Retailing in China

Therefore, the aim of the present study is to work out a high-level plan of successful localization trainees. By analyzing the status quo of Chinese retail market and the current situation of transnational retailers in China (including the case study of Careful), this paper explores how consumer behavior, culture and government roles can affect the localization strategy and creates a list of formats for successful localization strategies. The paper proceeds in four sections.First, the concept of retailing localization (3 layers of localization) is Introduced as an antidote to the deficiencies of the prevailing study approaches to transnational retailing. One background sections hen follow. While the first part charts the status quo of Chinese retailing market and the rapid growth of transnational retailing, the second profiles the opportunities and threats transnational retailers face in the process of localization.Then, by studying the case of Careful (China), the strategy analysis of localization in China for transnational retailers is profiled, including the analysis of the 3 layers of localization – namely localizing the strengths, localizing the products and operational system (ups) and localizing management and corporate cultural (PEP). Finally, the wider implications of this study for transnational retailers in the process of localization are put forward in the concluding section. 1. Introduction 1. 1 The Problem and the Study Objective Admit it or not, the relationship between transnational giant retailers and China has become a love-hate one.On one hand, China Is virtually any retailer's largest opportunity for growth In the 21 SST century. With its booming economy, fast growing domestic markets and untapped talent base, China offers massive business opportunities and great strategic importance for retail companies all over the world. A large and growing consumer base of 1. Billion people. National retail sales reached some 837$ billion in 2005 with an increase of 12. 9% over 2004 It is estimated that national retail sales will exceed some 1250$ billion in 2010. Source: http://www. Showbiz. Com. CNN/ SMS. PH? Org=show=33431 =l On the other, China's unique cultural, business, and political environments pose significant challenges to transnational retailing operations that require a high degree of localization. Based on the fact that the localization of retailing Is much more complicated and comprehensive than other Industries, retailers usually find themselves puzzled and bewildered 1 n China. Indeed, many retailers have fallen prey to these challenges in the past 10 years AT operations In canal toners nave Eden unrolling extreme narrators In ten process of localization.The concrete causes of their problems vary. However, one common underlying characteristic is that they all, to some extent, failed to conduct successful localization strategies. The initial objective of this paper is to look at the problems retailers have en countered and explore the flaws in their localization strategies. The present study has one more objective: to work out a solution to a racial problem about how the transnational retailers can deal with the socio- cultural differences in China and conduct successful localization strategies.On the surface, these challenges appear difficult to overcome; yet, when we study the case of the multinational retailing corporations operating in China today, it is evident that some have achieved exceptional success based on their well-developed localization strategies. The experiences of these successful companies can be mined to create a list of formats which can help diagnose localization blunders of transnational retailers in China. Thanks to my internship experience with Chuan as Sale Management Trainee, I have been able to investigate retailing operations as an insider and had more profound understanding on this study. . 2 Current Study The uniqueness of Chinese retail market and the high demand of localization for retailing industry both in degree and content, make the research on the localization of transnational retailers in China an extremely interesting and meaningful one. While many previous researches have been focused on the localization of transnational corporations, only a few have explored the localizing strategies of retailing operation. Therefore, it is not an easy task to study the localization of retailing operations.However, by referring to those previous studies in relating fields, I have been able to explore deeper about this subject. The study of this paper is based on a mixture of primary and secondary sources. This material is supported by critical examination of longitudinal data from annual reports, company documents, as well as scientific work of business magazines and web site. 2. Localization 2. 1 The Definition of Localization When a company conducts global expansion, it is surely to be involved into the process of communication with local customers.It is therefore necessary for the company to get familiar with local culture, to study different customs, and to make proper adjustments to their strategies according to the varied response of customers. The executive of Careful once said 2 when doing market research in China that, â€Å"A store is a miniature of the country or city it locates in, so it should be adapted to the local environment. † There are many definitions on localization from different angles. Some of them are based on cultural and linguistic context, some focus merely on localizing the products.However, as for he definition of retailing localization which is a highly territory-embedded process, more practical and multidimensional view is required. Definition based on culture context According to the Localization Industry Standards Association (LISA), localization Involves: ‘alkali a product Ana making It linguistically Ana culturally appropriate to the target locale where it will be used and sold. ‘ 2. 3 Three Layers of Localization for Transnational Retailing 2. 31 Two Misconceptions of Localization A. When talking about localization, people usually focus merely on product or service.Nevertheless, a successful localization strategy for retailing is much more complicated and comprehensive, including also the localization of operating system , management system ,even corporate culture and business ideas. B. A very important aspect of localization is usually ignored, that is, to bring in and localize the advantageous strengths of giant retailers. To retain their core values and stick to their distinct features are the requirements of localization for transnational retailers. In other words, localization and sticking to their uniqueness or strengths never contradict with each other.Instead, a sound localization occurs under the precondition that the strengths are maintained and enhanced during the process of development and adjustment. 2. 32 Layer 1 : to Localize the Strength of Giant Retailers A. Strength of giant retailers When talking about the localizing of strengths, it is significant to identify the strengths of giant retailers in the first place. Giant retailers have achieved great success in the world market largely because of the competitive advantages developed over decades of operation. Indeed, marketing and distribution expertise adds value at foreign-owned detailing stores.For Chinese consumers in particular, who are increasingly conscious about food safety and hygiene and getting sick with the environment of traditional Chinese markets, transnational retailers offer greater reassurance and a wider choice than traditional markets. ‘Compared with a Chinese supermarket, the service is better, the choice is wider, the food is fresher and they provide shuttle buses,' said Yang Shaping, a retired woman who spends about 100 Yuan during her weekly shopping trip to Wall-Mart. (The Guardian, 25/3/2006) The strengths of giant retai lers are listed as follows: a.Abundant capital, their scale, a stable flow of finance and rapid turnover b. Advanced technology and advanced distribution, logistics systems c. Advanced marketing and management experience 3 d. Well-established global competitiveness, corporate image and culture B. Three phases of localize the strength While it is important to note that transnational giant retailer have their strengths , more attention should be paid to the localization of these strength due to the fact that no business idea or system can achieve success by simply copying unless they are made suitable to the local market environment.Wall-Mart's Cam's Club is a good case in point: The most important feature of Cam's Club is that it is located in the countryside. It has achieved great success in the United States, however, it turns out to be a total failure in the Chinese market because only a small proportion of Chinese people own private cars. What's worse, the transportation system i n China is far from well-developed. Consequently, city dwellers have difficult access to Cam's Club located far away from their home. Realizing this problem, Wall-Mart soon decides to open stores in the cities to accommodate itself to the Chinese market.To localize the strength, the first step is to bring in advanced technology and management system to a foreign market for that is exactly winner ten AAA value Lies In. I en Toweling step Is to accost tense strengths to certain economic and cultural environments. Next, after localization reaches certain degree, hopefully, this strength can be further developed. 2. 