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KINGFISHER AIRLINES

• Kingfisher Airlines Ltd. is a private airline based in Bangalore, India.


• Owned by Mr. Vijay Mallya of United Beverages Group.
• Tag line – “ FLY THE GOOD TIMES”.
• Kingfisher airlines started its operation on May 9, 2005 with a fleet of
4 brand new Airbus – A320.
• It started its international operation on 3 September 2008 by connecting
Bangalore with London.
• kingfisher Airlines is one of the only seven airlines awarded 5 star
rating by Skytrax.
• In May 2009, KFA carried more than one million passengers, giving it
the highest market share among airlines in India.
• Until December 2011, KFA had the second largest share in India’s
domestic air travel market.
• First Indian Airlines to have in flight entertainment systems on every
seat with guest being able to watch TV in flight.
SWOT ANALYSIS

STRENGTH WEAKNESS
•First airline with full •Offered services are
new fleet of airline. very expensive.
•Quality hospitality •Yet not in profit.
provided to customers •High ticket pricing
•Route rationalization
•Brand image

OPPORTUNITY THREATS

•Under penetrated •Existing operators


market. •Fuel price hike
•International market •Economic slowdown
•Untapped cargo market •Infrastructure issue
•Expanding tourist
industry
ACHIEVEMENTS AND AWARDS

• Recognized as one of India’s Most Respected Companies in 2006 and 2007 –Business World.
• India’s only 5 star airline –by independent agency Skytrax.
• 2007 - The boards of Kingfisher Airlines and Deccan Aviation decided to merge both the airlines.
Company has changed its name from Deccan Aviation Ltd. to Kingfisher Airlines Ltd.
• 2010-Kingfisher Airlines gets nod for 7 global routes.
•  Kingfisher RED named Best Low Cost Airline in India / Central Asia.
• India's No. 1 Airline in customer satisfaction by Business World.
• Best New Airline of the Year Award for 2005 by Centre for Asia Pacific Aviation (CAPA) Award in the
Asia-Pacific and Middle East region.
REASONS FOR THE FAILURE

Operational Failure-
• Maintenance, landing and navigation cost
• High overheads cost
• High cost of VAS

Financial Failure-
• Bank dues
• Fuel charges/dues
• Delayed salary
• Aircraft rental dues
• Airport dues
• Service tax dues
Strategic Failure-
• Unrealistic Market Analysis
• Unrelated business diversification
• Merger with Air Deccan
• Diversified Aircrafts
CONCLUSION

• The airline lacked in long term strategy by joining hands with Air Deccan (frequent change of focus
from full service carrier to low cost model & vice-versa).
• No long term appointment of CEO, opting for unprofitable routes with multiple hopping.
• On financial front it was the lost battle from the beginning with high training cost, high maintenance cost,
delayed salary, government dues and most important the market conditions.
• This case study follows provider gap 3 as there were mismanagement in the company and no team work.
NOKIA CORPORATION

• Nokia Corporation was founded in 1865 by Fredrik Idestam and Leo Mechelin in Tampere, Finland.
• The company was formally known as Nordic Mobile Telephone (NMT). The company name was
changed to Nokia in 1871.
• Nokia's headquarters are in Espoo, in the greater Helsinki metropolitan area.
• They built the first international mobile phone in 1981 and this marked the beginning of the mobile era.
RISE AND FALL OF NOKIA
• Nokia phone was used in 1991 for making the first GSM call.
• In 1992, they launched Nokia 1101, the first GSM handset which became an instant hit.
• In 1998, Nokia became the world leader in mobile phones, as Nokia's market share totaled 22.9 percent.

Source: IHS Markit

• By 2007, it had 50% of the share from the mobile phone market.
• The young and energetic leadership of the company was the reason for its wide acceptance in the consumer
market. Initially, the new technology, urge to digitalize and innovation were also amongst some of the reasons for
success.
• Nokia used to own a large portion of market of smartphone before the introduction of the Apple iPhone in the
third quarter of 2007 and the breakthrough Human-Computer Interaction HCI, which set the standards for the
user experience.
• Although the overall market share reached 39% in 2008 yet, all the financial figures of Nokia started to decline.
For instance, net sales dropped by (-1%), operating profit by (-38%), and profit attributable to equity holders by
(-45%).
• Their refusal to change and learn new things lost their survival and this ultimately led to their demise.

