Two airlines have decided to merge their business.
Wombat Airlines is a full service airline flying to 23 international destinations and 40 domestic locations. It prides itself for on-time flights, excellent service and a fleet of new Skycraft aircraft (less than 6 years old) - each capable of carrying 300 passengers. 70% of its sales come through tour operators and travel agents.
People belonging to the modern society are wanted to receive high quality as well as excellent services from its preferred companies. The advent of globalisation within the modern business environment has influenced the customers’ preferences as well as taste regarding any particular product. Recently, the advent of globalisation has influenced the tourism industry to gain adequate attention from its customers. As the globalisation has influenced the tourism business as per the international paradigm, therefore the importance of the airlines industry has also gained huge prominences among several people. Correspondingly, the airlines industry has trying to attain huge profitability by increasing its operational process as well as service quality (Urbaczewski, Jessup & Wheeler, 2002).
As per the provided case study, Wombat Airlines as well as Koala Airlines both are a popular airline that mainly provides services to its customers with cheaper cost. Basically, Wombat Airlines is one of the cheapest airlines service providing industry that could enable its customers to access excellent services at a very lower cost. This particular company is serving approximately 23 international destinations and approximately 40 domestic locations through the flight services. The flight services provided by the company is quite excellent in nature as well as it has also provided to its customers with on-time flights facilities. The fleet of new Sky craft aircraft is noted to be quite capable in carrying approximately 300 passengers.
On the other hand, Koala Airlines is also a popular airlines industry that mainly responsible for providing excellent services to its customers with comparatively cheaper cost. The company is dealing with approximately 20 international destinations as well as 35 domestic destinations for the purpose of the business process. This particular company is providing advantages to its customers in the late hour departure as well as arrivals of the flights.
Discussion of the Elements of Merger
Recently both the companies are planning for getting merged with each other and try to capture majority portion of market shares in the international airlines industry. While performing their business operations within the international airlines industry, both the companies are paying attention towards enhancing the quality of their services. After getting merged Wombat – Koala will be launched as the new business segment that will be responsible for providing low-cost carrier services (Davenport, 2013). Though both the companies are being merged their operational services for gaining a majority of their market shares but, they are unable to create proper, valuable services for their customers. Therefore, it could be critically evaluated that the companies are unable to create a huge demand for its services among the customers, due lack in its management decision-making system.
Eminently it could be stated that after being merging with Koala both the Wombat-Koala has decided to launch premium services at lower cost career. However, the services are provided by the newly formed industry is comparatively lower but having few limitations. For instance, both the companies are only offering the lower cost carrier, whereas, the customers are needs to pay for accessing few extra services. In this case, customers will need to be paid for the seating, drinks, meals, baggage, in-flight entertainment, first to board privilege as well as Wi-Fi services. Therefore, it could be critically evaluated that with the improper pricing development regarding these special services will play a great impact on its optional process. Therefore, it could also suggest to the company to paid utmost attention towards their Research and Development for enhancing their service quality.
In the airlines industry, the importance of information technology and information system is playing an important role in enhancing the service quality. Apart from enhancing the service quality, the information system and information technology are played an important role in ensuring the outcome of customers satisfaction in a better manner. Both the term information system as well as information technology are having the different meaning in the field of business operations (Tilson & Lyytinen, 2005). However, both the term is having different meaning and different prospect, but both are important within the business environment for its better development. Basically, information technology (IT) is a computer application that mainly used for storing data, retrieved it as well as manipulate it for performing the operational process within the business enterprises.
Information system (IS) has been playing another most important role in the modern business environment. An information system is considered as an organised system that mainly used in the business operation for collecting data, organising it as well as storing it for conducting proper communication with its various stake holders (Kearns & Lederer, 1999). In the business organisations, the top level managers are most of the time used the IS for decision-making purpose. The IS mainly used along with IT application in the business operations for enhancing their operational process ((Benbasat, Goldstein, & Mead, 1987). In this particular case, both the companies are paying utmost attention towards the concept of IT application as well as IS application within the business operations for the decision-making purpose (Hopper, 1990).
On the other hand, it could be stated that both the companies are being failed to use the IT and IS application in an appropriate manner for providing proper supports to their business operations and decision-making system. It can be critically evaluated that while designing the product as well as pricing strategy both the companies are unable to use the IT and IS application appropriately (Applegate,Austin, & McFarlan, 2009).
From the analysis, it can be seen that after getting merged with each other both the companies are used the IT and IS system for satisfying their customers’ needs. To support various customers, the company has launched the online booking services, where they charged with 15% extra cost. It also critically argued that charging 15% extra is noted to be an important aspect for their future sales increment. This has been among the key elements of the merger that have been asserted in this study.
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