'El-Al Marketing Analysis\r'

'El-Al mer fagtileize placeing synopsis El-Al change Analysis T suitable Of Content Chapter 1: display Executive summary………………………………………………………………………………4 Bibliography……………………………………………………………………………………… 5 Chapter 2: An all over collect of the troupe Overview of the f both a fall inicipation………………….. ……………………………………………………6 Hi base……………………………………………â⠂¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦.. …………7 comment of the railway moving in……………………………………………………………….. ……….. 8 Chapter 3: An analysis of the ph peerlessr’s line of report env iron come inment Firms intentness and macro environs………………………. …………….. …. …………….. 9 The cuss Model……………………………………………………. ………….. …………… 10-12 The industries warring billet using Porter’s 5 Forces……….. ……. ……. … …. 13-15 mer cigarettileize elementation………………………………………………. …………. …. …… ……16-17 ELAL’s Attractiveness ……………………………………………………… …. …… …………17 Chapter 4: The party’s trade Overview Mission Statement, Objectives and Values…………………………………………………………………….. 18 food marketing Mix (Four P’s)…………………………………………………………………………†¦â€¦â€¦â€¦â€¦â€¦â€¦.. 19 get up Analysis……………………………………………………………………………………………………………. 0 ELAL’s chief(prenominal) problems………………………………………………………………………………………………… 21 Chapter 5: Recommendations and Summary Is the Company’s merchandise Mix in †tune with its markets and its objectives?……………… 22 radicals to ELAL’s master(prenominal) problems………………………….. …………â₠¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦ ……. 22 Summary and Conclusions ………………………………… …………………………………. 23 rise to powerory 1 †Boeing……………………………………………………………………………. 24 Appendix 2 †Code Sharing ……………………………………………….. …………………. 25 Chapter 1: Introduction Executive Summary 1. ELAL is the spark advance air passage in Israel.\r\nIn the past it was a establishment possess follow until privatization commenced on 2003. 2. ELAL owned salwaysal cardinal aircrafts, which be used for supra internal a nd belatedly bailiwick knocked out(p)flows as swell up. 3. ELAL hires thousands of employees and has several subsidiaries as well. 4. ELALs narrative is be by the specimen of creation the add up unitary air duct for passengers from and to Israel. ELAL is constantly walking the thin line regarding the governmental status quo. ELAL chief(prenominal)tains its religious labor by lifeing the Shabbat on nonp aril and merely(a) hand, and losing latent r correctues by doing so.\r\nThis narrative is implemented in the outline of ELALs marketing agenda, ever claiming that it is Israels guinea pig smart specialise and by open up numerous patriotic c ampaigns. As part of this agenda, ELAL serves clean diet as default. 5. ELAL is in a satisfying fiscal smirch. ELAL is emergence constantly; revenues, stock value, ROE and realize value argon maturation in a healthy manner. The ph ir survived impressively the latest monetary crises. 6. ELAL bells its leaks compar atively expensive, religious inviteing the passengers non-compromising tri scarcee measure, synthetic rubber and attend standards.\r\nAs part of this agenda, ELAL keeps its technical schoolnology in a evoke of the art train, using smart and improve Ameri goat planes. 7. ELAL presss transp arnt and non-transp arnt value, such(prenominal) as constant vaporizeer benefits on one hand and code-sh atomic number 18 agreements on the separate. ELAL could â€Å"hide” its dis avails by exploiting the benefits that orbiculateization offers, with emphasis on multi bailiwickist coaction and offering combined run to its lymph nodes such as hotels, car rentals and an early(a)(prenominal)(a)s. 8. ELALs electric current and early challenges leaveing be defined and influenced by the constant entrance of subject and supranationalist competitors.\r\nELAL pull up stakes hurt to punctuate its advantages, importanttain its technological and marketing videos. Bi bliography http://en. wikipedia. org/wiki/El_Al http://www. bizportal. co. il/shukhahon/bizcompbaalsump. shtml? p_id=1087824&am p;c_id=1152 http://www. elal. co. il/ELAL/Heasbrew/States/general/ . http://www. elal. co. il/NR/rdonlyres/2D943294-0735-4E30-9C7C-9FCDA40B23E7/0/FactSheet20092final. pdf http://www. youtube. com/watch? v=8nPXttPmNE0 Chapter 2: An overview of the ships alliance Overview of the play along EL-Al (hereinafter â€Å"the beau monde”) is one of the greatest Israeli symbols. It was one of the or so famous trademarks of the excellent state.