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The Survival of the Fittest
The article tells us a story about the prosperity and bankruptcy of a
British airline, Laker Airways. Laker had been sticking to its marketing
strategy,low fare with few extra services, which had been attracting
passengers for a long time during the 1970s. However, it failed to survive
the fierce competition in the recession of the early 1980s and eventually
declared its bankruptcy.
From Laker’s early achievement, we can learn a lot about marketing.
The case of Laker illustrates a situation where the low fare concept did
work when a product is in the early stage of its life cycle. As we all know,
price plays an important role in 4P marketing strategies. While other
airlines concentrated on the higher-fare passengers, Laker aimed at the
general public rather than the upper class. It spent more effort in cost
control and attracted customers by offering low-fare flights. This strategy
made it avoid the early fierce competition among all the airlines
effectively. It can be seen that targeting a market and developing
strategies around it are extremely important in marketing.
On the other hand, Laker’s stubborn mind gave rise to its failure. It’s
obvious that each transformation of the business philosophy is associated
with the rise and fall of an enterprise. As the marketing environment is
always changing, customers’ needs are following and changing, too. One
of the most important factors in marketing is that the operating
philosophy of an enterprise should keep pace with the times. With the
purpose of this, enterprises must keep a firm grasp on these changing
needs and transform their business philosophy to meet these needs in time.
For example, if the mainstream of the business philosophy transform
from the selling concept to the r
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