33 Layer 2: to Localize Product and Operational System According to Farley dictionary, retailing is the functions and activities involved in the sale of goods and services to consumers for their personal, family, or household use.It is obvious that retailing as an industry has intense communication with consumers, the service retailers offer is, by large extent, to provide c ustomers with products they need. Due to different culture, custom, demographics, different group of people in different region have varied tastes over products. Therefore, retailers have to make careful investigation and analysis into consumer behavior and preference in order to enhance consumer satisfactory. A thorough localization strategy in product structure is critical to transnational retailers.As for sourcing, localizing the sourcing in local economy enable transnational retailers to meet needs of local customers and reduce delivery cost. Top retailers have come up with a series of advanced business modes and operation system during long time of operating experience. But this modes and system should be integrated into and modified with local environment and uniqueness, as explained above in the elaboration of the first layer of localization. 4 3. Retailing Transnational in China 3. The Status Quo of Chinese Retail Environment Like everything else in China these days, the cha nge of retail market is at a spectacular speed and on a scale the world has never seen before. It is already one of the fastest expansions in retail history, but analysts say it could get faster as international giants race for territory in a $billion retail market that is growing at a double-digit pace. The domestic supermarket leader is Baling, with nearly 2 000 stores, and the foreign legion is led by Careful, which has 70 hypermarkets, eight supermarkets and more than 100 discount shops.Wall-Mart currently has 56 megastars mostly in the southeast with about 30 000 employees. But even after it opens 20 more stores this year, its sales are unlikely to enter the top 10 of China's major retailers. Germany's Metro is the No. 4 foreign player, with 24 stores and another 40 within five years. Foreign investment has formerly been focused in Shanghai, Beijing, Sheen and other large eastern cities. But, as a sign of the growing power of Chinese consumption, many of the new shops are being opened in smaller cities. 3. Opportunity and Threat Analysis 3. 21 Opportunities for Retailing Transnational There is no shortage of incentives for foreign retailers in China. For many Chinese people, price is no longer the priority. Foreign retailers are also Telling It sealers to set up snoops Decease many restrictions n overseas firms were lifted in 2004 under China's World Trade Organization commitments. A. The largest consumer market With a population of 1. 3 billion and massive markets, China is attracting intense interest from the world as a consumer market.Over the past 20 years, retail sales in China have Jumped nearly 15% annually, to some $837 billion in 2005 making it the third-largest market on earth. The average annual income of China's 1. 3 billion people is less than $1 500. But the middle class is growing fast particularly in eastern cities and it has enough disposable income to start focusing on brand, safety, quality and taste. Consumer demand for modern shopping environment Since the mid sass, the high demand for modern shopping environments in China has been growing due to the rapid economic growth and rising levels of affluence. And consumer expectations have shot up even faster.Accompanied by the increase of purchasing power in China since then, both traditional supermarkets and department stores were not be able to meet the requirements of one-stop 5 shopping and shopping as leisure. Just a few years ago, most Chinese were content to line up in state-owned stores to buy whatever meager products were available, ND then shuffle off to unsanitary outdoor markets for meat, eggs, and vegetables. Now both local chains and the multinationals are pushing out the stodgy old state retailers and mom-and-pop shops by building big, convenient stores in central locations in Beijing, Shanghai, and Gunshot.Huge mass retailers emerged by providing customers with a great variety of goods at low cost and one-stop shopping. Therefore, it is undoubted a go lden time for retailers to enter a market that shows great assurance to them. For example, Macro from the Netherlands first entered Taiwan and quickly captured more than 30% market share in 1989. B. The change of policy from a protectionist orientation toward liberalizing In keeping with the conditions for China's membership in the World Trade Organization, Beijing on Deck. 1, 2004 lifted most restrictions on foreign retailers. Gone are limits on the number of stores, rules confining them to large cities, and regulations capping the foreigners' stake in local ventures at 65%. C. Regional advantages of Chinese market Cheep and sufficient labor resources: with its vast population, China is always able to provide transnational retailers with abundant labor force which requires relatively low ages. Moreover, Chinese employees are far more reliable than their counterpart in the host countries of international giant retailers.Cheap merchandises: the cost of many products in China is much less than in developed countries because of the cheap labor, which allows transnational retailers to make reasonable sourcing decisions both in China and the world. 3. 22 Threats for Retailing Transnational Given all the opportunities presented by China's growth, many NC retailers are eager to gain access to this market. The country unique traditions, history, culture, and overspent policies, altogether mean that doing business in China can be a complicated and time-consuming undertaking.Foreign retailers interested in gaining access to China face lots of challenges which they must attempt to solve or they will turn away. A. Intense competition from both transnational and domestic companies Competition from transnational companies There has always being fierce competition Detente gallant retailers In ten essences market; no one wants to De lagged Denver. As Tiff Gill, senior manager of the Kurt Salmon Associates Consultancy said, ‘All the big players are engaged in a turf war. It is about being first and getting as much coverage in as many cities as possible.This is a period of very aggressive growth. We are bordering the top end of the curve. But there is a possibility that investment could grow even faster. ‘(The Guardian, March 25, 2006) Many U. S. And foreign retailers are accelerating their investments in China, spurred by further easing of government restrictions and the allure of the world's fastest-growing consumer market. These giant retailers are engaging in fierce competition, opening many new stores in order to take advantage of the high rates of growth in this segment of the detail market 6 B is also pushing hard.The British firm's owner, Kingfisher, plans to increase the number of its stores in China from 49 to 100 by 2010. Kea has also caught the expansion bug. For several years, it has had only two superstores in China, but it plans to open two a year from now on. Competition from Chinese domestic companies Chinese sellers have the edge over foreign rivals, strengthening their presence more rapidly at lower expenditures. Their understanding of the local market and well-developed sales networks enable domestic retailers to respond more quickly and react more flexibly to market changes.With the foreigners attacking their home turf, Chinese retailers are fighting back. Take China Resources Enterprise Ltd. , which operates more than 1,700 supermarkets and hypermarkets, including China Resources Vanguard stores for example, the retailer has trimmed its staff to boost profitability, and has sought to improve management by raiding the foreign chains. Today nearly half of the middle and senior managers in Acre's retail unit used to work at foreign-owned stores. Those foreign-trained managers have brought in marketing expertise.For instance, to build brand loyalty, CREE rewards frequent shoppers with discounts, and the company has lolled out more than 60 private-label products, including bottled water, shampoo, and bod y lotion. And CREE is moving upscale. The company this year expects to open four â€Å"lifestyle† stores offering higher-end products. Plans call for an additional 20 such stores within three years. Chinese government's ultimate goal is to create a dozen or so big local players that will be strong enough to compete with the multinationals at home and expand overseas.It is not possible for the Chinese government to allow foreign retailers to take the dominant position in the Chinese market. B. Diversified consumer behavior Chinese people have their own unique characteristics, considerably different from, sometimes contrary to, that of Westerners. Consequently, Chinese consumers have their unique buying behavior, buying motive, their preference on merchandise and taste on design etc. Therefore, the marketing strategy to penetrate Chinese market should be tailored to these Chinese characteristics. Unique Chinese characteristics * Chinese adapted to catering to authority and to h armonize with others. Chinese have more interest In unman Telling Ana mementos than clientele or logical concerns. In terms AT KICK read, literary books rate more highly than scientific books, compared with westerners. 