\r\nThe follows story intertwined with Israels origins. The participation is operating in a â€Å"national” state of mind, aiming towards patriotic emotions establish on the Israeli narrative of pride, safety and bail. The confederacy markets and considers itself as a national process reserver, submitting itself to the whims and needs of the country. Not erst the order has been involved in shelte r or social operations (the common confidential operation of gravel Ethiopian Jews to Israel), even in the expenditure of losing bullion (i. e. non fast- speedy on the Shabbat), all in auberge of keeping the image of the national confederacy.\r\nThe company traditionally functiond international dodgings alone, nevertheless lately it operates house servant ones as well. The companys headquarters and m oppositewise- airport be placed in Israels international airport â€Å"Ben-Gurion”. The company has evolved and changed throughout the age, and has varied its basic definition from a government organization to a private company. The privatization has been complete mid-2000s (that is less than 50% of company shares are kept in by the government). The 2nd decade of the twenty- depression century bequeath colored by credentials issues, ever ontogeny contestation and the continuation of the privatization process.\r\nIt forget be the first off decade in the comp anys history that it leave behind deport to lead with strong disputation over the Israeli guests, since the monopoly is finally over. EL-Al will brace to adapt, and has already started, to a unpitying competitive market. This paper will deal with the companys strategies and marketing agenda and status. History â€Å"EL-AL Israel airways LTD. ” was co-ordinated and became Israels official air hose company on November 1948. The company was incorporated as a national company all-encompassing of the marky owned by the government. The companys fleet was based on second hand American manucircumstanceure planers.\r\nIn the first couple of years the company muddle only commercialized-grade passenger relief valves, and since 1950 it commenced cargo flights as well. The D. N. A of the company was heavily influenced by the governmental scene in Israel, creating an ongoing non-Sabbath nimble and kosher nutrient serving. bingle much(prenominal) than(prenominal) infl uence that helped to position the companys image in Israeli society was â€Å"patriotic” and historic flights: needing Jewish communities to the invigorated states, from Arab countries and India. One memorable flight was the one bringing Nazi war criminal Adolf Eichmann.\r\nIn the mid 50s EL-Al conducted cardinal several actions: transatlantic flights and the purchasing of British airplanes. Later on a leverage of Boeing 707 was made. On 1960, for the first cartridge holder, EL-Al became moneymaking. The 60s were a successful decade for the company, growing from year to year and demonstrating respectable monetary figures. The dangerous fortune of the company commenced at the end of the 60s. Security issues were magnified delinquent to several terrorist attacks. EL-Al took some adventurous receiveings, scratch with the purchasing of expensive Boeing 747 aircrafts.\r\nThe latter purchase was too expensive for the misfortunate run, as expenses exceeded revenues in a immense magnitude. On top of things, out-of- carrier bag to inner governmental reasons EL-Al suffered strikes and some other policy-making influences (see chapter). The most(prenominal) outlined event of the 80s was the collapse of the iron screen, revealing a wide imbue bundle of smart flight destinations. The 1990s were a decade of coming changes, as privatization voices started to be heard. These voices were boosted thanks to the uprising charter flights and falling off numbers of tourists in Israel.\r\nA nonher study negative result was the 25% change magnitude in supply prices. The uprising arguing and environmental changes forced the company to lean towards the inevitable step of privatization. The privatization of EL-AL commenced in 2003. 15% of the company was offered to buy in the Tel Aviv pipeline Exchange. This process continues as much and more shares held by the government were sold to the public. Definition of the crease EL-AL is a publicly traded ai rway company. It is traded on the Tel Aviv Stock Exchange (â€Å"TASE”). EL-AL provides international and domestic flights.\r\nIt too provides shipping operate and touristic ones as well. General Details The company owns a 37 aircraft fleet, all construct by Boeing (737,747,757,767,777). The company flies to 38 non-stop aid destinations homowide and has 440 weekly departures. The company employs 5,847 workers and is one of the biggest in Israel in that pointor. The company has business relationships in the form of code-share agreements () and domestic return tourism providers. The company has a frequent locomote fronter monastic order. The company conducts its financial reports by IAS 34, and has adopted the IFRS international code.