Source: IHS Markit

• In the year 2013, the same Nokia Company that was enjoying a 50% share in the market dropped to less than 5%
share of the total market.
REASONS FOR THE FAILURE
• Nokia Moved Too Slowly-
Nokia was a pioneer in the smartphone market, literally introducing consumers to the smartphone with its initial
Symbian Series 60 devices in 2002. For the next five years, Symbian phones had little trouble maintaining a leadership
position in the smartphone pack. They didn’t make the leap of faith onto Windows Phone until 2011.

In 2007, Apple introduced its iPhone. With its full touchscreen and app-based operating system, the iPhone changed the
very definition of what a smartphone should be. Yet Nokia failed to respond to the iPhone and the shifting consumer
demand that came with it.

As the years passed, the Symbian platform aged, and that age really showed when compared to iOS and, later, Android.
Simultaneously, the smartphone market exploded- more and more consumers opted for pocket-sized mini-computers
instead of "feature" phones with tedious WAP browsers. Nokia should have responded to the iPhone more quickly.

Samsung, on the other hand, moved quickly into the smartphone market. Samsung chose Android at the right time, and
it benefited from the maturation of that platform.

Nokia, on the other hand, spent its time focusing on Symbian until the company's partnership with Microsoft. It was a
good partnership on paper, but it was too late- over two years after the introduction of the iPhone and Android picked
up market steam.
• Lack Of Product Innovation-
They misread the market and failed to understand the future of mobile devices was in data, not
voice.
Nokia’s initial dominance was due in part to well-designed mobile phones. They emphasized top
quality hardware powered by their in house OS Symbian. The OS was slated more towards
providing phone functionality than Apps or other features that have become commonplace on
smartphones.
Nokia had been content with providing phones with some minimal features dubbed “Feature
phones.”
On the other hand, Apple and Google were making devices powerful. They advertise their products
with simple concepts like “Desktop-class architecture”. They create stuff that can handle all your
computer work on a phone- from HD videos to 3D games, everything. This is what Nokia and even
Blackberry for that matter, failed at, not turning phones into small computers.

 • Riding Their Existing Operating System Too Long-


The Symbian Operating System became a staple on Nokia phones. But it provided a limiting factor when trying to extend the
platform to compete with smartphones. The key sticking point was App development. Each Symbian UI required its own custom
build which limited the ability to support any third party apps.
Eventually, in 2008 Nokia decided to open-source Symbian, but it was too late. The OS was dated, still focusing on phone
functions in an era where smartphones were beginning to disrupt PCs.
• Lack Of Value Proposition And Inconsistent Marketing ‘Voice’-
iPhones are very clear about creating the concept of an “Apple Family”. Similarly, people relate Androids to versatility. With Nokia,
there is no connection to anything special. They were trying to create a concept around the best cameras, but there were already too
many players in that market. They lacked value proposition and were unable to highlight this in their ads.
The Lumia is one such example which was almost a complete failure.

At the time, Nokia was experimenting with random messages just to see how it affects the company’s future. TV advertising didn’t work
out very well as Nokia’s marketing efforts were unfocused and putting a big drain on budgets. Apple and other major smartphone
manufacturers were quick to capitalize on this in a huge way.
By the time the iPhone 5 arrived in late 2012, Apple had an enticing slogan to go along with it: “The biggest thing to happen to iPhone
since iPhone”. The 5S model’s slogan was simply “Thinking forward”. The previous year’s iPhone 4 boasted: “The most amazing iPhone
yet”. Nokia’s plain “Connecting People” slogan just couldn’t hold up to this.
• Losing Market Share On Both Ends-
Gradually, the mobile phone industry became saturated with a lot of companies serving the same target market. Apple, Samsung,
Blackberry, and Nokia all were the leading players striving for the target market. In this race of competition, Nokia did not improve its
service and lost to the other players available in the market.
Apart from this high-end competition, in the industry, the low-end competition in the form of Huawei, HTC, and ZTE also emerged.
Gradually, these companies gained significant share, especially when the market share of these company was summed up; it was a big
number as a competitor for Nokia.
Very lately they realized this thing and launched their Asha series but by that time, they had already lost the game. Because Nokia did not
look into it timely, they had to lose the lower end market as well.

• Perception In The Consumers-


The name Nokia had a great brand reputation when it comes to mobile phones. Most of us knew Nokia as one of the greatest mobile
manufacturing company. We still do recognize Nokia, but we are unable to change our perception about it and the products it
manufactured. All of us have set Nokia as a great brand that was available at a particular time or age.