2003:128-161) Chinese culture is built on trust, relationships, and mutual respect. * Negotiations are normally bottom-up and informal. (Comfort, J. 2001 : 23-26) *The concept of face' is very important Avoiding action that could be perceived as anti-china, coercive, or condescending. Chinese purchasing behavior and recent trends * The Chinese display a strong suspicion of cheap products combined with a desire for bargains.The typical Chinese shopper engages in habitual comparison shopping rather than 7 impulse buying, typified by the saying, ‘Never make a purchase until you have compared three shops. ‘ Nevertheless, shoppers quickly snap up items perceived to be bargains. * Generally speaking, Chinese are fickle customers with little brand loyalty. (Kate- if, lee 2003: 10-13) When selecting purchases, the Chinese tend to attach more importance to the reputation of the item among the community they belong to, such as colleagues, friends, neighbors than to the performance of the goods or how well they suit their lifestyle.Thus, penetration of all communities is important for successful marketing in China. * Laying great emphasis on freshness f food: * There are also numerous new trends for Chinese consumer, which makes it difficult for overseas retailers to sensor and follow. A. Being increasingly conscious about food health and hygiene b. Issues of obesity and nutrition amongst children are also of increasing concern. Double-digit growth in the fast food and snack industries, changing lifestyles and a uniquely Chinese legacy – the one child policy -? are key drivers. C.Concerns focused on environment, safety have accelerated in the wake of CARS, avian flu and widespread pollution, prompting a wider consciousness about product s afety – from ice cream to I-pods. And, while perhaps sporadic and not yet conscious, a linkage between consumer rights and wider environmental concerns is beginning to emerge. D. While still evolving, the expression of consumer rights in China marks an important stage on the road to a greater collective social conscience, which, for so long, has opted to be quietly oppressed by those in authority. 4. Localizing the Strength Giant retailers have all establish a prestige during long time of operation. Yet, in China they may encounter unexpected situation result from the uniqueness of Chinese market. Consequently, retailers should be clear about what detergents can remain effective and what should be changed and localized. While Careful draws on its network system in its global operations (e. G. For certain IT and logistical systems), most aspects of its activities are strategically localized to meet the specific characteristics and needs of the Chinese market and its business, political and consumer cultures.Generally speaking, the key success factors for Careful, which are applied worldwide, are: one-stop shopping, extremely low prices, full range of choices, self-service, and free parking. These factors can be viewed as the strength of Careful. To remain competitive in China, Careful bought in these strengths with her, adopting flexible two-stage philosophy to localize her long-established strength and achieve stable growth. At the 1st stage, to enable branch stores to smoothly operate as fast as possible and to maintain high turnover.Meanwhile, to decentralized authority of set-up branches to link with community development that Totally leads ten Increases AT local tax, employment Ana Turner proselytes AT communities, Careful decides to set up a new store after the investigations of location, store space and neighboring purchasing power. For example, she built a whole-selling or green store in industrial region and a general retailing or blue store in residential ones in Taiwan. By adopting this strategy, Careful could capture both big and 8 small accounts in one shot and then grow much faster than her rivals in the early stage of market entry.At the 2nd stage, Careful focuses on customers, personnel training and market channels. She gradually enhances service quality, product innovation and emphasizes personnel cultivation. Frenchmen take the positions of top-level management constantly to infuse management philosophy of ‘serve customers' and ‘action orientation' into each store overseas. When walk into any stores of Careful, you will see many staff walk around to replenish stocks all the time. The manager in charge of a store also wanders around the store once it is open.Careful further adopts strategic alliances to develop private label products to supply more offerings so as to meet the needs of one-stop shopping of Chinese people. At the same time, utilizing the system of commerce automation to centralize the pur chasing matters of all stores, Careful could coordinate orderings, stock management and data processing for better control and decision-making. . 33 Public Relation In China, the localization of relation is the core of strategic localization. Chinese people pay special attention to the harmony of community.To deal with ‘relation' in China is a matter of delicacy to transnational retailers because, for one thing, the relation-business pattern is very much different from their operation in western countries; for another, it is essential to their success in the Chinese market. The most successful retailing companies have been willing to exchange short-term profits for long-term success, short-term employee productivity for long-term employee development, and short-term expedience for long-term government trust. Relation with government As a special Chinese characteristic, good government relationship is very important for companies.The government is not only a major consumer (gov ernment procurement) , but it is also the main policy maker and opinion leader. Learning how government works and how to establish good relationships is a critical step. A foreign company that is considered a friend o government will be granted favors such as a heads-up on legislation changes or inside advice on how to do business. Conversely, a company that is deemed unfriendly will suffer consequences such as negative comments about its products or passage of laws that exclude it from doing certain business.Getting on the wrong side of a key government agency can be disastrous. Interestingly, Carouser's relationship with the Chinese government is a love-hate one. She has made full use of the loopholes in government regulation to dominate the Chinese market, while at the same promoting employment and improving living standard. Relation with Partners Careful is good at choosing and maintaining local partners. She is always n seek of experienced local retailers actively and establish ing cooperation with them to get Tambala to ten local market as soon as poss. Ole Ana gain support In sourcing, human resources. 9 5.Conclusion Further Implications for transnational retailers operating overseas Improving crisis management capacity When operating in foreign country, retailers are always confronted with problems. What transnational retailers need to do is to improve crisis management capacity. Take Wall-Mart's bean curd crisis for example, instead of responding to the problem actively, it remained science long before giving a suitable explanation, which had ruined its image in Gudgeon seriously. When facing crisis, it is important to make quick response because silence may be interpreted as being indifferent and irresponsible by local consumers.Then, active investigations should be carried out immediately to find the causes. Finally, the existing problems need to be solved as soon as possible. Shaping humane culture That most retailers prefer on- going promotions to attract new customers and retain old ones is totally different from everyday low price and no price promotion practices of Wall-Mart. An open and tolerating culture of Wall-Mart could endure over time because managements treat employees as their associates. They show respect to each other and share both profit and knowledge that lead to the creation of a harmony organizational climate.Therefore, companies ought to develop themselves not as a workplace but a learning institution with the culture of caring and sharing. Combining sales channels Retailers could combine sales channels of physical stores and virtual ones to widen their accessibility to potential customers. The virtual shops could not only increase attention sales, but also accumulate market information for further investigation. Regarding localization as a two-way process Localization needs to be read as a potentially two-way process that is not simply about the transnational retailers adapting themselves to specific mark et conditions.Certain retail formats and technologies developed in particular contexts may then be diffused to other country operations, including the home market. Samsung-Tests, for example, has developed an IT system that has subsequently been rolled-out across the company, and is currently home to a ‘global' team working on e-commerce technology. The emergence of China will be the single most important economic event in the next decade. Along with it will come tremendous business opportunities, a large pool of talent, and many powerful companies.The stakes are high for retailing company. If it fails, another company or product could become a Chinese national standard, its products could be excluded from government procurement, and its image could be destroyed. If it succeeds, it stands to gain sustainable and predictable profitability, win-win partnerships with the Chinese government and companies, and great employees from a pool of amazing talent. This paper describes a hi gh-level plan of how to achieve this success by localization in China, by learning from other companies' success and failures.First, a company must localize 10 Localization strategy AT Remonstration Retailers In c in 3 layers. Then, these strategies should be adapted to unique Chinese characteristics. In addition, giant retailers needs to improve crisis management capacity, shape humane culture, and develop greater information system. By carrying out the proposed strategy of localization, retailing companies can realize their potential in China by assisting China to realize her potential in the 21st century. 11