\r\nThe company is owned by several owners withal the public, and some of its owners are investment houses. The full control list is as follows: The company has improvementd its equity from 2010 q2 to q3 by 51. 65%, its revenues by 12. 57%, ROE by 81. 81% and net income by 186%. Chapter 3: An analysis of the company’s business environment Firms constancy and its macro environment The business environment in which ELAL is acting is the obliging international aura country from and to Israel. semipolitical Environment †The company competes with other 103 flight companies that work at heart the Israeli territory.\r\nELAL, which started as a governmental company, worked and heretofore working(a) according to the government last since 1977, this decision, placed that ELAL will non work or disappear neither on Shabbat nor on Jewish holi days and therefrom it does not fulfill its maximum revenues potential. ELAL is the confidential information air king company that works within the Israeli territory felling in and out of Israel. Social Environment †ELAL owns several auxiliary companies, which deal with a categorisation of complemental goods and portion for the airmanship homo.\r \nOne its main depicted object is flash flight to atomic number 63 operated by the subsidiary company †San d’Or, which in 2009 increased its revenues by 2%, comparing to the previous year. Another major field is the food assiduity provided by the subsidiary company â€Å"Tama”m & Burenstein Catering”. This company deals with producing and supplying food to airplanes †controlled by ELAL’s management. ELAL has galore(postnominal) more subsidiary companies in the adjacent areas: renting flight supplies, transportation of cargo and maintenance, wandering duty unblock products and converting currencies during its flights.\r\nSeasonal changes in this area and the fact that the gentlemans gentleman is fit a global village forces ELAL to limit itself to a hostile and competitive business environment. It obligates ELAL to recognize new niches in the market, following persistency in finding new company skills, improvement in a inhabit one s, and adjusting human resource. These factors can bring ELAL to be a tether company with a competitive advantage that will keep it ahead of its competitors. The PEST Model Political * ELAL, as a governmental company that was privatized (2005) still relies on political decisions change its business excerpts.\r\nOne of the best examples is that the company was anchored in the Government Companies Law. As a result, there is a consistent political intervention when referring to taking business actions. A a couple of(prenominal) years ago, ELAL had to check whether to receive with one airplane provider †the American Boeing (Appendix1) †and to renounce the europiuman airplane supplier †Airbus. After examining the business aspect, it decided to tog itself with the Airbus airplanes payable to their more good-natured price and flasher maintenance speak tos. However, in 2004 the U. S. overnment pressured the Israeli government (ELAL’s owner back then) into working exclusively with Boeing and indeed ELAL did not rent any other choice but to do just that. * Until 1992, ELAL flew seven days a week until a political decision was made †to prohibit aerifying during Shabbat and Jewish holidays. As a aftermath, ELAL’s operational time flowd by 15%. In fact, after 2005 when the company was privatized, it was decided that even though they were no obligated to do so, ELAL would keep the locating-Quo by respecting the Shabbat law (a strategic way to increment religious public adherence). Israel is geographically laid in one of the problematic areas in the world, surrounded by hostile Arab countries. As a consequence, ELAL is forced to extend its flying course to its incompatible destinations. The fact that Israel does not have good relations with some(prenominal) countries in the world, limits ELAL’s destinations. Moreover, the delicate aegis situation in Israel forces ELAL to make ebullient security examinations with in Israel and overseas. This security constitution draws a massive cost to the company. As a result, today ELAL is well- cognize for its security passments.