杜克大学marketing讲义.pptVIP

American Airlines You Own Stock in AMR It is April 9th 1992. What do you do upon learning of Crandall’s announcement? 1 = Buy 2 = Hold 3 = Sell What is happening to average fares under Value Pricing? 1 = Decreasing 2 = Remaining Stable 3 = Increasing Rivalry More Intense If… Balanced competitors Slow industry growth High fixed costs Low customer loyalty High strategic stakes High exit barriers Extra capacity comes in clumps You Own Stock in AMR What do you do upon learning of Crandal’s announcement? 1 = Buy 2 = Hold 3 = Sell American—What Happened? April 9th –American announced Value Pricing --Investment banks “brilliant strategic move” --Marketing press “Bob Crandall gave a tutorial to the airline industry” --AA up 31/4 to 71 7/8 --Delta up 11/2 to 603/4 --United up 21/2 to 1331/4 April 12th –TWA undercuts AA by 10-20% April 13th –USAir, cut prices Continental and America West followed American—What Happened? April 20th –AA matches cuts on most leisure routes May 20th –AA raises fares 10-25% on many routes May 26th –Northwest announces “Grown-ups fly free” May 27th –AA cuts fares 50% June 1 –AMR closes at 64 ? May/June –Everyone matches 50% off 1992 Q2—Operating losses by all major carriers Video: Air Fare Wars American: Takeaways The Three Cs Company: Motive for VP (+$340M) Customer: Reaction to VP Segmentation (business and leisure) by P sensitivity Competition Porter’s Five Forces Likelihood to participate/defect A bit on pricing, marketing math, and strategy American: Takeaways Understand what benefits exist for your segments and how customers will react. Understand what benefits/liabilities exist for your competitors and how they will react. Carlson? Marketing Management (Marketing 360) Professor Kurt Carlson Yield Operating Expense/Passenger Mile TWA USAir Cont. AWest SWest Delta United AA NWest direction of improvement P = V Wisdom “With few exceptions, when a manager with a reputation for brillia