El-Al Marketing Analysis

El-Al Marketing Analysis El-Al Marketing Analysis Table Of Content Chapter 1: Introduction Executive summary†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦4 Bibliography†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 5 Chapter 2: An overview of the company Overview of the company†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦6 History†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢ € ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦7 Definition of the business†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 8 Chapter 3: An analysis of the company’s business environment Firms industry and macro environment†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 9 The PEST Model†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 10-12 The industries competitive situation using Porter’s 5 Forces†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦. 13-15 Market segmentation†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â ‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦. †¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦16-17 ELAL’s Attractiveness †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦. †¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦17 Chapter 4: The Company’s Marketing Overview Mission Statement, Objectives and Values†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 18 Marketing Mix (Four P’s)†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 19 SWOT Analysis†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 0 ELAL’s main problems†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 21 Chapter 5: Recommendations and Summary Is the Company’s Marketing Mix in – tune with its markets and its objectives?†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 22 Solutions to ELAL’s main problems†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦. 22 Summary and Conclusions †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 23 Appendix 1 – Boeing†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 24 Appendix 2 – Code Sharing †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 25 Chapter 1: Introduction Executive Summary 1. ELAL is the leading airline in Israel. In the past it was a government owned company until privatization commenced on 2003. 2. ELAL owned several dozen aircrafts, which are used for international and lately national flights as well. 3. ELAL hires thousands of employees and has several subsidiaries as well. 4. ELAL's narrative is defined by the ideal of being the number one airline for passengers from and to Israel. ELAL is constantly walking the thin line regarding the political status quo. ELAL maintains its religious crowd by keeping the Shabbat on one hand, and losing potential revenues by doing so. This narrative is implemented in the outline of ELAL's marketing agenda, ever claiming that it is Israel's national company and by launching numerous patriotic campaigns. As part of this agenda, ELAL serves kosher food as default. 5. ELAL is in a satisfying financial situation. ELAL is growing constantly; revenues, stock value, ROE and net value are growing in a healthy manner. The company survived impressively the latest financial crises. 6. ELAL prices its flights relatively expensive, offering the passengers non-compromising security, safety and service standards. As part of this agenda, ELAL keeps its technology in a state of the art level, using new and improved American planes. 7. ELAL offers transparent and non-transparent services, such as constant flyer benefits on one hand and code-share agreements on the other. ELAL could â€Å"hide† its disadvantages by exploiting the benefits that globalization offers, with emphasis on international collaboration and offering combined services to its clients such as hotels, car rentals and others. 8. ELAL's current and future challenges will be defined and influenced by the constant entrance of national and international competitors. ELAL will have to emphasize its advantages, maintain its technological and marketing images. Bibliography 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 company Overview of the company EL-Al (hereinafter â€Å"the company†) is one of the greatest Israeli symbols. It was one of the most famous trademarks of the small state. The company's story intertwined with Israel's origins. The company is operating in a â€Å"national† state of mind, aiming towards patriotic emotions based on the Israeli narrative of pride, safety and security. The company markets and considers itself as a national service provider, submitting itself to the whims and needs of the country. Not once the company has been involved in security or social operations (the joint confidential operation of bringing Ethiopian Jews to Israel), even in the price of losing money (i. e. not flying on the Shabbat), all in order of keeping the image of the national company. The company traditionally operated international flights alone, but lately it operates domestic ones as well. The company's headquarters and mother- airport are located in Israel's international airport â€Å"Ben-Gurion†. The company has evolved and changed throughout the years, and has varied its basic definition from a government organization to a private company. The privatization has been complete mid-2000's (that is less than 50% of company shares are kept in by the government). The 2nd decade of the 21st century will colored by security issues, ever growing competition and the continuation of the privatization process. It will be the first decade in the company's history that it will have to deal with strong competition over the Israeli customers, since the monopoly is finally over. EL-Al will have to adapt, and has already started, to a ruthless competitive market. This paper will deal with the company's strategies and marketing agenda and status. History â€Å"EL-AL Israel airways LTD. † was incorporated and became Israel's official airline company on November 1948. The company was incorporated as a national company fully owned by the government. The company's fleet was based on second hand American manufactured airplanes. In the first couple of years the company made only commercial passenger flights, and since 1950 it commenced cargo flights as well. The D. N. A of the company was heavily influenced by the political scene in Israel, creating an ongoing non-Sabbath flying and kosher food serving. One more influence that helped to position the company's image in Israeli society was â€Å"patriotic† and historical flights: bringing Jewish communities to the new states, from Arab countries and India. One memorable flight was the one bringing Nazi war criminal Adolf Eichmann. In the mid 50's EL-Al conducted two several actions: transatlantic flights and the purchasing of British airplanes. Later on a purchase of Boeing 707 was made. On 1960, for the first time, EL-Al became profitable. The 60's were a successful decade for the company, growing from year to year and demonstrating respectable financial figures. The good fortune of the company commenced at the end of the 60's. Security issues were magnified due to several terrorist attacks. EL-Al took some adventurous decisions, starting with the purchasing of expensive Boeing 747 aircrafts. The latter purchase was too expensive for the short run, as expenses exceeded revenues in a large magnitude. On top of things, due to inner political reasons EL-Al suffered strikes and some other political influences (see chapter). The most outlined event of the 80's was the collapse of the iron screen, revealing a wide spread bundle of new flight destinations. The 1990's were a decade of coming changes, as privatization voices started to be heard. These voices were boosted thanks to the uprising charter flights and decreasing numbers of tourists in Israel. Another major negative effect was the 25% increase in fuel prices. The uprising competition and environmental changes forced the company to tend 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 Stock Exchange. This process continues as more and more shares held by the government were sold to the public. Definition of the business EL-AL is a publicly traded airline company. It is traded on the Tel Aviv Stock Exchange (â€Å"TASE†). EL-AL provides international and domestic flights. It also provides shipping services and touristic ones as well. General Details The company owns a 37 aircraft fleet, all manufactured by Boeing (737,747,757,767,777). The company flies to 38 non-stop service destinations worldwide and has 440 weekly departures. The company employs 5,847 workers and is one of the biggest in Israel in that factor. The company has business relationships in the form of code-share agreements () and domestic service tourism providers. The company has a frequent flyer club. The company conducts its financial reports by IAS 34, and has adopted the IFRS international code. The company is owned by several owners besides the public, and some of its owners are investment houses. The full control list is as follows: The company has increased 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 industry and its macro environment The business environment in which ELAL is performing is the civil international aviation arena from and to Israel. Political Environment – The company competes with other 103 flight companies that work within the Israeli territory. ELAL, which started as a governmental company, worked and still working according to the government decision since 1977, this decision, determined that ELAL will not work or fly neither on Shabbat nor on Jewish holidays and therefore it does not fulfill its maximum revenues potential. ELAL is the leading aviation company that works within the Israeli territory flying in and out of Israel. Social Environment – ELAL owns several subsidiary companies, which deal with a variety of complementary goods and services for the aviation world. One its main fields is cheap flight to Europe 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 industry 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 many more subsidiary companies in the following areas: renting flight supplies, transportation of cargo and maintenance, selling duty free products and converting currencies during its flights. Seasonal changes in this area and the fact that the world is becoming a global village forces ELAL to adjust 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 existing ones, and adjusting human resource. These factors can bring ELAL to be a leading 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 affecting its business choices. One 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 few years ago, ELAL had to decide whether to stick with one airplane supplier – the American Boeing (Appendix1) – and to renounce the European airplane supplier – Airbus. After examining the business aspect, it decided to equip itself with the Airbus airplanes due to their more attractive price and cheaper maintenance costs. However, in 2004 the U. S. overnment pressured the Israeli government (ELAL’s owner back then) into working exclusively with Boeing and therefore ELAL did not have any other choice but to do just that. * Until 1992, ELAL flew seven days a week until a political decision was made – to prohibit flying during Shabbat and Jewish holidays. As a consequence, ELAL’s operational time decreased by 15%. In fact, after 2005 when the company w as privatized, it was decided that even though they were no obligated to do so, ELAL would keep the Status-Quo by respecting the Shabbat law (a strategic way to gain religious public adherence). Israel is geographically located 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 different destinations. The fact that Israel does not have good relations with many countries in the world, limits ELAL’s destinations. Moreover, the delicate security situation in Israel forces ELAL to make excessive security examinations within Israel and overseas. This security policy creates a massive cost to the company. As