People would remember the landmark snake game, they would wonder if they could really play with it, but
they won’t spend any money on buying the phone, especially for that game. Even if they do get access to
Snake, they will get bored of it in no time. This is because of technological change and the perception of the
entire market about the brand. Nokia did not consider this factor and had to face failure.
• Changing The Organizational Structure, Internal Rivalries, And Lack Of Vision-
A lot of leadership changes and roles, poorly implemented in 2004 led to a reorganisation of the company. Nokia was operating on the
mechanistic organizational structure, and then shifted to the matrix structure to improve agility. But this decision was not welcomed by all
the stakeholders, and this is why the top management started to leave the company. The working of the organization without the people
who have brought it to this level of success wasn’t easy.
Moreover, this new way of working did not go well with Nokia’s teams which were used to decentralised initiatives. Also, not all the
divisions or the management heads of the company worked in complete coordination. This lack of coordination created a number of
operational issues, including the delays in the development of codes for Symbian. Such problems did not impact the company but
indirectly contributed to the downfall of the company.
Due to lack of vision, the company’s employees never knew where they are heading. The company capitalized on the short-term growth
and felt satisfied, ignoring the wide market ahead. This gave way to the new companies and competitors to enter and serve the market.

• Complacent Human Resource-


Once the company achieves a considerable amount of success, then mostly the employees change their attitude. They become complacent
and do not focus on work. This attitude makes the organization less efficient as a result, the decline of such a company is irrevocable.
Complacency played a part in Nokia’s failure.
CONCLUSION

• Slow in upgrading its smart features, not taking the market too seriously, and above all, not offering people what they
need, Nokia failed at many ends.

• A tragic end to an empire of a brand after it was sold to Microsoft for $7.6 Billion. A brand that was worth much more
than that in an era, was forced to put an end and go home in whatever honor that was left of it.
A M A Z O N   ( A M Z N )

Amazon.com, Inc. provides online retail shopping services. It provides services to four primary customer
sets: consumers, sellers, enterprises, and content creators.

• Industry: Internet & Catalog Retail


• Founded: 1994
• Country/Territory: United States
• Chief Executive Officer: Jeffrey Bezos
• Employees: 647,500 (as of 7.04.2020)
• Sales: $232.9B (as of 7.04.2020)
• Headquarters: Seattle, Washington

https://www.forbes.com/companies/amazon/#5f3ba4f76fb8
AMAZON’S GROWTH

• In 2019, Amazon's total annual revenue stood at $280.5


billion, and it is expected to grow again in 2020, some
estimates predict to $334.7 billion.

• Amazon performs exceptionally efficiently measured


against revenue per visitor, which is one of the key
measures for any commercial website, whether it's a media
site, search engine, social network or a transactional
retailer or offers travel or financial services.

• Profit per user would be quite different due to the


significantly lower costs of other .coms like Facebook and
Google.
SERVICE EXCELLENCE FACTORS OF AMAZON

Customer Focus-
Amazon’s ideas are customer centricity, they put the customer at the center of everything they do.
Indeed, the company has made an art of finding new and better ways to improve customer experience, some of which
include:
• Offering fast, hassle-free ordering and delivery.
• Using data to personalize, helping shoppers in real time with product selections based on browsing and buying
history.
• Going out of its way to help customers get the best deal.

Price Factor-
Because the price is such an important part of a consumer’s experience, their aim is to have the lowest price on the
internet. And, they are succeeding. The Buy Box fosters competition within the platform to keep it low.
Delivery Factor-
Amazon has one of the most advanced fulfilment networks in the world, resulting from:
• Advanced logistics.
• Innovative technology, powered by Amazon Robotics.
• 175 fulfilment centers worldwide operating 24 hours.
FBA, or Fulfilment by Amazon. Taking on the storing, picking, packing and shipping allows Amazon to control the quality of
consumers’ delivery experience while offering an elegant solution to their sellers who would otherwise struggle to deliver
according to Amazon’s rigorous standards.