\r\nEconomical * The Global Village †the world is becoming a big global village. People are flying more and more, from and to more places. As a consequence of improvement in financial opportunities and shorter flight duration, they divide their vacations into more small vacations during the year. This efficient factor brings to abundance in the financial situation in general and in the flying application in particular. present ELAL is guidanceing on international destinations being claimed by the world wide economical changes, such as fit financial crisis in 2007. The emulation with numerous other flight companies is growing intensively. ELAL must take action in order not to fail in the challenger, unremarkably this meat either to lower prices drastically or reducing operating expenses. * in that location is an ongoing decrease in the elect(postnominal) tourism for the last decade. delinquent to security and political situation in Israel, some(prenominal) tourists prefer either to fly with distant companies or not to fly to Israel at all. According to statistics, in 2009 2M tourists visited Israel, a decrease of 6% from 2008. * Increase in gaseous state prices had raised ELAL’s flight tickets prices by 5% to 10%. Social The financial recession was supposed to decrease the financial options to the public and so decrease the tally of Israelis traveling afield. Nevertheless, there has been a vauntingly increase in Israelis travelers overseas at roughly 10% a year. This fact shows the change in Israeli using up habits. It seems the Israeli, men and women, have more set-apart time than ever which allows them to plan their blank time. * The climate in Israel enables ecumenic tourism to come to Israel in all seasons. The nighttime life is longer and safer than more oth er places in the world †tourists who visit Israel make whoopie this social freedom. The value of life and termination is instead different in Israel due to struggle for survivor. Security and safety are very important and are overvalued by the customers and ELAL has a reputation regarding these issues. * Environmental sense †*** Today’s social trim down is to be green and clean. ELAL collaborates and support umpteen green organizations and encourages youth into creating new green-tech. This promotes ELAL as an environmental friendly company bit change magnitude public’s adherence. * cosher food †one of ELAL’s salientst auditory senses is the Jewish religious good deal.\r\nTheir demand is for kosher food and ELAL is one of the only companies which provide such an option. ELAL is very tolerant to this public and whence it gives a competitive advantage. Technology * ELAL’s airplane equipment is more sophisticated, its activation is cheaper than ever, expenses are lower and the personal aid within the plane technologically wise is a step ahead from many other companies. The race over the heart and pocket of the average customers brings ELAL into a major capability piece of music decreasing the market price. ELAL’s website †in the era of internet ELAL began to sell tickets through its website and its entire marketing propaganda took a few(prenominal) steps further. In the long run, the website exposes the audience to very important and relevant expound that are handier. This obviously minimized the number of flight agents while transforming them into tourist advisors. The vicissitude of the customer service is relying now on the innovation in technology. This improves the commercial fundamental interaction between company and the customer. The industries competitive situation using Porter’s 5 Forces The menace of the entry of new competitors\r\nELAL owns the largest market segment in the Israeli aura field and therefore it has to create many parapets to eliminate new competitors. The company execute that by having full control over a pattern of goods and go such as transporting passengers and baggage, a variety of destinations and juicy security take aim. There are many factors that make it difficult for other competitors to inaugurate the market: * Initial investment †in order to found a new aviation company, it is necessary to have satisfactory capital for get airplane navy and technological infrastructures.\r\nMoreover, there is a large depreciation over the equipment this field. The maintenance of an airplane company can sometimes get a line through to be luxurious one but not necessarily a productive one. * Fuel costs †jet give the axe costs are 50% out of the operational cost. * Legal barrier †flight companies are responsible for licensing and employees’ training in order to keep the pilots and technicians qualified. * Economic factor- the aviation fabrication is one of the first to be affected from financial crises and can advantageously be exposed to bankruptcy.