a result, today ELAL is well-known for its security achievements. Economical * The Global Village – the world is becoming a big global village. People are flying more and more, from and to many places. As a consequence of improvement in financial opportunities and shorter flight duration, they divide their vacations into many small vacations during the year. This economical factor brings to abundance in the financial situation in general and in the flying industry in particular. Nowadays ELAL is focusing on international destinations being affected by the world wide economical changes, such as last financial crisis in 2007. The competition with many other flight companies is growing intensively. ELAL must take action in order not to fail in the competition, usually this means either to lower prices drastically or reducing operating expenses. * There is an ongoing decrease in the incoming tourism for the last decade. Due to security and political situation in Israel, many tourists prefer either to fly with foreign companies or not to fly to I srael at all. According to statistics, in 2009 2M tourists visited Israel, a decrease of 6% from 2008. * Increase in gasoline 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 amount of Israelis traveling abroad. Nevertheless, there has been a large increase in Israelis travelers overseas at about 10% a year. This fact shows the change in Israeli consumption habits. It seems the Israeli, men and women, have more free time than ever which allows them to plan their leisure time. * The climate in Israel enables worldwide tourism to come to Israel in all seasons. The night life is longer and safer than many other places in the world – tourists who visit Israel enjoy this social freedom. The value of life and death is quite different in Israel due to struggle for survivor. Security and safety are very important and are overvalued by the customers and EL AL has a reputation regarding these issues. * Environmental awareness – *** Today’s social trend is to be green and clean. ELAL collaborates and support many green organizations and encourages youth into creating new green-tech. This promotes ELAL as an environmental friendly company while increasing public’s adherence. * Kosher food – one of ELAL’s largest audiences is the Jewish religious people. Their 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 therefore 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 service 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 efficiency while 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 few steps further. In the long run, the website exposes the audience to very important and relevant details that are handier. This obviously minimized the number of flight agents while transforming them into tourist advisors. The revolution of the customer service is relying now on the innovation in technolo gy. This improves the commercial interaction between company and the customer. The industries competitive situation using Porter’s 5 Forces The threat of the entry of new competitors ELAL owns the largest market segment in the Israeli aviation field and therefore it has to create many barriers to eliminate new competitors. The company accomplished that by having full control over a variety of goods and services such as transporting passengers and baggage, a variety of destinations and high security level. There are many factors that make it difficult for other competitors to enter the market: * Initial investment – in order to found a new aviation company, it is necessary to have sufficient capital for buying airplane navy and technological infrastructures. Moreover, there is a large depreciation over the equipment this field. The maintenance of an airplane company can sometimes appear to be luxurious one but not necessarily a profitable one. * Fuel costs – jet fuel 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 industry is one of the first to be affected from financial crises and can easily be exposed to bankruptcy. For 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. * Aviation 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 wanted to enter the market. The competition in this field is very intense and competes on passengers’ benefits, flight courses, and variety of destinations and level of service. ELAL’s strategy for combating this competition is: 1. Flexibility in scheduling flights according to different seasons and international events (holidays, Olympic Games, sport events, high season-low season, etc. ) 2. Increasing flight frequencies to popular 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, quality of food and entertainment during flights. Most of the focus goes to First Class. 4. Frequent flyer club – ELAL has found a club in which it compensates its member with highly valued benefits like seat-upgrading, flight tickets discounts, etc. 5. Promoting them through worldwide advertisement. The bargaining power of customers (buyers) The customer thrives to push prices down and quality of services up. The power 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. In 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 push 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. Many of ELAL’s suppliers have exclusivity in their field and the knowledge that they have, made them powerful against ELAL. The fact that many of ELAL’s suppliers are also it subsidiaries, increases its profitability 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. Aviation companies in Israel have a weak bargaining power against fuel suppliers as a consequence of political issues that affect the price of fuel. There 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 kind of relationships between governments created a dependency on one supplier with a high level of bargaining power in a market which is limited in the first place. The threat of substitute products or services ELAL offers its customers a variety of permanent destinations all over the world. Moreover, through its subsidiary San D’or, ELAL offers 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 another 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. These companies reduce flight ticket’s prices (30-50 Euro) by charging only for the flight itself and any other service is being paid extra (luggage, 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 companies all over the world, where each one strives to have a significant differentiation which will attract customers’ hearts and pockets and enlarge their market segment. Barriers to exit – ELAL have â€Å"code sharing† with many foreign airlines (Appendix2). As a result, it has full access to internal information of these companies, which enables it to know about the activity of its competitors. Similarly, ELAL’s delicate information 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). As 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 improves ELAL profitability. Target Market Potential Market Addressable Market Target Market Potential Market Addressable Market Total Market Total Market Market segmentation Macro segmentation Total Market – A group of people sharing the same characteristics that cause them to have similar needs – to fly from one place to another. Potential Market – Men and women, all ages, with no prohibition to fly (pregnancy, heart patients, etc. ), who want to fly from one place to another. Addressable Market – Men 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 Business * Age: 30-70 years old. Occupation: Business men and women who have international businesses. * Lifestyle: 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 variet y 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. This is a very dominant sector among ELAL customers and therefore ELAL treats this segment with delicacy and tries to be as religious oriented 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 segments 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 ELAL 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 every firm in the field will return the same profitability. Firms are able to apply their core competence, businesses model to achieve a profit above the industry average. After examining Porter’s five forces, we analyzed ELAL’s attractiveness within its industry. Backward vertical integration: dealing with supplier bargaining power ELAL acted wisely when buying most of its suppliers and neutralizing their power. However, 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). By 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. These 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 merging with such low-cost company, they would probably increase its profitability and addressed a new unutilized market segment. Chapter 4: The Company’s Marketing Overview Mission Statement, Objectives and Values ELAL has set many targets, which the main one is to operate as an integral part in the global aviation competitive world, while keeping its uniqueness as an international airline company of Israel. In addition, ELAL is defining the following goals: 1. Uncompromising 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 – retirement plans, reducing the number of offices overseas. ELAL defined the aforementioned goals as part of â€Å"ELAL’s 2010 project† 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. Marketing Mix (Four P’s) The marketing mix is the combination of several techniques 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 – Different levels of services – Economy 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. Pricing 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 minutes 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. Promotion * 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 Strength * A variety of services and goods (â€Å"Fun 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 safety. * Kosher food and respecting Shabbat. * Many 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 relatively to the market. * ELAL does not maintain constant collaboration with agencies abroad and loses potential market. Geographically Israel is located 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 reduce s 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 increasing prices of fuel| ELAL’s main problems Keeping 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? We find the company's marketing mix in tune. The company provides its products in relatively high prices. Following the latter, the prices are a derivative of security and social aspects as described. The company pays relatively high salaries in order to obtain the level of service. Although privatized, the company maintains its objective to be the â€Å"national company† 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. ELAL 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. Expending 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 operate 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. Maccabi 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 role in Israel's short history. ELAL has evolved from a national owned company with all that entails (unions, heavy 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. To do the latter, ELAL determined prices, strategic agenda and image by the aforementioned guidelines. The future will tell 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 Range:  4870  km Engines:  C. F. M. Cruising speed:  873kph/Mach 0. 8 Length:  110ft (33. 6m) ; 129ft (39. 5m) Wingspan:  112ft,(34. 5m)  | |   | | Boeing 747 – 200  | Total in service:  1 Cargo Range:  10000 km Engines:  Four Pratt ; Whitney Cruising speed:  917kph/Mach 0. 84 Length:  231ft 11ins,(70. 7m) Wingspan:  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)  Ã‚  | |   | | *  Boeing 747 – 400| Total in service:  6 Range:  11860  km Engines:  Four Pratt ; Whitney Cruising speed:  927kph/Mach 0. 85 Length:  231ft 11ins,(70. 7m) Wingspan:  213ft,(64. 9m)  | | | *Boeing 767| Total in service:  8 Range:  10000 km Engines:  Two 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

