats to the operations that Aeroplan undertakes. Competitors offer services that are related to promotions, advertising and other loyalty incentives. These rivals have penetrated the market with better services to encourage clients to subscribe to the services that they offer. New enterprises are entering the market to allow them exploit the opportunities that they have witnessed in the market. Better services are effective in luring clients to use your services. The rivalry that Aeroplan faces, therefore, serves as a threat to the services that the enterprise offers to its clients. In order to address such issues effectively, it is appropriate for the enterprise to renovate the processes that it undertakes to ensure that they are better than the ones that the competitors offer to allow them address the needs of their clients (Hillard, 2014). Also, the organization is supposed to evaluate the market to help them identify the forces that are effective in terms of offering efficient services, as well as implement mechanisms that can lure more members to subscribe to the programs.
The processes that Aeroplan undertakes are also subject to the influence of legal and political forces. These forces prevail in the event of regulating the activities of the enterprise. The amendments and changes that political parties carry out have the potential of posing threats that can interrupt the future initiatives that the enterprise hopes to undertake. This is because the alterations can negatively affect the processes that the organization carries out. Moreover, the legal framework in a particular administrative structure also serves as a threat to the operations of the enterprise, since it may disrupt the initial activities that the company has set forth initially (Ungson & Wong, 2009). This would result to inconvenience in the event of the services that the company offers.
In this case, it is appropriate for Aeroplan to device mechanisms that can allow it to cope with the threats it faces in the market, especially in the case of competition. The organization should undertake a deep analysis of the market to allow it devise a strategy, which it can apply to help it beat competition, thereby allowing the firm to gain a competitive advantage. Also, Aeroplan deserves to perform deep research on the market to determine future events that may influence loyalty programs (Ungson & Wong, 2009). This way, the company would be able to adopt strategies that can favor its operations, without subjecting it to problems in the market.
Conclusion and Recommendation
The analysis has focused on the strategic framework for Aeroplan which it is employing currently, and the manner in which it can succeed in its future operations. The strategy that the enterprise is adopting has played a vital role in allowing the enterprise to undertake its operations efficiently. It is appropriate for the company to follow the socio-cultural developments among people to help it formulate strategies that it can use to attract more clients to use loyalty programs. Consistent focus on research and development in the area of technological advancements can encourage the enterprise to embark on continuous upgrading of these aspects to allow it add value to its customers, and hence boost its profitability. Additionally, Aeroplan should implement innovation in various sectors that are linked with the processes that the company follows to help add value to the systems and processes that it has already established.
Competent personnel play a crucial role in terms of allowing a firm to improve the products and services that a company offers. In this case, Aeroplan should employ the skills and knowhow of its personnel to allow it offer loyalty programs in a smooth manner. The competency of employees in different departments should be able to offer the value that the organization deserves in order to boost profitability and growth. By continuing to adapt to the structure of the organization, Aeroplan will be able to sustain the reputation that it has already established in the marketplace. This practice will make it possible for the organization to encourage more people to use the services that the company offers. Moreover, it should address issues, such as those pertaining to lawsuits leveled against them. This way, the company can be able to offer loyalty program services that address the needs of the members efficiently.

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