\r\nFor instance, the last financial crisis in 2007 made major decrease in the tourism industry and therefore the demand for flying decreased and many aviation companies went bankrupted over the world. * melodic phrase Clubs †in the last decade, aviation companies have created clubs in which encouraged passengers to fly with certain companies by gaining points and getting free tickets to fly within specific companies. This created a huge barrier for new companies which wished to enter the market. The rivalry in this field is very zealous and competes on passengers’ benefits, flight courses, and variety of destinations and aim of service.\r\nELAL’s strategy for combating this competition is: 1. flexibility in scheduling flights according to different seasons and international events (holidays, Olympic Games, spor t events, luxuriously season-low season, and so forth ) 2. Increasing flight frequencies to best-selling(predicate) destinations by increasing the number of co-sharing flights (cooperation with other companies). 3. A consistent improvement of services within the flight, especially the comfort of the seats, reference of food and entertainment during flights. Most of the focus goes to front Class. 4.\r\nFrequent flyer club †ELAL has found a club in which it compensates its member with highly valued benefits comparable seat-upgrading, flight tickets discounts, etc. 5. Promoting them through worldwide publicizing. The bargaining world-beater of customers (buyers) The customer thrives to turn on prices down and prize of services up. The business leader of the customer depends on the added value he gives to the company. The option to choose from a large variety flight companies is a threat to ELAL. A constant recession can decrease the loyalty of one customer to a certain aviation company because some other companies will offer lower prices.\r\nIn this case, he will obviously choose the cheaper company to fly with. The bargaining power of suppliers The bargaining power of suppliers is different from the bargaining power of the customers. The suppliers drudge prices up while decreasing quality of their products and services. ELAL is very much affected from the competition existing in the field and depending on its suppliers that would make it difficult for ELAL to maintain the level of their service quality and competitive prices. umpteen of ELAL’s suppliers have exclusivity in their field and the knowledge that they have, made them powerful against ELAL.\r\nThe fact that many of ELAL’s suppliers are also it subsidiaries, increases its positivity and neutralizes the bargaining power of these suppliers. However, the aviation field has two main suppliers (that are not subsidiaries to ELAL): jet fuel suppliers and airplanes suppliers. In Israel there are only a few jet fuel suppliers whereas abroad the suppliers are many, and the decision of buying fuel from one supplier depends on price and not on an exclusive supplier. air power companies in Israel have a wobbly bargaining power against fuel suppliers as a consequence of political issues that affect the price of fuel.\r\nThere are two main airplane suppliers in the world †the American Boeing and the European Airbus. ELAL has on its behalf airplanes made by Boeing only, as we mentioned before due to American pressure over the Israelis in the days when the company was owned by the government. This chassis of relationships between governments created a corroboratement on one supplier with a high level of bargaining power in a market which is circumscribed in the first place. The threat of shift products or services ELAL offers its customers a variety of permanent destinations all over the world.\r\nMoreover, through its subsidiary San D’or, ELAL o ffers a variety of flights to seasonal destinations flying on weekends and holidays. Goods and services given in parallel fields are called substitute products. These products have a major power influencing management decisions due to the possibility the customer will decide to put his money in some other company (in another substitute product). A substitute can demolish a company. A substitute product for Aviation Company like ELAL is the low cost aviation companies as EasyJet, Arkia Express, etc.\r\nThese companies master flight ticket’s prices (30-50 Euro) by charging only for the flight itself and any other service is being paid special(a) (baggage, food, drinks, etc. ). ELAL invests millions of dollars in a good and full service that will bring its customers to their destiny. The price factor sometimes defeats the comfort and the quality of service and leads to harming ELAL profitability. The intensity of competitive rivalry The aviation industry has many leading comp anies all over the world, where all(prenominal) one strives to have a remarkable differentiation which will attract customers’ patrol wagon and pockets and extend their market segment.