Character Development in Arthur Millers The Crucible

The role of Arthur Miller in the development of The Crucible The Crucible deals with the main events of Salem and the main changes and developments of roles emerging in the play. Every character in the drama experiences some change whether it is good or good. Arthur Miller believes in the good and evil of Chura, he thinks that all characters are doing work of God, but actually shows encouraging devils. They are good and sincere Christians, but many people can not even follow the Ten Commandments. The Crucible of the theme of the Crucible Development Arthur Miller is a historical drama, but more important is the social and psychological drama. Various ways to develop themes through The Crucible are through characters, plots, settings, and conversations. According to Raymond Williams, the importance of witch trials, the moral crisis of society is clear and directly be formulated, have been described. In this way, life style overall quality of the organic non-existent You can see the qu ality (Ibsen to Brecht's play, until 1968). Abigail Williams of Arthur Miller 's Cru 埚 saw various aspects of the role of Abigail Williams in the whole drama of Krusselsburg. Arthur Miller created funny and complex characters with diverse and distinctive features, but in the first scene, the audience clearly recognized the characteristics of her control and operation. Abigail was first introduced as 17 years old, very beautiful girl, orphan ..., but since the parents were found to be absent, the audience became sad. Please refer to Mirror 's introduction to Abigail Williams with Waste. How realistic he is about her performance as a controller. In Arthur Miller's The Crucible, Abigail Williams appeared as an administrator of many key figures. Abigail can manipulate and control many characters well. Her beauty allowed her to influence others. Arthur Miller's Justice and Injustice in Chura, by Arthur Miller, by John Proctor, by Elizabeth Proctor and by Abigail Williams the role of justice and injustice. It also shows through the small role of Mary Warren and Messi Luis, the followers of Abigail Williams, and Danfoss and various citizens. There was a rumor that Abigail Williams and girls were discovering dancing in the forest by pastor Paste, when Bettari and Ruth Putnam found magic, there was magic between them.

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Law for business - Essay Example The customer bought an action against the manufacturer on the basis that there had been a fault in the hardware of the computers. The fault meant that the computer could not be repaired in time and this resulted in considerable loss to the customer, as its business had to meet a crucial deadline. The customer claimed that there had been a breach of contract because the computers were not of satisfactory quality which is an implied term in the contract and moved on to say that there had been negligence on part of the manufacturer as he had made defective products and thus they wanted the cost of the computers as well as the lost profits. The legal basis of the claim would thus be for breach of an implied term and if there are any express terms as to the quality of the products and negligence on the part of the manufacturer in making the product. Finally if the computer would have caused any other damage, there might have been liability under product liability. The manufacturer has limited his liability in the first clause only to the total cost of the computer and so if either a breach of contract or negligence is proved, he must pay for the total cost of the computers. However, under clause 2 since the loss was incidental or as a consequence of the fault, the manufacturer would not be held liable as the clause has limited liability for such damages, whether it is tort or contract. Under the Data Protection Act 1998, the data has to be processed in accordance with the law and in a manner which is fair and proper. As for the application of the Act, if the firm is small the act applies to both, customer as well as existing and former employees. If information is collected from employees they must be informed of the use that the information is going to be put to and provide them with the right to access such information and correct it in the future. Further, such use of passed on information is done fairly. Any information being passed on to third parties must be

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Journal 1 Article Example | Topics and Well Written Essays - 1250 words

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Select one picture and talk about 2 - Essay Example David Park used figurative art to express his concepts in the picture (Jones 1). The thesis statement: the discussion of Ethiopia (1959) is a quest to discover if the piece of work is an object of novelty or objective style? From the aspect of composition, the picture occupies the entire space on the canvas. The figures in the painting are a full size that represents images of grown-up adults. The background consists of different colors that reflect on the images and also compliment them. Looking at the position of their hands and legs, it is clear that there is no movement, they are just standing. The woman at a distance has one hand on her head that may imply that the occurrence is difficult to understand. From the facial expression of the four images, it seems like two people are conversing while the other two are listening. The woman is discussing an issue with the male because the two figures in the front are facing each other. This aspect also shows the difference in the position of the four images; that is the one not displaying the entire body are close, and the ones that are full exhibited are at a distance. David Park has arranged the four images at a different position on the canvas to give m ore attention to the closer images that seem to be the center of his art. Moreover, the figures can be viewed from different angles that make the painting unique. The images are easy to interpret because one can tell the sexes of the individuals and that they are naked. Particular features highlighted in the painting are used to determine the correct sex of the figures. Paying a little attention to the color used on the figures, the woman speaking has a different tone from the others. It can be translated to make her stand out in the piece of art. Analyzing the picture one can conclude that the individuals involved were not civilized because they had no clothes. From the painting style point of view, the brush work is rough because the images do not have

