Soviet Godfather
Vol 5 Chapter 210: Low-cost airline strategy
For the past few years, Tonya has been in charge of the operation of Mediterranean Shipping by herself. From the first two glances to the present, Tonya has learned a lot. The shipping industry has created a large number of world-class billionaires due to the economic boom brought about by the reconstruction of Europe after the war. The most famous of these is the Greek ship king Onassis who married Kennedy's widow Jacqueline. However, in the 1980s, as the global economic growth fell into a low ebb, the shipping industry was also facing serious overcapacity.
This is a disaster for all shipping companies who are used to the days when they can make money casually in the past. Freight revenue began to decline continuously. In order to attract business, shipping companies had to reduce freight rates time and time again. As a result, the cruel price war turned the global shipping industry into a red sea. Batch after batch of shipping companies fell, and the busy cargo ships in the past were abandoned in the docks, and finally sank to the bottom of the sea as artificial reefs. And those super freighters that were booked at the shipyard were abandoned one after another, and the ship owners would rather pay liquidated damages than continue to build them. Tonya entered the shipping industry at this time. With the support of the Gorky Brotherhood and Tonya's keen business talent, Mediterranean Shipping began to flourish in Tonya's hands, stepping on the corpses of her peers and growing into the world's second largest shipping company.
The secret of Dong Niya's business is, in the final analysis, only one word, that is, saving. In order to reduce the cost as much as possible, Dong Niya has taken the word saving to the extreme. Relying on a province word, the business that lost money will make money here in Tonya, and the business that others can barely make money, this can make Mediterranean Shipping Company earn more. This business strategy was also transplanted to this company after Tonya took over Southwest Airlines.
Dong Niya just acquired this company for a month, and soon released a series of reform measures. Southwest Airlines cancelled business seats and first class on all flights. Instead, more ordinary seats were placed. And the customary meal service on the plane was also cancelled by Tonya, and only a few common drinks and peanut popcorn were provided on the plane. Tonya even replaced the Southwest Airlines boarding pass with plastic, so that passengers can recycle them after they board the plane.
After this series of streamlining, the financial department of Tonya’s accounted for costs and found that their fares can be quite jaw-dropping, basically equivalent to the price of long-distance buses in the United States. This result even Sergei admired. Sergei discovered that he had always ignored this advantage of Tonya's character. Tonya was the first woman Sergey Shah established an intimate relationship. His life is completely different from that of Kalim, who is the daughter of the president, and Eva, who studied in the top universities in the United States. Tonya had to worry about the financial situation of her family very early. This is probably the real reason why she is so good at cost reduction.
After more than a month of reforms, Southwest Airlines has started to welcome customers with a brand-new corporate image and service. Sergei designed a new gratitude for Southwest Airlines, that is, low-cost airlines. Specialize in grabbing the market with American long-distance buses. Airplanes have an absolute advantage over long-distance cars in terms of speed. If the price is really reduced to that of long-distance cars, who would make a bumpy and long car.
In order to accurately put the marketing concept in front of customers. Tonya deliberately distributes advertisements along the interstate highways in the United States. The tall billboards on both sides of the highways have become Southwest Airlines' main marketing methods. Because the most readers of these billboards are the passengers on the bus, it is much more cost-effective than advertising on TV. You must know that the price of TV advertising and the price of billboards on interstate highways are simply sky-different. do not.
Dong Niya blindly cut costs, but also did not forget to win people's hearts, in order to make the Southwest Airlines staff more stable. Tonya launched an employee stock dividend plan within Southwest Airlines, so that every employee can share the company's interests. Although it is too early to succeed, at least there is not too much resistance in the reform process.
Xie Liaosha now calls to discuss Southwest Airlines with Tonya every day, because Xie Liaosha feels that Tonya's cost-saving skills are really useful. Perhaps the high-tech company in Eva's hands is not so sensitive to cost issues because of profit margins. However, for those manufacturing companies and already very mature industries, the lower cost than all competitors is simply an unavoidable ability. This is precisely the ability that most state-owned enterprises in the Soviet Union lack. Especially in oil, natural gas, electrolytic aluminum and other industries. The cost of state-owned enterprises in these industries is too high, and such cost control capabilities cannot survive the downward oil price environment.
The new business strategy caused Southwest Airlines to lose a large number of old customers~www.wuxiaspot.com~ They are basically high-end customers of Southwest Airlines. The profit contributed by a single journey is very high. But Tonya knows that these people are more suitable for Pan American, Delta and United Airlines, rather than Southwest Airlines.
These difficult days did not last too long. Southwest Airlines' flight attendance soon began to rise rapidly, until it finally exceeded the original level. A large number of working-class people have replaced the original Southwest Airlines main customer group as the new service target of Southwest Airlines. And Dongnia's business strategy finally won the unanimous recognition of Southwest Airlines from employees to partners.
Schwarzman originally thought that Tonia would buy Pan Am because Mediterranean Shipping has always been rich in investment. Last year they also took over the board of directors of Volkswagen. But I didn't expect that Tonya would actually play a new trick with Southwest Airlines, the little-known American domestic airline. Low-cost airlines, no one can think of such a peculiar concept.
Because the development of Southwest Airlines has been so smooth, Tonya began to win over her friend, Yuri’s lover Jie Jinna, and her in partnership. Jie Jinna is also idle anyway, trying to find something interesting to do. Jiejinna and Tonya were flight attendants who entered the Soviet Union's civil aviation at the same time, and they are not entirely laymen to the aviation industry.
Jie Jinna didn't come to Tonya empty-handed. She brought a bigger gift, which was the cheap hotel chain Ibis that Yuri acquired in the early years. Low-cost airlines and budget hotels join forces to fight the Jumbo airliners and luxury Intercontinental hotels of major airlines. Which way of operating is correct? This has yet to be tested by the market. ...
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