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Classic Airlines Marketing Solution Classic Airlines is the fifth largest airlines in the world. Classic Airlines has had a history of success and profitability, but as the competitive market changes and a downturn in the travel industry, management has identified changes that need to be made. To ensure the airlines remain competitive and profitable Classic Airlines is faced with the challenge of delivering increased value within leaner budgets. The analysis of the current situation of Classic Airlines is to use proven techniques to address customer loyalty issues and improve the existing Customer Relationship Management (CRM) system. Classic Airlines may uncover numerous opportunities to meet executive demands when implementing the use of the nine-step problem-solving model. Issues and Opportunities: Step One
Classic Airlines has become a successful company in Customer Relationship Management. Classic has continued to be profitable; however, recently has been plagued by the uncertainty in the flying industry. Issues have been identified that need addressed, both internally and externally to avoid bankruptcy. External issues include competition, government regulation, and operating costs. Classic Airlines price structure has been uncompetitive compared with other airlines in the industry. Discount Airlines, such as Southwest, and its no-frill business model have enjoyed tremendous success, wooing customers based on price, not perks (Plunkett, J, 2012). Operating costs, such as fuel and labor have decreased Classic Airlines ability to compete within the industry. Deregulation of the industry in 1978 has led the industry to face intense price competition. The number of travelers has decreased since the September 11 attacks. Internal issues include employees, executive management, internal operation, and communication. Employee morale has been at an all-time low

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