Customer Empowerment-
Amazon do not simply sell stuff but “help customers make purchase
decisions.”
This attitude led to the key differentiator of allowing customers to
post book reviews and, eventually, reviews of the entire range of
products offered on the web site.
Feedback is placed directly on the product’s page and users are
provided with multiples ways to parse the information to their liking.
Customer Loyalty-
Amazon focuses on one simple measure of customer service quality: helpfulness.
• They regularly interact with customers through non-intrusive and easy-to-use satisfaction surveys. The surveys are an
effective tool for building sales and turning customers into loyal enthusiasts.
• Analytics are at the heart of the company’s success with surveys acting as a critical tool for understanding the customer
experience.
TOP CUSTOMER SERVICE AND CUSTOMER
EXPERIENCE STRATEGIES
• Amazon makes sure that people in the company internalize the
vision. Whether entry level or executive, many Amazon employees
have opportunities to attend two days of call-center training.
• Amazon has an incredibly detailed yet easy-to-navigate help
center, which lets you drill deep into a number of specific
concerns.
• Amazon has made it easy for shoppers to tap into the wisdom of
the crowd to get their customer support.
• Customers have the option of reaching out to a real person. Callers get 24/7 support and are almost never
put on hold.
• Amazon has also a free customer support service called “Mayday.” Owners of Amazon Fire phones can
tap a “Mayday” button and get instantly connected via video to a tech advisor. The user sees the advisor
live while the advisor only sees what’s on the phone screen.
• The company builds relationships between its shoppers and hosted brands. Last year the company
launched Amazon Exclusives, an initiative for entrepreneurs who want to promote their story.
"YOU PRESS THE BUTTON, WE DO THE REST“

• The Eastman Kodak Company, known


around the world as Kodak, is an
American based company. Incorporated in New
Jersey.
• Founded in 1888 by George Eastman.
• Headquartered at Rochester, New York.
• There main competitor were Canon, Casio,
Nikon, Sony, Olympus, Samsung, HP Hewlett-
Packard, Pentax, Fujifilm.
RISE AND FALL OF KODAK

• 1996 was the peak year for Kodak. The company had over
two-thirds of global market share.
• Kodak’s revenues reached nearly $16 billion, its stock
exceeded $90, and the company was worth over $31 billion.
• The Kodak brand was the fifth most valuable brand in the
world.
• However, since the turn of the century, the fortunes of the
once world’s leading photographic firm has plummeted.
• Kodak reacted the digital revolution slowly, hence, it
experienced revenues plummet from $ 15 billion to $9.4
billion in 2009.
• According to the Economist, the revenue was down to $6.2
billion in 2011.
• According to MarketResearch.com, the recorded revenues were $4,114 million in December, 2012, a
drop by 20.1% compared to 2011.
• The firm which employed over 145,000 workers worldwide, also announced cuts of thousands of jobs
and by early 2012, its shares were just trading at around 40 cents dropped from $40-45.

Source: Delhi Institute of Internet


Marketing
REASONS FOR THE FAILURE

 Failure to adapt the new technology:- Kodak and its rival, Fujifilm, saw their traditional business
would become obsolete. But Kodak failed to adapt new technology adequately. Kodak’s unwillingness
to change its efficient ability to make and sell film in developing digital technologies lost the chance
that could have maintained the leading position in digital image processing.

 Lack of integration external and internal knowledge:- Kodak made efforts to outsource its camera
manufacturing to fill the gaps in expertise, and the outsourcing management failed to achieve the
integration of external knowledge with its own internal knowledge which is essential to further
innovation. As a result, Kodak cannot compete with its rivals in digital market.
 Disruptive innovation:- George Fisher, who was a CEO of Kodak from 1993-1999, decided to
produce digital cameras and offered customers the ability to post and share the pictures online.
Although Kodak made a large amount of business out of digital cameras with revenue reaching $5.7
billions in 2005, it lasted only for few years before camera phones entered the market.

Source: Ignition framework.com


 Inconsistent Leadership and losing focus :- The strategy of the company
changed with each of several CEOs. Kodak went through numerous restructuring
whenever there was a change in the leader in the organization. Every new CEO
brought new priorities and the pursuit of the company goal was also easily
changed. The CEO Antonio Perez, had started focusing more on printing business,
which was already dominated by Hewlett Packard, rather than manufacturing
camera capability.

 Complacency:- Complacency also played a part in Kodak’s failure. Despite a hefty investment in R&D
and good relations with customers, Kodak overflowed with complacency. Although Kodak knew that
rapid changes in the market and technology would come, but they failed to adapt the changes promptly
and adequately.
CONCLUSION

• December 20, 2012 Kodak announced that it plans to sell its digital imaging patents for about
$525 million to some of the world's biggest technology companies, thus making a step
to end bankruptcy..

• Kodak fails to offer the products and services that consumers demand, there is a high
probability that they will alter their allegiance to a better product.

• Consumer buying habits, new products and services are things that must be constantly be
reviewed, analyzed and modified as needed. Since the world has been dramatically changed
by technology, Kodak needs to constantly innovate, develop the ideas and avoid complacency

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