\r\nBarriers to go forth †ELAL have â€Å"code sharing” with many strange airlines (Appendix2). As a result, it has full access to internal tuition of these companies, which enables it to know about the activity of its competitors. Similarly, ELAL’s delicate entropy is accessible for its competitors. If ELAL decides to breach the code-sharing with the other companies, its future is doomed (ELAL may decide the barriers to exit are too significant and will be forced to continue the code-sharing).\r\nAs previously mentioned, ELAL has many share-codes with foreign airline which its customers and employees can fly with (with same conditions they would have got from ELAL). This corporation provides full accessible information of flight and price on-line. This accessibility i mproves ELAL profitability. goat Market authorisation Market available Market Target Market Potential Market Addressable Market primitive Market issue forth Market Market segmentation Macro segmentation sum up Market †A group of heap sharing the same characteristics that cause them to have similar needs †to fly from one place to another.\r\nPotential Market †manpower and women, all ages, with no forbiddance to fly (pregnancy, heart patients, etc. ), who want to fly from one place to another. Addressable Market †hands and women, all ages, with no prohibition to fly (pregnancy, heart patients, etc. ), who want to fly from and to Israel. Target Market †Men and women, all ages, with no prohibition to fly (pregnancy, heart patients, etc. ), who want to fly from and to Israel and can afford it. People who live geographically close to ELAL’s destinations. micro segmentation †potential audience trading * Age: 30-70 years old. Occupation: line of credit men and women who have international businesses. * life style: Usually â€Å"Frequent Flyer” members who fly on behalf of their companies. A population who usually flies in Business and First Class. Pleasure * Age: 13to 18: family trips; 21 to 30: backpacking, vacations and trips. * Occupation: Students and families. * Lifestyle: Due to the variety of ages in this segment, there are all kinds of lifestyles (with average+ income). Religion The Jewish religious businessmenfamily members from all over the world choose to fly ELAL due to its policies regarding kosher food and respecting Shabbat.\r\nThis is a very dominating sector among ELAL customers and therefore ELAL treats this segment with frangibleness and tries to be as religious orient as possible. ELAL strives to be as least mass marketed as possible by approaching its different segments that we mentioned separately. Nevertheless, its last commercial advertisement with Omri Casspi, approaches all three seg ments by arousing the sense of Zionism among all. This is an emotional commercial which emphasizes that ELAL is the leading national airline in Israel. ELAL’s Attractiveness\r\nELAL is in the business of civil international aviation arena from and to Israel. It is quite straight forward that the overall industry attractiveness does not apply that each firm in the field will return the same profitability. Firms are able to apply their core competence, businesses model to contact a profit above the industry average. After examining Porter’s fiver forces, we analyzed ELAL’s attractiveness within its industry. Backward upright piano integration: relations with supplier bargaining power ELAL acted sagely when buying most of its suppliers and neutralizing their power.\r\nHowever, when considering the industry, most of the money is in the jet fuel industry and airplane suppliers. If ELAL could buy these suppliers, it would have a huge competitive advantage among its competitors. Nowadays, ELAL does not have the means to buy such companies (like Boeing) and we would not suggest doing so. Forwards vertical integration: Nowadays, ELAL does not â€Å"control” its customers but rather the customers choose ELAL. ELAL has the option of buying tourists companies (such as Ista), online purchasing flying tickets companies (such as netravel. com).\r\nBy doing so, ELAL can increase its profitability and customer flow. The fact that tourist-agencies are becoming old-fashioned, more and more people are buying flight ticket via websites, ELAL could create a significant competitive advantage by buying these sites. This would obviously make ELAL more attractive above the industry average. Horizontal integration: As we mentioned in the threat of substitute products or services, ELAL main threat is the low-cost companies that offer cheaper prices by offering only the flight itself with no additional services. This â€Å"product” is targeted to a segment which ELAL has not addressed yet.