Answer 1: Earlier in the beginning of the millennium, the Root Air came into existence with a mysterious voice mail massage. The massage was from Ted Shetzen, the chief functional officer of Sky service Airlines Inc. Roots Air’s profit making plan was to filch away a little part of Air Canada’s extreme gainful consumers or the flyers of business class. The strategy was to tantalizing the customers with celebrity pitches and by making promise to provide food of excellent quality, luxurious lounges and fine class services. Despite of all the efforts the business stability was not up to the mark. The number of passenger travelled on root was too few to carry on the costly business. The main factor due to which root air’s business strategy failed
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There are several mistakes Root Air has committed which directly and negatively affected their business. Hence, there are several lessons that could be learned from Root’s mistakes. The biggest error was in promotional strategy in which the co-founders were not present. This was an extreme necessity to make consumer base. Secondly, poor time management in the inauguration made a negative impact on the image of root air. This should always be avoided in order to maintain the goodwill. The third mistake was commenced by root air was in the computer reservation system. Excess booking was made for the airbus. Such technical problem must be avoided by the Canadian airlines to maintain the consumer satisfaction (Li,Gong and Liu, …show more content…
Root Air’s market segmenting strategy was quite rigid as it targeted only to the business class travellers of Air Canada. Root’s ambition was too high. Hence, it tried to attract the consumers through various luxurious facilities in cheaper rate. They promised to avail their facilities like good food, plush lounges, and premium services to the consumers. They lowered their journey fare of silver class to 800 dollars from Vancouver to Toronto, compare to 2000 dollar charged by Air Canada for the same
There are several mistakes Root Air has committed which directly and negatively affected their business. Hence, there are several lessons that could be learned from Root’s mistakes. The biggest error was in promotional strategy in which the co-founders were not present. This was an extreme necessity to make consumer base. Secondly, poor time management in the inauguration made a negative impact on the image of root air. This should always be avoided in order to maintain the goodwill. The third mistake was commenced by root air was in the computer reservation system. Excess booking was made for the airbus. Such technical problem must be avoided by the Canadian airlines to maintain the consumer satisfaction (Li,Gong and Liu, …show more content…
Root Air’s market segmenting strategy was quite rigid as it targeted only to the business class travellers of Air Canada. Root’s ambition was too high. Hence, it tried to attract the consumers through various luxurious facilities in cheaper rate. They promised to avail their facilities like good food, plush lounges, and premium services to the consumers. They lowered their journey fare of silver class to 800 dollars from Vancouver to Toronto, compare to 2000 dollar charged by Air Canada for the same