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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 and consumer perception
Answer
Market positioning seeks to influence consumer perceptions of a brand or product in relation to competitors. For Emirates, positioning itself as a high-quality airline allows it to attract consumers willing to pay a premium for better services. A strong brand perception can lead to increased loyalty and repeat business.
Step 2
Differentiation and premium pricing
Answer
Emirates differentiates itself from competitors through its superior service and high-quality aircraft. This differentiation justifies charging premium prices, which can lead to higher profit margins. Such a strategy helps the airline maintain a competitive edge in the crowded airline market.
Step 3
Customer considerations
Answer
Customers may prioritize factors like quality of service, legroom, and baggage options over merely price. Emirates can exploit these factors by marketing its high standards of customer service and comfort, which may sway customers from opting for cheaper alternatives.
Step 4
Vulnerability to external factors
Answer
Emirates’ positioning in the luxury travel market makes it susceptible to external shocks like economic downturns or health crises. In times of recession, luxury spending decreases, which could affect ticket sales and necessitate a reassessment of their positioning strategy.
Step 5
Final judgment on importance
Answer
Overall, Emirates' market positioning is crucial for its success, particularly in attracting business travelers. However, practical considerations such as ticket prices and schedule convenience can be significant as well. Balancing these factors is essential for sustained success in the competitive airline industry.