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How does past worldwide exhibitions influence present exhibitions Using case studies of The Great Exhibition 1851, The Mille - Essay Example When looking at defined ideas within the architecture, there is the ability to identify with a variety of approaches which are a part of the exhibitions. When comparing the Great Exhibition of 1851 to the Millennium Dome 2000 and the Shanghai World Expo 2010, direct relationships are seen with the approach. This is based on the purpose, reason and benefits of each exhibition. This is also a part of the architecture and design that is developed, specifically which states a specific message relating to the architectural designs and approaches. This paper will examine the differences and similarities of each as well as how they have held similar approaches in the development of the architectural principles. The Great Exhibition of 1851 The Great Exhibition of 1851, also referred to as the Crystal Palace Exhibition, took place in London in May of 1851. The idea was based on creating a temporary structure that combined the cultural and industrial changes of the time. The main features of the exhibition were based on having a highlight to modern approaches to industry and design, specifically as a response to the French Industrial Exposition of 1844. The motive was to make a statement that Britain was a leader in the concepts of industry and culture and had superior achievements to others that were a part of the changes into modernism during this specific time frame. The exhibition was formed over a period of 10 days by Joseph Paxton, specifically which was designed as a glass house or green house that stood 1851 feet long and 454 feet wide. The cost to build the exhibit was 500,000 but made a surplus of 16,190,000 pounds as of 2012. The price of admission ranged, dependent on the status of the individual, ranging from three guineas to five shillings. The opening day held 2,500 people as a part of the exhibition with 1/3 of the population, or six million people, going to the final exhibition (Victorian Station, 2001:1). The basis of the Crystal Palace provided a vari ety of benefits to London and to the holding of the exhibition. The Great Exhibition is now recognized as one of the best world exhibits that was made, specifically which allowed the UK to become recognized as a world leader. The benefits furthered with noting the industrial and technological movements which were in society. The innovations which were added had displays of how different pieces of machinery and other operations were conducted. Those who were visiting the exhibition were able to take part in a deeper understanding of the movement forward with technology and how this was creating an alteration into society at the time. This was furthered with the openness to the cultural relations, art and architecture that was displayed and the music, cultural performances and political recognition which were associated with the exhibition. Each of these were able to influence and create interest within society based on the variety of shows which were held and how this was leading the innovation as well as the various concepts within the historical moments. The interest which this gathered and the approaches which were taken to gain this recognition then allowed the doors of the UK to open into cultural relations, recognition with the technology and responses which were noted from the surrounding society (Victoria Station, 2001:1). An important component with the Great Exhibition was based on the design and architecture which was used in developing the correct approach to the exhibit.

Reading Journal A Good Man Is Hard to Find Essay

Reading Journal A Good Man Is Hard to Find - Essay Example as been portrayed, it is clear that she has an out fashioned and traditional perspective of life, where life was full of goodness, including respect for people and doing what was right for everyone. Her perceptive in life would hold true during her times, when she was still growing up. However, it is far from reality today, especially with people like Misfits and his friends owning guns. This portrays the fact that the boys do not care about the well-being of their fellow men, and go as far as shooting the family. Due to her view of the world, grandmother even prepares for her death, saying she prefers wearing nice clothes so that her corpse would look good. Looking at grandmother’s character, it can be deciphered that she is ignorant and not flexible enough. This is because she does not adjust quickly to the changing world. Instead, she continues to judge people in her own way and expects them to act just as they did. In her mind, she has created her version of what passes as goodness. T6his she does even after continuously deceiving her family. The narrator mentions, â€Å"The grandmother’s brown eyes were very bright† (311). This can be interpreted as ironic, because to the readers, grandmother appears to be unaware of the reality of the world around her. Even when faced with death when Misfit and his friends come to them with guns, she still calls the Misfit a ‘good man’. Her continuous encounter with children illustrates her eagerness to teach the children ‘good’. The concept of Christianity also comes into play when talking about goodness. It demands that people see the goodness in others, irrespective of their errors. This could probably be the reason why grandmother calls Misfits a good man. According to her, her late husband was a good man. She tells the children about her life, implying that she expects the children to see the goodness in everyone. Grandmother is proud of her spirituality, even when begging for her life. In conclusion, it is

Biografy of William Sharespeare Essay Example | Topics and Well Written Essays - 750 words

Biografy of William Sharespeare - Essay Example He must have formed his great love of literature from reading the classical Roman writers. Not much is known about Shakespeare’s teenage years but it is likely that the worked in some field connected with acting and the theater, and very possibly like modern actors had to support his acting ambitions with other odd jobs as he went along. It is clear from his later writings that he gained a lot of knowledge about many different trades and common people, and this suggests that he learned practical things as well as his literary skills. Thanks to surviving church records it is possible to establish the fact that during this period he also got married to a woman called Anne Hathaway. She was considerably older than William Shakespeare, and was already pregnant when the wedding took place in 1582. The first baby was a girl, and then there were girl and boy twins after that but Shakespeare abandoned his family in Stratford to seek his fortune in the much bigger city of London. Sadly the boy twin, Hamnet, died at the age of eleven and not much is known of what happened to the other children. By the end of 1592 Shakespeare was an established actor, performing in London and other towns with a group of actors called â€Å"The Chamberlain’s Men† who in those days were known as â€Å"players.† In this period in England theaters were often closed down because of plague, and Shakespeare therefore had time to gather and read books and plays which would later inspire his own writing. He appears to have been very successful a player: â€Å"There is proof that Shakespeare had performed with the Chamberlain’s Men before Elizabeth 1 on several occasions.† (Mabillard, section headed â€Å"Shakespeare the Actor and Playwright†). In the middle of his life Shakespeare began writing sonnets and non-dramatic poems and then he began to write historical plays, comedies and tragedies in the period from 1590 to 1612. Some of the exact dates a re difficult to pin down because the historical record is not complete. There are also several versions of some plays, and the authorship of some of these has been disputed over the years by scholars. The general consensus is that he wrote thirty seven plays but it is possible also that he wrote fewer than this, or that he wrote and collaborated on more than this. The majority are comedies, but some of his most memoral work like Hamlet, Romeo and Juliet, King Lear and Othello are tragedies. Even the tragedies and historical plays contain elements of humor in them also, and Shakespeare was well known for his ability to weave silly and serious plotlines together. Mabillard identifies four features which characterize Shakespeare’s literary style and guaranteed his popularity both during his own lifetime and in the centuries since his death: â€Å"Illumination of the Human Experience†¦ Great Stories †¦ Compelling Characters†¦ and the ability to turn a phrase.† (Mabillard: section entitled Why Study Shakespeare) He was quickly recognized as a man of genius, and his plays became a major part of English and later also world culture. His innovative use of language entertained the people of his own time but then also became part of the English language, as for example phrases like â€Å"band of brothers† and â€Å"the green-eyed monster† which we still use today. There is no firm evidence of the way that

