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Gaining Competitive Advantage

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Emma Ward

on 1 October 2014

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Transcript of Gaining Competitive Advantage

Gaining Competitive Advantage
Why are products and services supplied?

Who are products and services supplied to?

What services does an airport provide and to whom?
Company Aims
Profit-making companies main aim is to make money. Why?
Would they also have other aims?

Non-profit making companies will put any money earned back into the company to achieve further aims.
Or will donate it to the cause that they support.
Company Aims
To increase revenue
To be environmentally friendly and support responsible tourism
To improve product quality
To meet a demand
To increase a market share

Explain what is meant by these company aims.
Gaining Competitive Advantage
Providing Added Value
Customers do not always choose the product purely on price. Sometimes a company can be more competitive by having a better product or service.

Providing New and Innovative Products and Services
Airlines will add new routes to gain competitive advantage.

Gaining Competitive Advantage
Total Quality Management (TQM):
1. Setting quality targets - to ensure high standards of customer service.
2. Quality development - setting up procedures and systems to achieve the standards.
3. Quality assurance - monitoring the quality to make sure standards are upheld.

Providing Excellent Customer Service:
The attitude of the staff who meet the customers is of upmost importance.
When booking a holiday how many different types of staff do you meet from the same company?
Gaining Competitive Advantage
Training and Development of Staff:
Staff need to project a favourable company image, know their product and deliver good service.
Different types of training according to job role. But all should have induction training.

Targeted Advertising and Promotion:
Advertising needs to reach the target audience.
What type of advertising do companies spend thier budget on?
Gaining Competitive Advantage
Innovative Pricing Policies:
Where products are often the same, the price is very important.
With short haul air travel, customers are often willing to forego service for a cheap price.
What could be a problem with competitive pricing?

Locational Advantage:
Travel agents and tourist information centres rely on customers being able to access their services personally.

Call centres and tour operators have no need to be in a central location so can reduce costs by seeking out of town locations.

Gaining Competitive Advantage
Sales Techniques:
High pressure sales techniques can put customers off. In travel agents staff concentrate on upselling and add-on sales.

Integration and Consortia:
Integration gives the company control over different stages of producing and distributing products.

Independent travel companies may join a consortium. They offer benefits such as: reservation technology systems; centralised payment and access to ABTA.
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