American Abyss Express (AAE) is a new company that has been started to seek opportunities in temperature-controlled ground transporting services. AAE seeks to do business with small entities in diverse areas around the globe. The company seeks to advance in becoming a leading temperature-controlled ground transporting company, providing business with the opportunity to move their products from one part of the world to another. The company offers varied types of services from logistics to brokerage services. The company has developed two strategies of marketing, which are internal and external. The internal strategy entails the perspective that their clients develop towards their services. Therefore, the company markets its services internally through the provision of quality customer care services.
The external market that the company will employ is advertisement through mainstream and digital media. The company intends using segmentation strategies that will prove effective in serving their customer base. Segmentation will be carried out through demographic and geographic features and characteristics influenced by the needs of their customers ( Barcik & Jakubiec, 2013) . The company looks forward to advertising their services mainly through mainstream that is, TV and newspapers. Other sources of advertisements will be social media which is mainly used by the younger generations. The company will not only be restrained with mainstream marketing strategies but also public relations, corporate social responsibility activities.
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The main competitors of the company are Amazon, UPS, and FedEx which are increasingly dominating the logistic market share globally. Their competitors have various ways of attracting their customers. Amazon has strategized on keeping its prices relatively low and offering diverse product types ( Roberts-Lombard, 2010) . UPS and FedEx have employed a dimensional weight pricing strategy. It is the main type of pricing in the air transport business, calculation of the length, width and height of the products. The three competitors are using distinct pricing systems since they also have a different models of operation. Amazon has mainly dominated the online form of running the business while the remaining companies have reserved on offline type.
The company has the potential of expanding its activities and operations globally; this will give the company an opportunity to increase its profitability and stock prices. The company has a leeway of rising to an advantageous pose in the global market. The company has an opportunity to diversify on its portfolio with the aim of providing its customers with a better experience. The company should also adopt new innovative strategies of payment that can encompass its online running of activities.
Governmental regulations are constantly changing; this will restrain the business functionality and proper exploration of the business. The financial crisis is a good example that may cripple the company’s functionality. The company faces stiff competition from various companies that run the same business that might require a lot of effort to secure customers. AAE faces a threat of bad debts which might also be a problem to its operation. The company also faces the financial uncertainty nature of the volatile economy that threatens its operations.
Governmental actions challenges lay a hefty burden on AAE, and there are a lot of multiple taxes and charges that are very high than even the price of the ticket. The taxes and levies made by the government are not used for the development of the sector. The taxes and charges that are made by the government have a huge impact on demand for air travel since they disproportionately hike the total price for the tickets. The security measure that is increasingly being introduced to the air transport burdens the air business with additional costs for airlines.
References
Barcik, R., & Jakubiec, M. (2013). Marketing logistics . Retrieved from http://www.slu.cz/opf/cz/informace/acta-academica-karviniensia/casopisy-aak/aak-rocnik-2013/docs-4-2013/Barcik_Jakubiec.pdf
Roberts-Lombard, M. (2010). Employees as customers-An internal marketing study of the Aviscar rental group in South Africa. African Journal of Business Management , 4 (4), 62.