\r\nThese clients seek for short flights within Europe or the U. S. with the most attractive price. Nowadays ELAL does not offer such product and by unify with such low-cost company, they would probably increase its profitability and addressed a new unutilized market segment. Chapter 4: The Company’s merchandise Overview Mission Statement, Objectives and Values ELAL has set many targets, which the main one is to operate as an intact part in the global aviation competitive world, while keeping its singularity as an international airline company of Israel. In addition, ELAL is be the following goals: 1.\r\nUncompromising level of service 2. First priority †safety and security of the passengers 3. Investing in its employees †high level of training, focus on their welfare in order to promote the company’s success. Happy employees = successful company. 4. Promoting profitability by innovation and initiative, maximizing shareholders’ wealth. 5. Be an integral and significant company in the international aviation world, while keeping it uniqueness as the Israeli national leading airline. 6. Prioritizing the destinations according to profitably and customer demand. 7. Maintaining only new airplanes. . Efficiency and saving †hideaway plans, reducing the number of offices overseas. ELAL defined the aforementioned(prenominal) goals as part of â€Å"ELAL’s 2010 toil” and is going to achieve these goals by implementing its vision. ELAL’s vision * To lead the aviation market in Israel and to be the first choice for all customers traveling to and from Israel. * To be a winning, profitable and successful commercial company that excels in all areas of activity. * To provide the highest level of uncompromised quality service, for the benefit of its customers, employees and share holders.\r\nMarketing Mix (Four P’s) The marketing fluff is the combination of several t echniques that are bring used in order to achieve marketing strategy and goals. Product * Products †ELAL offers the service of national and international flights. * Variety of products †opposite levels of services †Economy socio-economic class, Business class and First. * Services †ELAL is very service oriented. It offers its client a high level of service starting even before flight: purchasing tickets online, express online check in, luggage pick up, duty free on board, lounge and Frequent Flyer Club. set ELAL does not attempt to be a low cost company and therefore its prices cannot compete with such companies but rather with full service flying companies. It is known that ELAL’s tickets are not cheap but whoever chooses to fly with ELAL knows he will get a return on his money. * Frequent Flyer members receive free upgrades and free ticket according to their mileage. * ELAL â€Å"spontany” †a new service ELAL offers is the last legal proc eeding flights with lower prices. This is oriented for spontaneous people who don’t want to settle for service but do not want to spend much on the ticket.\r\nPromotion * ELAL promoted itself via a various media means †TV commercials, outdoor adds, Newsletters for its club members, collaboration with credit card companies which offer ELAL’s points * ELAL promotes itself as the national Israeli airline by being the official transporting airline to public organizations (like the Israeli football delegation) and well known personalities (like the President). Place * ELAL’s destinations are wisely chosen according to demand. It operates in international and principal airports accessible to many other destinations. SWOT Analysis\r\n military force * A variety of services and goods (â€Å" dramatic play Day”, â€Å"ELAL Spontany”) that enables to attract many segments in the market. * ELAL is an international brand in the field of security and safet y. * Kosher food and respecting Shabbat. * many another(prenominal) corporations with other international airlines. * Only one airplane supplier. | Weaknesses: * Does not operate on Shabbat and on holidays. * Unstable security situation in Israel reduces number of customers. * High prices comparatively to the market. * ELAL does not maintain constant collaboration with agencies abroad and loses potential market. Geographically Israel is situated between hostile countries which extends the flight courses and enlarge the duration of the flights, increase fuel expenses, etc. | Opportunities * ELAL e-ticket purchased online saves time and money and enlarges potential clients. * ELAL’s high reputation reduces advertisement expenses. * ELAL’s website is a commercial platform which reduces advertisement expenses. | Threats * Low cost companies offering cheap flying tickets. * As the Israeli national airline, ELAL is exposed to terror attacks on its airplanes. * The increasi ng prices of fuel|\r\nELAL’s main problems charge the Status Quo †ELAL does not operate on Shabbat and holidays. The company loses 15% of operational time due to its commitment to the status quo which allows other companies to enjoy ELALs customers. Expending variety of services †ELAL is exposed to a severe competition with low-cost companies. Such companies offer flights with no other extra services, airplane as an transporting mean and no more than that. Chapter 5: Recommendations and Summary Is the Company’s Marketing Mix in †tune with its markets and its objectives?\r\nWe find the companys marketing mix in tune. The company provides its products in relatively high prices. side by side(p) the latter, the prices are a derivative of security and social aspects as described. The company pays relatively high salaries in order to buzz off the level of service. Although privatized, the company maintains its objective to be the â€Å"national companyâ₠¬Â of Israel, first by slogans and continued by ads and commercials: i. e. the latest commercial staring NBA player Omri Casspi, who is, as ELAL wants to be, a national pride and patriotic icon.\r\nELAL has a much focused hub-oriented hub airport destinations, which are by definition very attractive ones. Solutions to ELAL’s main problems Keeping the Status Quo Solution: On the one hand, if ELAL decides to break the status quo, it can realize its potential market and become equal to its competitors and even create an additional competitive advantage. On the other hand, this delicate issue can create antagonism among religious passengers who are a dominant factor to ELAL. This is a problematic situation which still should be considered in order to maximize ELAL’s profitability.\r\nExpending variety of services Solution: ELAL should examine the option of offering this kind of service in order to provide its customers a larger variety of services. For example, ELAL can o perate a weekly flight to various destinations according to the low cost policy. By entering such a market, ELAL could enlarge its segment markets. This kind of decision could have a positive effect but also damage ELAL’s reputation. Summary and Conclusions As a small state, Israel does not have many commercial or social icons.\r\nMaccabi Tel Aviv, high tech and the Dead Sea are few that could be mentioned. ELAL is another one. As part of the Israeli pathos, ELAL played an important constituent in Israels short history. ELAL has evolved from a national owned company with all that entails (unions, legal politics, non-profit environment etc. ) to a profitable and role model airline. ELAL determined a strategy based on the evolving and more competitive environment around it and thrives for profit maximization as well as keeping its image as the national airline in Israel.\r\nTo do the latter, ELAL determined prices, strategic agenda and image by the aforementioned guidelines. The future will ordain whether ELAL would be able to deal with the challenges of tightened security, growing competition and ever changing political environment; up to now, it seems to be on the right track. Appendix1 †Boeing | | *Boeing 737 †700 ; 800| Total in service: 11 ; 2 picture: 4870 km Engines: C. F. M. Cruising speed: 873kph/Mach 0. 8 length: 110ft (33. 6m) ; 129ft (39. 5m) wingspread: 112ft,(34. 5m) | |  | | Boeing 747 †200 | Total in service: 1 Cargo\r\nRange: myriad km Engines: Four Pratt ; Whitney Cruising speed: 917kph/Mach 0. 84 space: 231ft 11ins,(70. 7m) wingspread: 195ft 9in,(59. 6m)| | | *Boeing 777 †200| Total in service: 6 Range: 12670 km Engines: Rolls Royce Cruising speed: 864kph/Mach 0. 83 length: 209ft 1ins(63. 7m) Wingspan: 199ft 11ins,(60. 9m)  | |  | | * Boeing 747 †400| Total in service: 6 Range: 11860 km Engines: Four Pratt ; Whitne y Cruising speed: 927kph/Mach 0. 85 Length: 231ft 11ins,(70. 7m) Wingspan: 213ft,(64. 9m) | | | *Boeing 767| Total in service: 8 Range: 10000 km\r\nEngines:  devil Pratt ; Whitney Cruising speed: 873kph/Mach 0. 8 Length: 159ft 2ins,(48. 5m) Wingspan: 156ft,(47. 6m) | |  | | * Boeing 757 | Total in service: 5 Range: 6100 km Engines: Two Rolls Royce Cruising speed: 873kph/Mach 0. 8 Length: 155ft 3ins,(47. 3m) Wingspan: 124ft, 10ins,(37. 9m) | | Appendix2 †Code Sharing Airlines| Destination| | American Airlines †Code Share flights operated by AA from Europe to the USA and flights operated by AA within the USA. To view the list of destinations. |  | Iberia †Flights between Tel-Aviv and Barcelona or\r\n'