Barack Obama and his Political Propaganda Essay Example for Free

Barack Obama and his Political Propaganda Essay The process of running for the United States presidency is no easy task. Like in almost any relationship, attraction is the key to provide the foundation for anticipation and expectations. In the beginning, one will always place his best foot forward, and contemplating on addressing issues which would appeal dramatically to other people. Running for the presidency is no less than different with pursuing a girl to have a relationship with you. It all starts with making her pay attention to what you have to say and to what you can offer despite many competitors.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Barack Obama came across the attraction stage with flying colors because he seemed to have captured the attention of most population in the American community, across varying groups and minorities (Martin, 2008, p.1). For one, he appeared to come prepared for what is known as a great battle to get Democratic nomination against Senator Hillary Clinton who is one tough competitor. Obama lacks the experience, and can be said as less popular than Clinton who has established her prominence during the presidency of her husband. However, the appeal in Obama’s candidacy defers the idea that he was only elected as Senator in 2005, and a very young player in the realm of politics.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   This paper aims to explore the political propaganda used by Obama to ensure his future in the White House. For the purpose of the paper, we shall examine the different types of media used by Obama to gain votes and preferences, the manner by which he delivers his agendas, his target audience and supporters, and how this greatly affects his stance in the race to get the democratic nomination. It is certain that the race between Obama and Clinton’s nomination is very tight, but we shall take the time to assess how Obama’s political propaganda has delivered expected results in his leads on major polls and surveys worldwide as Democrats most preferred candidate. â€Å"Change we can believe in† It is a fact that most Americans are demanding change from future politicians in running the country. Many circumstances and events has led Americans hopeful for change and has been the pivotal driving force behind many political agendas. Obama is no exception. By using the ideology of â€Å"change† as a campaign slogan, he ignites the hope among idealistic men and women around the country to believe in what he regards as change (Obama 2008: Change we Believe In, 2008). Obama has a great advantage in speaking with eloquence and sensitivity, with emotions that has words fulfilled with hope and change, gives many people the self-identity they want to see change in the future administration, or in this case, in a democratic candidate for the presidency. This is a note worthy to be taken beforehand, so as to provide a basis on how we can assess Obama’s political propaganda.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Even before the decisive voting held on February 5, 2008, there has been a pronounced shift in favor for Obama of Illinois from opinion polls, surveys, campaign contributions and political and media endorsements (Martin, 2008, p.1). Obama, being a new player in the realm of politics used significant intervention from different political representatives to endorse his candidacy. For example, when Senator Edward Kennedy expressed his fervent support for Obama, it has generated significant contribution in uplifting Obama’s candidacy. As many critics saw it, Kennedy’s endorsement has become a signal of the Democratic Party’s consensus on his candidacy. Following this influential event led to many mass media endorsements of the event including newspapers published in California, Los Angeles Times and La Opinion, which the most widely-read Spanish-language daily.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   After Kennedy’s endorsement, opinion polls showed Obama in strict ties with Senator Clinton for the democratic nomination (Associated Press, 2008). The strategy used governs many political advisers view to gain majority of delegates from key states to secure victory, and Obama did it with just one major political and highly-publicized endorsement.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The appeal of Obama’s political propaganda can be deemed into two significant standpoints. First, the on-going deep desire for social and political change is strongly used by the Obama campaign to hub an illusion, and to foster great support from the idealist (martin, 2008, p. 1). This s highlighted by the mass media by emphasizing that this change will come from someone from the African American community, a fundamentally groundbreaking event in American history if and when Obama wins as the first black President. However, Obama is not a clear product of any acts against racial oppression and civil rights struggles. He is a politician groomed to be of appeal to massive voters in the coming elections.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Obama’s political propaganda seeks to disengage and disassociate itself from the struggle of the elite and ruling class in running the country. More so, the critiques on Obama has seemingly less impacts because of a well-organized activities from the media who supports his candidacy and owes their respective professions to corporate bosses and financial institutions which have their own candidate as preferences. Even Obama’s appeal has penetrated the right-wing group with endorsements from Rupert Murdoch for example.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Also significant of the character of Obama’s political propaganda is the shift in campaign contributions from major business firms. More money means more capability in a candidate’s political machinery. Obama has been endorsed by different military institutions, then national security adviser to President Jimmy Carter, Zbigniew Brzezinski, and Warren Buffett, the second richest man in the United States. Other known mass media executives and corporate executives have also pledged significant amounts for Obama to continue his aspiration on the America presidency. Through continuous efforts from the Obama campaign wagon to instill their dedication towards real change, the Los Angeles Times broke their tradition of not endorsing any candidate with the promotion of Obama’s candidacy in their editorial (Martin, 2008, p.1 ).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚     As an observation, although generally the political propaganda of Obama is sufficient for him to gather and maintain support, it is also clear with biases to achieve voters support. For one, it sometimes resorts to Ad Hominem or the attack to his primary opposition and her arguments. In many cases, through debates and news reports, Obama responds to what Clinton offers on a negative tone. Although at times he emphasized their differences, he also had made several points of their similarities obvious to other people. By using change as a promotional concept and advocacy of his candidacy, he often appeals to authority which uses an ideal which is popular amongst people and grant their support for the ideology he used. He also often uses the appeal to prejudice on many public conventions and speaking engagements to evoke the sense of emotional value and goodness to benefit his character. Conclusion The Obama campaign has utilized effective marketing campaign strategies which efficiently used their connections and endorsements form media outlets and institutions. For the most part, Obama is following a political propaganda which is embedded to deny political differences and social classes but with emphasis on the economic differences between individuals in the society.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The Obama political propaganda strongly used news reports, radio, television and posters. It specifically and strategically used these media to indoctrinate various groups of audiences he wished to communicate with and to. Usually through this media, Obama used a directional method on how people can learn about more of his strategies, goals and principles. Through these methods, he intends to initiate individuals as information seekers, to recipients, to reinforcement and opinion leader in favor of his own. Works Cited: Associated Press (2008). â€Å"Obama comes up short on union support.† Hemscott Group Limited. Retrieved on March 24, 2008, from http://www.hemscott.com/news/latest-news/item.do?newsId=56416543358904 Martin, Patrick (2008). â€Å"US political establishment lines up behind Barack Obama.† International Committee on the Fourth International (ICFI). Retrieved on March 24, 2008, from http://www.wsws.org/articles/2008/feb2008/obam-f04.shtml Obama for America (2008). â€Å"Obama 2008: Change we Believe In†. The Official Site of Obama’s Campaign. Retrieved on March 24, 2008, from http://www.barackobama.com/